$403.9bn
$XX.Xbn
1m
431k
$XXX.Xbn
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.
Industry revenue has grown at a CAGR of 1.4 % over the past five years, to reach an estimated $403.9bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Latham & Watkins LLP | 1,677.6 | 335.5 | 20.0 | |
Sidley Austin Llp | 1,475.1 | 295.0 | 20.0 | |
Eversheds Sutherland | 1,300.0 | 260.0 | 20.0 |
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Industry revenue is measured across several distinct product and services lines, including Commercial law services, Criminal law, civil negligence and personal injury and Real estate law. Commercial law services is the largest segment of the Law Firms in the US.
Financial markets drive commercial law services
Law firms in the United States comprise the offices of legal practitioners, known as lawyers or attorneys, who primarily practice law. The industry provides expertise in various areas of law, such as criminal, corporate, family and estate, patent, real estate or tax.
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NAICS 54111 - Law Firms in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Consolidation is increasing because of mergers and acquisitions. Law firms are expanding domestically and internationally to access new revenue streams.
Learn about an industry's products and services, markets and trends in international trade.
Small and midsized law firms specialize in particular service areas. They regularly provide noncommercial services such as criminal defense, civil negligence or family law.
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
A large concentration of corporate clients attracts law firms. Regions with large corporations are a popular place for law firms to locate.
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Law firms compete based on service quality within their specialty. Establishing a good reputation is essential to be competitive.
Learn about the performance of the top companies in the industry.
The law firm industry is highly fragmented. No single company accounts for a significant share of revenue. Localization and the lack of benefits from economies of scale keep ...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Law firms must adhere to American Bar Association (ABA) regulations as the state requires. These regulations mostly relate to the kind of accreditation necessary to practice ...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Cost structures may vary based on the size and specialization of a particular company. Major law firms are more profitable since they often conduct high-value corporate work.
Including values and annual change:
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Key data sources in the US include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
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IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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The market size of the Law Firms in the US industry in United States is $403.9bn in 2024.
There are 431k businesses in the Law Firms in the US industry in United States, which has declined at a CAGR of 0.1 % between 2019 and 2024.
The market size of the Law Firms in the US industry in United States has been growing at a CAGR of 1.4 % between 2019 and 2024.
Over the next five years, the Law Firms in the US industry in United States is expected to grow.
The biggest companies operating in the Law Firms market in United States are Latham & Watkins LLP, Sidley Austin Llp and Eversheds Sutherland
Criminal law services and Corporate law services are part of the Law Firms in the US industry.
The company holding the most market share in United States is Latham & Watkins LLP.
The level of competition is moderate and increasing in the Law Firms in the US industry in United States.