Legal Analytics Market Expected to Reach $6.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Legal Analytics Market," The legal analytics market size was valued at $1.5 billion in 2021, and is estimated to reach $6.8 billion by 2031, growing at a CAGR of 16% from 2022 to 2031.

Legal analytics is the application of data analysis methods and technologies within the field of law to improve efficiency, gain insight and realize greater value from available data. In addition, legal analytics is an exciting and promising application that’s made a monumental impact on everything from law schools, to legal best practices, and even litigation strategy. Moreover, legal analytics can also help legal leaders to understand their ideal client, and where their practice stands compared to competitors, so they can devise a more effective marketing strategy that resonates with their target audience.

Rise in adoption of automated legal analytics by firms and organizations aided in propelling the growth of the global legal analytics solutions during the forecast period, hence empowering the demand for legal analytics solution. Moreover, increase in productivity and revenue of law firms during the period has positively impacted legal analytics industry. However, high initial set-up cost of legal analytics is anticipated to hamper the legal analytics market during the forecast period. On the contrary, technological advancements such as machine learning and artificial intelligence in legal analytics for better insights is expected to offer remunerative opportunities for the expansion of the legal analytics market forecast.

On the basis of case type, the commercial case management segment dominated the overall legal analytics market in 2021 and is expected to continue this trend during the forecast period. This is attributed to the increase in commercial cases and adoption of legal analytics for faster resolution. However, the antitrust management segment is expected to witness the highest growth owing to rise in competition among key players and need of merger and acquisitions to gain hold position in market.

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.

Region wise, the legal analytics market was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to its higher expenditure on technological solutions However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to the growth in number of startups and the expanding infrastructure in the region, which is expected to fuel the growth of the legal analytics industry in the region during the forecast period.

The outbreak of COVID-19 is anticipated to have a positive impact on the growth of the legal analytics market. As government and legal firms 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.

KEY FINDINGS OF THE STUDY

• By end user, the law firms segment accounted for the largest legal analytics market share in 2021.
• By region, North America generated the highest revenue in 2021.
• By analytics type, descriptive analytics segment accounted for the largest legal analytics market share in 2021.
• By deployment mode, the on-premise segment generated the highest revenue in 2021.

The key players profiled in the legal analytics market analysis 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.