Legal Analytics Market Research, 2031
The global legal analytics market size was valued at $1.5 billion in 2021, and is projected to reach $6.8 billion by 2031, growing at a CAGR of 16% from 2022 to 2031.
Legal analytics includes collecting data, analyzing it, and harnessing its power to benefit legal firm’s clients and law practice. In addition, legal analytics empowers lawyers to evaluate new cases before accepting them, streamline workflows, and create better strategies. Legal analytics tools save lawyers a lot of time, making them more productive and their practice more efficient and profitable. The tools provide invaluable information on opposing counsel, giving lawyers a competitive advantage.
Machine learning implementations are widely used to structure complex legal data in response to increasing technological innovations. Moreover, increasing demand for analytical tools to achieve automated legal organization is another key factor driving the legal analytics market growth. In addition, increased productivity and profitability of law firms boosts the market growth. However, the high cost set up of legal analytics and lack of knowledge about analytics technology hamper the market growth. Furthermore, adoption of machine learning and artificial intelligence in analytics provide ample growth opportunities for legal analytics industry growth.
The legal analytics market is segmented into Offering, Case Type, by Deployment Mode, Analytics Type and End-user.
The legal analytics market is segmented on the basis of offering, deployment model, case type, analytics type, end-user and region. On the basis of offering, the market is categorized into solution and services. By service, the market is bifurcated into professional services and managed services. On the basis of deployment model, the market is classified into on-premise and cloud. By case type, the market is fragmented into commercial case management, intellectual property management, antitrust management, and others. On the basis of analytics type, the market is segregated into descriptive analytics, predictive analytics, and prescriptive analytics. On the basis of end-user, the market is divided into law firms and in-house legal counsel. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players that operate in the Legal Analytics market are Clarivate, Lexisnexis, Microsoft Corporation, Thomson Reuters, Everlaw Inc., IBM Corporation, Premonition LLC, Wipro Limited, Wolters Kluwer, Evisort, Onna, Proofpoint Inc., UnitedLex Corporation, Abacus Data Systems, Axiom, Mindcrest Inc. and Smokeball. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
By Offering
The Solution segment is expected to garner the highest market share due to adoption of Solution by various end users such as law firms and legal counsels.
By offering, the solution segment dominated growth of the legal analytics market in 2021, and is expected to maintain its dominance in the upcoming years due to rise in adoption of analytics in legal firms and law enforcers departments for valuable insights. However, the services segment is expected to witness highest growth rate during the forecast period. Increase has been witnessed in the adoption of legal analytics services among end users over time, as they ensure effective functioning of solutions throughout the process. Moreover, increase in adoption of data analytics software and cloud platforms is expected to boost the demand for the services segment.
By Region
Asia-Pacific countries are expected to adopt a high rate owing to, the growing digital and economic transformation of the region.
North America dominates the legal analytics industry. Growth of the market in this region is attributed to several factors, such as increase in digitalization and adoption of legal analytics solutions by end users in U.S. and Canada. Moreover, presence of key players is providing ample growth opportunities for market growth. However, Asia-Pacific is expected to witness highest growth rate during the forecast period due to rapid digitalization and technological advancements in the region.
The report focuses on growth prospects, restraints, and analysis of the global legal analytics market trends. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global legal analytics market share.
COVID-19 Impact Analysis
The global COVID-19 pandemic has drastically affected businesses across the world. It has positively impacted the adoption of legal analytics solution due to lockdown imposed by governments of different countries. The pandemic has driven workers from their office buildings to their living rooms, home offices, and guest bedrooms. Most businesses today have been forced to embrace cloud technology and video conferencing software such as Zoom or GoToMeeting
Furthermore, as industries move toward digitalization, the legal analytics solution is a great option, as it provides agile efficiency by eliminating manual tasks. In addition, lawyers can build strong litigation strategies that succeed by deriving information from real-life scenarios. With data analytics, lawyers don’t require to go over pages of previous case material and law book texts. Legal analytics can strengthen the overall legal research methodology and help come at a conclusion. It can also assist in making vital business decisions related to the expansion or future planning of law firms. Due to such benefits, it creates numerous growth opportunities for the market post pandemic.
Top Impacting Factors
Rising adoption of automated legal analytics by firms and organizations
The future of legal analytics solution depends on powerful and robust integration. legal analytics solution that can effortlessly integrate with other software or tools is essential in today's evolving business environment. Furthermore, the law industry is focused on advanced technologies such as artificial intelligence (AI) and blockchain to streamline the business process, which drive the market growth. For instance, in May 2022, Thomson Reuters launched AI-powered Legal Tracker Advanced to enable legal departments to strengthen their spend management, drive operational efficiencies, and improve workflow processes through AI analytics and industry benchmark data. Such advance development further drives the growth of the legal analytics market.
The rising adoption of artificial intelligence and technological advancement
Artificial intelligence (AI) has become more popular in various fields, including law industry. With the advancement of technologies including machine learning (ML), artificial intelligence (AI), and SaaS & service providers can make legal data analytics easy. Lawyers can augment the ways of legal analytics to experiment with various legal strategies and scenarios. AI can help legal departments streamline and automate tasks and processes, and in turn reduce costs and increase productivity. However, many corporate counsels aren’t yet familiar with what AI means, much less how it could strengthen their legal department practices. Despite these doubts, many corporate counsels recognize that artificial intelligence (AI) could be a useful tool in helping legal departments reduce costs, develop stronger business strategies, minimize contract risks and better deliver legal services.
The evolution of AI can play a vital role in the legal industry is by augmenting lawyers’ work and help to increase their productivity. In addition, AI is empowering in-house counsel in areas such as predictive coding, by saving attorneys time by using samples of data to identify relevant documents in connection with e-discovery requests. It also is automating processes and tasks, such as finding and collecting clauses for review during transactional due diligence. Such benefits are great opportunities for the growth of the legal analytics industry.
KEY BENEFITS FOR STAKEHOLDERS
- The study provides an in-depth analysis of the global legal analytics market forecast along with current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on global legal analytics market trend is provided in the report.
- The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The legal analytics market analysis from 2022 to 2031 is provided to determine the market potential.
Legal Analytics Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 6.8 billion |
 Growth Rate | CAGR of 16% |
 Forecast period | 2021 - 2031 |
 Report Pages | 334 |
 By Offering |
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 By Case Type |
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 By Deployment Mode |
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 By Analytics Type |
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 By End-user |
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 By Region |
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 Key Market Players | Premonition Technologies, Inc., IBM Corporation (U.S.), Smokeball Digital Solutions, LLC, Axiom Global Inc., Proofpoint, Inc., UnitedLex Corporation, Wolters Kluwer, LEXISNEXIS., Onna Technologies Inc., Thomson Reuters Corporation, Everlaw, Inc., Mindcrest, Microsoft Corporation, Wipro Limited, clarivate analytics, Abacus Data Inc., Evisort, Inc. |
Analyst Review
In accordance with insights by CXOs of leading companies, the global legal analytics market is projected to witness prominent growth, especially in Asia-Pacific and North America. This growth is attributed to increased investments by law agencies and law departments for automation and adoption of legal analytics solutions. In addition, advancements such as machine learning and artificial intelligence in legal analytics globally provide ample growth opportunities for the legal analytics market.
The current business scenario has witnessed increase in adoption of legal analytics solutions in developed as well as developing regions as legal analytics solutions help with documentation, and also help to reduce the overall time to prepare and process claims. Thus, boosting the market growth. Moreover, artificial intelligence (AI) and machine learning brought a revolution to the world of legal analytics and simplified the process. Legal professionals now use analytics tools to compile and analyze massive amounts of data, such as court records, historical trial data, and their own collected information.
Prominent market players are exploring new technologies and platforms to meet increase in customer demands. Product launches, partnerships, and acquisitions are expected to enable them to expand their product portfolios and penetrate different regions. For instance, in November 2021, Lex Machina which is a LexisNexis company, announced the release of a unique Q4 product. The enterprise package offers coverage of all state court cases, all federal circuit courts of appeals cases, and all commercially pertinent federal district court civil cases.
Machine learning implementations are widely used to structure complex legal data in response to increasing technological innovations. Moreover, increasing demand for analytical tools to achieve automated legal organization is another key factor driving the growth of the market.
North America dominates the legal analytics industry. Growth of the market in this region is attributed to several factors, such as increase in digitalization and adoption of legal analytics solutions by end users in U.S. and Canada.
The global legal analytics market size was valued at $1,542.38 million in 2021, and is projected to reach $6,753.85 million by 2031, registering a CAGR of 16.0% from 2022 to 2031.
The global legal analytics market size was valued at $1,542.38 million in 2021, and is projected to reach $6,753.85 million by 2031, registering a CAGR of 16.0% from 2022 to 2031.
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