Litigation Funding Investment Market Size & Share, by Type (Commercial Litigation, International Arbitration, Bankruptcy Claim); Organization (Large Enterprises, Small & Medium-sized Enterprises); End-user (BFSI, Manufacturing, IT & Telecommunication, Media & Entertainment, Healthcare) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 2800
  • Published Date: Aug 07, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Litigation Funding Investment Market size is poised to surpass USD 57.2 Billion by 2035, growing at a CAGR of 13.14 % during the forecast period, i.e., 2023 to 2035. In the year 2022, the industry size of litigation funding investment was around USD  13 Billion.  Litigation funding is in high demand due to the growing number of individuals and corporations seeking financial assistance to pursue legal claims. Litigation can be expensive, and the fact that there are major fees connected with it is sometimes a barrier to prospective plaintiffs. This vacuum will be filled by litigation funding, which will offer the required financial resources, thereby boosting the pool of possible cases that can be pursued.

Furthermore, according to a survey, the portfolio of law firms has expanded by 53% in recent years, as has awareness and acceptability of litigation finance among lawyers, legal practitioners, and the judiciary. Litigation funds were initially regarded with skepticism and criticism, but the benefits of such financing are becoming more commonly recognized. By 2023, litigation finance will have triggered 41% of legal actions.  The market has expanded due to increased awareness and acceptance.


Litigation Funding Investment Market
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Litigation Funding Investment Sector: Growth Drivers and Challenges

Growth Drivers:

  • Favorable Legal Environment - The legal framework for litigation financing has become more favorable in several jurisdictions. Legislation or regulatory frameworks providing a clear and supportive framework for the use of litigation funding have been adopted in some jurisdictions. Legal aid has made it possible for the litigation funding market to grow by creating an equitable and predictable environment for investors and complainants.
  • Potential for High Returns - When funded cases have been successful, litigation funding may deliver substantial returns to investors. In general, litigation funders receive a proportion of the financial settlement or judgment as their return on investment. The success of cases can lead to a significant return, often superior to traditional investment options.
  • Institutional Investment - The arrival of Blockchain Technology and investment funds, including hedge funds and private equity firms, has significantly boosted the litigation funding investment market. As per reports, Blockchain is already used by about 3% of the world's population. These institutional investors bring significant capital and technical expertise to the sector, which will help it mature and professionalize.

Challenges:

  • Lack of Standardization: In terms of funding conditions, fee structures, and reporting practices there is a lack of standardization in the litigation funding investment market. Investors seeking clarity and comparability across various financing opportunities may find this lack of standardization to be a challenge.
  • Litigation funding is inherently risky, as funders may not recover their investment if the case is unsuccessful.
  • Court decisions regarding litigation funding can impact the industry’s growth and stability.

Litigation Funding Investment Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~ 13.14%

Base Year Market Size (2022)

~ USD 13 Billion

Forecast Year Market Size (2035)

~ USD 57.2 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Litigation Funding Investment Segmentation

Type (Commercial Litigation, International Arbitration, Bankruptcy Claim)

The commercial litigation segment is anticipated to reach a market share of 65 % by 2035 as a result of globalization as it has led to a rise in cross-border transactions and international trade. Individuals and businesses are becoming more aware of their legal rights and are more willing to pursue legal action to protect their interests. This heightened awareness has led to a greater willingness to engage in commercial litigation, driving the growth of this market segment in the region.

Enterprise Size (Large Enterprises, Small& Medium-sized Enterprises)

Large enterprises segment is expected to hold the majority of the market share during the forecast period. Several large corporations are frequently required to go through complicated and significant legal proceedings, such as those involving intellectual property disputes, competition issues, securities litigation, and class actions. Litigation funding enables large enterprises to strategically pursue claims for damages that would otherwise be avoided due to the associated costs and risks. The segment is expanding as a result of these transitory factors.

Our in-depth analysis of the global market includes the following segments:

     Type

  • Commercial Litigation
  • International Arbitration
  • Bankruptcy Claim

     Enterprise Size

  • Large Enterprises
  • Small & Medium-sized Enterprises

     End-Users

  • BFSI
  • Manufacturing
  • IT & Telecommunication
  • Media & Entertainment
  • Healthcare

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Litigation Funding Investment Industry - Regional Synopsis

North American Market Forecast

The litigation funding investment market in North America is poised to account for the largest share of 37% by the end of 2035. The favorable regulatory framework for lawsuit financing is attributed to regional growth. The presence of key litigation funders who provide effective software and a wide range of cutting-edge services also increases the demand for litigation funding. Broadening portfolio finance trends between investors and soaring end-user demand for litigation funding investments are driving market growth in the region. In 2022, the litigation finance industry in the United States held a 20% share of the market.

European Market Statistics

The need to develop diverse sectors in regions, as well as government support, is expected to drive significant market revenue in Europe by the end of 2035. Litigation funding has been acknowledged as an acceptable method of financing legal proceedings by all courts in the United Kingdom. In addition, the country's Code of Conduct for Legal Funders is in effect. In addition, the German litigation funding investment market is expected to reach USD 25 billion by 2028.

Research Nester
Litigation Funding Investment Market Size
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Companies Dominating the Litigation Funding Investment Landscape

top-features-companies
    • Apex Litigation Finance
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis

     

    • Augusta Ventures Ltd
    • Burford Capital LLC
    • OmniBridgeway
    • Harbour Litigation Funding
    • Deminor.
    • Balance Legal Capital LLP 
    • Legalist, Inc.
    • FORIS AG
    • Validity Finance, LLC

In-the-news

In The News

  • Holders of the Folli Follie Bonds issued by FF Group Finance Luxembourg II SA and guaranteed by Folli Follie Commercial Manufacturing and Technical S.A. are eligible for a litigation funding arrangement through OmniBridgeway. Alcimos Limited will work with OmniBridgeway to put together a group of claimants for the proposed litigation funding arrangement.
  • According to a survey of 200 law firm partners commissioned by Harbour Litigation Funding, a Litigation Financing and Bank for Law Firms, an increasing number of lawyers in the United Kingdom are considering starting their firm due to working conditions, independence, or profit retention due to growth.

Author Credits:  Yashika Karodiwal, Radhika Gupta


  • Report ID: 2800
  • Published Date: Aug 07, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Favorable legal environment, potential high returns, and institutional investments are some of the factors contributing to market growth during the forecast period.

The market size of the litigation funding investment market is anticipated to attain a CAGR of 13.14% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Augusta Ventures Ltd, Burford Capital LLC, OmniBridgeway, Harbour Litigation Funding, Deminor, Balance Legal Capital LLP, Legalist, Inc, FORIS AG, Validity Finance, LLC, and others.

The large enterprises segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Litigation Funding Investment Market Report Scope
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