Overview

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

IBISWorld’s Law Firms market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$292bn
Annual Growth
11-16
0.8%
Annual Growth
16-21
Profit
Employment
1,342,799
Business
447,964

Industry Threats & Opportunities

  • An increase in IPOs and M&A activity will improve revenue for the industry’s top firms
  • Consolidation dissuaded law firms from bringing on new attorneys
  • Downstream improvements will lead to industry growth, though price competition will persist

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    Industry Analysis & Industry Trends

    As the economy continues to improve, the Law Firms industry will benefit from higher corporate profit margins and increased corporate activity. Increasing mergers and acquisitions (M&As) as well as strength in initial public offerings (IPOs) will continue to improve revenue for the industry's top firms, which receive the bulk of their revenue from major corporate clients. The overall performance of the economy, an anticipated increase in corporate profit and an influx of new laws and regulations will aid revenue growth in the next five years. Expected increases in consumer disposable income will also aid smaller industry participants by increasing demand for services like estate and trust planning...

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    Industry Report - Industry Key Buyers Chapter

    The Law Firms industry is highly fragmented, with the majority of operators being small- and medium-size firms. IBISWorld estimates that the top four industry participants account for less than 5.0% of revenue in 2016. Small law firms, those with fewer than 20 employees, comprise an estimated 91.8% of employing industry establishments. These attributes indicate a low level of concentration.

    In the five years to 2021, market share concentration among the industry’s largest law firms is expected to increase marginally because of highly anticipated merger and acquisition activity. Since the mid-1990s, merger activity among the industry’s largest firms has risen, with a number of major firms merging with entities in Europe and Asia.

    ..

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    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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    Look under the hood?

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    Industry Products

    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

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

  • Current Performance
  • Cutbacks improve profit margins
  • Postrecessionary 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

  • Products & Markets
    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
    Competitive Landscape
    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
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Law Firms Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of businesses (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    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.
  • Why buy this report?

    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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