Case by case: Increasing external competition has constrained revenue growth

The Legal Services industry has grown slowly over the past five years. Business confidence has been high over the past five years, generating demand for the industry's value-added services, such as legal work relating to mergers and acquisitions, IPOs, and restructuring initiatives. However, increasing external competition has constrained revenue growth over the period. As a result, industry revenue is expected to grow by an annualised 0.7% over the five years through 2018-19, to reach $19.8 billion. A declining number of housing transfers and divorces as well as a fall in criminal activity is expected to reduce industry revenue by 2.5% in 2018-19.Complex, high-value commercial transactions require extensive resources and highly skilled staff...read more.

Industry Statistics & Market Size
Revenue
$20bn
Annual Growth 14-19
0.7%
Forecast Growth 19-24
Profit
Employment
107,464
Businesses
21,322
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Operators in other industries have expanded their in-house legal services, increasing competition
  • Firms have increasingly offered a range of supplementary services, boosting revenue
  • The number of housing transfers is forecast to increase, supporting industry growth
  • Industry Report - Industry Key Buyers Chapter

    The Legal Services industry exhibits low concentration. The industry's four largest players are expected to account for less than 40% of industry revenue. This is due to the large number of sole proprietors and partnerships, which account for over half of all industry enterprises. Generally, lawyers that have gained highly regarded reputations service a specific portfolio of clientele and are self-employed. Additionally, about 45% of industry firms employ less than 20 people. These small and boutique firms typically provide legal services to small business and households. Larger legal firms in Australia tend to focus on commercial law and service large companies...purchase to read more.

    Additional Insights for the Legal Services Industry

    IBISWorld has determined the most important Key Success Factors for the Legal Services are:

  • Having a good reputation
  • Access to quality personnel management
  • Provision of development programs for personnel
  • IBISWorld analysts also discuss how external factors such as Demand from financial and insurance services and Number of housing transfers in the Legal Services industry impact industry performance..

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    What's in this report

    What is the Legal Services Industry?

    Industry firms primarily provide legal advice and representation and prepare legal documents. Solicitors, barristers and legal aid offices typically provide these services. Alternative dispute resolution, conveyancing and intellectual property services are also included in the industry. The industry does not include services provided by in-house legal teams.

    Industry Products
  • Commercial law services
  • Personal legal and industrial relations services
  • Property law services
  • Criminal law services
  • Intellectual property law services
  • Community legal services
  • Administrative, constitutional and other law services
  • Industry Activities
  • Advocate services
  • Barrister services
  • Conveyancing services
  • Legal aid services
  • Notary services
  • Patent attorney services
  • Solicitor services
  • Public prosecutor services
  • Government solicitor services
  • Title-searching services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from financial and insurance services
  • Number of housing transfers
  • Business confidence index
  • Level of criminal activity
  • Number of divorces

  • Current Performance
  • Downstream demand
  • Globalisation and restructure
  • Increasing competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Opportunities
  • Downstream demand
  • Industry structure
  • Table: Legal Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Legal Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Construction
  • Telecommunications Services
  • Finance
  • Professional Services

  • Key Selling Industries
  • Accounting Services
  • Legal Services
  • Market Research and Statistical Services
  • Office Property Operators
  • Telecommunications Services

  • Products & Services
  • Commercial law services
  • Personal legal and industrial relations services
  • Administrative, constitutional and other law services
  • Property law services
  • Intellectual property law services
  • Criminal law services
  • Community legal services
  • Chart: Legal Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Banking, finance and insurance firms
  • IT, communications, health, pharmaceutical and biotechnology firms
  • Property operators and developers
  • Households
  • Governments and regulators
  • Other clients
  • Energy and resources firms
  • Chart: Major Market Segmentation for the Legal Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Legal Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Legal Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Legal Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Legal Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Barrister
  • A lawyer who specialises in representing clients in court.
  • Conveyancing
  • Legal work relating to the transfer of ownership of real estate.
  • Incorporation
  • The adoption of a corporate company structure. Law firms that incorporate do so to limit their liability and diversify potential sources of capital.
  • Intellectual Property
  • Intangible property includes creations of the mind, over which owners may seek exclusive rights.
  • Solicitor
  • A lawyer who represents clients in a wide range of legal matters, but who generally briefs barristers when complex advocacy work is required.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Legal Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Legal Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Legal Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Legal Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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