The global legal technology market size was valued at USD 23.45 billion in 2022 and is estimated to reach USD 45.73 billion by 2030, registering a CAGR of 9.1% from 2023 to 2030, according to a new report by Grand View Research, Inc.
The need to cope with an upsurge in the volume and complexity of legal information and the demand for meeting the shifting expectations of client/leadership across the legal services industry is driving the expansion of the global legal technology industry.
The rising investment in technologies to automate and optimise legal procedures to improve the productivity and profitability of law firms and streamline operations is also projected to fuel the market's growth over the forecasted period. The legal technology industry is also witnessing significant developments in the adoption of cloud-based platforms, and the emergence of artificial intelligence (AI), smart contracts and blockchain technology.
With the growing complexity and rising number of contracts that businesses need to manage and the need for greater compliance and risk management, contract lifecycle management software is becoming an essential tool for businesses of all sizes. Contract lifecycle management software involves the management of contracts from the initial drafting stage through execution, ongoing management, and eventual expiration or renewal.
The services segment is expected to witness the highest CAGR of over 10.5% over the forecast period. The demand for consulting services is rising owing to their ability to guide the implementation of new technologies by assessing the current solutions and workflows.
The growth is attributed to the increasing adoption of legal software from legal departments and law firms to reduce costs, streamline workflows and improve efficiency. The support services offer technical assistance during updates and maintenance of platforms and solutions. Furthermore, increasing demand for training services to ensure staff education after implementing technology is projected to provide significant growth opportunities to the services segment.
The analytics service segment is anticipated to witness a CAGR growth of over 11% from 2023 to 2030. The rising demand for incorporating data analytics and artificial intelligence to help lawyers and legal professionals make better decisions and streamline their workflow.
North America had the highest market share of around 49% in 2022. The region is projected to witness substantial growth owing to the increasing automation by using machine learning and artificial intelligence coupled with the rising adoption of cloud-based solutions as they offer scalability, cost-effectiveness, and flexibility, offering various growth opportunities for the market. Furthermore, incorporating blockchain technology to provide transparency and more secure legal transactions is projected to fuel the growth of legal technology in North America.
The legal technology market in the Asia Pacific region is projected to grow significantly in the coming years. The growth is attributed to the rising adoption of machine learning and artificial intelligence technologies in the legal industry. Companies in the Asia Pacific region are increasingly adopting the latest technologies to perform legal research, document management, contract analysis and review, and much more.
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