Description
“Legal services providers will continue to face competitive pressures, driven by new entrants, alternative providers, rapidly evolving technology, new business models, changing client buying patterns and new ways of working.
With alternative legal services providers, most notably the Big Four, gaining in client favourability, traditional firms need to demonstrate their ability to handle clients’ work efficiently and effectively. Technology adoption and innovation will play a key role in ensuring that firms thrive in an ever-changing environment.”
– Claudia Preedy, Senior B2B Analyst
This Report looks at the following areas:
- How the market has performed in the unprecedented disruption of the COVID-19 pandemic
- Market drivers for the key B2B and B2C legal services sectors
- Lawtech adoption in the legal services sector
- How providers are responding to evolving consumer demands and increased competition
- Five-year market outlook
Table of Contents
-
Overview
- Key issues covered in this Report
- COVID-19: market context
- Economic and other assumptions
- Covered in this Report
-
Executive Summary
- The five-year outlook for the UK legal services sector
- Figure 1: Legal services outlook, 2022-26
- The market
- Legal services sector has shown resilience during COVID-19 crisis
- Figure 2: Turnover of UK legal services industry, 2017-21
- B2B work accounts for two thirds of solicitors’ turnover
-
- Figure 3: Turnover of UK solicitor firms, by type of work, 2021
- Turnover of legal services industry to demonstrate sustained growth
-
- Figure 4: Forecast turnover of the UK legal services industry, 2022-26
- Market trends
- Investment in digitalisation and Lawtech to remain key priorities for legal services providers
- Increased collaboration between legal firms and other professional service providers
- Growth in online legal services
- Companies and brands
- Over half of law firms set up as corporate entities
- Figure 5: Breakdown of solicitor firms, by type, 2022
- Interest in law-firm IPOs on the rise, as firms seek external capital to support their growth ambitions
- The five-year outlook for the UK legal services sector
-
Issues and Insights
- The rise of alternative legal services providers drives innovation across the sector
- COVID-19 is a catalyst for legal tech adoption among traditional firms
-
Market Size
- Overview
- Legal services sector shows resilience during COVID-19 crisis
-
- Figure 6: Turnover of the UK legal services industry, 2017-21
- Figure 7: Turnover of UK legal services industry, 2017-21
- UK legal services sector enjoys strong position internationally
- UK firms continue to look for international expansion
- The rise of alternative legal services providers drives innovation across the sector
-
Market Segmentation
- Market segmentation by profession
- Solicitors account for the majority of turnover in the UK legal services sector
- Figure 8: Turnover of UK legal services industry, by type of business, 2017-21
- Segmentation by category of work (solicitors only)
-
- Figure 9: Turnover of UK solicitor firms, by type of work, 2021
- Figure 10: Turnover of UK solicitor firms, by type of work, 2021
- Private practices face competition from in-house teams
- Demand for legal services by end-use sector
-
- Figure 11: Top sources of business demand for legal services (% of total UK business sales)
- Conveyancing market
-
- Figure 12: Average number of transactions by conveyancing firms, 2018-21
- Wills and probate
- DIY probate gains in popularity, but opportunities remain
-
- Figure 13: Grants of probate issued in England and Wales, 2016-21
- The majority of adults have yet to make a will
- Solicitors remain most common providers of wills
- Demand for online wills surges during pandemic
- Digital transformation of wider market
- Video-witnessed wills made legal during COVID-19 crisis
- Personal injury
- Reforms drive consolidation as market shrinks
- Firms adopt new business models and embrace technology for post-whiplash reforms strategies
- PI claims fall by nearly 40% between 2017 and 2021
-
- Figure 14: Personal injury claims issued in county and magistrates’ courts in England and Wales, 2014-21
- Other areas of work
- Employment law
-
- Figure 15: Number of employment tribunal receipts, 2011-21
- Family law
- Move to online divorce services
- New ‘No-fault divorce’ rule expected to lead to a short-term surge in divorces
- Regional analysis
-
- Figure 16: Regional analysis of the UK legal services sector, 2019
- Overseas trade in legal services
-
- Figure 17: International trade in legal services, 2016-20
- Figure 18: Net exports of legal services, 2016-20
-
Market Forecast
- The five-year outlook for UK legal services
- Figure 19: Legal services outlook, 2022-26
- The impact of Brexit
- The market 2022-26
- Forecast turnover of UK legal services industry
-
- Figure 20: Forecast turnover of the UK legal services industry, 2022-26
- The five-year outlook for UK legal services
-
Market drivers and assumptions
-
- Figure 21: Key drivers affecting Mintel’s market forecast, 2015-26
- Forecast methodology
-
-
Market Trends
- Growing demand for non-traditional legal services, new delivery models and integrated solutions
- Types of ‘non-traditional’ legal services
- Interest in law-firm IPOs on the rise as firms seek external capital to support their growth ambitions
- Unbundling of legal services
- Fixed-fee models become more prevalent
- Efforts to better facilitate the role of digital comparison tools in the sector
- More consumers expect the online delivery of legal services
- The Big Four accountancy firms continue their advance into the legal services sector
-
Lawtech Adoption in the Legal Services Sector
- Investment in legal technology remains key priority for legal services providers
- Big Four at forefront in investing in Lawtech
- COVID-19 is a catalyst for legal tech adoption among traditional firms
- Technology has the potential to improve access to legal services for consumers and SMEs
- UK is the hub of European legal tech firms
- Adoption of Lawtech increases demand for new types of skills
- Blockchain in the legal sector
-
Regulatory and Legislative Changes
- Industry regulation
- Legal Services Act
- Legal Services Act opens up market to non-lawyers and leads to new business models
- Reformed Separate Business Rule makes it easier for solicitors to provide other professional services
- Standards and Regulations reforms allow solicitors to work freelance and practise as solicitors from unregulated firms
- CMA sets out package of measures aimed to help customers better navigate the market and get value for money
- CMA’s progress review of competition in legal market
- Legal Services Board sets out 10-year strategy for legal sector
- Court modernisation programme
-
Market Drivers
- Residential and commercial property transactions
-
- Figure 22: UK residential property transaction completions, by country, 2017-21 (number)
- Figure 23: UK residential property transaction completions, 2016-21
-
- Figure 24: UK non-residential property transaction completions, by country, 2017-21 (number)
- Figure 25: UK non-residential property transaction completions, 2016-21
- Trends in M&A activity
- High level of M&A activity expected to be sustained in 2022
-
- Figure 26: Mergers and acquisitions involving UK companies, 2008-21
- Uptick in IPO activity in 2021
- Figure 27: Number of main market and AIM-listed companies, 2011-21
-
- Figure 28: Number of main market and AIM-listed companies, 2013-21
-
- Figure 29: Number of company IPOs on London Stock Exchange, 2015-21
- Private sector business population contracts in 2021
-
- Figure 30: Number of private sector businesses in the UK, 2007-21
- Figure 31: Number of private sector businesses in the UK, 2007-21
-
- Figure 32: Number of VAT and/or PAYE-registered enterprises in the UK, by broad industry group, 2016 and 2021 (number and %)
-
Industry Structure
- Industry development
- International legal services firms in London
- Top 20 commercial legal firms
-
- Figure 33: UK top commercial law firms, by turnover, 2021
- The rise of alternative legal services providers
- Structure of UK legal activities industry
- Figure 34: Analysis of the changes in the structure of the UK legal activities industry, 2017-21 (number of local units and businesses)
- Solicitor firms
-
- Figure 35: Number of practising solicitors in the UK, 2013-21 (number and % change)
- Figure 36: Population of practising solicitors, 2018-22
-
- Figure 37: Breakdown of solicitor firms, by type, 2022
- Practising barristers
- Figure 38: Total barristers in practice, 2016-21
- Structure by employment
- Figure 39: Analysis of the employment structure of the UK legal activities industry, 2020 and 2021 (local units and employees)
- Figure 40: Analysis of the employment structure of the UK legal activities industry, 2019 and 2020 (local units and employees)
- Structure by turnover
- Figure 41: Analysis of the financial structure of the UK legal activities industry, 2019 and 2020 (£000 and number of companies)
-
Competitive Strategies
- Technology and digitisation become strategic priorities for legal services providers
- A&O prioritises investment in Advanced Delivery & Solutions, which comprises the firm’s advanced resourcing, innovation and technology capabilities
- Pinsent Masons is taking a tech-based approach to legal work across the firm
- Freshfields steps up investment in digitalisation and tech-based solutions
- Launch of tech-focused practices to meet evolving needs of clients
- Clifford Chance’s Tech Group helps businesses in all industries tackle the risks and opportunities that technology brings
- DLA Piper launches new tech-focused practices to meet the evolving needs of clients working with and in technology
- Dispersed law firms use technology and modern working practices to drive growth
-
Company Profiles
- Allen & Overy
- Advanced Delivery & Solutions
- Company strategy
- Financial performance
- Figure 42: Financial analysis of Allen & Overy, 2017-21 (£ million)
- Clifford Chance
- Company strategy
- Clifford Chance Tech Group advises clients on the risks and opportunities that technology brings
- Financial performance
- Figure 43: Financial analysis of Clifford Chance, 2017-21 (£ million)
- Figure 44: Turnover analysis of Clifford Chance, by geographic segment, 2021 (£ million and % of turnover)
- CMS Cameron McKenna Nabarro Olswang
- Financial performance
- Figure 45: CMS Cameron McKenna Nabarro Olswang, 2017-21 (£000)
- DLA Piper International
- DLA Piper launches tech-focused practices to meet the evolving needs of clients working with and in technology
- DLA Piper expands its Law& enhanced legal offerings
- Company strategy
- Financial performance
- Figure 46: Financial analysis of DLA Piper International, 2017-21 (£ million)
- Freshfields Bruckhaus Deringer
- Global centre in Manchester delivers process-oriented legal services
- Digital transformation programme
- Company strategy
- Financial performance
- Figure 47: Financial analysis of Freshfields Bruckhaus Deringer, 2017-21 (£ million)
- Hogan Lovells International
- Company strategy
- Financial performance
- Figure 48: Financial analysis of Hogan Lovells International, 2016-20 (£000)
- Linklaters
- Company strategy
- Financial performance
- Figure 49: Financial analysis of Linklaters, 2017-21 (£ million)
- Norton Rose Fulbright
- Merger with US-based Chadbourne & Parke
- NRF Transform
- Company strategy
- Financial performance
- Figure 50: Financial analysis of Norton Rose Fulbright, 2017-21 (£000)
-
Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Methodology
-
Further Sources and Contacts
- Regulatory bodies and professional associations
- Advocate General for Scotland
- Solicitors Regulation Authority
- The Bar Council
- The Commercial Bar Association
- The Law Society
- The Law Society of Northern Ireland
- The Law Society of Scotland
- The Sole Practitioners Group
- Trade magazines
- Lawyer Monthly
- Legal Business
- Legal Week
- New Law Journal
- Solicitors Journal
- The Journal of the Law Society of Scotland
- The Law Gazette
- The Lawyer
- Trade events
- LAW 2022 Online
- London Law Expo 2022
- Legalex 2021
Why Mintel?
Gain access to high quality market research with every purchase of Mintel’s B2B industry reports. Here's what else you can expect when buying from us:
Mintel’s Clients Portal
After your purchase is completed, you’ll receive an invitation to join Mintel’s Clients Portal which provides instant access to supplementary insights from Mintel’s industry experts.
Multiple Report Formats
Mintel’s reports are available in PDF and PPT formats, and arrive in your inbox alongside as soon as your purchase is completed, so you can share Mintel’s market intelligence with ease.
Use Our Readymade Presentations...
Whether you want to present a quick market summary, or an in-depth exploration. Every report comes with keynote and a full-written presentations, ready to download or present online.
...Or Create Your Own
Using Mintel’s custom presentation tool, you can easily incorporate selected research data and analysis into a tailor-made presentation to win over clients and stakeholders.
Browse our sample PDF report below:
Please Note: All of the figures, graphs, and tables have been redacted.
Trusted by companies. Big and small.
