Legal, Tax & Regulatory Information Market to Exceed $18 Billion by 2009
Providers of legal, tax and regulatory information can look forward to a compound annual growth rate of 6.5 percent from 2006 to 2009, according to the first annual MarketVeiw report from Outsell, Inc., the only research and advisory firm for the worldwide information industry. The Legal, Tax & Regulatory: 2006 Market Size, Share, Forecast and Trend Report looks at the top 25 organizations in this segment of the information industry, predicting the market for information on administrative decisions, case law, law review articles, policies, public records, regulations, risk management, statutes, taxation, tax compliance and trademark registration, will achieve $18.3 billion in revenues by 2009.
The Report’s key findings include:
- The segment is dominated by three organizations, Thompson Legal & Regulatory, Wolters Kluwer, and LexisNexis (Reed Elsevier).
- The Bureau of National Affairs, Shin-Nippon Hoki Shuppan KK, US Investigations Services, American Bar Association, ALM Properties, MacDonald, Dettwiler and Associates Ltd., and Informa plc round out the segment’s top ten organizations.
- Among the top 25 organizations, two, LocatePLUS and AlexInformation, are showing extraordinary growth. LocatePLUS is in the public records space. AlexInformation provides educational texts to the regulatory compliance and financial sectors.
- The segment will experience more international acquisitions and joint ventures, as publishers seek to establish stronger footholds in Europe and Asia.
- Low-end legal research services will enjoy plenty of room for new growth. They can increase their share of the small-firm and sole-practitioner markets by providing economy of price and time. Making it easier for this class of researchers to get in and out with reliable information they need, as well as being nimble and agile in response to their changing needs, will help low-end research services penetrate this market.
- FindLaw (Thomson), Casemaker, Legal Week Global Media and ALM properties are among the organizations whose innovation, agility and market focus are driving growth and who have been recognized by Outsell as Rising Stars and Leader Board organizations.
The Big Three
Together, the “Big Three” of Thompson Legal & Regulatory, Wolters Kluwer, and LexisNexis (Reed Elsevier), account for a combined market share of 59.1 percent. Outsell predicts these three firms will keep expanding by acquiring more companies in the legal technology space.
Thomson Legal & Regulatory
“Our Legal and Regulatory group continued to deliver strong top-line growth, achieving 8 percent organic growth in the quarter,” Thomson President and Chief Executive Officer (CEO) Richard J. Harrington said in a prepared statement announcing Thomson’s Second-Quarter 2006 Results, released in July.
The Legal & Regulatory group reported:
- Revenues of $923 million, an increase of 9 percent, with organic revenue growing 8 percent and growth from acquisitions accounting for 1 percent. Segment operating profits grew 13 percent, to $277 million.
- North American legal products and services continued achieving strong revenue growth across all customer segments, as did Findlaw in the client development market.
- Revenue in the tax and accounting business was also up significantly.
- A 2 percent decline in Print and CD sales was in line with expectations and appeared to be the segments only sour note.
According to Interim Results presentation. The adjusted operating profit increased 8 percent, while the adjusted operating margin grew 22 percent, driven by strong subscription renewals, new product sales and wider distribution in the U.S. legal markets, corporate and federal markets and internationally.
The Outsell MarketView report analyzes the size, growth rates, financial performance, and market shares of the top 25 companies in the Legal, Tax and Regulatory segment of the information industry. It identifies organizations that are “rising stars” and disruptive new entrants, as well as trends and change drivers. The report also provides clear and essential actions for continued growth and the full report may be purchased at www.outsellinc.com/store/products/295