Legal Technology Global Market Report 2024

Legal technology, often referred to as legal tech, involves the application of advanced tools, software, and processes within the legal industry to optimize and enhance legal operations, streamline case management, and improve overall legal services. This field leverages technology to automate repetitive tasks such as document review, contract analysis, and due diligence, with AI-powered tools facilitating quick data analysis, saving time, and minimizing errors.

The primary types of legal technology include case management, lead management, document management, billing and accounting, among others. Case management involves the systematic organization and coordination of legal cases by lawyers or legal professionals. In the realm of legal technology, case management systems are utilized to streamline legal workflows, manage client information, automate routine tasks, and ensure compliance with relevant rules and regulations. Solutions encompass e-discovery, legal research, legal analytics, document management, and other tools tailored for use in law firms, corporate legal departments, and other legal entities.

The legal technology market research report is one of a series of new reports from The Business Research Company that provides legal technology market statistics, including legal technology industry global market size, regional shares, competitors with a legal technology market share, detailed legal technology market segments, market trends and opportunities, and any further data you may need to thrive in the legal technology industry. This legal technology market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The legal technology market size has grown strongly in recent years. It will grow from $27.64 billion in 2023 to $30.33 billion in 2024 at a compound annual growth rate (CAGR) of 9.7%. The growth observed in the historical period can be attributed to several factors, including the increasing legal workload and complexity faced by legal professionals, growing regulatory compliance requirements, the rise of e-discovery solutions to manage electronic information, challenges posed by globalization and cross-border legal issues, and heightened client expectations for efficiency in legal services.

The legal technology market size is expected to see strong growth in the next few years. It will grow to $43.48 billion in 2028 at a compound annual growth rate (CAGR) of 9.4%. The anticipated growth in the forecast period can be attributed to several factors, including an increased focus on cybersecurity in legal operations, the adoption of cloud-based legal services, heightened attention to diversity, equity, and inclusion (DEI) in the legal industry, cost pressures driving efficiency in legal operations, and the utilization of blockchain for smart contracts. Major trends expected in the forecast period encompass the integration of blockchain technology for legal processes, the proliferation of remote work and virtual collaboration in the legal field, the incorporation of legal technology in education, the emergence of regulatory technology (RegTech), and advancements in e-discovery and digital forensics.

The surge in litigation and investigations is anticipated to drive the growth of the legal technology market. Litigation and investigations involve legal processes aimed at resolving disputes or examining activities to ensure compliance with applicable laws and regulations. Legal technology plays a crucial role in supporting these processes by empowering lawyers to discover and analyze information, make critical assessments, and perform essential tasks necessary for successful outcomes in court. For example, in February 2023, the United States Department of Justice (DOJ) obtained over $2.2 billion in settlements and judgments from civil cases involving fraud and false claims under the False Claims Act (FCA) in 2022. Consequently, the increase in litigation and investigations is a key driver for the growth of the legal technology market.

The growing need for remote work is expected to further boost the expansion of the legal technology market. Remote work involves employees conducting their job responsibilities outside of a traditional office environment. In the context of remote work, legal technology tools are crucial to ensuring data security and compliance with privacy regulations. This includes the establishment of secure communication channels, encryption, and adherence to data protection standards. For instance, a September 2022 report by the United States Census Bureau revealed that the District of Columbia led in remote work, with nearly half of its workforce (48.3%) engaged in home-based work, representing the highest percentage among states and state equivalents in 2021. Other states with notable proportions of remote workers included Washington (24.2%), Maryland (24.0%), Colorado (23.7%), and Massachusetts (23.7%). Thus, the growing need for remote work is contributing to the growth of the legal technology market.

Cybersecurity risks are expected to act as a constraint on the growth of the legal technology market. Cybersecurity risks encompass potential threats and vulnerabilities in the digital domain that can compromise the confidentiality, integrity, and availability of information and systems. In the legal technology sector, cybersecurity breaches, including data breaches, can result in unauthorized access to sensitive legal information, client data, case details, and confidential documents, potentially leading to legal and financial repercussions. For example, in September 2023, AAG, a UK-based provider of IT support services, reported that 39% of UK companies experienced a cyberattack in 2022. Additionally, cybercrime impacted 53.35 million individuals in the United States in the first half of 2022. Consequently, cybersecurity risks are hindering the growth of the legal technology market.

Major companies in the legal technology market are addressing these challenges by developing innovative products that leverage artificial intelligence (AI). One such example is the adoption of AI in document summarization tools. Document summarization tools utilize AI and natural language processing (NLP) to automatically condense lengthy documents into shorter, more concise summaries, capturing essential information and key points. For instance, in September 2023, LegalZoom, a US-based legal technology and services company, launched Doc Assist, a free document summarization tool that leverages generative AI. This tool helps small businesses efficiently review documents, maintain organization, quickly grasp essential information, and access guidance from reputable attorneys for more informed decision-making. Doc Assist allows users to upload any legal document, providing instant key information, condensing critical clauses, and suggesting pertinent questions tailored to the document type. Combining Generative AI technology with LegalZoom's expertise, Doc Assist serves as a customized guide for navigating the complex realm of legal paperwork.

In May 2022, LexisNexis, a US-based publishing company, completed the acquisition of Parley Pro Inc. for an undisclosed amount. The strategic acquisition was intended to enhance the Counsel Link Enterprise Legal Management (ELM) platform. By integrating Parley Pro's capabilities, the Counsel Link ELM platform aimed to provide real-time contract collaboration, management, and negotiation, along with actionable analytics and integrated end-to-end automation. The incorporation of Parley Pro's technology was expected to reduce contracting time by up to 40%. Parley Pro, a US-based legal software company, specializes in cloud-based legal contract management and negotiation software. Its solutions are designed to expedite contract authoring, streamline contract negotiation processes, and analyze executed contracts.

Major companies operating in the legal technology market report are RELX PLC, Thomson Reuters, Wolters Kluwer N.V., OpenText Corporation, LexisNexis Legal & Professional Company, DocuSign Inc., LegalZoom, Dialpad, Dye & Durham Limited, The Access Group, Icertis Inc., Relativity ODA LLC, Everlaw Inc., iManage LLC, Anaqua Inc., Nextpoint, Themis Solutions Inc., Mitratech Holdings Inc., Filevine Inc., Practice Insight Pty Ltd., WiseTime Ltd., TimeSolv Corporation, Clio, Fidu, Knovos LLC, Lawyaw, Legalboards, Mystacks Inc., ProfitSolv LLC

North America was the largest region in the legal technology market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the legal technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the legal technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The legal technology market consists of revenues earned by entities by providing services such as subscription, integration, consulting and licensing fees of legal work. The market value includes the value of related goods sold by the service provider or included within the service offering. The legal technology market also includes sales of eDiscovery platforms, contract analysis tools, and legal communications tools. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Legal Technology Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on legal technology market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for legal technology ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The legal technology market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: Case Management; Lead Management; Document Management; Billing And Accounting; Other Types
• 2) By Solution: E-Discovery; Legal Research; Legal Analytics; Document Management; Other Solutions
• 3) By End-User: Law Firms; Corporate Legal Departments; Other End-Users
• Companies Mentioned: RELX PLC; Thomson Reuters; Wolters Kluwer N.V.; OpenText Corporation; LexisNexis Legal & Professional Company
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.