DUBLIN--(BUSINESS WIRE)--The "Legal Analytics Market Report - Forecast (2021-2026)" report has been added to ResearchAndMarkets.com's offering.
Legal analytics market is expected to reach $4.7 billion by 2026 at a CAGR of 22.8% during the forecast period 2021-2026.
Growth in the market is led by increasing adoption of smart technologies in the legal departments coupled with the rising demand for automated legal operations and analytical needs. This has also led to an increase in the adoption of more formal and structured legal software.
Moreover, operational efficiency, resource management offered by legal analytics and advancements in legal technology is further anticipated to boost legal analytics market industry across the globe in the forecast period 2021-2026. The rising demand for Legal tech solutions has driven the market for legal software such as Legal Analytics solutions across not just legal firms but enterprises as well.
Legal analytics top 10 companies include IBM, LexisNexis, Wipro, Cpa Global, Unitedlex Agropoint Llc., Wolters Kluwer, Mindcrest Premonition Analytics Consulting LLC, The Bureau of National Affairs (BNA), Inc., Thomson Reuters, Smokeball, Rocket Matter, among others.
Legal Analytics Market Segment Analysis - By Deployment
On-demand segment is growing at a highest CAGR of 27.8% in the forecast period 2021-2026. Owing to scalability and agility of cloud-based technologies, several enterprises across the globe are expected to adopt On-demand segment. This deployment model provides various benefits, in terms of accessibility, efficiency, immediacy, scalability, and optimization. Similarly the rapid adoption of cloud based solutions in various regions are also driving the market.
According to a report given by American Bar Association in 2019, the cloud deployment in firms has increased to 58% in 2019 from 55% in 2018. Hence these benefits are analysed to drive the On-demand segment thereby accelerating the market for Legal analytics.
Legal Analytics Market Segment Analysis - By End User
Legal analytics in Law Firms is growing at a CAGR of 25.2% in the forecast period 2021-2026. 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 is driving the market. Legal analytics are used to yield actionable information that can improve processes and increase efficiency. In addition, Analytics applications can be used to mine and aggregate data from past cases to explore the information from various perspectives.
Similarly, it is used to compare patterns in the decisions of judges in particular types of cases or the prevalence of particular types of cases over a given period of time. Moreover the advent of big data analytics, predictive analytics and other advanced tools to conduct informed speculation about the effects of potential changes in business strategies has been driving the market in the forecast period 2021-2026.
Legal Analytics Market Segment Analysis - By Geography
North America dominated the market by a market share of more than 37% in 2020, Early adoption of advanced technologies, high-quality of law services offered by third parties to their clients in the countries like the U.S. and Canada have been driving the market. In addition to this, swift automation of legal services in a myriad end-use sectors along with extensive popularity of legal analytics services in the region is likely to mark humungous growth in the coming decade.
Moreover with the awareness about legal analytics in the region, companies are expanding their presence by increasing their offerings across different industries to capture a growing market share. For instance, in 2019, Mitratech Holdings Inc. acquired ThinkSmart LLC. The acquisition of ThinkSmart allowed Mitratech to further help customers to reduce risk overall whether legal, regulatory or operational, by providing them with unprecedented visibility, predictability, and control. Hence these developments are analysed to drive the market in the forecast period 2021-2026.
Legal Analytics Market Drivers
AI driving the market
Artificial intelligence companies continue to find ways of developing technology that will manage laborious tasks in different industries for better speed and accuracy. In the legal profession, AI has found its way into supporting lawyers and clients alike. The growing interest in applying AI in law is slowly transforming the profession and closing in on the work of paralegals, legal researchers, and litigators.
With the rapid advancements several companies have been developing algorithms, software to support and revolutionizing the legal world. In 2018, Ross Intelligence has developed a software that uses natural language processing to analyze documents. Similarly, several companies have been developing that has been creating a new trend in legal analytics. Hence these developments are analyzed to drive the market in the forecast period 2021-2026.
Reduction of cost and efficiency by Legal analytics
Legal Analytics is being increasingly adopted to help improve the efficiency of legal activities in various industries. Adding to this, Several industries are increasingly seeking areas for improvement within their operations and are turning to technology to boost efficiencies and reduce costs. Legal Analytics can provide law firms with objective data to help them price their services more aggressively and remain competitive. For instance, some innovative firms evaluate Legal Analytics to help them make better, more effective staffing decisions on matters for which they're developing proposals. Hence these benefits are analysed to drive the market in the forecast period 2021-2026.
Legal Analytics Market Challenges
Lack of Awareness among Litigators and Law Schools
Although legal analytics market is analyzed to grow at a significant rate, lack of acceptance and awareness about legal analytics in small and medium size law businesses hamper the growth. These firms are unacquainted with legal analytics solutions as they follow traditional methodologies for efficient decision-making. Similarly, several organizations across the globe are still adopting the traditional method of storing and dealing with huge warehouses of data. Moreover, various law school organizations are unaware about the functioning and benefits of legal analytics solutions. Thus, lack of awareness is expected to restrain the legal analytics market in the forecast period.
Key Takeaways
- In 2020, North America dominated the legal analytics market share with more than 37% owing to early adoption of advanced technologies and high-quality of law services offered by third parties to their clients in countries like the U.S., Canada.
- Legal analytics in Law Firms is growing at a CAGR of 27.2% in the forecast period. The application of data analysis methods and technologies within the field of law allows to improve efficiency, gain insight and realize greater value from available data and driving the market
- The growing interest in applying AI in law is slowly transforming the profession and closing in on the work of paralegals, legal researchers, and litigators
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