GITNUX MARKETDATA REPORT 2024

Legal Software Industry Statistics

The legal software industry is experiencing steady growth, with an increasing number of law firms adopting technological solutions to improve efficiency and meet client demands.

Last Updated: June 22, 2024

Written & Summarized by: Jannik Lindner

How we write

In this post, we explore key statistics shaping the legal software industry, providing insights into market trends, adoption rates, and future projections. From the surge in AI-based solutions to the growing preference for cloud-based platforms, these statistics highlight the evolving landscape of legal technology and its impact on law firms and legal departments globally.

Statistic 1

"The legal software market is projected to reach $15.29 billion by 2027 at a CAGR of 13.4%."

Statistic 2

"North America held the largest market share in the legal software industry in 2019."

Statistic 3

"The case management software segment accounted for more than 35.5% of the total market share in 2019."

Statistic 4

"Roughly 23% of the law firms in the US and the UK have adopted AI-based legal software."

Statistic 5

"Legal technology patents have grown 34% over the last five years."

Statistic 6

"By 2025, 90% of US and UK law firms will use cloud-based solutions like legal software."

Statistic 7

"The cloud-based segment of the legal software market held the largest share of 60.2% in 2019."

Statistic 8

"The governance, risk, and compliance software segment is projected to grow at a CAGR of 15.2% from 2020-2027."

Statistic 9

"The global legal technology AI market is expected to grow at a CAGR of 37.8% through 2025."

Statistic 10

"More than 60% of legal departments agree that legal tech improves their team’s efficiency."

Statistic 11

"Around 56% of law companies spend over 6% of their annual revenue on legal software."

Statistic 12

"Analytics and predictive technology segment will observe a CAGR of 13.7% during the period from 2020 to 2027."

Statistic 13

"65% of the clientele for legal software is corporate legal departments."

Statistic 14

"Companies give top priority (47%) to software functionality while choosing legal software."

Statistic 15

"Nearly 78% of legal professionals believe that tech advancements in legal software will change their firms over the next decade."

Statistic 16

"Only 30% of the small law firms reported the usage of legal practice management software."

Statistic 17

"About 39 percent of in-house counsel predict increasing their technology investment over the next three years."

In conclusion, the legal software industry is experiencing rapid growth and transformation, with promising projections for the future. Key trends include the increasing adoption of AI-based solutions, cloud-based technology, and analytics tools. The market is driven by factors such as the need for efficiency and improved services in legal operations. North America remains a dominant player, while corporate legal departments make up a significant portion of the clientele. Legal professionals are optimistic about the impact of technology advancements in shaping the future of their firms. As technology continues to evolve, legal software companies need to prioritize functionality to meet the demands of the industry and cater to the diverse needs of law firms and legal departments.

Jannik Lindner

Jannik is the Co-Founder of Gitnux and has been working in the digital space since 2016. He is specialized in content and tech.

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