In 2024, the medico-legal market experienced significant growth and consolidation, with a 4% increase in value compared to the previous year. This marks a doubling of the growth rate from the year prior.
The latest research indicates that the traditionally fragmented medico-legal sector is beginning to consolidate, as larger groups increasingly dominate the market, primarily through acquisitions. Experts estimated the market was valued at £648 million last year, a 2% rise from the previous year. This followed a steep decline of over £150 million in 2020 due to the pandemic, with subsequent minor drops in 2021 and 2022. However, 2024 has shown a stronger recovery, achieving an estimated market value of £674 million.
The upsurge in personal injury and medical negligence claims in 2023/24 has spurred demand across key areas of the medico-legal market, including medical reports, case management, and rehabilitation services. While the majority of companies in this industry remain small, a few larger entities are expanding their market share, often at the expense of smaller competitors.
In recent years, barriers to entry in the market were relatively low, allowing many companies and specialists such as expert witnesses to enter. This trend has reversed in the past two years, with some medical reporting organisations and specialists exiting due to a decline in claims and lower margins for low-value claims.
According to the latest statistics, the number of providers registered on MedCo, the industry body, has been declining since its inception, dropping from 47 in 2021 to 35 now. The count of individual medical experts registered has slightly decreased to 508, a significant drop from 2022’s 583.
Market consolidation is also evident among personal injury law firms, with registered users declining from 1,328 to 1,206. This is partially due to government reforms reducing the number of low-value whiplash claims, leading to fewer MedCo searches generating reports—just over 218,000 in the year ending 30 September 2024.
Analysts predict ongoing consolidation, with larger players expected to continue acquiring smaller ones to form more integrated businesses. This trend sees mergers between law firms and medico-legal operators, as well as with companies in accident management and rehabilitation services.
Moreover, the adoption of artificial intelligence is anticipated to increase, with larger providers likely leading the charge. AI can vastly improve service efficiency, from automating routine tasks to predicting patient outcomes and tailoring treatment plans.
Staffing trends further underscore market changes, with 36 medico-legal firms showing varying employment patterns. One notable example is FL 360, where staff numbers nearly doubled through acquisitions.
These developments signal a transitioning landscape, where fewer but larger players may shape the future market dynamics.
The medico-legal market is witnessing a pronounced shift towards consolidation, with larger entities gaining ground amid increased demand and technological advancements. This evolution presents both challenges and opportunities within the sector, as businesses adapt to changing economic and legal landscapes.
