U.S. Legal Services Market Size, Share and Trends 2025 to 2034

U.S. Legal Services Market Size and Forecast 2025 to 2034

The U.S. legal services market size accounted for USD 292.08 billion in 2024 and is predicted to increase from USD 304.93 billion in 2025 to approximately USD 466.42 billion by 2034, expanding at a CAGR of 4.80% from 2025 to 2034. The market growth is attributed to the increasing integration of advanced legal technologies that streamline operations, reduce costs, and enhance client service delivery.

U.S. Legal Services Market Key Takeaways

• By free type, the contingency segment held the major market share of 36.85% in 2024.
• By free type, the corporate segment is projected to grow at a CAGR of 6.9% in between 2025 and 2034.
• By size, the large firms segment contributed the biggest market share of 38.30% in 2024.
• By size, the small firms segment is expanding at a significant CAGR of 6.1% in between 2025 and 2034.
• By practice area, the civil litigation segment captured the largest market share of 32.68% in 2024.
• By practice area, the intellectual property segment is expected to grow at a significant CAGR of 7.8% over the projected period.

Impact of Artificial Intelligence on the U.S. legal services market

Artificial intelligence (AI) is changing the U.S. legal services by supporting firms to serve clients in a timely, exact, and less costly manner. High number of lawyers and law firms depend on AI to automate tasks involving e-discovery, overseeing contracts, and legal research. Lawyers use less time on everyday tasks and now work on more complex problems and interact with clients. Furthermore, the GenAI allows companies to process more legal information, and helps them create better strategies for litigation and examine risks.

Market Overview

The use of new technologies in law is encouraging healthy competition among firms in this region. Many organizations are using cloud platforms, AI in legal research, digital tools to review information, and cyber security technology to speed up work and handle administrative tasks better. Data from the 2024 Legal Technology Survey by the American Bar Association points out that 73% of litigators file in court using technology and 67% of attorneys pay to use online research services. According to the Bureau of Labor Statistics, it is expected that employment in law rise by 5% from 2023 to 2033 because law firms need more smart tech experts. They are utilizing legal services to provide their clients with fast case resolutions and enhanced service. Furthermore, the growth of digital transformation results in better efficiency at law firms and makes clients more satisfied.

U.S. legal services market Growth Factors

• Rising Demand for Immersive Wellness Experiences: Increasing consumer preference for gamified and virtual workout environments is driving the shift toward interactive fitness platforms.
• Boost in Smart Home Device Integration: Expanding compatibility with connected home ecosystems is fuelling adoption of AI-enabled fitness mirrors, bikes, and wearables.
• Advancement in Real-Time Biometric Feedback: Enhanced tracking of heart rate, form, and fatigue through wearable sensors is boosting user engagement and workout personalization.
• Expansion of Global Fitness Subscriptions: Growing digital infrastructure and flexible pricing models are propelling the global reach of interactive fitness programs across age groups.
• Increasing Workplace Wellness Investments: Employers are driving adoption by integrating interactive fitness into corporate health packages to improve employee productivity and retention.
• Growth in Virtual Trainer and AI Coaching Models: Sophisticated AI avatars and machine learning coaches are rising as scalable alternatives to human instructors.
• Elevated Focus on Mental-Physical Wellness Fusion: Platforms combining mindfulness, yoga, and cognitive training are boosting holistic adoption of interactive fitness among diverse users.

Market Scope

Market Dynamics

Drivers

Why are U.S. Businesses Driving Greater Demand for Corporate Legal Advisors?

Increasing demand for corporate legal advisory services is expected to drive steady growth in the market. Higher demand for legal advice in businesses is predicted to cause continued growth in this sector. As rules and regulations in finance, health, and technology are more involved, companies rely on expert advice from lawyers to be sure they don’t break any laws and to lessen their legal risks. To help with mergers and acquisitions, safety of IP, data guidelines, and the environment, businesses seek assistance from law firms. This trend  facilitates legal counsel that is now more involved in making important business decisions, mainly for large companies working across national boundaries and facing close regulation. Employment for corporate and compliance attorneys was cited by the Bureau of Labor Statistics as increasing in 2024 because there had been a rise in strict agency regulation. Furthermore, the greater ESG reporting and stricter antitrust rules are fueling growth in the corporate legal advisory sector, thus further fuelling the market.

(Source: https://www.bls.gov)

Restraint

High Legal Service Costs

High legal service costs, especially for individuals and small businesses, which are expected to limit market growth. Increasing legal costs are expected to slow the growth of the market for people and small companies. Some law firms set their rates by the hour, and these may be quite expensive, depending on the level of the case’s complexity and the company’s reputation.

The American Bar Association stated that, many clients are mostly concerned about pricing, especially when it comes to legal work in litigation, company law, and intellectual property. Many small businesses and people with low income find it hard to receive quality representation as their budgets are usually not enough for good legal advice, which further hinders the widespread demand for legal services.

Opportunity

How Is Legal Technology Reshaping the Practice of Law in the United States?

Surging adoption of legal technology solutions is likely to create immense opportunities for the players competing in the market. More use of tech solutions in law firms is expected to improve their performance. AI-based programs, e-discovery platforms, and contract management systems are heavily bought by law firms and legal departments to make their work easier. They increase the pace of reading documents, make legal research accurate, and minimize the expenses linked to doing the same tasks over. Relying on data in decision-making makes law firms stronger in the market and able to answer clients’ expectations for simpler and clearer transactions.

According to the American Bar Association’s 2024 Legal Technology Survey, more than 74% of U.S. law firms embraced technology focused on automation and client portals, which meant they were adopting integrated digital approaches.
(Source: https://www.americanbar.org)

According to the 2024 predictions made by Bloomberg Law, more litigation groups using e-discovery in federal courts started using AI-based document review tools. Additionally, the shift toward data-driven decision-making helping meet client expectations further creates demand for advance legal services in the coming years.
(Source: https://pro.bloomberglaw.com)

Fee Type Insights

Contingency segment dominated the U.S. legal services market in 2024, due to the personal injury, product liability, medical malpractice, and mass tort cases in the United States have mainly relied on contingency fee arrangements. Clients who preferred this model were attracted by the fact that they pay only if they gain a favorable case result. According to the survey by the American Bar Association in 2024, more than half of the litigators in solo and small firms made use of contingency billing. Litigations over opioids and glyphosate helped confirm that this model is popular among those handling multidistrict litigation. There was a continuous growth in personal injury cases over 2023 and the start of 2024, further showing that this segment is leading the market.

The corporate segment is expected to grow at the fastest CAGR during the forecast period. Predictable payment policies, enhanced efficiency, and good outcomes are important to businesses now, so lawyers and legal businesses are turning to structured pricing options. Because of more complicated deals, rules to follow, international mergers, and ESG demands, companies require legal experts with focused advice. Data from the ABA’s 2024 Law Firm Economic Index suggests that more than 62% of Am Law 200 firms are now using more client-centred approaches for determining their prices.

The U.S. Department of Justice Antitrust Division carried out important investigations for mergers last year, which increased the need for corporate antitrust counsel. Law firms have put more focus on increasing manpower in compliance, auditing, and sustainability by boosting their workforce in technology, finance, and manufacturing sectors. Furthermore, the focus on anticipating risks, following regulations, and explaining pricing steers the corporate segment to lead the market in the coming years.

(Source: https://www.law.com/americanlawyer)

Size Insights

Large firms segment held the largest revenue share in the U.S. legal services market in 2024, as they handle complicated legal matters for big organizations across the world. Lots of transactional duties, following regulations, antitrust suits, and global mergers and acquisitions were managed by firms that used teams with various backgrounds and expert knowledge. During 2023 and 2024, when there was greater government regulation in technology, finance, and healthcare, this caused many companies to seek out the legal counsel mostly found at the biggest firms. Due to the Antitrust and Enforcement Divisions of the DOJ and SEC led several big investigations in the year, some companies retained leading firms for representation and guidance. Furthermore, the large size law firms had the ability to employ top lawyers with their generous salaries and strong legal technology which further boosts them in the market.

Small businesses segment is projected to grow substantially in the predicted timeframe, as U.S. legal industry for being customizable, affordable, and welcoming technology in their practice. Nowadays, these firms are offering services in family law, immigration, employment disputes, real estate and advice for small businesses since these areas are often requested by both average people and local companies. Around 68 percent of the small firms surveyed in the ABA’s 2024 Solo and Small Firm Report said more clients contacted them because the practice offered low prices, was located locally, and provided services online.

Certain small companies introduced virtual meetings, electronic filing, and automated document management to fulfill their clients’ wishes. Filings in probate, landlord-tenant, and civil litigation have increased in the U.S. federal courts, which is in line with what small law firms usually deal with. Additionally, the companies’ feasible charges and widespread presence are likely to sustain their development beyond, thus further fuelling the segment in the coming years.

Practice Area Insights

Civil litigation segment dominated the U.S. legal services market, as there were high numbers of personal injury, medical malpractice, employment disputes, and matters of enforcing contracts. Class action lawsuits filed in U.S. district courts numbered over 272,000 in 2023, demonstrating that corporate and individual plaintiffs still have demands in the court system. According to the Administrative Office of the U.S. Courts, there is likely to be ongoing pressure on court systems through the first half of 2024 from class actions and data breach cases. The results from the ABA Litigation Trends Survey last year confirm that more cases involved penalties for discovery misconduct.

Intellectual property segment is projected to grow rapidly during the forecast period, owing to the innovation and growing numbers of patents filed around the world, IP law is set to take the lead. In 2023, the U.S. Patent and Trademark Office received a record 646,000 trademark applications and 413,000 utility patents, showing a rise in activity. Job openings for IP-focused attorneys are predicted to grow steadily, due to regular corporate spending. Experts at Yale and Stanford looked into using copyright to manage AI-created works in law. Furthermore, as tech changes and more IP is licensed across the globe, further facilitating the IP law segment in the coming years.

U.S. Legal Services Market Companies

• Cravath, Swaine & Moore LLP
• Gibson Dunn
• Kirkland & Ellis LLP
• Morgan Lewis
• Sidley Austin LLP
• Skadden, Arps, Slate, Meagher & Flom LLP
• Wachtell, Lipton, Rosen & Katz
• White & Case LLP

Latest Announcements by Industry Leaders

• In March 2025, top-tier legal AI platform Legora officially expanded into the United States with the opening of a new office in New York, marking a significant milestone in its global growth strategy. The company also announced a strategic partnership with Goodwin, the renowned international law firm known for its leadership at the intersection of capital and innovation. This move follows Legora’s recent rebranding and the rollout of advanced features designed to meet the evolving needs of elite law firms worldwide. The company aims to strengthen its U.S. presence by aligning with firms at the forefront of legal innovation. “The U.S. remains the most critical market for legal technology innovation,” said Erik Junestrand, Co-Founder of Legora.

Recent Developments

• In February 2025, KPMG LLP, one of the Big Four audit, tax, and advisory firms, officially launched KPMG Law US, becoming the first Big Four-owned law firm to operate in the United States. This strategic move reflects the rapidly evolving legal services landscape, where corporate clients seek integrated solutions. KPMG Law US aims to transform legal operations by merging the firm's deep technology expertise with legal advisory services. Backed by KPMG's trusted legacy, the new entity is positioned to support legal departments in gaining competitive advantages through modern, scalable, and tech-enabled legal services.
• In January 2025, U.S. Legal Support, the nation’s leading litigation support services provider, announced the acquisition of American Retrieval, a pioneer in medical record retrieval since 1993. This merger brings together American Retrieval’s decades-long expertise and technology with U.S. Legal Support’s extensive service offerings. The combined capabilities are expected to deliver more efficient, cost-effective, and automation-powered record retrieval solutions to clients across the legal and insurance industries. This acquisition underscores U.S. Legal Support’s commitment to enhancing the speed and personalization of litigation support.
• In March 2025, Swedish-founded generative AI platform Legora officially launched its U.S. operations with the opening of a New York office. The company also signed a strategic partnership with Goodwin, a top-tier global law firm. Legora’s recent rebranding and rollout of advanced features are designed to meet the needs of global, innovation-driven firms. Founded in 2023 and led by CEO Max Junestrand, Legora now serves over 250 clients across nearly 20 countries, positioning itself as a next-generation legal AI provider for complex and high-volume legal workflows.
• In August 2024, U.S. Legal Support Inc. expanded its service portfolio with the nationwide rollout of Service of Process, offering fast, professional, and accurate document delivery across the U.S. This addition strengthens the company’s position as a full-service litigation support provider. Clients now benefit from a unified solution that includes court reporting, record retrieval, and process serving, all designed to streamline litigation. The expansion addresses the growing demand for seamless, technology-integrated legal support amid an increasingly complex legal landscape.

Segments covered in the report

By Fee Type Insights

• Contingency
• Non-Contingency 
• Corporate
• Government 

By Size Insights

• Solo Practitioners 
• Small Firms
• Medium Firms 
• Large Firms
• In-house Legal Departments 
• Government Agencies 

By Practice Area Insights

• Civil Litigation
• Corporate Law 
• Employment Law 
• Real Estate Law 
• Criminal Law 
• Intellectual Property
• Tax Law
• Immigration Law 
• Government Law 
• Family Law 
• Environmental Law