The LegalTech market is set to reach USD 35.4 billion in 2025 to grow to 72.5 billion by 2035, reflecting a CAGR of 7.6% through 2035.

Attributes	Description
Industry Size (2025E)	USD 35.4 billion
Industry Size (2035F)	USD 72.5 billion
CAGR (2025 to 2035)	7.6% CAGR

Contracts Deals Analysis

Company	Contract Value (USA USD Million)
Texas State Government	~USD 300 million
Fennemore Craig	Estimated ~USD 50-100 million
ZwillGen	Estimated ~USD 20-50 million

Country Wise Analysis

Country	CAGR (2025 to 2035)
India	13.8%
China	11.9%
Germany	7.8%
Japan	8.6%
The USA	9.9%

Competitive Outlook

Company Name	Estimated Market Share (%)
Thomson Reuters	18-22%
LexisNexis	15-19%
Clio	12-16%
Relativity	10-14%
DocuSign	8-12%
Other Companies (Combined)	30-40%

In 2021, the legal tech market generated revenues of 27.6 billion U.S. dollars worldwide, with the market forecast to grow at a compound annual growth rate (CAGR) of over four percent for the period to 2027. In that year, revenues are set to reach 35.6 billion U.S. dollars.

The global legal tech market

The global legal tech market will undergo sizeable growth in the coming years, with an array of technological tools available to firms to transform and improve the way legal services are delivered. An influx of law graduates who have grown up with technology, along with a healthy supply of tech aficionados, who have identified the opportunities available in the legal services market, has allowed for greater awareness of tech-related solutions in an industry that is often considered to be more conservative and traditional.

Regional highlights for legal tech

Europe and North America are the shining lights for legal tech, with each region home to a diverse collection of companies disrupting the legal services market. The growth of legal tech in these regions is fostered by many different players, such as law firms adopting tech strategies and methods, and startups developing new and innovative solutions. Notable countries for legal tech include the U.S. and the UK. These countries have strong and well-developed legal service industries that have been in place for many years and are home to several leading technology hubs - an ideal combination for enabling the growth of legal tech.

The global legal technology market is likely to rise from USD 29.18 billion in 2024 to USD 99.55 billion by 2037, reflecting a CAGR of around 9.9% during the forecast timeline, from 2025 to 2037. Key industry players include Icertis, Inc., TimeSolv Corporation, Filevine, among others.

In 2021, the legal tech market generated revenues of 27.6 billion U.S. dollars worldwide, with incumbents generating 22.2 billion U.S. dollar toward the total. The legal tech startup market, which generated 5.4 billion U.S. dollars in 2021, is forecast to grow at a compound annual growth rate (CAGR) of 3.7 percent for the period to 2027, with revenues set to reach 6.7 billion U.S. dollars at the end of this period.

Legal industry players

The global legal services industry is a 790 billion U.S. dollar market, somewhat led by firms from developed countries and continents. Law firms across the world are now continuously being forced to consider ways of reducing their costs, while creating new methods that are different from the competition is a further challenge. The introduction of legal tech solutions is one such way that a firm can save time and streamline work processes.

Legal tech overview

Legal tech refers to the use of technology software and solutions to support the legal industry and provide legal services, with the global legal tech market set to undergo sizeable growth in the coming years. The adoption of technology within the legal services industry has been heavily influenced and, on occasions, accelerated by major global events. Examples include the 2008 financial crisis and the coronavirus pandemic, with technology forming a key part of changes seen within the legal services industry whether it be companies, courts, or the classroom.

The Report Covers Legal Tech Companies and the Market is Segmented by Solution (Software (Cloud-Based, On-Premise), Services (Consulting Services, Support Services, Others)), by End-User Industries (Law Firms, Corporate Legal Departments, Government, Others), by Geography (North America, Europe, Asia-Pacific, Middle East and Africa, Rest of the World). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

In 2021, the legal tech market in North America generated revenues of 12.25 billion U.S. dollars, with incumbents generating 11.81 billion U.S. dollars worth of this total. The legal tech startup market in North America, which generated 440 million U.S. dollars in 2021, is forecast to grow at a compound annual growth rate (CAGR) of 9.33 percent for the period to 2027, with revenues set to reach 750 million U.S. dollars at the end of this period.

In 2021, the North American B2B legal tech market accounted for 94.71 percent of revenue generated by the total legal tech market in the region, whilst the B2C market accounted for 5.29 percent of revenues generated.

The Legal Technology Market is projected to grow at 9.4% CAGR, reaching $47.61 Billion by 2029. Where is the industry heading next? Get the sample report now!

The legal tech market is expected to reach USD 37.15 billion by 2033, exhibiting a CAGR of 9.39% during the forecast period. The increasing adoption of legal tech solutions by law firms and corporate legal departments to streamline operations, enhance efficiency, and reduce costs is a major driver of market growth. Additionally, the growing volume of legal data and the need for improved data management and analytics are contributing to the demand for legal tech solutions. Cloud-based deployment models are gaining popularity in the legal tech market due to their flexibility, scalability, and cost-effectiveness. The Software-as-a-Service (SaaS) model, in particular, allows law firms and corporate legal departments to access legal tech solutions on a subscription basis, eliminating the need for upfront investment in hardware and software. Key players in the legal tech market include Herbert Smith Freehills, Alston Bird LLP, Cooley LLP, and Baker McKenzie. These companies offer a wide range of legal tech solutions, including case management, contract management, eDiscovery, legal research, and compliance solutions. Key drivers for this market are: Automation of legal processesIncreasing demand for legal servicesGrowing adoption of AI and MLCloud-based legal software deploymentLegal tech collaboration . Potential restraints include: Growing demand for legal services automationIncreasing adoption of AI and machine learningHeightened focus on compliance and risk managementEmergence of cloud-based legal tech solutionsGrowing investment in legal tech startups .

In 2021, North America accounted for 44.39 percent of revenues generated by the legal tech market worldwide, whilst Europe accounted for 25.24 percent of market revenues. The Asia-Pacific region occupied around 17.7 percent of the global legal tech market in terms of revenue in 2021.

Global LegalTech Market size was worth around $15.37 billion in 2023 and is predicted to grow to $48.41 billion by 2032 a CAGR of 13.60% By 2024 and 2032.

The legal tech market is thriving, with a market size valued at XXX million in 2025 and a projected CAGR of XX% from 2025 to 2033. This growth is driven by factors such as the increasing adoption of technology in the legal sector, the need for cost-effective legal solutions, and the rise of legal analytics and artificial intelligence (AI). Major market players include Ascendix, Brightflag, Luminance, Axiom, and Clio. The legal tech market is segmented based on type and application. By type, the market includes e-discovery, legal analytics, and legal practice management. By application, the market is divided into government and commercial sectors. The North American region dominates the market, followed by Europe and Asia Pacific. Key trends in the market include the adoption of cloud-based legal software, the use of AI for legal research and document review, and the integration of legal tech solutions with other enterprise applications. Restraints to market growth include data security concerns, lack of legal tech expertise, and the high cost of implementation.

Global LegalTech Market is poised to witness substantial growth, reaching a value of USD 72.89 Billion by the year 2033, up from USD 37.32 Billion attained in 2024. The market is anticipated to display a Compound Annual Growth Rate (CAGR) of 7.72% between 2025 and 2033.

LEGALTECH MARKET SIZE AND FORECAST 2025 TO 2033

The LegalTech market encompasses a range of technologies and solutions designe

The North American legal tech market is forecast to grow at a compound annual growth rate (CAGR) of 4.68 percent for the period between 2021 and 2027. The legal tech market in the European region is set to experience the highest CAGR, growing by 5.2 percent for the time period studied.

The market size of the Legaltech Artificial Intelligence Market is categorized based on Application (Document Management System, Practice and Case Management, Contract Management, IP-Management, Legal Research, Legal Analytics, Cyber Security, Predictive Technology, Compliance) and Product (Lawyers, Clients) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

This report provides insights into the market size and forecasts the value of the market, expressed in USD million, across these defined segments.

The size of the Legal Technology Market market was valued at USD 24.9 billion in 2023 and is projected to reach USD 45.81 billion by 2032, with an expected CAGR of 9.1 % during the forecast period. The legal technology market encompasses innovative software and tools designed to streamline legal processes, enhance efficiency, and improve access to legal services. This sector includes applications for case management, document automation, e-discovery, contract analysis, and legal research. Key uses range from improving workflow and collaboration within law firms to providing self-service legal solutions for clients. Current trends highlight the adoption of artificial intelligence for predictive analytics, blockchain for secure transactions, and cloud-based platforms that facilitate remote work. As legal practices evolve, there is an increasing emphasis on technology-driven solutions that enhance client engagement, reduce costs, and ensure compliance in an increasingly complex regulatory environment. Recent developments include: In March 2023, Icertis, Inc. and KPMG LLP collaborated to deliver Icertis Contract Intelligence through contracting practices of KPMG to help customers to reduce costs, increase revenue, ensure compliance, and manage risks. , In March 2023, Casetext Inc. launched CoCounsel, an AI legal assistant which is powered by OpenAI technology. The software performs various important tasks such as document review, legal research, contract analysis, and deposition preparation. , In January 2023, Themis Solutions Inc. (Clio) expanded their operation to Australia to expand and support partnerships, sales, product development in the Australian legal market. , In January 2023, Filevine Inc. collaborated with Moxo Inc. to streamline legal case management and interactions for their clients and law firms and to improve customer experience. .

According to Cognitive Market Research, the global LegalTech Artificial Intelligence market size will be USD 2415.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 11.50% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 966.20 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.7% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 724.65 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 555.57 million in 2024 and will grow at a compound annual growth rate (CAGR) of 13.5% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 120.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.9% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 48.31 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.2% from 2024 to 2031.
The Software solutions category is the fastest growing segment of the LegalTech Artificial Intelligence industry

Market Dynamics of LegalTech Artificial Intelligence Market

Key Drivers for LegalTech Artificial Intelligence Market

Increased Demand for Automation in Legal Workflows to Boost Market Growth

The rising demand for automation in legal operations stems from the desire to improve efficiency, cut costs, and manage vast amounts of legal data. Legal practitioners may now concentrate on more complicated, high-value work by using LegalTech AI solutions to automate repetitive processes like contract review, legal research, document drafting, and e-discovery. Automation speeds up turnaround times, assures compliance, and lowers human error. AI-driven automation is also increasingly essential as law companies deal with clients' increasing need for quicker, less expensive services. Precision analysis is further made possible by the combination of machine learning and natural language processing, which increases productivity and revolutionizes conventional legal procedures. For instance, Series A fundraising spearheaded by Google's GV has garnered £13.3 million for LegalTech Genie AI.Rafie Faruq and Nitish Mutha established the London-based company in 2017 with the goal of cutting down on the amount of time spent on language processing, data analysis, and decision-making duties.

Cost Reduction Pressure in Legal Services to Drive Market Growth

The adoption of LegalTech AI solutions is being driven by the demand to reduce costs in legal services, which is changing the sector by lowering the cost and increasing access to high-quality legal assistance. Conventional legal workflows are frequently expensive and time-consuming, particularly when it comes to duties like case research, contract administration, and document review. These procedures are automated by AI-powered solutions, which drastically lower operating costs without sacrificing accuracy. Businesses can also effectively scale their services, managing more cases with less resources. This cost-effectiveness satisfies the needs of customers and enterprises on a tight budget, which propels the LegalTech AI market's expansion as law firms and internal legal teams adopt technology more and more to stay competitive.

Restraint Factor for the LegalTech Artificial Intelligence Market

Data Security and Privacy Concerns,will Limit Market Growth

legal information is sensitive and data security and privacy issues pose serious obstacles in the LegalTech AI business. Managing privileged communications, intellectual property, and private client information are common tasks in legal operations. To maintain security and stop breaches, AI systems need to abide by strict data protection laws like GDPR and HIPAA. These worries are heightened by risks including cyberattacks, data leaks, and illegal access. Dependence on outside AI platforms may also give rise to concerns over data ownership and moral application. In order to mitigate privacy threats, LegalTech suppliers prioritize strong encryption, safe cloud solutions, and compliance requirements observance.

Impact of Covid-19 on the LegalTech Artificial Intelligence Market

As remote work and digital transformatio...

Global LegalTech Artificial Intelligence Market size valued at US$ 12.19 Billion in 2023, set to reach US$ 165.31 Billion by 2032 at a CAGR of about 33.6% from 2024 to 2032.

Europe's Legal Services Market is Segmented by Size (large Law Firms and SME Law Firms), by Sector (criminal, Labor/Industrial, Family, Taxation Law, Commercial, and Other), and by Services (representation, Advice, Notarial Activities, and Research). The Report Offers Market Size and Forecasts for the European Legal Services Market in Value (USD) for all the Above Segments.

The legal AI software market size is estimated to rise from $1.53 billion in 2024 to $14.62 billion by 2035, growing at a CAGR of 22.77% from 2024 to 2035.