Domestic LegalTech Market Size Increased by 15.2% to Achieve 22,800 Million Yen in 2018
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic LegalTech market and has found out the market overview, the trends of market players, and the future perspectives.
The domestic LegalTech market size based on sales revenues at the businesses grew to 22,800 million yen in 2018, 115.2% of the size of the previous year.
LegalTech in this research indicates the products and services using IT technologies developed for improving the convenience of legal services. With the recent trend for digitalization and paperless, and with the working-style reform being promoted by the government, LegalTech products and services have become increasingly demanded. Improved awareness of LegalTech has increased the user companies, contributing to the market growth.
LegalTech Led by Electronic Contract Services
The domestic market size of electronic contract services in 2018, based on the sales revenues at the businesses, was estimated as 3,900 million yen, 139.3% of the size of the previous year, projected to lead the entire domestic LegalTech market for the time being. In the past, the reason for the companies to introduce electronic contract services was to cut the visible costs such as the fees for revenue stamps and postage. Recently, however, the services have become increasingly introduced for reducing invisible cost, i.e., time and man-hour: The users aim at achieving faster conclusion of a contract with smaller man-hour (for drawing up a contract, to save time for postage, etc.) Now that companies are required to improve productivity more than ever before, though facing the issues of manpower shortage and the progressively promoted working style reform, introduction of the services is likely to accelerate for the future in order to reduce invisible cost.
The CAGR of the domestic LegalTech market size based on the sales revenues at the businesses from 2016 to 2023 is forecasted to be 9.8%, with the market size projected to achieve 35,300 million yen by 2023.
It has become favorable environment for LegalTech to evolve, as more laws are likely to be amended for being digitalized, just like the recent social experiment of introducing digital method for explaining the important matters in the Building Lots and Buildings Transaction Business Law, which used to be delivered in written forms.
In addition, the data volume dealt at a company may explosively expand due to progress of IoT including text data of email, chat, and the Office document. Such a situation requires technologies to efficiently extract and utilize appropriate information from vast amount of data especially in fraud investigations and in acquiring evidences. The demand for LegalTech is expected to expand more in the respective areas.
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