Law Firms in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: September 2024
NAICS 54111Revenue
$403.9bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
1m
Businesses
431k
Wages
$XXX.Xbn
Law Firms in the US industry analysis
The legal services industry has experienced an uptick in revenue, with the surge in high-value corporate deals such as mergers and acquisitions (M&As) and initial public offerings (IPOs). Despite the pressure from high borrowing rates causing a decline in M&A and IPO activities over the past two years, the current levels are still an improvement compared to 2019. As companies prosper with the growing economy, their demand for legal guidance increases, driving significant growth for law firms. The digitization of businesses has also sparked a rise in intellectual property cases, giving more opportunities for legal firms to practice. Revenue has crept upward during the current period at a CAGR of 1.4%, reaching $403.9 billion in 2024, including an increase of 2.0% in that year.
Trends and Insights
- Consolidation is increasing because of mergers and acquisitions. Law firms are expanding domestically and internationally to access new revenue streams.
- Small and midsized law firms specialize in particular service areas. They regularly provide noncommercial services such as criminal defense, civil negligence or family law.
- A large concentration of corporate clients attracts law firms. Regions with large corporations are a popular place for law firms to locate.
- Law firms compete based on service quality within their specialty. Establishing a good reputation is essential to be competitive.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.4 % over the past five years, to reach an estimated $403.9bn in 2024.
Trends and Insights
High-value corporate deals stimulate law firm revenue growth
- Law firms see revenue grow alongside economic expansion as businesses seek legal services for various activities. Flourishing companies drive up demand for legal guidance, boosting firm revenue.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Legal activities are expected to rise amid economic growth
- The recovering domestic economy, with a stabilizing interest rate and growing consumer confidence, will bolster corporate profits, increasing the demand for commercial law services. Rising wages will also encourage households to invest more in legal services, expanding revenue.
Biggest companies in the Law Firms in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Latham & Watkins LLP | 1,677.6 | 335.5 | 20.0 | |
Sidley Austin Llp | 1,475.1 | 295.0 | 20.0 | |
Eversheds Sutherland | 1,300.0 | 260.0 | 20.0 |
To view the market share and analysis for all 36 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Commercial law services, Criminal law, civil negligence and personal injury and Real estate law. Commercial law services is the largest segment of the Law Firms in the US.
Trends and Insights
Financial markets drive commercial law services
- Financial deal-making and restructuring activities fluctuate with the economy's health and investor confidence. These include mergers and acquisitions, capital-raising through debt and equity markets, initial public offerings and private equity transactions.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Investment Banking & Securities Dealing in the US
- Conveyancing Services in the US
- Accounting Services in the US
- Tax Preparation Services in the US
- Management Consulting in the US
International industries
- Law Firms in Canada
- Legal Services in Australia
- Legal Services in New Zealand
- Legal Activities in the UK
- Legal Activities in Ireland
Table of Contents
About this industry
Industry definition
Law firms in the United States comprise the offices of legal practitioners, known as lawyers or attorneys, who primarily practice law. The industry provides expertise in various areas of law, such as criminal, corporate, family and estate, patent, real estate or tax.
What's included in this industry?
Criminal law servicesCorporate law servicesFamily law servicesEstate law servicesIntellectual property law servicesReal estate law servicesTax law servicesCommercial law servicesPersonal injury servicesProperty law servicesCompanies
Latham & Watkins LLPSidley Austin LlpEversheds SutherlandPurchase this report to view all 36 major companies in this industry.
Related Terms
INITIAL PUBLIC OFFERING (IPO)MERGERS AND ACQUISITION (M&A)INSOLVENCYBIG LAWPRO BONOIndustry Code
NAICS 54111 - Law Firms in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Consolidation is increasing because of mergers and acquisitions. Law firms are expanding domestically and internationally to access new revenue streams.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Small and midsized law firms specialize in particular service areas. They regularly provide noncommercial services such as criminal defense, civil negligence or family law.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
A large concentration of corporate clients attracts law firms. Regions with large corporations are a popular place for law firms to locate.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Law firms compete based on service quality within their specialty. Establishing a good reputation is essential to be competitive.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The law firm industry is highly fragmented. No single company accounts for a significant share of revenue. Localization and the lack of benefits from economies of scale keep ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Latham & Watkins LLP's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Sidley Austin Llp's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Eversheds Sutherland's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 33 additional companies
Detailed analysis
- Description and key data for Latham & Watkins LLP, and factors influencing its performance in the industry
- Description and key data for Sidley Austin Llp, and factors influencing its performance in the industry
- Description and key data for Eversheds Sutherland, and factors influencing its performance in the industry
- Description, key data and performance trends for 33 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Law firms must adhere to American Bar Association (ABA) regulations as the state requires. These regulations mostly relate to the kind of accreditation necessary to practice ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Cost structures may vary based on the size and specialization of a particular company. Major law firms are more profitable since they often conduct high-value corporate work.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Law Firms in the US industry in United States in 2024?
The market size of the Law Firms in the US industry in United States is $403.9bn in 2024.
How many businesses are there in the Law Firms in the US industry in 2024?
There are 431k businesses in the Law Firms in the US industry in United States, which has declined at a CAGR of 0.1 % between 2019 and 2024.
Has the Law Firms in the US industry in United States grown or declined over the past 5 years?
The market size of the Law Firms in the US industry in United States has been growing at a CAGR of 1.4 % between 2019 and 2024.
What is the forecast growth of the Law Firms in the US industry in United States over the next 5 years?
Over the next five years, the Law Firms in the US industry in United States is expected to grow.
What are the biggest companies in the Law Firms in the US market in United States?
The biggest companies operating in the Law Firms market in United States are Latham & Watkins LLP, Sidley Austin Llp and Eversheds Sutherland
What does the Law Firms in the US in United States include?
Criminal law services and Corporate law services are part of the Law Firms in the US industry.
Which companies have the highest market share in the Law Firms in the US in United States?
The company holding the most market share in United States is Latham & Watkins LLP.
How competitive is the Law Firms in the US industry in United States?
The level of competition is moderate and increasing in the Law Firms in the US industry in United States.
