Due process: Rising business activity and disposable income will bolster industry growth

Participants in the Law Firms industry range from sole practitioners to full-service legal firms mostly serving corporate clients. Industry growth has been modest in the five years to 2017 as businesses expand and corporate profit increases. As the economy continues to improve, the industry will benefit from higher corporate activity. Increasing mergers and acquisitions as well as strength in initial public offerings will continue to improve revenue for the industry's top firms, which receive the bulk of their revenue from major corporate clients. Additionally, a rise in business formation will expand the clientele for law firm services, and a rebounding real estate market will bolster revenue for firms specializing in real estate law...purchase to read more.

Industry Statistics & Market Size
Revenue
$305bn
Annual Growth 12-17
1.1%
Forecast Growth 17-22
Profit
Employment
1.4m
Businesses
461,093
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • An increase in IPOs and M&A activity will improve revenue for the industry’s top firms
  • Competition for employment remains high among recent law school graduates
  • The industry’s largest firms will continue to expand overseas in emerging markets
  • Industry Report - Industry Investment Chapter

    The Law Firms industry has a low level of capital intensity. IBISWorld estimates that for every dollar spent on wages, only $0.02 is spent on capital. The industry is highly labor intensive. Attorneys are educated and knowledgeable in the practice of law. Often, employees at law firms specialize within a particular legal practice, such as tax law, intellectual property or securities law. Work in this field frequently requires personal service and face-to-face contact with clients. Therefore, lawyers must keep abreast of any changes created by legislation. In addition, law firms require a number of support staff for research, filing, documenting and ad hoc duties. All these factors contribute to high salaries in the industry...purchase to read more.

    Additional Insights for the Law Firms Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Law Firms Industry are

  • Ability to effectively communicate and negotiate
  • Experienced work force
  • Having a high prior success rate (including completed prior contracts)
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Initial public offerings in the Law Firms industry impact industry performance..

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    What's in this report

    What is the Law Firms Industry?

    This industry comprises offices of legal practitioners, known as lawyers or attorneys, who primarily practice law. Establishments provide expertise on a range of areas or specific areas of law, such as criminal, corporate, family and estate, patent, real estate or tax.

    Industry Products
  • Commercial law services
  • Criminal law, civil negligence and personal injury
  • Real estate law
  • Labor and employment
  • Other services
  • Industry Activities
  • Providing criminal law services
  • Providing corporate law services
  • Providing family law services
  • Providing estate law services
  • Providing intellectual property law services
  • Providing real estate law services
  • Providing tax law services
  • Providing commercial law services
  • Providing personal injury services
  • Providing property law services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Corporate profit
  • Initial public offerings
  • Number of businesses
  • Crime rate

  • Current Performance
  • Increasing profit margins
  • Increased consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry mergers
  • Industry constraints
  • Table: Law Firms Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Law Firms Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Utilities
  • Manufacturing
  • Information
  • Finance and Insurance
  • Professional, Scientific and Technical Services
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Commercial Leasing
  • Computer Stores
  • Office Furniture Manufacturing
  • Office Supply Stores

  • Products & Services
  • Commercial law services
  • Other services
  • Criminal law, civil negligence and personal injury
  • Real estate law
  • Labor and employment
  • Chart: Law Firms Industry Products and Services Segmentation

  • Demand Determinants
  • Litigation activities
  • Regulations
  • Criminal activity
  • Real estate market

  • Major Markets
  • Business and corporate clients
  • Households
  • Government and not-for-profit clients
  • Chart: Major Market Segmentation for the Law Firms Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Wages
  • Profit
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Law Firms

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Law Firms Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Law Firms Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Law Firms Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of businesses (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Big Law
  • The largest firms in the Law Firms industry.
  • Initial Public Offering (Ipo)
  • The issuing of a company's common stock to the public for the first time.
  • Insolvency
  • The inability to pay debts.
  • Mergers And Acquisition (M&A)
  • The buying, selling and combining of companies.
  • Pro Bono
  • Professional work that is undertaken voluntarily and without payment.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Law Firms Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Law Firms industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Law Firms:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Law Firms market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Law Firms, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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