Law Firms in the US - Industry Market Research Report

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

The legal services industry has experienced an uptick in revenue, with the surge in high-value corporate deals such as mergers and acquisitions (M&As) and initial public offerings (IPOs). Despite the pressure from high borrowing rates causing a decline in M&A and IPO activities over the past two years, the current levels are still an improvement compared to 2019.

As companies prosper with the growing economy, their demand for legal guidance increases, driving significant growth for law firms. The digitization of businesses has also sparked a rise in intellectual property cases, giving more opportunities for legal firms to practice. Revenue has crept upward during the current period at a CAGR of 1.4%, reaching $403.9 billion in 2024, including an increase of 2.0% in that year.

Trends and Insights 

• Consolidation is increasing because of mergers and acquisitions: Law firms are expanding domestically and internationally to access new revenue streams.
• Small and midsized law firms specialize in particular service areas: They regularly provide noncommercial services such as criminal defense, civil negligence or family law.
• A large concentration of corporate clients attracts law firms: Regions with large corporations are a popular place for law firms to locate.
• Law firms compete based on service quality within their specialty: Establishing a good reputation is essential to be competitive.

Market size and recent performance (2015-2030)

• Industry revenue has grown at a CAGR of 1.4 % over the past five years, to reach an estimated $403.9bn in 2025.