Know Your Legal Market

Despite its growth, legal regulators are dealing with an environment where "traditional legal services are getting more expensive, access to legal services are decreasing, law firm growth rates are flat, and lawyers serving ordinary citizens have difficulty making a living."

The legal services industry is becoming a larger part of the major accounting firms' offerings. Deloitte recently launched its Legal Business Services, which provides in-house legal departments with legal tech support to track client contracts, invoices, electronic discovery, and other core functions. Right now, the big four do not offer legal services because the American Bar Association prohibits attorneys and firms from sharing "legal fees" with non-lawyers. A partnership is also prohibited if one of the activities consists of the practice of law.


Recent changes to these regulations have been made by Arizona, California, and Utah. According to research conducted by the California state bar task force in 2019, non-lawyers can now invest in law firms and tech companies for the limited legal services industry. California has taken measures to move the US legal market in the direction of counties that allow non-lawyers to own legal service providers and to provide certain services.

A two-year sandbox for regulatory experimentation offers lawyers and nonlawyers the opportunity to test new business models. Arizona's Supreme Court approved changes to "regulation of the practice of law," which will allow non-lawyers to own law firms from January 2021. After undergoing a licensing process, non-lawyers, called "legal paraprofessionals", will also be able to provide "limited legal services."
 

• Knowing your market includes non-sophisticated regions; see Navigating the Legal Job Market in Non-Sophisticated Markets for tailored guidance.

 

Legal Services Market Definition

The legal services market consists of sales of law-related services and related goods by entities (organizations, sole traders, and partnerships) that advise clients (individuals, businesses, or other entities) about their legal rights and responsibilities, and represent clients in civil or criminal cases, business transactions and other matters, in which legal advice and other assistance are sought. Providers of legal services employ human capital as a major input. In the delivery of services to the client, an individual or a team uses the knowledge and expertise of the firm's employees, usually on an assignment basis. For a data-rich example of how market shifts shape attorney demand, review The Legal Industry Layoff Report (2008–2026), which charts national and regional layoff trends.
 

Legal Services Market Size

A compound annual growth rate (CAGR) of 3.4% drove the market to a value of more than $713.7 billion in 2020. In 2025, $808.26 billion will increase from $713.7 billion in 2020, an increase of 4.9%. In 2030, the legal services market is expected to reach $1,145.9 billion at a CAGR of 4.8%.  

Economic growth in emerging markets, mergers and acquisitions (M&A), an increase in consumer spending, and an increase in disposable income contributed to the growth in the historic period. Growth was negatively affected in the historic period by regulatory challenges, skills shortages, and the increasingly critical role played by in-house legal departments.

Future growth will be driven by an increase in transactional practice areas, a growing legal technology industry, and globalization. The market could be hindered by rising costs and decreasing margins, lack of transparency and inconsistent service quality, data security concerns, reduction in free trade, and the impact of COVID-19. 
 

See Also: Major Legal Markets

 

Legal Services Market Trends

Major trends influencing the legal services market include:
 

Emergence of Alternative Legal Service Providers (ALSPs)

An emerging trend in the market is the rise of alternative legal services providers (ALSPs). The ALSP industry provides high-demand legal services, such as document review, contract management, litigation support, electronic discovery, contract lawyer and staffing, legal research, and intellectual property management. By combining legal, business, and technology skills, they provide services to both businesses and law firms. A growing number of businesses are using ALSPs for many routine legal services, and law firms are outsourcing projects, business analysis, billings, expenses, and other non-revenue generating tasks to ALSPs. Deloitte, EY, KPMG, and PwC are among the largest and fastest-growing ALSPs. Allen & Overy, Axiom, Clifford Chance, Consilio, Elevate, Integreon, and Update Legal are some of the other ALSPs in the market. In the USA, ASLs are widely adopted. ALSPs are used by around 65% of large U.S. law firms for e-discovery. ALSPs are also being used by businesses in the UK. Approximately 25% of corporate law departments in the USA responded to surveys conducted by EY Law practices and Thomson Reuters Legal Managed Services in 2019 by saying they will spend more on ALSPs in the next five years, up from only 16% two years ago.
 

• For an actionable roadmap on leveraging market insights to advance your legal career, see BCG Attorney Search: The Ultimate Guide to Landing Top Law Firm Jobs and Advancing Your Legal Career.

 

Digitalization

Since the rise of information communications and technology, legal service providers are moving rapidly towards the digitalization process. Organizations face increasing pressure to digitize their processes and management due to investor expectations, rising competition, new regulations, and increasing opportunities. To streamline the process, reduce operational costs, and enhance efficiency, law firms are investing in various technologies, including machine learning, mobility, cloud computing, performance tracking, and artificial intelligence. According to LexisNexis DiscoveryIQ, companies are using machine learning and cloud computing to digitalize data, records, client history, briefings, reports, testimony, and other information that enables them to quickly find relevant information. A LexisNexis survey found that 41% of the legal community believes that data stored in the cloud is protected, and 72.4% of legal firms are supporting cloud adoption.

For specific hiring and compensation data, the current state of the lateral legal market (2024) offers an in-depth breakdown.

Opportunities And Recommendations In The Legal Services Market

 

• Opportunities – In the legal services market segmented by type of service, the B2B legal services segment will gain $104.3 billion of global annual sales by 2025. By 2025, the largest firms segment will generate $154.7 billion in sales, which is the segment with the greatest opportunity. Segmenting by end-user, the top opportunity will arise in the financial services sector, which will gain $61.8billion of global sales by 2025. In the USA, the market for legal services will grow by the most at $72.9 billion.
   
• Recommendations – For the legal services companies to profit from these opportunities, Business Research Company recommends offering cybercrime consulting services, offering online legal services, adopting digital technologies, expanding in emerging markets, offering alternative billing/pricing solutions, leveraging social media, and acquiring other companies.

Once you know your market, the next step is applying that knowledge in hiring contexts—see how to secure a law firm position with an understanding of market dynamics. 
 

Legal Services Competitive Landscape

 

Major Competitors In The Legal Services Market Are:

 

• Kirkland & Ellis LLP
• Latham & Watkins LLP
• DLA Piper
• Baker & McKenzie
• Skadden, Arps, Slate, Meagher & Flom LLP

 

Other Competitors In The Legal Services Market Include:

 

• Clifford Chance LLP 
• Sidley Austin LLP 
• Morgan, Lewis & Bockius LLP 
• Allen & Overy LLP 
• Linklaters LLP 
• Beijing Yingke Law Firm 
• Dacheng Law Offices 
• Rajah & Tann 
• Allen & Gledhill LLP and  
• Tilleke & Gibbins 
• ZICO Law 
• Nishimura & Asahi 
• Amarchand & Mangaldas & Suresh A. Shroff & Co 
• Kim & Chang 
• Borenius 
• Allen & Overy 
• Linklaters Garrigues 
• Hengeler Mueller And Fidal 
• Advokatfirman Vinge KB 
• Advokatfirmaet Thommessen AS 
• Castrén & Snellman 
• Wikborg Rein 
• Egorov Puginsky Afanasiev & Partners 
• VJT & Partners Law Firm 
• Dentons 
• Pepeliaev Group 
• Hoskin & Harcourt 
• Latham & Watkins 
• Osler 
• Cravath Swaince & Moore 
• Baker McKenzie 
• Skadden, Arps, Slate, Meagher & Flom 
• Norton Rose Fulbright LLP 
• Hogan Lovells 
• Jones Day 
• Demarest Advogados 
• Carpena Advogados Associados 
• Lobo de Rizzo Advogados 
• Pinheiro Guimarães 
• Clyde & Co LLP 
• Edward Nathan Sonnenbergs 
• Yigal Arnon & Co 
• Herzog Fox & Neeman 
• Al Tamimi & Company 
• GB Attorneys 
• Webber Wentzel 
• Erward Nathan Sonnenbergs 
• Norton Rose Fulbright South Africa 
• Cliffe Dekker Hofmeyr 
• B M Musau & Company 
• Bitala & Co Advocates 
• Bowmans 

See the following article for more information:

• The 2021 State of the Legal Market Report
• How to Easily Determine the Best Attorneys and Law Firms: The Five Prestige Levels of Attorneys and Law Firms
• Partner Business Plans: Key Elements
• You Need to be Self-Managing and Responsible
• The Importance of Finding and Creating Demand
• The Importance of Asking the Right Questions, Self Improvement, and Perception
• Seven Sample Attorney Business Plans: Why Attorneys Must-Have Business Plans
• The Top Five Objections Partners Give to Preparing a Business Plan — Overruled!
• Law Firm Partner Business Plans: Key Elements

About Harrison Barnes

No legal recruiter in the United States has placed more attorneys at top law firms across every practice area than Harrison Barnes. His unmatched expertise, industry connections, and proven placement strategies have made him the most influential legal career advisor for attorneys seeking success in Big Law, elite boutiques, mid-sized firms, small firms, firms in the largest and smallest markets, and in over 350 separate practice areas.

A Reach Unlike Any Other Legal Recruiter

Most legal recruiters focus only on placing attorneys in large markets or specific practice areas, but Harrison places attorneys at all levels, in all practice areas, and in all locations-from the most prestigious firms in New York, Los Angeles, and Washington, D.C., to small and mid-sized firms in rural markets. Every week, he successfully places attorneys not only in high-demand practice areas like corporate and litigation but also in niche and less commonly recruited areas such as:

• Immigration Law
• Workers Compensation
• Insurance
• Family Law
• Trust and Estate
• Municipal law
• And many more...

This breadth of placements is unheard of in the legal recruiting industry and is a testament to his extraordinary ability to connect attorneys with the right firms, regardless of market size or practice area.

Proven Success at All Levels

With over 25 years of experience, Harrison has successfully placed attorneys at over 1,000 law firms, including:

• Top Am Law 100 firms such including Sullivan and Cromwell, and almost every AmLaw 100 and AmLaw 200 law firm.
• Elite boutique firms with specialized practices
• Mid-sized firms looking to expand their practice areas
• Growing firms in small and rural markets

He has also placed hundreds of law firm partners and has worked on firm and practice area mergers, helping law firms strategically grow their teams.

Unmatched Commitment to Attorney Success - The Story of BCG Attorney Search

Harrison Barnes is not just the most effective legal recruiter in the country, he is also the founder of BCG Attorney Search, a recruiting powerhouse that has helped thousands of attorneys transform their careers. His vision for BCG goes beyond just job placement; it is built on a mission to provide attorneys with opportunities they would never have access to otherwise. Unlike traditional recruiting firms, BCG Attorney Search operates as a career partner, not just a placement service. The firm's unparalleled resources, including a team of over 150 employees, enable it to offer customized job searches, direct outreach to firms, and market intelligence that no other legal recruiting service provides. Attorneys working with Harrison and BCG gain access to hidden opportunities, real-time insights on firm hiring trends, and guidance from a team that truly understands the legal market. You can read more about how BCG Attorney Search revolutionizes legal recruiting here: The Story of BCG Attorney Search and What We Do for You.

The Most Trusted Career Advisor for Attorneys

Harrison's legal career insights are the most widely followed in the profession.

• His articles on BCG Search alone are read by over 150,000 attorneys per month, making his guidance the most sought-after in the legal field. Read his latest insights here.
• He has conducted hundreds of hours of career development webinars, available here: Harrison Barnes Webinar Replays.
• His placement success is unmatched-see examples here: Harrison Barnes' Attorney Placements.
• He has created numerous comprehensive career development courses, including BigLaw Breakthrough, designed to help attorneys land positions at elite law firms.

Submit Your Resume to Work with Harrison Barnes

If you are serious about advancing your legal career and want access to the most sought-after law firm opportunities, Harrison Barnes is the most powerful recruiter to have on your side.

Submit your resume today to start working with him: Submit Resume Here

With an unmatched track record of success, a vast team of over 150 dedicated employees, and a reach into every market and practice area, Harrison Barnes is the recruiter who makes career transformations happen and has the talent and resources behind him to make this happen.

A Relentless Commitment to Attorney Success

Unlike most recruiters who work with only a narrow subset of attorneys, Harrison Barnes works with lawyers at all stages of their careers, from junior associates to senior partners, in every practice area imaginable. His placements are not limited to only those with "elite" credentials-he has helped thousands of attorneys, including those who thought it was impossible to move firms, find their next great opportunity.

Harrison's work is backed by a team of over 150 professionals who work around the clock to uncover hidden job opportunities at law firms across the country. His team:

• Finds and creates job openings that aren't publicly listed, giving attorneys access to exclusive opportunities.
• Works closely with candidates to ensure their resumes and applications stand out.
• Provides ongoing guidance and career coaching to help attorneys navigate interviews, negotiations, and transitions successfully.

This level of dedicated support is unmatched in the legal recruiting industry.

A Legal Recruiter Who Changes Lives

Harrison believes that every attorney-no matter their background, law school, or previous experience-has the potential to find success in the right law firm environment. Many attorneys come to him feeling stuck in their careers, underpaid, or unsure of their next steps. Through his unique ability to identify the right opportunities, he helps attorneys transform their careers in ways they never thought possible.

He has worked with:

• Attorneys making below-market salaries who went on to double or triple their earnings at new firms.
• Senior attorneys who believed they were "too experienced" to make a move and found better roles with firms eager for their expertise.
• Attorneys in small or remote markets who assumed they had no options-only to be placed at strong firms they never knew existed.
• Partners looking for a better platform or more autonomy who successfully transitioned to firms where they could grow their practice.

For attorneys who think their options are limited, Harrison Barnes has proven time and time again that opportunities exist-often in places they never expected.

Submit Your Resume Today - Start Your Career Transformation

If you want to explore new career opportunities, Harrison Barnes and BCG Attorney Search are your best resources. Whether you are looking for a BigLaw position, a boutique firm, or a move to a better work environment, Harrison's expertise will help you take control of your future.

Submit Your Resume Here to get started with Harrison Barnes today.

Harrison's reach, experience, and proven results make him the best legal recruiter in the industry. Don't settle for an average recruiter-work with the one who has changed the careers of thousands of attorneys and can do the same for you.

About BCG Attorney Search

BCG Attorney Search matches attorneys and law firms with unparalleled expertise and drive, while achieving results. Known globally for its success in locating and placing attorneys in law firms of all sizes, BCG Attorney Search has placed thousands of attorneys in law firms in thousands of different law firms around the country. Unlike other legal placement firms, BCG Attorney Search brings massive resources of over 150 employees to its placement efforts locating positions and opportunities its competitors simply cannot. Every legal recruiter at BCG Attorney Search is a former successful attorney who attended a top law school, worked in top law firms and brought massive drive and commitment to their work. BCG Attorney Search legal recruiters take your legal career seriously and understand attorneys. For more information, please visit www.BCGSearch.com.