The majority of corporate legal spending takes place outside Singapore. Legal expenses increased by (44%) in Singapore due to M&A deals and the need for specialized external advice. [62] Most legal spending takes place outside Singapore (59%), with the majority of businesses operating in India, China, Hong Kong and the United Kingdom. [62] With new modes of tax transactions leading to tax claims on businesses and individuals, the market for legal services is expected to expand over the forecast period. Although the segment is growing rapidly, especially compared to law firms, it still pales in comparison to law firm revenues. Expect further significant developments in this area over the next ten years. According to a 2017 Altmanweil survey, about 95.4% of law firms said price competitiveness was an important trend influencing the legal services market and hurting their profit margins. Rising costs for legal services are expected to dampen the expansion of the legal services market. This improves the efficiency of law firms by allocating resources more wisely, resulting in cost savings. ALSPs are also using technology to accelerate the legal services value chain.

Thus, ALSPs will create profitable opportunities for the expansion of legal services over the projection period. Large law firms account for a significant share of the market, but the market is highly fragmented. The world`s 100 largest law firms are generating more than $111 billion in revenue in 2020, accounting for about 15% of the estimated total legal services market. The world`s 10 largest law firms generated revenue of $29.6 billion in 2020, less than 4% of the total legal services market. Legal services in Hong Kong are unique in their ability to attract international legal work. Although the majority of Hong Kong law firms engage in domestic legal work, Hong Kong`s status as an Asian legal center has been largely shaped by international legal work. In fact, foreign law firms and foreign lawyers from China, the United Kingdom, and the United States participate in a competitive legal market. During the pandemic, few legal departments have been fortunate enough to experience a steady flow of business.

For example, restructuring and bankruptcy services saw an increase in work in the U.S. as companies tried to survive the crisis and others to mitigate losses. Legal Services Market Segmentation The legal services market is segmented by service type, law firm size, mode, practice type, and end user. By Service Type – The legal services market is segmented by service type into: a) B2B Legal Services b) B2C Legal Services c) Hybrid Legal Services d) Criminal Law Practices The B2B legal services segment was the largest segment of the legal services market, segmented by service type, accounting for 54.8% of the total in 2021. Going forward, the hybrid legal services segment is expected to be the fastest growing segment in the legal services market, segmented by service type, with a CAGR of 9.0% during the period 2021-2026. By Law Firm Size – The legal services market is segmented by law firm size into: a) Large Law Firms b) SME Law Firms The Large Law Firms segment was the largest segment of the Legal Services market, segmented by law firm size, accounting for 64.2% of the total in 2021. Going forward, the large law firms segment is expected to be the fastest growing segment in the legal services market, segmented by law firm size, with a CAGR of 8.1% during the period 2021-2026. Sub-segmentation â By B2B legal services â The B2B legal services market is further segmented into: a) B2B Legal Services – Large Law Firms b) B2B Legal Services – SME Law Firms The B2B Legal Services – Large Law Firms segment was the largest segment of the B2B legal services market in 2021 with 43.4% or $309.63 billion. The B2B – Large Law Firms segment is expected to be the fastest growing segment, which will be the fastest growing segment in the future with a CAGR of 7.8% during the period 2021-2026.

By B2C Legal Services â The B2C legal services market is divided into: a) B2C Legal Services – Large Law Firms b) B2C Legal Services – SME Law Firms The B2C Legal Services segment – SME Law Firms was the largest segment of the B2C legal services market in 2021 with 14.9% or $106.52 billion. The B2C – Large Law Firms segment is expected to be the fastest growing segment with a CAGR of 10.8% during the period 2021-2026. By Criminal Law Practice The criminal law practice market is divided into: a) Criminal Law Practices – Large Law Firms b) Criminal Law Practices – SME Law Firms The Criminal Law Practice – SME Law Firms segment was the largest segment of the criminal law practice market in 2021 with 10.4% or $74.46 billion. The Criminal Practices – Large Law Firms segment is expected to witness the fastest growth with a CAGR of 8.2% during the period 2021-2026. By Hybrid Legal Services â The hybrid legal services market is further segmented into: a) Hybrid Legal Services – Large Law Firms b) Hybrid Legal Services – SME Law Firms The Hybrid Legal Services – Large Law Firms segment was the largest segment of the hybrid legal services market in 2021 at 7.0%, or $50.25 billion. The Hybrid Legal Services – Large Law Firms segment is expected to witness the fastest growth in 2021-2026, with a CAGR of 10.2%. By Mode – The legal services market is segmented by mode into: a) Online b) Offline The offline segment was the largest segment of the legal services market, segmented by mode, accounting for 97.0% of the total in 2021. Going forward, the online segment is expected to be the fastest growing segment in the legal services market, segmented by law firm size, with a CAGR of 12.0% during the period 2021-2026. By Practice Type – The Legal Services market is segmented by Practice Type into: a) Litigation b) Business c) Work/Employment d) Real Estate e) Patent Litigation f) Taxes g) Insolvency h) Other (regulatory, mergers and acquisitions, antitrust, environmental) The corporate segment was the largest segment of the legal services market, segmented by type of practice, representing 28.2% of the total in 2021.

Going forward, the patent litigation segment is expected to be the fastest growing segment in the legal services market, segmented by service type, with a CAGR of 7.9% during the period 2021-2026. By End User – The legal services market is segmented by end-user into: a) Individuals b) Financial Services c) Mining and Oil and Gas d) Manufacturing e) Construction f) Computer Services g) Other Services h) Other The individual segment was the largest segment of the legal services market, segmented by end-user, accounting for 39.3% of the total in 2021. Going forward, IT services is expected to be the fastest growing segment in the legal services market, segmented by end-user, with a CAGR of 14.3% during the period 2021-2026. By geography – The legal services market is geographically segmented into North America – Canada – Mexico – United States and Western Europe, Austria – Belgium – Denmark – Finland France Germany – Ireland – Italy – Netherlands ¢ Norway ¢ Portugal – Spain – Sweden – Switzerland – Great Britain o Asia-Pacific – China – Australia – Hong Kong ⢠India ⢠Indonesia ¢ Japan ¢ Malaysia ¢ New Zealand ⢠Philippines ⢠Singapore • South Korea • Thailand • Vietnam □ Eastern Europe �� Poland �� Romania �� Czech Republic � Russia and South America • Argentina • Brazil • Chile �� Colombia ¢ Peru �� Venezuela • Middle East • Saudi Arabia ⢠Israel • Turkey • United Arab Emirates • Africa • Egypt • Nigeria • South Africa North America was the largest region in the global legal services market, 55.0% of the total in 2021.