Legal Services in the United States
by LawToolBox |6th June, 2024
Our evaluation dives into the legal services market within the US so that LawToolBox can identify where AI within the legal industry can make the most impact for our clients. Client feedback and guidance in shaping competitive strategy is a priority. By simultaneously evaluating the market as a whole and contrasting that with client feedback, LawToolBox can ensure its offerings align with market needs and client expectations. The following tables depict detailed insights into key metrics and states enabling LawToolBox to effectively leverage company efforts. Note: The Census Bureau classifies legal services according to the North American Industry Classification System (NAICS). Legal Services revenue is recorded under the NAICS 5411 code. 95.2% of this classification are offices of lawyers (NAICS 54110), 3.1% are Title Abstract and Settlement Offices (Real Estate services lawyers historically presided over, but no longer, NAICS 541191), and 1.7% are All Other Legal Services which primarily serve organizations (over 80% of their receipts, NAICS 541199).
| State/District | 2022 Legal Services GDP in millions of dollars | 2022 Legal Services GDP as a % of total Legal Services GDP across 50 States + DC. | 2020 April 1 Census Population | 2022 Legal services GDP per capita (2020 US Census Population) | 2022 Total Incoming Cases per CourtStatistics.org. Only Complete Reporting Listed | 2022 Total Incoming Cases per CourtStatistics.org. Only Complete Reporting Listed 2022 Total Incoming Cases per CourtStatistics.org. Only Complete Reporting Listed |
|---|---|---|---|---|---|---|
| Alabama | $3,088.10 | 0.93% | 5,024,279 | $614.64 | 844,033 | $3,658.74 |
| Alaska | $209.10 | 0.06% | 773,391 | $270.37 | 94,958 | $2,202.03 |
| Arizona | $3,854.20 | 1.17% | 7,151,502 | $538.94 | 1,503,128 | $2,564.12 |
| Arkansas | $961.40 | 0.29% | 3,011,524 | $319.24 | 169,908 | $5,658.36 |
| California | $46,824.80 | 14.24% | 39,538,223 | $1,184.29 | 4,599,967 | $10,179.38 |
| Colorado | $4,841.00 | 1.47% | 5,773,714 | $838.46 | 623,864 | $7,759.70 |
| Connecticut | $3,717.80 | 1.13% | 3,605,944 | $1,031.02 | 441,472 | $8,421.37 |
| Delaware | $2,320.40 | 0.71% | 989,948 | $2,343.96 | 316,952 | $7,320.98 |
| District of Columbia | $13,148.10 | 4.00% | 678,972 | $19,364.72 | 41,312 | $318,263.46 |
| Florida | $25,320.40 | 7.70% | 21,538,187 | $1,175.60 | 3,265,020 | $7,755.05 |
| Georgia | $8,844.00 | 2.69% | 10,711,908 | $825.62 | 2,890,400 | $3,059.78 |
| Hawaii | $855.50 | 0.26% | 1,455,271 | $587.86 | 427,563 | $2,000.87 |
| Idaho | $657.30 | 0.20% | 1,839,106 | $357.40 | 313,087 | $2,099.42 |
| Illinois | $18,832.40 | 5.73% | 12,812,508 | $1,469.84 | 1,459,782 | $12,900.83 |
| Indiana | $3,252.90 | 0.99% | 6,785,528 | $479.39 | 1,052,416 | $3,090.89 |
| Iowa | $1,277.10 | 0.39% | 3,190,369 | $400.30 | 631,360 | $2,022.78 |
| Kansas | $1,184.40 | 0.36% | 2,937,880 | $403.15 | Not Reported | Not Reported |
| Kentucky | $1,961.90 | 0.60% | 4,526,154 | $433.46 | 756,867 | $2,592.13 |
| Louisiana | $3,808.80 | 1.16% | 4,657,757 | $817.73 | 958,383 | $3,974.19 |
| Maine | $792.30 | 0.24% | 1,362,359 | $581.56 | 120,855 | $6,555.79 |
| Maryland | $5,184.70 | 1.58% | 6,177,224 | $839.33 | 1,286,598 | $4,029.77 |
| Massachusetts | $9,731.40 | 2.96% | 7,029,917 | $1,384.28 | 496,297 | $19,608.02 |
| Michigan | $6,256.70 | 1.90% | 10,077,331 | $620.87 | 2,924,078 | $2,139.72 |
| Minnesota | $5,115.40 | 1.56% | 5,706,494 | $896.42 | 939,238 | $5,446.33 |
| Mississippi | $1,151.90 | 0.35% | 2,961,279 | $388.99 | Not Reported | Not Reported |
| Missouri | $6,253.40 | 1.90% | 6,154,913 | $1,016.00 | 1,245,253 | $5,021.79 |
| Montana | $556.70 | 0.17% | 1,084,225 | $513.45 | 263,674 | $2,111.32 |
| Nebraska | $1,269.50 | 0.39% | 1,961,504 | $647.21 | 358,865 | $3,537.54 |
| Nevada | $2,226.80 | 0.68% | 3,104,614 | $717.26 | 811,004 | $2,745.73 |
| New Hampshire | $997.80 | 0.30% | 1,377,529 | $724.34 | 108,059 | $9,233.84 |
| New Jersey | $9,135.00 | 2.78% | 9,288,994 | $983.42 | 6,199,698 | $1,473.46 |
| New Mexico | $747.60 | 0.23% | 2,117,522 | $353.05 | 308,851 | $2,420.58 |
| New York | $46,947.00 | 14.27% | 20,201,249 | $2,323.97 | 2,072,719 | $22,649.96 |
| North Carolina | $5,667.50 | 1.72% | 10,439,388 | $542.90 | 2,190,142 | $2,587.73 |
| North Dakota | $257.40 | 0.08% | 779,094 | $330.38 | 167,491 | $1,536.80 |
| Ohio | $7,358.70 | 2.24% | 11,799,448 | $623.65 | 2,403,031 | $3,062.26 |
| Oklahoma | $1,886.20 | 0.57% | 3,959,353 | $476.39 | Not Reported | Not Reported |
| Oregon | $2,413.90 | 0.73% | 4,237,256 | $569.68 | 478,132 | $5,048.61 |
| Pennsylvania | $13,872.50 | 4.22% | 13,002,700 | $1,066.89 | 2,970,208 | $4,670.55 |
| Rhode Island | $849.80 | 0.26% | 1,097,379 | $774.39 | 150,710 | $5,638.64 |
| South Carolina | $3,294.10 | 1.00% | 5,118,425 | $643.58 | 970,782 | $3,393.24 |
| South Dakota | $319.00 | 1.00% | 886,667 | $359.77 | Not Reported | Not Reported |
| Tennessee | $4,214.50 | 1.28% | 6,910,840 | $609.84 | Not Reported | Not Reported |
| Texas | $25,512.60 | 7.76% | 29,145,505 | $875.35 | 8,699,945 | $2,932.50 |
| Utah | $1,801.30 | 0.55% | 3,271,616 | $550.58 | 598,942 | $3,007.47 |
| Vermont | $430.10 | 0.13% | 643,077 | $668.82 | 81,518 | $5,276.14 |
| Virginia | $7,308.40 | 2.22% | 8,631,393 | $846.72 | Not Reported | Not Reported |
| Washington | $7,745.20 | 2.35% | 7,705,281 | $1,005.18 | Not Reported | Not Reported |
| West Virginia | $961.90 | 0.29% | 1,793,716 | $536.26 | 41,286 | $23,298.45 |
| Wisconsin | $3,474.10 | 1.06% | 5,893,718 | $589.46 | 730,029 | $4,758.85 |
| Wyoming | $240.70 | 0.07% | 584,057 | $412.12 | 112,280 | $2,143.75 |
| Total | ~328,934.0 | ~100% | ~331,506 |
*Bureau of Economic Analysis U.S. Department of Commerce GDP and Personal Income Regional Data for 2022. GDP is in millions of dollars not adjusted for inflation. Industry detail based on 2017 NAICS. Calculations based on unrounded data.
Legal Services GDP By State
The analysis demonstrates the GDP produced for each state within the US, with California and New York producing approximately 28.51% of total legal services GDP in the US. The chart highlights significant regional disparities; for instance, California, New York, Texas, Florida, and Illinois make up the top five contributors for total legal services GDP in the US. Also, 80% of total legal services GDP in the US is generated by 16 states and the District of Columbia combined. Targeting states based on GDP for legal services allows LawToolBox to identify areas with the most market needs.
80% Capture of Legal Services in US States/Districts By Highest GDP Distribution, Sorted Highest to Lowest GDP%
| New York | 14.27% |
| California | 14.24% |
| Texas | 7.76% |
| Florida | 7.70% |
| Illinois | 5.73% |
| Pennsylvania | 5.73% |
| District Of Columbia | 4.00% |
| Massachusetts | 4.00% |
| New Jersey | 2.78% |
| Georgia | 2.69% |
| Washington | 2.35% |
| Ohio | 2.35% |
| Virginia | 2.22% |
| Michigan | 1.90% |
| Missouri | 1.90% |
| North Carolina | 1.72% |
| Maryland | 1.58% |
| 2022 Total % of Legal Services GDP over the top 17 States/Districts. | 80.26% |
Legal Services GDP Per Capita
The analysis results in a few states standing out based on legal services GDP per capita. The District of Columbia, Delaware, New York, and Illinois all measure high on legal services GDP per capita indicating extensive legal market penetration in those regions. LawToolBox can use this data to target new or existing regions for niche pilot programs. By testing such pilot programs in proliferated markets with high GDP per capita LawToolBox can rigorously test pilot programs in markets where premium services are demanded at a quality setting national standard.
Top 17 States/Districts: 2022 Legal Services GDP per capita based on 2020 US Census
| District Of Columbia | $19,364.72 |
| Delaware | $2,343.96 |
| New York | $2,323.97 |
| Illinois | $1,469.84 |
| Massachusetts | $1,384.28 |
| California | $1,184.29 |
| Florida | $1,175.60 |
| Pennsylvania | $1,066.89 |
| Connecticut | $1,031.02 |
| Missouri | $1,016.00 |
| Washington | $1,005.18 |
| New Jersey | $983.42 |
| Minnesota | $896.42 |
| Texas | $875.35 |
| Virginia | $846.72 |
| Maryland | $839.33 |
| Colorado | $838.46 |
Legal Services GDP Per Case
The analysis provides insight into the economic value generated by each legal matter in a state or District. The District of Columbia far surpasses any other state in economic value per case. In a high GDP per case region like the District of Columbia, LawToolBox can promote premium services and focus on client feedback that influences improvements aimed at enhancing efficiencies and case outcomes for individual cases. The high value of these cases draws special attention to efficiencies that can be harnessed on a case-by-case basis by using LawToolBox. These observations help LawToolBox improve service at a highly detailed, technical level tailored for high value cases.
Top 17 States/Districts: 2022 Legal Services GDP per case
| District Of Columbia | $318,263.49 |
| West Virginia | $23,298.45 |
| New York | $22,649.96 |
| Massachusetts | $19,608.02 |
| Illinois | $12,900.83 |
| California | $10.179.38 |
| New Hampshire | $9,233.84 |
| Connecticut | $8,421.37 |
| Colorado | $7,759.70 |
| Florida | $7,755.05 |
| Delaware | $7,320.98 |
| Maine | $6,555.79 |
| Arkansas | $5,658.36 |
| Rhode Island | $5,638.64 |
| Minnesota | $5,446.33 |
| Vermont | $5,276.14 |
| Oregon | $5,048.61 |
| Pennsylvania | $4,670.55 |
| Texas | $2, 932.50 |
| New Jersey | $1,473.46 |
Incoming Legal Cases
The volume of incoming legal cases is necessary for understanding demand for legal services in markets across the US. States reporting high case volumes such as Texas, New Jersey, Florida, and California inform LawToolBox of markets with the most need for legal services based on case volume. With the advent of integrating AI into LawToolBox's suite of services, the suite is primed to equip firms with tools that streamline automation and case management, so firms more easily tackle a high volume of incoming cases and thus leverage case volume for revenue. This data is necessary for LawToolBox to identify what markets have the most need relative to automation and case management for high volume caseloads.
Top 17 States/Districts: 2022 Incoming Legal Cases
| Texas | 8,699,945 |
| New Jersey | 6,199,698 |
| California | 4,599,967 |
| Florida | 3,265,020 |
| Pennsylvania | 2,970,208 |
| Michigan | 2,924,078 |
| Georgia | 2,890,400 |
| Ohio | 2,403,031 |
| North Carolina | 2,190,142 |
| New York | 2,072,719 |
| Arizona | 1,503,128 |
| Illinois | 1,459,782 |
| Maryland | 1,286,598 |
| Missouri | 1,245,253 |
| Indiana | 1,052,416 |
| South Carolina | 970,782 |
| Louisiana | 958,383 |
| Massachusetts | 496,297 |
| District Of Columbia | 41,312 |
Census Population (Population by State)
Population by state when compared with other important metrics allows for a more wholistic view of the legal services landscape within the US. For instance, California, Texas, and Florida are the most populous while also sporting high rates of legal services GDP and high incoming case volumes signaling that these states have the highest market need for services that improve efficiencies at a high volume of cases. The District of Columbia when analyzed results in low population, low case volume, high legal services GDP, and an exponentially high legal services GDP per case. This indicates market needs for individual case efficiencies making that market ripe for pilot program testing and premium niche service offerings rather than high volume efficiency offerings to meet client expectations.
Top 17 States: 2020 Census Population
| California | 39,538,223 |
| Texas | 29,145,505 |
| Florida | 21,538,187 |
| New York | 20,201,249 |
| Pennsylvania | 13,002,700 |
| Illinois | 12,812,508 |
| Ohio | 11,799,448 |
| Georgia | 10,711,908 |
| North Carolina | 10,439,388 |
| Michigan | 10,077,331 |
| New Jersey | 9,288,994 |
| Virginia | 8,631,393 |
| Washington | 7,705,281 |
| Arizona | 7,151,502 |
| Massachusetts | 7,029,917 |
| Tennessee | 6,910,840 |
| Indiana | 6,785,528 |
| District of Columbia | 678,972 |
Upon target State(s)/District(s) having been discerned, one can then use Courtstatistics.org further to expand on caseloads per state by legal subject matter:
Total Incoming Caseloads per state 2022 (Percentage of Total):
FL: 3,265,020 Total
Total Civil: 1,160,984
Distribution
- Small Claims: 605,136
- Civil - Small Claims: 555,848 (17% of cases in FL)
- Family: 211,400 (6.5% of cases in FL)
- Criminal: 558,651 (17.1% of cases in FL)
-
Juvenile: 33,200 (1% of cases in FL)
Non-Criminal Traffic: 1,300,785 (39.9% of cases in FL)
LawToolBox uses analyses such as these to strategically position and maximize its effect on the legal services market. By focusing on metrics such as legal services GDP, legal services GDP per capita, incoming cases, legal services GDP per case, and population by region; LawToolBox is best able to serve clients and drive growth improving services.
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