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Legal Activities in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Krasimir Dinev Krasimir Dinev London, United Kingdom Last Updated: June 2025 SIC UK-M691

Revenue

£234.2bn

2025-26

£240.5bn

Past 5-Year Growth

Profit

£XX.Xbn

Employees

2m

Businesses

940k

Wages

£XX.Xbn

Legal Activities in the UK industry analysis

The European legal services industry is in a phase of consolidation, signified by a surge in both intranational and international M&A activity. This is as firms aim to expand into new markets and enhance specialisation amid intense competition and growing client expectations. Legal service providers benefit from demand from households and businesses across all sectors of the economy, limiting revenue volatility. The provision of countercyclical services like advising on restructuring and insolvency issues has helped support revenue from the corporate market during volatile economic conditions.  Industry revenue is projected to expand at a compound annual rate of 1.5% to €234.2 billion over the five years through 2025, including a 3.3% hike in 2025.

Trends and Insights

  • In-house legal teams are heightening competition for law firms. Despite some organisations having a dedicated in-house legal team, large corporations still significantly invest in high-quality, specialised legal advice for complex matters, ensuring stable demand for law firms.
  • Volatile economic conditions restrict corporate law demand. Since late 2022, inflationary pressures and geopolitical tensions in Europe have subdued M&A activity and IPOs, hindering demand for corporate law advising.
  • There are many small law firms operating alongside larger players. Lots of legal service providers decide to serve a specific region or to specialise in one service, enabling them to make a profit.
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Top Questions Answered in this Report

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What is the market size of the Legal Activities industry in the United Kingdom in 2025?

The market size of the Legal Activities industry in the United Kingdom is £234.2bn in 2025.

How many businesses are there in the Legal Activities industry in the United Kingdom in 2025?

There are 940k businesses in the Legal Activities industry in the United Kingdom, which has grown at a CAGR of 2.6 % between 2020 and 2025.

Has the Legal Activities industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Legal Activities industry in the United Kingdom has been growing at a CAGR of 2.7 % between 2020 and 2025.

What is the forecast growth of the Legal Activities industry in the United Kingdom over the next 5 years?

Over the next five years, the Legal Activities industry in the United Kingdom is expected to grow.

What does the Legal Activities industry in the United Kingdom include?

Advising on corporate law and Advising on personal law are part of the Legal Activities industry in the United Kingdom.

How competitive is the Legal Activities industry in the United Kingdom?

The level of competition is high and increasing in the Legal Activities industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Law firms face stringent regulations. To carry out legal services and practice law, employees must be qualified and follow the relevant standards of conduct in specific European countries.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Legal Activities in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Despite economic challenges and inflation, legal services maintain healthy profitability. This is due to their high markup, reputable firms' involvement in high-profile cases and efficient use of technologies like AI and cloud-based services.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Legal Activities in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

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