The Global Legal Technology Market size is expected to reach $45.1 billion by 2030, rising at a market growth of 9.3% CAGR during the forecast period.
Asia Pacific is the fastest growing region due to the legal sector's expanding use of artificial intelligence and machine learning technology. Consequently, Asia Pacific would acquire approximately 22% share of the market by 2030. Many businesses in the Asia Pacific region are implementing the most recent technologies to handle document management, legal research, contract analysis & review, and other tasks. Additionally, the industry benefits from the expanding use of blockchain technology since it gives legal professionals the ability to handle duties like contract management and dispute resolution while also providing an immutable as well as a secure transaction record.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In May, 2023, Icertis revealed ExploreAI, its next-generation AI-powered contract intelligence partner. ExploreAI combines Icertis proprietary AI models and the power of large language AI models to derive insights from enterprise data, customer contract data, the Icertis Data Lake, and ChatGPT to provide new, powerful, material business outcomes. Additionally, In May, 2023, Everlaw, Inc. came into a strategic partnership with Sandline Global, a premier eDiscovery, iManage, and Litera service provider. The partnership enables the company to combine the strength of Sandline Global to create a unique and unparalleled offering for European clients.
Based on the Analysis presented in the KBV Cardinal matrix; RELX PLC is the forerunner in the Market. Additionally, In March, 2023, Casetext revealed CoCounsel, the first AI legal assistant. The new product leverages the most advanced large language model from OpenAI, which is customized by the company for legal practice. By delegating legal research, document review, deposition preparation, and contract analysis to an AI, CoCounsel allows attorneys to focus on the more impactful aspects of their practice. Companies such as Icertis, Inc., Filevine, Inc. and Casetext, Inc. are some of the key innovators in the Market.
Expert witnesses are crucial components of a case, and their skill, trustworthiness, or past experiences may impact how the case turns out. Researching and running an investigation on an expert witness is frequently difficult, laborious, and time-consuming, and getting even one element wrong can seriously hurt the case. When conducting witness research, AI-powered technologies can be useful since they give attorneys access to information such as the expert's qualifications, involvement in cases, media appearances, and real-time updates for the most recent data. Business excellence will depend on enabling organizations to detect, respond, learn, and evolve like living organisms. This is accomplished by a broad yet flexible portfolio of services.
Businesses are recognizing that with the aid of legal technology, the quality of legal services is increased, and routine administrative activities are avoided when information is processed quickly. They can monitor all the important data—including intakes, clients, billings, cases, and more—using artificial tracking systems and may analyze it in many ways. Having all the necessary information in one location helps the business foresee changes in the legal workflow and develop successful solutions. Thus, the growing inclination of businesses toward the product is accelerating market expansion rapidly, and this trend will continue in the coming years.
A significant hindrance to advancement is the market leaders' lack of genuine innovation, especially regarding case management software. Case management software is essential for efficient and successful legal case administration. Even today, most cloud-based case management systems are still simple customer contact management systems (CRMs), according to industry experts. This dearth of innovation seems to be especially detrimental to case management. As a result, most practices haven't been able to advance and adapt to the shifting demands of the legal sector. Hence, the aforementioned factors may become a hindrance to market expansion in the coming years.
Based on solution, the market is characterized into software and services. The software segment garnered the highest revenue share in the market in 2022. The expansion is linked to the growing use of legal software by legal departments as well as law firms to cut costs, improve efficiency, and streamline operations. The industry is expected to see profitable growth prospects by incorporating cutting-edge technologies like artificial intelligence, machine learning, and blockchain technology.
By end-user, the market is divided into law firms, corporate legal departments, and others. The corporate legal departments segment procured a significant revenue share in the market in 2022. Corporate legal departments are placing a high priority on reducing the amount they spend on outside counsel and introducing timesaving technologies to streamline manual processes and workflow. This is because, in the past, many attorneys stated that their department's pace of technological and procedural advancement was either slow, having few changes implemented each year, or nonexistent, despite the continuous prioritizing of technology investment.
The software segment is further bifurcated into cloud and on-premise. The on-premise segment acquired the largest revenue share in the market in 2022. With an on-premise solution, organizations have direct control over their data and can implement security measures. This is particularly important for industries and organizations with strict data privacy and security requirements, such as law firms handling sensitive client information or government agencies dealing with classified data. On-premise solutions allow organizations to ensure compliance with specific regulatory requirements or industry standards.
On the basis of type, the market is classified into e-discovery, legal research, practice management, analytics, compliance, document management, contract lifecycle management, time-tracking & billing, and others. The contract lifecycle management segment procured the highest revenue share in the market in 2022. Software for contract lifecycle management handles all aspects of managing contracts, from initial contract drafting to execution, continuous management, and ultimate expiration or renewal. Businesses increasingly need to handle contracts more effectively and efficiently, which has led to a rise in the segment in the market.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 22.5 Billion |
| Market size forecast in 2030 | USD 45.1 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 9.3% from 2023 to 2030 |
| Number of Pages | 277 |
| Number of Table | 484 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Solution, Type, End-user, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment acquired the maximum revenue share in the market in 2022. The region is expected to experience significant growth due to rising automation through the use of machine learning and artificial intelligence, along with rising acceptance of cloud-based applications as they offer cost-effectiveness, scalability, as well as flexibility, providing various growth opportunities for the market. The development of legal technology in North America is also anticipated to be fueled by the incorporation of blockchain technology, which will provide transparency as well as secure legal transactions.
Free Valuable Insights: Global Legal Technology Market size to reach USD 45.1 Billion by 2030
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Icertis, Inc., DocuSign, Inc., Knovos, LLC, RELX PLC (LexisNexis Risk Solutions, Inc.), Filevine, Inc., Casetext, Inc., ProfitSolv Corporation, Anaqua, Inc. (WiseTime), Paradigm and Everlaw, Inc.
By Solution
By End User
By Type
By Geography
The Market size is projected to reach USD 45.1 billion by 2030.
Rising need for data-driven decision making are driving the Market in coming years, however, Lack of cooperation and innovation in the legal sector restraints the growth of the Market.
Icertis, Inc., DocuSign, Inc., Knovos, LLC, RELX PLC (LexisNexis Risk Solutions, Inc.), Filevine, Inc., Casetext, Inc., ProfitSolv Corporation, Anaqua, Inc. (WiseTime), Paradigm and Everlaw, Inc.
The Law Firms segment is leading the Global Legal Technology Market by End-user in 2022 thereby, achieving a market value of $24 billion by 2030.
The North America market dominated the Global Legal Technology Market by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $19.4 billion by 2030.
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