Legal SaaS Market Projected To Grow At A Cagr Of 15% From 2022 And 2027

Legal SaaS Market Analysis (2023 - 2030)

The size of the global legal SaaS market, projected at USD 0.37 billion in 2021, and is predicted to grow at a CAGR of 15% between 2022 and 2027. The legal SaaS market is expanding primarily due to the quick adoption of technology in law firms, growing demand for intelligent business processes, and expanding demand for security and data protection in law firms and corporations.

Law firms manage their day-to-day case handling activities using legal SaaS. The law also makes use of legal operating tools to manage legal expenses, keep an electronic database, and produce reports and analyses of legal actions. Both small and large businesses produce a lot of data, which makes it difficult and time-consuming for them to manage it manually. By streamlining their data process, businesses can save time and resources thanks to technology and software. As a result, a large number of law firms are quickly implementing technological solutions, which is what is driving market expansion. Additionally, the drive to lower operating costs has prompted law firms to boost the adoption of legal SaaS solutions, consequently driving market share, as the requirement for security and data protection is rising along with the volume and complexity of legal work.

The emergence of COVID-19 has had an impact on the world economy as well as human health. In addition, numerous industries have had to stop operations and manufacturing due to the lockdowns and restrictions. Law firms are one of the sectors, among others, that the pandemic has had a particularly negative impact on. However, just like other sectors of the economy, the legal sector has also moved away from courtrooms and toward software platforms and work-from-home options like Zoom meetings. Many regulations have begun to transition to digital changes, such as e-billing practices and virtual court sessions, while courtrooms have been closed owing to lockdowns and restrictions.

Conversely, as the use of ESI is included in the software solution, the complexity rises. A key barrier to the expansion of the legal SaaS market is the general change in the dynamics of the complex litigation process as well as the rising expense of e-discovery. However, the market for legal SaaS is anticipated to undergo a significant transformation during the projected period due to the increased development and implementation of new technologies like artificial intelligence and machine learning. Artificial intelligence can be used to analyze data, forecast the results of legal proceedings, and thoroughly examine contracts. Additionally, organizations using AI-powered software are assisted in the analysis of legal documents by technologies like natural language processing (NLP). For instance, clients can use the AI-powered ROSS legal research service to locate applicable legislation that can support their needs.

Key Market Insights:

• Legal SaaS Market is divided into cloud-based and on-premise segments based on deployment. Big businesses favor cloud-based legal software because it offers large data storage and upkeep. Data is stored on the vendor's server, which hosts the cloud-based program. SMEs choose on-premise software deployment because it allows them to tailor the system's price. On a company's server, locally installed proprietary software is used in the on-premise paradigm.
• The market for legal SaaS is seeing growth for contract management applications. During the contract review process, law firms and company legal departments invest a lot of time analyzing the risk and opportunity involved. They can assess the contract's wording and the meaning of the provisions in this situation with the use of AI-powered solutions. Additionally, AI-powered contract analysis tools may scan and analyze incoming contracts and make adjustments under specified rules and policies.
• Legal SaaS Market is divided into SMEs and Large Enterprises based on Organization Size. In 2021, the Legal SaaS Market's Large Enterprise segment held the largest market share. Legal operations software is being used more and more by law firms to handle challenging tasks and effectively serve their clients. This is explained by the market's expansion within the anticipated time frame.
• Legal SaaS Market is divided into Corporate and Law Firms based on End-User. The Legal SaaS Market's largest share belongs to the group of Law Firms. Legal companies and corporations are increasingly using the software to improve their operations and manage papers effectively. This has made it possible for different businesses to employ legal SaaS to accomplish their goals, which is estimated to fuel market growth in the upcoming years.
• Given the US and Canada's rapid market growth, North America is anticipated to have the greatest market share in the global market for legal SaaS. Additionally, the area is home to several market merchants. While during the forecast period, Europe is anticipated to increase at the highest rate. GDPR and changing market dynamics would offer manufacturers of legal AI software solutions expansion prospects.

Market Segmentation:

By Deployment:

• Cloud-Based
• On-Premise

By Organization Size:

• SMEs
• Large Enterprise

By Application:

• Document Management
• E-Billing
• Knowledge Management
• Governance, Risk Management, and Compliance
• Intellectual Property Management
• Case/Matter Management
• Contract Management
• Legal Project and Analytics Management
• Legal Hold/ e-Discovery
• Others

By End-User:

• Corporate
• Law Firms

By Region:

• North America
• Europe
• Asia-Pacific
• Rest of the World