The maturity of legal service providers in North America and Europe is high as they command the highest market share. More than 60 percent of the legal services spend is concentrated in the developed legal markets of North America and Europe. The APAC has the highest growth potential, with many legal service providers in the fray. Increasing demand for transactional practice areas such as corporate work, real estate, and tax work is driving demand for legal services. There is also a trend to adopt AFAs to introduce billing models.
The report also discusses various industry trends in regions such as North America, Europe, and the APAC, followed by an overview of various drivers and constraints impacting the industry. It also provides a regional market outlook in areas such as North America, Europe, and the APAC, followed by a discussion of various factors affecting legal services. The report also provides Porter's five forces analysis on factors such as supplier power, buyer power, barriers to new entrants, the intensity of rivalry, and the threat of substitutes.
Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.
Category Intelligence on Legal Services covers the following
In 2016, the global legal industry was valued approximately at $645 billion, and it is expected to grow at approximately3–4 percentto reach around $670billion in 2017.
The global legal services market size was $688 Billion (2018) and expected to grow at approx. 2–4 percent to reach $702–716 billion by 2019.
Legal market research shows that the KPIs include partner participation rate, partner per engagement, free review meetings, and turnaround time for routine matters.
The estimated global legal market size of North America is $302billion with a growth rate of 2-3 percent annually.
The competition in the legal market is intensified by the entry of more niche boutique firms and LPOs in the market.
The growing availability of information on the law firms’ capabilities, commoditization of legal services, increased use of technology, emergence of non-traditional service providers and increasing power of in-house general counsel have transformed the global legal services market into a buyers’ market. Buyers are driving matters like scheduling, staffing, scope of work and pricing.
Law firm expertise, global reach and execution capabilities are the key parameters to be considered while evaluating global legal service suppliers.
The Attorney salaries take up a major chunk of a law firm pricing structure, followed distantly by profits. The percentage components vary by the size of the law firm, level of establishment, and the legal market conditions.
Impact Area: Law Firms Providing Employment as a Practice Area and Legal Service Buyers Operating in the U.K.
The maturity of legal service providers in North America and Europe is high, as they command the highest market share. More than 60 percent of the legal spend is concentrated in the developed legal markets of North America and Europe. The APAC region has the highest potential for growth, with many global legal service providers entering the fray.
Increasing demand for transactional practice areas, like corporate work, real estate and tax work, is driving the demand for legal services. There is a mounting pressure to adopt AFAs and usher in transparency to billing models. These are some major challenges hampering the industry.
Law firms (outside counsel)
Mounting pressure to adopt alternative fees to bring transparency to billing models is acting as a constraint in the legal service industry.
Increased budgetary pressure to reduce outside counsel spending acts as a deterrent.