Melbourne, Australia (PRWEB) February 10, 2014
The Alternative Dispute Resolution Services industry in Australia provides individuals and corporations avenues to resolve disputes that do not involve litigation. According to IBISWorld industry analyst Sebastian Chia, “alternative dispute resolution (ADR), 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 an annualised 6.4% over the five years through 2013-14 to be worth $682.9 million, with growth of 6.0% forecast for the current year.
Growth has been underpinned by the increasing use of ADR to solve commercial, family and workplace disputes. ADR provides a number of benefits relative to litigation. ADR is 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, rising cost of litigation and threat of reputational damage and class actions led companies to seek an alternative to litigation,” says Chia. 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 industry exhibits a medium level of market share concentration, with major players including Allens, Herbert Smith Freehills, Clayton Utz and King & Wood Mallesons. The reforms of the past few years have positioned the industry well for growth, with governments and business expected to continue turning to ADR as an alternative to litigation. There is still room for the Alternative Dispute Resolution Services industry to compete with traditional legal services. The movement into new areas and the expansion of activity as current reforms are adopted will continue to support industry revenue growth.
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
About IBISWorld Inc.
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