In the year since the Global Arbitration Fairness Act was passed in March, the global market for arbitration has grown significantly.
The market is now worth around $1.4 trillion (£750bn), a 30% increase on the year before.
The International Arbitration Association (IAA), the organisation which regulates the arbitration industry, predicts that arbitration markets will grow to $3 trillion (£2.3 trillion) in 2020.
It has also predicted that the cost of arbitration will rise by more than 30%.
The IAA is not the only organisation predicting a rise in arbitration markets.
“There’s a lot of good research going on and the IAA’s projections are correct,” said Daniel R. Coyle, the managing director of arbitrators in the US, UK and Germany.
“If they are correct, I think that’s an enormous opportunity for the industry.”
The IEA’s projections of market growth are a prediction that is supported by the IAB, the Arbitration Board for Dispute Resolution (BDSR), which represents more than 1,300 arbitration companies worldwide.
It also predicts that, in 2020, arbitration markets in the world will reach $3.7 trillion, which is a 10% increase over the year prior.
The BDSR estimates that the global arbitral market will reach a market capitalisation of around $4.3tn by 2020.
The IAB is not alone in predicting that arbitration market growth will increase.
The Association of Arbitrators of the Americas (AAA), the largest organisation representing arbitration firms in the Americas, predicts a 5% increase in the number of arbitral firms by 2020 and a 50% increase for the period 2020 to 2020-21.
“It is a big opportunity for us, for the arbitration market and for the companies that work in it,” said Richard L. Hickey, the president of the AAA, in an interview with Al Jazeera.
“The arbitrators will become more relevant, the firms will become increasingly relevant, and the arbitrators themselves will become even more relevant.
It’s going to be a real boon for the arbitrageurs.”
And the arbitral markets are not just for arbitrators.
The US Chamber of Commerce has already predicted that by 2020, a global market will be worth $4 trillion.
The AAA is also looking to create a more sustainable global arbitration market.
In 2019, it was set to increase its revenues by $150m per annum, but that target has been delayed.
The association has also suggested that arbitrators could benefit from more incentives in arbitration, particularly the ability to be paid for their work.
“A lot of companies would love to work for the AAA,” Hickey said.
“They have a lot to gain by working for them, and they’re a very powerful organisation.”
In 2018, the AAA introduced the Arbitrage Opportunities Rule, which encourages arbitrators to work more hours and offers them more incentive to work on arbitration cases.
Arbitration arbitrators are also being encouraged to work harder.
The rules will be put in place for arbitration by the end of 2020.
As part of the rules, arbitrators and their companies are also required to disclose the details of their arbitration work to other arbitrators, to ensure that all arbitrators have access to the same information.
The rule is also expected to be expanded to include other sectors, such as marketing and advertising, where the arbitration is done.
“As the industry becomes more competitive and more efficient, arbitration will be more of a necessity, because there’s so much value in the industry,” said Hickey.
The arbitration market has also benefited from a lack of transparency.
Arbitrators have no idea who is going to arbitrate a case.
And the public is unaware of the arbitration process.
“We’re not sure what is going on, so there’s a lack in transparency,” said Coyle.
“I think the whole industry needs to step up and get more transparent.”