Legal Technology Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The legal technology market size has grown strongly in recent years. It will grow from $30.33 billion in 2024 to $33.25 billion in 2025 at a compound annual growth rate (CAGR) of 9.6%. The growth in the historic period can be attributed to increasing legal workload and complexity, regulatory compliance requirements, rise of e-discovery solutions, globalization and cross-border legal challenges, client expectations for efficiency.

The legal technology market size is expected to see strong growth in the next few years. It will grow to $47.61 billion in 2029 at a compound annual growth rate (CAGR) of 9.4%. The growth in the forecast period can be attributed to increased focus on cybersecurity, cloud-based legal services, focus on diversity, equity, and inclusion (dei), cost pressures in legal operations, blockchain for smart contracts. Major trends in the forecast period include blockchain technology for legal processes, remote work and virtual collaboration, integration of legal technology in education, regulatory technology (regtech), e-discovery and digital forensics.

The surge in litigation and investigations is anticipated to drive the growth of the legal technology market. Litigation and investigations involve legal processes aimed at resolving disputes or examining activities to ensure compliance with applicable laws and regulations. Legal technology plays a crucial role in supporting these processes by empowering lawyers to discover and analyze information, make critical assessments, and perform essential tasks necessary for successful outcomes in court. For example, in February 2023, the United States Department of Justice (DOJ) obtained over $2.2 billion in settlements and judgments from civil cases involving fraud and false claims under the False Claims Act (FCA) in 2022. Consequently, the increase in litigation and investigations is a key driver for the growth of the legal technology market.

The increasing demand for remote work is expected to drive the growth of the legal technology market in the future. Remote work refers to a work arrangement where employees perform their duties outside of a traditional office setting. In this context, legal technology tools are crucial to ensure data security and compliance with privacy regulations, including the establishment of secure communication channels, encryption, and adherence to data protection standards. For example, in September 2023, the Bureau of Labor Statistics, a US-based agency of the United States Department of Labor, reported that the telework rate - the percentage of people working remotely for pay - has remained between 17.9% and 20% from October 2022 to August 2023. As a result, the increasing need for remote work is fueling the growth of the legal technology market.

Major companies in the legal technology market are addressing these challenges by developing innovative products that leverage artificial intelligence (AI). One such example is the adoption of AI in document summarization tools. Document summarization tools utilize AI and natural language processing (NLP) to automatically condense lengthy documents into shorter, more concise summaries, capturing essential information and key points. For instance, in September 2023, LegalZoom, a US-based legal technology and services company, launched Doc Assist, a free document summarization tool that leverages generative AI. This tool helps small businesses efficiently review documents, maintain organization, quickly grasp essential information, and access guidance from reputable attorneys for more informed decision-making. Doc Assist allows users to upload any legal document, providing instant key information, condensing critical clauses, and suggesting pertinent questions tailored to the document type. Combining Generative AI technology with LegalZoom's expertise, Doc Assist serves as a customized guide for navigating the complex realm of legal paperwork.

In May 2022, LexisNexis, a US-based publishing company, completed the acquisition of Parley Pro Inc. for an undisclosed amount. The strategic acquisition was intended to enhance the Counsel Link Enterprise Legal Management (ELM) platform. By integrating Parley Pro's capabilities, the Counsel Link ELM platform aimed to provide real-time contract collaboration, management, and negotiation, along with actionable analytics and integrated end-to-end automation. The incorporation of Parley Pro's technology was expected to reduce contracting time by up to 40%. Parley Pro, a US-based legal software company, specializes in cloud-based legal contract management and negotiation software. Its solutions are designed to expedite contract authoring, streamline contract negotiation processes, and analyze executed contracts.

Major companies operating in the legal technology market report are RELX PLC, Thomson Reuters, Wolters Kluwer N.V., OpenText Corporation, LexisNexis Legal & Professional Company, DocuSign Inc., LegalZoom, Dialpad, Dye & Durham Limited, The Access Group, Icertis Inc., Relativity ODA LLC, Everlaw Inc., iManage LLC, Anaqua Inc., Nextpoint, Themis Solutions Inc., Mitratech Holdings Inc., Filevine Inc., Practice Insight Pty Ltd., WiseTime Ltd., TimeSolv Corporation, Clio, Fidu, Knovos LLC, Lawyaw, Legalboards, Mystacks Inc., ProfitSolv LLC.

North America was the largest region in the legal technology market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the legal technology market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the legal technology market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The legal technology market consists of revenues earned by entities by providing services such as subscription, integration, consulting and licensing fees of legal work. The market value includes the value of related goods sold by the service provider or included within the service offering. The legal technology market also includes sales of eDiscovery platforms, contract analysis tools, and legal communications tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Legal technology, often referred to as legal tech, involves the application of advanced tools, software, and processes within the legal industry to optimize and enhance legal operations, streamline case management, and improve overall legal services. This field leverages technology to automate repetitive tasks such as document review, contract analysis, and due diligence, with AI-powered tools facilitating quick data analysis, saving time, and minimizing errors.

The primary types of legal technology include case management, lead management, document management, billing and accounting, among others. Case management involves the systematic organization and coordination of legal cases by lawyers or legal professionals. In the realm of legal technology, case management systems are utilized to streamline legal workflows, manage client information, automate routine tasks, and ensure compliance with relevant rules and regulations. Solutions encompass e-discovery, legal research, legal analytics, document management, and other tools tailored for use in law firms, corporate legal departments, and other legal entities.

The legal technology market research report is one of a series of new reports that provides legal technology market statistics, including legal technology industry global market size, regional shares, competitors with a legal technology market share, detailed legal technology market segments, market trends and opportunities, and any further data you may need to thrive in the legal technology industry. This legal technology market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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