The benefits of using the industry's services are supporting growth
Melbourne, Australia (PRWEB) August 10, 2012
The Alternative Dispute Resolution Services industry in Australia provides individuals and corporations avenues to resolve disputes that do not involve litigation. Alternative dispute resolution – generally consisting of mediation, conciliation and arbitration – has surged in popularity during the past decade, underpinning strong growth in industry revenue and profitability. Industry revenue is expected to grow at a compound annual rate of 5.3% over the five years through 2012-13 to be worth $642.5 million. Growth has been underpinned by the increasing use of ADR to solve commercial, family and workplace disputes.
The Alternative Dispute Resolution Services industry provides a number of benefits relative to litigation, being generally cheaper, faster, more flexible and confidential, and less adversarial than going to court. Since the mid-1990s, governments have supported the use of ADR by introducing a number of mandatory and optional schemes, particularly in the areas of employment, family and commercial arbitration law. Business has also turned to ADR as the tight economic climate, the rising cost of litigation and the threat of reputational damage and class actions led companies to seek an alternative to litigation. Both trends are expected to continue over the next five years. The increased scope of industry activity has encouraged many new players to enter the industry and existing players to expand, while employment has also grown strongly. As the industry becomes more established this growth in enterprises and establishments is expected to slow. However, employment growth is likely to continue at a similar rate as existing players grow their businesses.
The Alternative Dispute Resolution Services industry has a medium level of market share concentration, and the four largest firms are Allens, Freehills, Clayton Utz and King & Wood Mallesons. It is no accident that these companies are all major commercial law firms. The commercial market has grown significantly in the five years through 2012-13 due to increasing costs of litigation and increasing acceptance of industry services. Service for the disputes entered into by private companies is heavily concentrated. As a consequence, the increase in activity in this area has resulted in an increasing level of market share concentration in the five years through 2012-13.
For more information, visit IBISWorld’s Alternative Dispute Resolution Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry aid disagreeing parties to come to an agreement through processes and techniques other than a court trial. This includes methods such as arbitration, mediation and other means of dispute resolution.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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