Weak defence: Uncertainty caused by the EU referendum results in revenue declining

Solicitors, barristers, patent agents, notaries and bailiffs carry out legal activities on behalf of private and corporate clients. Over the five years through 2018-19, industry revenue is expected to decline at a compound annual rate of 0.3%. Performance has been hampered by the number of residential property transactions falling in 2016-17 and a significant decline in M&A activity in 2017-18, which limited revenue growth in these years. The industry is expected to be negatively affected by the uncertainty brought about by the EU referendum, with industry revenue expected to fall by 4.4% in 2018-19 to reach £32.4 billion...read more.

Industry Statistics & Market Size
Revenue
£32.4bn
Annual Growth 14-19
-0.3%
Forecast Growth 19-24
Profit
Employment
361,834
Businesses
33,755

Industry Threats & Opportunities

  • The industry struggled in the aftermath of the referendum as residential transactions declined
  • More firms are expected to invest in artificial intelligence to automate time-consuming tasks
  • Industry profit growth is expected to be restricted by continued price competition
  • Industry Report - Industry SWOT Analysis Chapter

    The Legal Activities industry is in the mature phase of its life cycle, since its services are well established and it has limited room to grow in the UK economy. Industry value added, which measures the industry’s contribution to the economy, is projected to grow at a compound annual rate of 1.4% over the 10 years through 2023-24, while the UK economy is forecast to grow at a compound annual rate of 1.7% over the same period. The trend of expanding overseas by providing services relating to M&As in order to capture new, potentially higher-profit markets has gathered pace among the major players in the past five years.The industry is concentrated in London, a financial hub, and relies heavily on clients from the financial services sector. The...purchase to read more.

    Additional Insights for the Legal Activities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Legal Activities Industry are

  • Having a good reputation
  • Proximity to key markets
  • Having a high prior success rate (including completed prior contracts)
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Number of businesses in the Legal Activities industry impact industry performance..

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    What's in this report

    What is the Legal Activities Industry?

    This industry includes firms that provide legal services, including solicitors, barristers, patent agents, notaries and bailiffs. Lawyers provide advocacy and advice on a range of topics, such as commercial, property, private, criminal and family law. Law courts are not covered in the industry.

    Industry Products
  • Advising on corporate structuring, finance and other affairs
  • Advising on personal law
  • Advising on property law
  • Advising on employment law
  • Advising on administrative and constitutional law
  • Other legal services
  • Industry Activities
  • Commercial law services
  • Personal legal services
  • Property law services
  • Administrative and constitutional law services
  • Criminal law services
  • Intellectual property law services
  • Notary services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Number of businesses
  • Number of residential property transactions
  • Equity capital raisings
  • Mergers and acquisitions involving UK companies

  • Current Performance
  • A different landscape
  • Competitive pressures
  • Artificial intelligence
  • Legal aid woes
  • Chart: Revenue Growth

  • Industry Outlook
  • Referendum effects
  • Technological integration
  • Cutting claims
  • Table: Legal Activities Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Property Unit Trusts
  • Investment Banking & Securities Brokerage
  • Tax Consultants

  • Key Selling Industries
  • Office Furniture Wholesaling
  • Universities

  • Products & Services
  • Advising on corporate structuring, finance and other affairs
  • Advising on personal law
  • Other legal services
  • Advising on property law
  • Advising on administrative and constitutional law
  • Advising on employment law
  • Chart: Legal Activities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Banking, finance, insurance and other business clients
  • Households
  • Government clients
  • Chart: Major Market Segmentation for the Legal Activities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesRent, utilities and depreciationPurchasesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Legal Activities

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Legal Activities Industry

  • Industry Globalization
    Linklaters LLP, Allen & Overy LLP, Clifford Chance LLP, Freshfields Bruckhaus Deringer LLP,
  • Table: Linklaters LLP - financial performance
  • Table: Allen & Overy LLP - financial performance
  • Table: Clifford Chance LLP - financial performance
  • Table: Freshfields Bruckhaus Deringer LLP - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Legal Activities 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 Activities 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
    Initial Public Offering
  • When a company issues shares to the public for the first time as a means of raising capital.
  • M&A
  • Stands for mergers and acquisitions.
  • Magic Circle Firms
  • An informal term for the five leading law firms headquartered in the United Kingdom.
  • Patent
  • A right granted by the government that gives an inventor or company the sole right to manufacture and use an invention for a period of up to 20 years.
  • Trademark
  • A mark applied to goods to identify them as coming from a particular manufacturer or trading source.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Legal Activities market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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 Activities:
    • 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 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 Activities 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 Activities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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