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2024 U.S. Industry Statistics & Market Forecast - Law Firms


Market Size & Industry Statistics

The total U.S. industry market size for Law Firms: Industry statistics cover all companies in the United States, both public and private, ranging in size from small businesses to market leaders. In addition to revenue, the industry market analysis shows information on employees, companies, and average firm size.

Investors, banks, and business executives use growth rates and industry trends to understand the market outlook and opportunity.

Charts and graphs can be copied to Microsoft Word and Powerpoint presentations.

Statistics        2019        2020        2021        2022        2023
Market Size
(Total Sales/Revenue)


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Total Firms
Total Employees
Average Revenue Per Firm
Average Employees Per Firm
Average Revenue Per Employee
Statistics Source: U.S. Census, AnythingResearch Analysis of Federal Data



Market Forecast

Market forecasts show the long term industry outlook and future growth trends. The following extended five-year forecast projects both short-term and long-term trends.





Forecast / Industry Outlook 2024 2025 2026 2027 2028
Market Forecast ($ millions)
Projected Industry Growth Rate (%)
Source: AnythingResearch Economic Analysis

Industry Insights

The Law Firms industry is undergoing significant transformation due to various technological, economic, and social factors. Key trends affecting this industry include the following:

1. Technological Disruption: The use of technology is becoming more prevalent in the industry, with firms adopting tools such as artificial intelligence and analytics to streamline processes and improve efficiency.

2. Shift in Client Demands: Clients are increasingly seeking cost-effective legal services, which is leading to a shift away from traditional hourly billing models towards alternative fee arrangements.

3. Enhanced Competition: Growing competition from nontraditional providers of legal services, such as legal process outsourcing firms and alternative legal service providers, is driving firms to rethink their delivery models.

4. Changing Labor Dynamics: Law firms are grappling with shrinking profit margins and an over-supply of legal talent, leading to increased pressure on firms to improve productivity and innovate.

5. Globalization: The growth of cross-border transactions and international disputes is creating new opportunities and challenges for law firms, as they expand their reach beyond their home markets.

Overall, law firms are faced with complex challenges that require innovative solutions. Firms that embrace technology, adapt to changing client demands and workforces, and find new ways to differentiate themselves will likely be better equipped to succeed in the current market.



Product & Services Breakdown

Research products and services in the Law Firms industry generating sales. Note that products are broken into categories with different levels of classification.

Product DescriptionNumber of Companies Sales ($ millions) Percent of Total Sales

Industry Total

Legal Services, Civil Law - Real Estate Law

Legal Services, Civil Law - Wills, Estates, And Trusts

Legal Services, Civil Law - Family Law

Legal Services, Civil Law - Business And Commercial Law

Legal Services, Civil Law - Business And Commercial Law - Bankruptcy Law

Legal Services, Civil Law - Business And Commercial Law - Intellectual Property Law

Legal Services, Civil Law - Business And Commercial Law - Taxation Law

Legal Services, Civil Law - Other Business And Commercial Law, Including Antitrust, Incorporation, Banking, Securities, And Insu

Legal Services, Civil Law - Civil Negligence

Legal Services, Civil Law - Labor And Employment Law

Legal Services - Other Civil Law

Legal Services - Other Civil Law - Environmental Law

Legal Services - Other Civil Law - Public And International

Legal Services - Other Civil Law - Health Care Law

Legal Services - Other Civil Law, Including Immigration/Refugee, Consumer, And Other Non-Criminal Law

Legal Services, Criminal Law

Arbitration And Mediation Services

Arbitration And Mediation Services, International Commercial

Arbitration And Mediation Services, Excluding International Commercial

Legal Research And Document Services

Title, Abstract, And Settlement Services

Patent, Copyright, And Other Intellectual Property Document Filing And Search Services

Other Document Filing And Search Services

Distributions From Law Partnerships To Professional Corporations/Associations

All Other Receipts

All Other Operating Receipts



U.S. Geographic Distribution: Revenue Statistics by State

Market Size by State ($ millions) indicates how the industry's competition is distributed throughout the country. State-level information can identify areas with higher and lower industry market share than average.

U.S. map by state

Income Statement (Average Financial Metrics)

Financial metrics provide a snapshot view of a benchmark "average" company. Key business metrics show revenue and operating costs. The data collected covers both public and private companies.

Industry AveragePercent of Sales
(Industry Benchmark)
Total Revenue

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Operating Revenue
Cost of Goods Sold
Gross Profit

Operating Expenses
Pension, profit sharing plans, stock, annuity
Repairs
Rent paid on business property
Charitable Contributions
Depletion
Domestic production activities deduction
Advertising
Compensation of officers
Salaries and wages
Employee benefit programs
Taxes and Licenses
Bad Debts
Depreciation
Amortization
Other Operating Expenses
Total Operating Expenses
Operating Income
Non-Operating Income
EBIT (Earnings Before Interest and Taxes)
Interest Expense
Earnings Before Taxes
Income Tax
Net Profit
Net Income
 
Source: AnythingResearch Analysis of U.S. federal statistics




Financial Ratio Analysis

Financial ratio information can be used to benchmark how a Law Firms company compares to its peers. Accounting statistics are calculated from the industry-average for income statements and balance sheets.

Profitability & Valuation RatiosIndustry Average
Company valuation can be measured based on the firm's own performance, as well as in comparison against its industry competitors. These metrics show how the average company in the Law Firms industry is performing.
Profit Margin
Gross Profit Margin, Operating Profit Margin, and Net Profit Margin. Show company earnings relative to revenues.
Return on Equity (ROE)
Return on Equity (ROE) is net income as a percentage of shareholders' equity. Shareholders' Equity is defined as the company's total assets minus total liabilities. ROE shows how much profits a company generates with the money shareholders invested (or with retained earnings).
Return on Assets (ROA)
Return on Assets (ROA) is net income relative to total assets. The market research on Law Firms measures how efficiently the company leverages its assets to generate profit. ROA is calculated as Net Income divided by Total Assets.


Liquidity RatiosIndustry Average
Bankers and suppliers use liquidity to determine creditworthiness and identify potential threats to a company's financial viability.
Current Ratio
Measures a firm's ability to pay its debts over the next 12 months.
Quick Ratio (Acid Test)
Calculates liquid assets relative to liabilities, excluding inventories.


Efficiency Ratios - Key Performance IndicatorsIndustry Average
Measure how quickly products and services sell, and effectively collections policies are implemented.
Receivables Turnover Ratio
If this number is low in your business when compared to the industry average in the research report, it may mean your payment terms are too lenient or that you are not doing a good enough job on collections.
Average Collection Period
Based on the Receivables Turnover, this estimates the collection period in days. Calculated as 365 divided by the Receivables Turnover
Inventory Turnover
A low turnover rate may point to overstocking, obsolescence, or deficiencies in the product line or marketing effort.
Fixed-Asset Turnover
Generally, higher is better, since it indicates the business has less money tied up in fixed assets for each dollar of sales revenue.



Compensation & Salary Surveys for Employees

Compensation statistics provides an accurate assessment of industry-specific jobs and national salary averages. This information can be used to identify which positions are most common, and high, low, and average annual wages.

TitlePercent of WorkforceBottom Quartile Average (Median) SalaryUpper Quartile
Management Occupations 3%

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Chief Executives0%
General and Operations Managers1%
Legal Occupations 62%
Lawyers, Judges, and Related Workers 37%
Lawyers and Judicial Law Clerks 37%
Lawyers 37%
Legal Support Workers 25%
Paralegals and Legal Assistants 22%
Paralegals and Legal Assistants 22%
Office and Administrative Support Occupations 27%
Secretaries and Administrative Assistants 14%
Secretaries and Administrative Assistants 14%
Legal Secretaries and Administrative Assistants 11%
Source: Bureau of Labor Statistics


Law Firms Competitor Landscape & Key Companies [PREMIUM]

The most influential companies in the Law Firms industry and adjacent industries either have large market share or are developing new business models and methods that could disrupt the status quo. We look at leading and emerging companies in the Law Firms industry and adjacent sectors:

Market Leaders:
Direct Competitors

Companies with the largest market share, focused in this industry
Market leaders:
Diversified Competitors

Largest companies that have diversified operations in this and other industries
Innovators:
Direct Competitors

Innovative, Emerging, and Disruptive Companies that may influence the future direction of the industry.
Innovators:
Diversified Competitors

Innovators and Disruptors in adjacent industries that may also affect the Law Firms industry.
Source:
IncFact




Innovation News



Recent Federal Contracts for Law Firms

  • Feb 27, 2024: JAMES A LUNDBERG (Bloomington, MN) awarded $7,875
  • Feb 27, 2024: MANFREDI LAW GROUP, PLLC (New York, NY) awarded $362,969
  • Feb 26, 2024: HUNTON ANDREWS KURTH LLP (Richmond, VA) awarded $100,738
  • Feb 26, 2024: LEYDIG, VOIT & MAYER, LTD. (Chicago, IL) awarded $17,479
  • Feb 26, 2024: BRIGGS LAW & CONSULTING LLC (Cincinnati, OH) awarded $128,450
  • Feb 23, 2024: MCCOY RUSSELL LLP (Portland, OR) awarded $11,570




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