Legal Analytics Market is expected to register a CAGR of 6% during the forecast period, 2019-2024. Legal Analytics provides valuable insights to help lawyers gain a winning edge in the highly competitive business and practice of law
- According to a survey by LexisNexis in 2018, 94% of the lawyers/ law firms globally believed that legal analytics helps in "Case assessment," which allows them to get a competitive edge over others. Therefore, these benefits are expected to have a positive outlook on the market, thereby driving the market.
- Companies realize the future of case management, and thus, they are extending their offering to augment the market. For instance, AgreeYa Solutions launched a mobile application on Android and iOS named COGENT in November 2019. This helps the firms and organizations to control, manage, govern, and automate their collections and case management. Moreover, attorneys can also access and manage claims anytime, anywhere.
- Moreover, law firms can use the same type of predictive analytics to gain a deeper understanding of judges and juries. By examining the previous behavior in court or the profiles of individual judges, it becomes possible to predict how they will behave in a particular case. This information can give law firms a head start in court. The legal tech startup Judge Analytics, for example, has created a platform that offers detailed insights on any judge in the US. This information enables lawyers to understand better the judges involved in their cases and to develop the best strategy for their clients.
- However, lack of awareness about the technology and high initial cost of installment are a few factors that are hindering the market growth.
Scope of the Report
Legal analytics is a process of extracting actionable knowledge from data to assist in-house legal leaders and decision-makers on topics as diverse as matter forecasting, process improvement, legal strategy, comparative legal costs, and financial operations. Litigators use legal analytics to reveal trends and patterns in past litigation that inform legal strategy and anticipate outcomes in current cases. Further, it relies on advanced technologies, such as machine learning and natural language processing, to clean up, structure, and analyze raw data from millions of case dockets and documents.
Key Market Trends
Contract Management Offers Potential Growth
- New regulatory requirements, globalization, increases in contract volumes and complexity have resulted in increasing recognition of the importance and benefits of effective contract management, thereby increasing the demand for contract management.
- The growing recognition of the need to automate and improve contractual processes and satisfy increasing compliance and analytical needs has also led to an increase in the adoption of more formal and structured contract management procedures and an increase in the availability of software applications designed to address these needs.
- Therefore, key vendors have also grown eager to create investment products around contract management.
- For instance, in October 2019, Thomson Reuters partnered with a contract firm OpenLaw for a document automation proof of concept (POC). This proof of concept demonstrates how users could incorporate blockchain-enabled smart contract provisions into any legal template they create within Contract Express, including the many automated standard documents available from Practical Law.
- Additionally, in October 2019, Contract Logix launched a Premium? and Express? platform which allows the customers to customize contract data to match the business and individual needs.
- Therefore, contract management helps the customers to automate their contracting processes while minimizing risk, increasing compliance, and driving profitability. Such associated benefits help to have a positive outlook on the market.
North America to Hold the Largest Market Share
- North America is one of the fastest-growing regions when it comes to legal analytics and vendors offering legal analytics services also are expanding in this region. For instance, in 2018, AbacusNext a US-based company launched a mobile app for OfficeTools. With the app, users can log time as they make calls in transit, launch all business-critical communications with the Contacts feature, and view upcoming activities and appointments.
- As the awareness about legal analytics is increasing in the region, companies are expanding their presence by increasing their offering across different industries to capture the market share. For instance, in 2018, Mitratech Holdings Inc. acquired ThinkSmart LLC. The acquisition of ThinkSmart allowed Mitratech to further help customers to reduce risk overall whether legal, regulatory or operational, by providing them with unprecedented visibility, predictability, and control.
- Moreover, Mitratech Holdings Inc also predicted that in the United States spend by law departments in legal analytics would increase to 145 USD million in 2019 from 75 USD million in 2015. This indicates the trend of legal analytics in North America.
The legal analytics market is moderately competitive in nature and many new startups that are trying to disrupt the legal industry using the latest technology. However, the market is dominated by many global players such as LexisNexis Group Inc., AbacusNext, Wipro Group, etc amongst others. Product launches, high expense on research and development, partnerships and acquisitions, etc. are the prime growth strategies adopted by these companies to sustain the intense competition. Few recent developments are:
- September 2019 - AbacusNext announced an updated version of the AbacusLaw mobile app that serves all users of the AbacusLaw practice management system. The new app provides features such as the ability to access case and client information even offline and provides complete visual redesign focused on easy access to and management of AbacusLaw information. The mobile app benefits both on-premises and cloud-based clients.
- June 2019 - LexisNexis launched its Environmental Litigation module. The module provides detailed data and analytics on over 14,700 environmental cases pending in federal district court since 2009, including thousands of multi-district litigation cases. In addition to capturing all the environmental cases, Lex Machina used machine learning and natural language processing algorithms to find and tag environmental-related cases that were filed under other NOS codes.
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