Personal Injury Lawyers & Attorneys
The Personal Injury Lawyers and Attorneys industry exhibits an extremely low level of market share concentration. This industry is highly fragmented because most personal injury cases involve a specific sub-segment of personal injury law that is highly dependent on the laws of a specific region, city or municipality. As a result of the specific nature of laws that affect this industry, operators often specialize in niche and specific segments of the industry. Law firms are prevented from issuing stock on a public market, further limiting the revenue scale of personal injury lawyers. These factors also prevent any one law firm from dominating a segment of the market, maintaining low industry market share concentration.
State and local laws impose geographic barriers
· Personal injury lawyers are usually highly specialized. Laws can vary based on the city, region or state, so most personal injury lawyers only operate on a local basis. As a result, lawyers specialize in niche fields, establishing their reputation in their specific region. Additionally, many states have strict regulations and difficult entrance exams for lawyers. In some, to sit for the bar exam, one has to have attended law school, while in other states, a law degree is not required. These differentiations in state and local laws make it extremely difficult for operators to obtain a large share of the market. The system of payment for lawyers in this industry can also be a barrier to entry that contributes to fragmentation. Most personal injury lawyers work for a contingent fee, which is a portion of the final settlement. This prevents a steady income for lawyers in this field, discouraging many from entering the practice.
Competition hinges on reputation and contingent fees
· Industry operators primarily compete on the basis of price, services offered and reputation. This competition is often on a regional or local basis due to a variance of laws between regions. Since there are many lawyers specializing in personal injury cases, most commit to a case on a contingent-fee basis. In such cases, lawyers agree to a portion of the settlement fee, if it is granted. Lawyers that agree to a lower fee may attract more clients. Reputation is also important, however. Industry operators that have a reputation of winning more cases will also attract more clients. These operators may be able to charge higher fees due to their reputation of settling more cases.
This industry comprises legal practitioners (i.e. lawyers or attorneys) that primarily practice personal injury law.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook