Legal Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Legal Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Legal Analytics Market is expected to register a CAGR of 6% during the forecast period (2022 - 2027). Legal Analytics provides valuable insights to help lawyers gain a winning edge in the highly competitive business and practice of law

Key Highlights

• The legal industry is moving toward rapid digital advancements and promises legal enterprises across the world an unprecedented competitive edge, and it is anticipated that the conservative legal industry will increasingly leverage innovations and embrace digital technologies into their daily work schedules.
• The analytics tools for legal application will not only help documentation but will also help in bringing down the overall time to prepare and investigate the cases. The tool also promises to bring more transparency in the overall process resulting in a better fee structure and satisfied clients for legal companies.
• However, legal analytics solutions can significantly speed up the time lawyers need to research by pulling up relevant results from databases. This extracted information still needs legal reasoning applied to it. However, the relevance of the data enables the professionals to spend their time applying it to a particular case rather than just finding it.
• However, lack of awareness about the technology and high initial cost of installment are a few factors that are hindering the market growth.
• The COVID-19 pandemic has disrupted businesses and legal functions across the world, thereby accelerating strategic decision-making. In countries such as the United States, legal officers have been investing in analytics technology that can help them in data management and prioritize actions.

Key Market TrendsContract Management Offers Potential Growth

• New regulatory prerequisites, globalization, proliferation in contract volumes, and complexity have resulted in growing recognition of the significance and benefits of effective contract management, thereby augmenting the demand for contract management.
• The growing recognition of the necessity to automate and improve contractual processes and satisfy increasing compliance and analytical requirements has also led to an increase in the adoption of more structured nad formal contract management procedures and an increase in the availability of software applications designed to address these needs. To meet those demands, several firms are incorporating new features in their existing contact management solutions to expand their customer base. For example, wolters kluwer n.v. provides CLM Matrix, The simple contract lifecycle management (CLM) system assists businesses in managing their end-to-end contract processes effectively and securely to improve business outcomes.
• Therefore, prominent vendors have also grown eager to design investment products around contract management. For instance, in April 2022, LinkSquares, the Boston-based company that provides AI-powered contract management and analysis platform, said it has raised USD 100 million in Series C financing, less than a year after introducing a USD 40 million Series B round, and bringing its total raise to USD 161.5 million at a current valuation of USD 800 million.
• Furthermore, in June 2022, In order to assist legal professionals in better connecting and streamlining CLM procedures and gaining complete visibility throughout a contract portfolio, Thomson Reuters recently announced additional features and capabilities for HighQ. These updates build on HighQ's most recent improvements, giving users stronger document automation tools for selecting and creating documents, better management of third-party paper contracts, and better signature tracking against files.
• Therefore, contract management aids the customers to automate their contracting procedures while minimizing risk, boosting compliance, and driving profitability. Such benefits help to have a positive outlook on the market. For instance, in November 2021, In order to help clients across industries gain more visibility into their contracts and better manage risk and the contracting process, Accenture and Icertis recently announced a strategic partnership. This partnership combines Accenture's digital transformation capabilities with contract intelligence technology from Icertis. Building on Accenture's successful usage of Icertis Contract Intelligence (ICI) throughout its global legal and procurement operations, the cooperation aims to achieve even greater success.

Europe is Expected to Witness the Significant Growth in the Market

• The United Kingdom is one of the world’s most crucial markets for legal services, with cities such as London witnessing more international and commercial arbitrations taking place as compared to any other city across the world. Moreover, some of the world’s largest law firms are headquartered in the country whilst the sector’s total output averages to around 1.6 percent of the country’s GDP.
• Further, a recent study of London law firms by CBRE reported that around 48% of the law firms are already using AI technology, and a further 41% will be adopting the technology in the near future. Also, previously, the Economic and Social Research Council (ESRC) awarded Oxford University’s Faculty of Law with a grant of GBP 1.2 million in order to explore the potential and limitations of using artificial intelligence technology in support of legal services.
• Additionally, the growing number of international players due to the availability of new markets, diversification, and gaining competitive advantage through investments in developed areas in the European region is also one of the major factors leading to the increasing demand for legal analytics solutions in the region.
• Increasing adoption of 3D technology across multiple industry verticals, to cater the growing demand for emerging applications ranging from shape analysis, 3D mapping, 3D modeling, 3D printing, among others has given rise to the development od 3D sensors that can gauge shapes in real-time. Instruments that were once bulky are now miniaturizedand compatible, due to rapid technological advancements that opens up a plethora of new applications across different industry verticals, where the sensors can be used.
• Further, manufacturing industries are using 3D technology to detect faults in the shapes and sizes of the produced products. The automobile industry is employing 3D sensors to continuously scan nearby vehicles, in order to enable improved safety and aid in developing the autonomous/driverless technology.

Competitive Landscape

The legal analytics market is moderately competitive in nature and many new startups are trying to disrupt the legal industry using the latest technology. However, the market is dominated by many global players such as LexisNexis Group Inc., AbacusNext, Wipro Group, etc amongst others. Product launches, high expense on research and development, partnerships and acquisitions, etc. are the prime growth strategies adopted by these companies to sustain the intense competition. Few recent developments are:

• March 2022 - Epiq, a provider of technology-enabled legal services to law firms and corporate legal departments worldwide, unveiled its Epiq Service Cloud, which includes improved versions of its proprietary Epiq Access, Epiq Discovery, and Epiq Processing platforms as well as expanded support for third-party apps. Modern software and technology underpin the Epiq Service Cloud, which enables corporate legal departments and law firms to fulfill deadlines, collect institutional knowledge, and generate useful insights from extensive data analytics.
• August 2021 - Ironclad, the digital contracting platform, announced the release of Insights, full-scale contract analytics and visualization platform. Each organization within a firm can gain a greater understanding of its contracts, obligations, and opportunities thanks to Insights, which collects data on the contracting process and metadata from the contracts themselves. Contract data has an extremely high level of integrity and effectively contains all facts about a firm because they are legally binding and utilized in every business activity.
• June 2021 - Thomson Reuters launched HighQ Contract Analysis, a contract review and analysis tool that uses machine learning to answer the specific questions that legal professionals want to address in an easy-to-read report.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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