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.
Growth Drivers:
Challenges:
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~ 13.14% |
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Base Year Market Size (2022) |
~ USD 13 Billion |
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Forecast Year Market Size (2035) |
~ USD 57.2 Billion |
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Regional Scope |
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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:
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Type |
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Enterprise Size |
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End-Users |
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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.
Author Credits: Yashika Karodiwal, Radhika Gupta
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