Language Services Market

Global Language Services Market:

The global language services market size reached US$ 72.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 108.9 Billion by 2032, exhibiting a growth rate (CAGR) of 4.6% during 2024-2032. The increasing number of immigrants and international students, along with the rising demand for content in several formats, such as audio, video, and written material, is primarily driving the market.

Language Services Market Analysis:

• Major Market Drivers: The rising focus of industry players on improving user experience is one of the key factors strengthening the market. Moreover, the growing need for maintaining regulatory compliance is further impelling the growth of the market.
• Key Market Trends: The inflating levels of globalization are among the emerging trends stimulating the market. Additionally, the widespread integration of advanced technologies and the expanding international businesses are further acting as significant growth-inducing factors.
• Geographical Trends: Europe represents the largest market share, owing to the rising focus on social media and online content. Apart from this, continuous collaborations among prominent players are positively impacting the regional market.
• Competitive Landscape: Some of the language services market companies include Global Linguist Solutions LLC, Hogarth Worldwide, Keywords Studios Plc, LanguageLine Solutions (Teleperformance), Lionbridge Technologies Inc., Mission Essential Personnel, RWS Holdings plc, SDI Media, SDL plc, and TransPerfect Solutions, among many others.
• Challenges and Opportunities: One of the challenges hindering the market is linguistic diversities across countries. Organizations are facing cultural issues while entering into new business ventures. However, the introduction of effective communication tools, such as language services, that offer seamless interaction among individuals is anticipated to drive the market over the forecasted period.
   

Language Services Market Trends:

International Business Expansion

As various organizations are expanding globally, the escalating demand for localization services to adapt services, products, and content to local languages and cultures is bolstering the market growth. Moreover, this trend is specifically prevalent among industries, such as e-commerce. For instance, according to a report generated by the Harvard Business Review, of the internet users surveyed, 90% indicated that, when offered with language options, they always chose to browse a website in their native language. Furthermore, in the "Can't Read, Won't Buy – B2C" report, which generally involved surveying over 8,000 individuals across 29 countries, it was stated that 65% of respondents prefer content in their mother tongue. In line with this, 40% of them did not purchase a product or service if it was not offered in their language. Consequently, businesses entering into new ventures require effective communication tools, such as language services, to facilitate participants from different backgrounds to understand and collaborate. For example, in his blog article, one of the digital marketers, Neil Patel, explained how he saw an increase of nearly 60% in new users and 47% in search traffic after localizing his website into several languages. This, in turn, will continue to fuel the language services market demand in the coming years.

Rising Technological Innovations

Numerous advancements in natural language processing (NLP), artificial intelligence (AI), and machine learning (ML) are providing a positive outlook to the market. Moreover, these technologies are improving the accuracy, efficiency, and accessibility of language services, thereby acting as another significant growth-inducing factor. For example, in June 2023, Google News Initiative (GNI) launched the Indian Languages Program, a new solution designed to help local news publishers in India. Moreover, GNI is used to authorize publishers via several components, including access to training, technical support, and funding to assist in improving digital operations and reaching more readers. Besides this, it supports a total of nine languages, including Tamil, Kannada, Telugu, Malayalam, Gujarati, Bengali, Hindi, English, and Marathi. With the help of these services, various companies are now able to reach audiences across the globe at a minimal cost through the web. They are collaborating and partnering with key players to expand their product portfolio, thereby propelling the language services market revenue. For example, in June 2023, Acolad, one of the companies that offer content and language solutions, signed an agreement with Phrase, a cloud-based localization technology. Under this partnership, Acolad integrated end-to-end localization management capabilities of Phrase into its localization services, further improving its product offering. Additionally, with the development of AI-related technologies, Acolad and Phrase assisted clients with comprehensive language solutions that enhanced linguistic consistency, streamlined translation processes, optimized project management workflows, etc. In line with this, AppTek, one of the leaders in Neural Machine Translation (NMT), Automatic Speech Recognition (ASR), Natural Language Understanding (NLU) technologies, etc., partnered with TransPerfect to improve customer workflows by minimizing project turnaround times.

Proliferation of Digital Content

With the increasing online content, translation services play an important role in facilitating communication between users of numerous languages. They generally encompass both signed communication as well as spoken and follow the International Standards Organization (ISO) definition that states the rendering of a signed or spoken message into another language by preserving the meaning of the source language content. Additionally, businesses across countries are seeking translation services to serve their customers and keep up with their demands. While individuals are also utilizing this type of service, the share of such usage is minimal. For example, in November 2023, Pocketalk, one of the global leaders in translation solutions, announced its partnership with CAVU International, a company renowned for its team conduct training and greater leadership. Apart from this, as per the language services market statistics, around 300 hours of video content is being uploaded on YouTube every minute, and approximately 5 billion videos are being watched daily by individuals. Along with this, about 70% of YouTube viewers are from outside the United States. This, in turn, indicates the elevating demand for video translations, where post-editing of machine translations (PEMT) is gaining widespread popularity.

Language Services Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on the service, component, and application. 

Breakup by Service:

• Translation Services
• Interpretation Services
• Others
   

Translation services account for the majority of the language services market share

The report has provided a detailed breakup and analysis of the market based on the service. This includes translation services, interpretation services, and others. According to the report, translation services represented the largest segment.

Translation services are extensively adopted to bridge communication gaps between businesses, individuals, and organizations operating in various linguistic environments. Moreover, the increasing number of international trade activities is escalating the demand for these services to translate content and documents into multiple languages to cater to audiences effectively, thereby driving growth in this segmentation. Besides this, key industry players are entering into mergers and acquisitions (M&A) activities, which is acting as another significant growth-inducing factor. For instance, in March 2023, Microsoft enhanced its language support by incorporating 13 new African languages into the Microsoft Azure Cognitive Services Translator. This allowed for the translation of text and documents to and from these languages within the entire Microsoft ecosystem of services and products. Moreover, it reflects Microsoft's commitment to linguistic accessibility and inclusivity, thereby encouraging users to engage effectively. Furthermore, American Journal Experts (AJE), a division of Research Square Company, introduced its standard translation service.

Breakup by Component:

• Software
• Hardware
   

Software holds the largest share of the industry

The report has provided a detailed breakup and analysis of the market based on the component. This includes software and hardware. According to the report, software represented the largest segment.

Software components generally include novel language processing tools that can perform various tasks that allow for deeper insights from large volumes of text data. For instance, Gengo provides software translation services that meet high-quality translation and localization services demand. In line with this, Language I/O offers AI-powered software tools that make it easy for any of the existing agents to respond quickly to multilingual support tickets, thereby catalyzing the language services market outlook in this segmentation.

Breakup by Application:

• IT and Telecommunications
• Commercial
• Government
• Automotive
• Healthcare
• Others
   

IT and telecommunications represent the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the application. This includes IT and telecommunications, commercial, government, automotive, healthcare, and others. According to the report, IT and telecommunications represented the largest segment.

IT and telecommunication companies require translation and localization services to adapt their products to various cultures and languages. Effective communication is vital in IT and telecommunications during software development and multinational collaborations. Besides this, language services, including interpretation services for virtual conferences and meetings, are crucial in ensuring seamless communication among stakeholders speaking different languages. Additionally, the telecommunications industry relies on language services to reach diverse audiences worldwide. Telecom companies need to translate marketing materials, user manuals, and customer support content to serve customers in various regions effectively. For instance, Stepes offers accurate telecommunication translation services in all the major languages of countries so that telecom companies can accelerate business growth and overcome linguistic barriers. This, in turn, is considered as one of the language services market recent opportunities.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • United Kingdom
  • Germany
  • France
  • Sweden
  • Russia
  • Netherlands
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Others
• Middle East and Africa
  • Turkey
  • Saudi Arabia
  • Iran
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
     

According to the language services market overview, Europe exhibits a clear dominance

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (the United Kingdom, Germany, France, Sweden, Russia, Netherlands, and Others), Asia Pacific (China, Japan, India, South Korea, Australia, and Others), the Middle East and Africa (Turkey, Saudi Arabia, Iran, and others), Latin America (Brazil, Mexico, and Others). According to the report, Europe represents the largest regional market for language services.

The rising trade and international business partnerships are primarily driving the regional market. Moreover, leading language service providers in Europe are using advanced technologies, including ML and AI, to cater to the evolving needs of individuals and organizations seeking quick and accurate language support. Besides this, government bodies across the region are relying on these services and partnering with stakeholders, thereby strengthening the market. For instance, the Translation Centre for the Bodies of the European Union is an agency that provides translation and related language services to the other decentralized EU agencies. Apart from this, continuous collaborations among industry key players and extensive investments in R&D activities to develop enhanced translation software are validating the language services market forecast in Europe.

Competitive Landscape:

Language service providers are actively integrating advanced language technologies into their services. These technologies offer faster turnaround times and cost-effective solutions for clients. Companies are expanding their localization offerings to cater to the needs of global businesses. They are also expanding their multilingual user support services to aid organizations in communicating with their global user base effectively. This included offering customer service in multiple languages via various channels, including email, chat, and phone. They are also adopting collaborating strategies to enhance communication between linguists, clients, and project managers across different geographical locations, thereby elevating the language services market's recent price.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Global Linguist Solutions LLC
• Hogarth Worldwide
• Keywords Studios Plc
• LanguageLine Solutions (Teleperformance)
• Lionbridge Technologies Inc.
• Mission Essential Personnel
• RWS Holdings plc
• SDI Media
• SDL plc
• TransPerfect Solutions
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Language Services Market Recent Developments:

• April 2024: Lotte Department Store, a subsidiary of the Lotte Group, has integrated SK Telecom's (SKT) "TransTalker" AI translation system. It uses transparent LED displays to show translated conversations in a text format.
• March 2024: Google announced that it will be expanding the functions of its tool Circle to include language translation.
• March 2024: Two researchers from the University of Oberta de Catalunya (UOC), Sergi Álvarez-Vidal and Antoni Oliver, introduced a new method to assess work by AI to improve the work of translators, thereby increasing their capabilities with the potential of machine translation, and enhancing the quality of the result for all users.

Language Services Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the language services market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global language services market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the language services industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.