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The language services market size is estimated to grow by USD 21.50 billion at a CAGR of 6.75% between 2022 and 2027. Market growth hinges on various factors, such as the adoption of technology to improve the efficiency of language translation processes. Additionally, increased government spending on language services contributes to market expansion. The government's recognition of the importance of effective language services drives investment in translation technologies and services. Furthermore, the growing demand for language services in various sectors, including healthcare, legal, and business, fuels market growth. These factors collectively drive the adoption of innovative language translation solutions and services, creating opportunities for market players to meet the evolving needs of global communication.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market report extensively covers market segmentation by service (translation, interpretation, and others), end-user (healthcare, ICT, BFSI, government, and others), and geography (Europe, North America, APAC, South America, and the Middle East and Africa).
The market share growth by the translation segment will be significant during the forecast period. The demand for translation services is increasing due to several factors, like the COVID-19 pandemic, which led to an increase in remote work and virtual events, which made it necessary for businesses to communicate in different languages. Furthermore, the healthcare industry needs accurate translation of medical records and reports to ensure effective treatment for COVID-19 patients from diverse linguistic backgrounds. However, end-users use translation services in various ways.
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The translation segment was valued at USD 22.47 billion in 2017. The translation segment shows a gradual increase in the market share by providing the capacity to convey to a global audience with the help of an expert linguist. Translation segments are present in various forms, such as interpretation, video interpreting, and remote interpreting in 2017. They provide the capacity to convey to a global audience with the help of an expert linguist. Translation segments are present in various forms, such as interpretation, video interpreting, and remote interpreting.
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North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in Europe is expected to record a rapid growth rate during the forecast period. Western Europe and the Nordic regions are some of the major contributors to market growth. In Western Europe, countries such as the UK and Germany are the major revenue-generating countries. Europe has a vast language diversity, which increases the demand for English translation services. Increasing government investments in the market and a significant increase in the number of local companies operating in the market are fueling the growth of the market in Western Europe.
The market plays a crucial role in bridging linguistic gaps across cultures and industries. It encompasses a wide range of services such as transliteration and interpretation for international students, immigrants, and businesses. With the rise of social media and online content, there's a growing demand for localization services to adapt content for different regions and languages. Professionals in this market offer linguistic consulting to improve communication and engagement, particularly in areas like product descriptions, user interfaces, and customer engagement strategies. As businesses expand globally, the need for cloud-based solutions and content marketing in multiple languages is on the rise. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increased adoption of content reuse platforms is notably driving market growth. One of the major factors catering to the growth of the market is the increased adoption of content reuse platforms such as Adobe InDesign, Microsoft Publisher, and PDFelement in the market for language translations and localization. In addition to the cost and effort involved in publishing and localization of content, content reuse platforms significantly shorten the time it takes to write and review content. Content management systems play a crucial role in ensuring content consistency throughout an organization, which, in turn, increases the need for translation, interpretation, and localization of information to meet organizational requirements and drive market growth. Machine learning can enhance these systems, improving their effectiveness in managing and translating content. Additionally, interpretation services and collaborative platforms play key roles in facilitating communication and content localization efforts across different languages and cultures.
As organizations expand their market penetration through organic and inorganic growth strategies, the applicability of content reuse increases owing to long-term cost benefits. These platforms have an important role, especially for operators in industries with high levels of regulatory control like medical devices, defense systems, and pharmaceuticals. Hence, the increase in the adoption of content reuse platforms will drive the growth of the global language services market during the forecast period.
The increased emphasis on transcreation is a primary trend in the market. Owing to the significant rise in the internationalization of businesses, corporate organizations are increasingly using the concept of transcreation tools to interact with and attract the target audience to their products. In contrast to direct translation, transcreation involves the adaptation of the content and the creation of custom images. It facilitates the connection between advertisers and their target market. It's using the translation process as well as copywriting. In the context of the global social media campaign, it plays an important role and increases the impact of the language.
Due to the growing popularity of transcreation, various companies have started offering transcreation services in the market. Many companies, such as Ampere Nordic Translations and Zeitgeist, provide transcreation services to their clients. These end-to-end solutions range from cross-border campaign planning to the delivery of multilingual marketing material. The transcreation of marketing content is still at an early stage in emerging regions, although the transcreation process is already widely adopted in North America and Europe, where many companies, especially in the food and beverage sector, are increasingly using it to connect with users around the world and to globalize their products. The layout, visuals, and content are different for each country. The increasing adoption of transcreation services by major industries such as food and beverage will boost the growth of the global language services market during the forecast period.
The data privacy and security risks in online translation services are a major challenge in the market. One of the major factors that hinder the growth of the market is the various data privacy and security risks associated with translation services, especially cloud-based services. The task of managing cloud security is a difficult one for businesses in protecting Internet data, particularly with public cloud systems. As Public Clouds are multitenant, which can harm various applications running in the Cloud environment, there is a significant impact on their infrastructure through source code mismatches. Cybercriminals can easily gain access to cloud-based data storage systems as cloud-based infrastructure is based on open architecture and shared resources. While many players are investing in machine translation tools to provide services to clients, not all companies are taking measures to implement security controls to protect sensitive information.
However, other factors increasing the data security risks in his market are the changing workforce and employment models. Many players have increased the proportion of freelancers in the workforce, and they have also begun to shift the work from offices to remote work-from-home models, where employees may not have access to secure networks and may use personal devices that are not as secure as company-owned devices. This leads to a greater risk of data breaches and cyber-attacks. Consequently, the growth of the market is projected to be hindered in the course of the forecast period by a rise in privacy and security risk concerns associated with internet services.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Acolad Group - The company offers language services such as global localization services through translation, interpreting, transcription, website localization, and outsourcing solutions.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The language services market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is witnessing a transformation with the integration of Artificial Intelligence (AI) and machine learning into interpretation services and language training. As businesses expand globally, there's a growing need for written language and spoken language services to reach diverse audiences. E commerce companies are leveraging AI-driven approaches for PPC advertising and social media marketing on various platforms. Cultural consulting and webinars are also part of the market, providing insights into language policies and audience preferences. With the rise of collaborative platforms and increased internet usage, the demand for mobile translators and language instruction is expected to rise.
Moreover, the market is experiencing a surge in demand driven by IT and telecommunications sectors, E-commerce companies, and the automotive industry. These industries require a range of services, including professional offerings for translating audio and written materials. The market is increasingly adopting an AI driven approach to meet the needs of businesses expanding into new markets. With the proliferation of social networking sites, there is a growing need for language services to facilitate global communication and engagement. This trend is expected to continue as companies seek to reach wider audiences and improve their online presence.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.75% |
Market growth 2023-2027 |
USD 21.50 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.25 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 31% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acolad Group, APPEN Ltd., Centific Global Solutions Inc., Honyaku Center Inc., IMAGICA GROUP Inc., Iyuno, Keywords Studios Plc, Lionbridge Technologies LLC, President Translation Service Group International, Questel, RWS Holdings PLC, STAR AG, Teleperformance SE, thebigword Group Ltd., TransPerfect Global Inc., United Language Group, Voice and Script International Ltd., Welocalize Inc., Cyracom International Inc., and Dubbing Brothers SAS |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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