LegalTech Market Size, Share, Trends, Growth 2032

LegalTech Industry Prospective:

The global LegalTech market size was worth around USD 15.37 billion in 2023 and is predicted to grow to around USD 48.41 billion by 2032 with a compound annual growth rate (CAGR) of roughly 13.60% between 2024 and 2032.

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LegalTech Market: Overview

LegalTech refers to the use of several types of technologies specially curated to improve the performance and efficiency of legal operations. The industry typically deals with the development and application of software and services that are designed to streamline legal aspects of business operations or assist the legal industry in general.

The demand for legal technology is generally higher in the segment consisting of lawyers and law firms that deal with a massive number of legal cases and practices. Furthermore, LegalTech also entails the development of a suite of programs designed to assist law companies in automating their daily tasks thus reducing any scope of error and improving customer service.

Examples of legal technology include legal accounting software, signing documents remotely using e-signatures, programs helping in performing administrative tasks, and automating document generation & storage. Depending on the size and the requirements of legal firms, each technology offered in the LegalTech industry can prove a game-changing tool especially driven by the growing advancement in LegalTech programs. The industry may be limited due to the high cost of the software and hesitancy in incorporating new technologies in business operations.

Key Insights:

• As per the analysis shared by our research analyst, the global LegalTech market is estimated to grow annually at a CAGR of around 13.60% over the forecast period (2024-2032)
• In terms of revenue, the global LegalTech market size was valued at around USD 15.37 billion in 2023 and is projected to reach USD 48.41 billion by 2032.
• The market is projected to grow at a significant rate due to the increasing business globalization to prompt higher demand.
• Based on the deployment, the cloud-based segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the service type, the software segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

LegalTech Market: Growth Drivers

Increasing business globalization to prompt higher demand in the market during the projection period

The global LegalTech market is expected to grow due to the rising rate of business globalization. It refers to the process through which businesses make entry into new markets and international territories. Furthermore, product and service diversification is a major segment of business globalization as companies aim to deliver products that will deliver higher acceptance in the new markets.

Business globalization is a result of several factors. For instance, expansion into new territories helps companies reach a broader group of consumers resulting in improved profits. Furthermore, it also helps strengthen the business footprint in the overall industry. Favorable government policies attracting foreign investments have also been at the forefront of growing business globalization.

For instance, in November 2024, Minda Corporation Ltd announced that it would be setting up a new production facility for advanced ignition switch-cum-steering locks in India’s Noida region. The company has been provided with an extensive plot of land worth INR 94.19 crore.

According to India’s Foreign Direct Investment (FDI) policy, the company is eligible for front-end land subsidy which is expected to cover 75% of the land cost. However, conducting business operations on an international scale is highly complex and businesses must ensure adherence to regional legal frameworks. Such instances encourage the need for building a robust legal team or undertaking support of a legal firm to assist in business operations fueling the demand for legal technology.

Growing remote work culture trend to promote industry’s market revenue in the long term

The emergence and proliferation of remote work culture have been a crucial driver for increased adoption of legal technologies. During the pandemic, several companies resorted to work-from-home culture which allowed employees to continue working from remote locations without interrupting business operations.

While permanent work-from-home culture may have witnessed slower growth in 2023, a large number of companies including legal firms have switched to a hybrid work model. The solutions available in the global LegalTech market facilitate hybrid and remote work cultures allowing companies to access talent pools that may be geographically dispersed.

LegalTech Market: Restraints

High cost of technology and inhibitions against new solutions may limit the industry’s expansion rate

The global LegalTech industry is projected to be restricted due to the high cost of the technology. For instance, according to market research, the average cost of deploying a legal accounting cloud-based software can be between USD 100 to USD 200 per month per user.

Furthermore, the total expense increases further in the case of the development of customized tools depending on business requirements. Legal firm workers may not be comfortable with using digital solutions to conduct business operations and appropriate training must be provided for seamless integration of technologies into business operations.

LegalTech Market: Opportunities

Rising launch of new tools with comprehensive features may generate growth opportunities in the future

The global LegalTech market is projected to generate growth opportunities due to the increasing launch of new tools offering comprehensive features. For instance, in October 2024, CS Disco, Inc., a leading provider of Artificial Intelligence (AI)-)-enabled legal solutions, announced the launch of the Cecilia AI Platform across the United Kingdom and European nations.

According to official reports, the tool is designed to accurately and quickly conduct analysis on the most relevant documents for streamlining the e-discovery process. The most prominent features of the tool include Cecilia’s single doc Q&A, Cecilia Q&A, and Cecilia's document summaries.

In September 2024, Reveal, a global leader offering AI-powered eDiscovery and investigations suite of technologies, launched the Logikcull platform in Europe. The company has managed to broaden its enterprise-grade platform with this move. In addition to this, the demand for legal digital solutions may also be promoted by the ongoing efforts by regional governments toward drafting and launching stringent business guidelines especially for international companies to avoid labor and resource exploitation. Businesses will have to opt for legal technologies to avoid non-compliance with domestic regulatory procedures.

LegalTech Market: Challenges

Data privacy and security breaches are critical challenges that must be managed effectively

The global LegalTech industry is projected to be challenged by the growing concerns over data privacy. Legal technology holds highly sensitive and confidential information related to companies using the tool and their customers. Hence, legal technologies are frequently targeted by cybercriminals. Developers and providers of legal tech must ensure that the systems can detect such digital crimes and prevent data breaches on time.

LegalTech Market: Report Scope

LegalTech Market: Segmentation

The global LegalTech market is segmented based on deployment, application, service type, and region.

Based on the deployment, the global market segments are on-premises and cloud-based. In 2023, the highest growth was listed in the cloud-based segment. Legal technologies are gaining extreme popularity among legal firms of all sizes. Cloud-based solutions offer greater flexibility in terms of usage. Cloud-powered legal technologies offer excellent scalability thus allowing cost-efficiency of the tool. On-premises solutions are expensive to develop and implement. Around 75% of the total revenue in 2023 was generated by the cloud-based segment.

Based on application, the global LegalTech industry is divided into intellectual property, practice & case management, e-discovery, contract management, legal research, and others.

Based on the service type, the global market divisions are software and services. In 2023, the highest demand was listed in the software segment. The growing number of legal firms across the globe is fueling the demand for software and applications that can improve business operations. Furthermore, the growing demand for efficient time & billing management tools, AI-powered legal research, e-discovery tools, and case management is crucial to segmental demand. The US has more than 428,000 registered legal firms operating in the country.

LegalTech Market: Regional Analysis

North America to dominate the final revenue share during the projection period

The global LegalTech market will be led by North America during the forecast period. The US is projected to hold dominance over 51% of the regional market share driven by the presence of some of the world’s leading law firms in the country. The US legal infrastructure is world renowned and it has the greatest number of active legal practitioners.

According to official reports, New York has over 180,000 active lawyers participating in several law-based projects and activities. Furthermore, law firms from the US such as Skadden, Arps, Slate, Meagher & Flom LLP, Hogan Lovells, Latham & Watkins LLP, and others serve domestic and international clients. The US uses the common law system and experts argue that the format allows the US legal architecture to dominate over other formats.

Furthermore, law firms in the US are financially equipped to leverage the offerings of advanced legal technologies especially when dealing across international borders and representing clients on global platforms. In November 2024, Trellis announced the launch of Trellis AI. The tool is designed to meet the complex needs of trial court litigation and offers the most comprehensive database in the US.

LegalTech Market: Competitive Analysis

The global LegalTech market is led by players like:

• LeanLaw
• LegalZoom
• LawVu
• Thomson Reuters (Legal Tech Solutions)
• MyCase
• UniCourt
• TrustBooks
• Ironclad
• LexisNexis
• Clio
• Casetext (CoCounsel)
• Everlaw
• Diligen
• Smokeball
• Juro.

The global LegalTech market is segmented as follows:

By Deployment

• On-Premises
• Cloud-Based

By Application

• Intellectual Property
• Practice & Case Management
• E-Discovery
• Contract Management
• Legal Research
• Others

By Service Type

• Software
• Services

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa