Machine Translation (MT) Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast 2024-2028

Machine Translation (MT) Market Forecast 2024-2028 

The Machine Translation (MT) Market size is projected to increase by USD 1.23 billion at a CAGR of 15.89% between 2023 and 2028. The market's growth hinges on rising demand for content localization, driven by global business expansion and the imperative for effective multilingual communication. Rapid globalization necessitates seamless adaptation to diverse languages, amplifying the need for multilingual capabilities. Additionally, the adoption of voice recognition technology further fuels market growth, enhancing communication efficiency across languages. These factors collectively propel the market forward, underscoring the importance of adapting to linguistic preferences amid globalization while leveraging innovative communication technologies.

Moreover, the market growth and forecasting report includes key players' detailed analyses of the competitive landscape of the market and information about 20 market companies, including Alphabet Inc., and ARGOS TRANSLATIONS Sp. z o.o., Babylon Software Ltd., Cloudwords Inc., CSOFT International Inc., Global Lingo Ltd., Honyaku Center Inc., International Business Machines Corp., Lingotek Inc., Lingua Custodia, Lionbridge Technologies LLC, Microsoft Corp., Omniscien Technologies, Promt, SYSTRAN SA, Teleperformance SE, thebigword Group Ltd., TransPerfect Global Inc., Welocalize Inc., and RWS Holdings PLC. Additionally, Alphabet Inc. offers machine translation services, including Google Translation, which translates text, speech, images, documents, websites, and more seamlessly across various devices.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics 

The market is driven by the increasing demand for artificial intelligence and natural language processing techniques, particularly in sectors like e-commerce, travel, and healthcare. Trends include the integration of neural networks and deep learning for enhanced accuracy and efficiency. Challenges revolve around privacy and security concerns, ensuring domain-specific adaptation, and addressing bias mitigation in translations. As the market evolves, emphasis on customization, multimodal, and ethical machine translation practices are emerging. Continuous learning and adaptation remain crucial for improving quality and meeting diverse translation needs responsibly. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market  Driver

The increasing demand for content localization is notably driving market growth. As businesses expand their global reach, mobile applications play a crucial role in facilitating communication with partners, clients, and customers from diverse linguistic backgrounds. Mobile platforms enable real-time emails, messages, documents, and presentations, empowering businesses to engage with international stakeholders more effectively and efficiently. Many companies are increasingly developing services that target mobile users. As a result, the demand for mobile-based services among individual learners, as well as corporate organizations, is increasing. 

Moreover, various companies offer mobile translation apps that offer various services to users. For instance, Stepes, by CSOFT International Ltd., provides high-quality live services to individuals for overseas travel and business negotiations anytime and anywhere. The app also provides access to nearby professionals, thereby enabling learners to connect with them for language interpretation services. Therefore, such factors are expected to drive the growth of the market during the forecast period.

Significant Market Trends

The growing adoption of mobile translation is an emerging trend shaping market growth. As businesses expand their global reach, mobile translation applications play a crucial role in facilitating communication with partners, clients, and customers from diverse linguistic backgrounds. Mobile platforms enable real-time translation of emails, messages, documents, and presentations, empowering businesses to engage with international stakeholders more effectively and efficiently. Many companies are increasingly developing services that target mobile users. As a result, the demand for mobile-based services among individual learners, as well as corporate organizations, is increasing. 

Moreover, various companies offer mobile translation apps that offer various transition services to users. For instance, Stepes, by CSOFT International Ltd., provides high-quality live services to individuals for overseas travel and business negotiations anytime and anywhere. The app also provides access to nearby translation professionals, thereby enabling learners to connect with them for language interpretation services. Therefore, the adoption of mobile translation is expected to drive the growth of the market during the forecast period.

Major Market Restrain

Ambiguity and complexities of natural human language a significant challenges hindering market growth. The inherent ambiguity and complexities of natural human language present difficulties in achieving accurate language processing, which is one of the major challenges faced in the market. Similar to natural language, these systems struggle with ambiguity in language. Words and phrases may have multiple meanings depending on context, cultural nuances, and idiomatic expressions. These systems need to handle lexical gaps by finding suitable approximations or paraphrasing to convey the intended meaning. 

Additionally, ambiguity in natural human language raises the possibility of mistakes, inaccurate interpretations, and errors in machine translation models and applications. Handling the nuances in natural human language and enabling more accurate and contextually aware machine systems require the use of cutting-edge methodologies, algorithms, and linguistic expertise. Hence, the ambiguity and complexity of natural human language is a challenge which is expected to hinder the growth of the market during the forecast period.

Market Segmentation 

In the market, advanced technologies such as artificial intelligence and neural networks drive innovation, enabling seamless translation across various domains like e-commerce, travel, and healthcare. Natural language processing techniques enhance accuracy, while deep learning enables continuous learning and adaptation for improved performance. Multilingual content creation caters to global audiences, ensuring cost and time efficiency. However, concerns regarding privacy, security, and ethical implications persist. Customization and personalization features address specific needs, including legal, medical, technical, and financial translations. Enhanced multimodal translation, including text, speech, images, and videos, offers comprehensive language solutions. Additionally, sentiment analysis and intent-based translation enhance contextual understanding, while fairness and bias mitigation ensure ethical and responsible machine practices supported by computer-assisted tools.

Market Segmentation By Application

The defense segment is estimated to witness significant growth during the forecast period. Technological advances have enabled the development of sophisticated, network-oriented electronic warfare systems, which have significantly reshaped tactical warfare and modern battlefield engagement. An electronic warfare system is considered a must-have capability by countries across the world owing to its multiple crucial applications to safeguard critical assets and infrastructure and counter unconventional security threats.

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The defense segment was the largest and was valued at USD 287.63 million in 2018. Further, the equipment used in electronic warfare is witnessing advances in various functionalities due to the progression in algorithms and software (using machine translations), which help in imparting operational capabilities to electronic warfare systems. These systems are installed on most military vehicles for use on land, air, sea, or space. Further advances have led to the availability of electronic warfare systems in lighter and smaller packaged units that can be easily operated at lower power levels using analog, digital, and radio frequency (RF)-microwave technologies. Owing to these factors, the demand is expected to increase from the defence sectors and, hence, drive the growth of the market forecast period.

Market Segmentation By Deployment

On-premises deployment as a deployment type has experienced major developments in the growth of the market. Although cloud-based systems are becoming increasingly popular, on-premises deployment is still useful in some sectors and organizations. However, due to the growing popularity of cloud-based solutions that offer scalability and cost-efficiency, the demand for on-premises deployment is anticipated to experience difficulties. In comparison to cloud-based alternatives, the on-premises deployment segment may develop more slowly as businesses continue to investigate hybrid models and place a premium on flexibility. As a result, the deployment of machine learning through an on-premises platform is expected to drive the growth of the market during the forecast period.

Regional Overview

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North America is estimated to contribute 29% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional market trends and analysis, and drivers influencing the market's trajectory throughout the forecast period. In North America, particularly in the US, the market is propelled by technological giants like Google and Microsoft investing heavily in this sector. The region's growing data volume necessitates efficient data translation solutions across various industries, including healthcare, IT, military, defense, and automotive. With the US being a significant defense market, increased defense spending encourages the widespread adoption of machine translation for military applications, aiding soldiers in language translation and cross-lingual information retrieval.

Additionally, the automotive sector experiences substantial investments and technological advancements, fostering demand to optimize automotive features. Healthcare, with its significant spending exceeding USD 3 trillion annually, further drives adoption, particularly with the shift towards value-based payment models, incentivizing healthcare professionals to embrace coordinated care models with the aid of these tools for effective operations. Such factors are expected to drive the regional market during the forecast period. 

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, 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 market growth and trends strategies.

Global Market Customer Landscape

Market Companies

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.

Babylon Software Ltd - The company offers machine translation, such as Babylon that provides full-text translation, web page translation, and document translation in many languages.

Market analysis and report of 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.

Segment Overview

The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Application Outlook
  • Defense
  • IT
  • Automotive
  • Healthcare

• Deployment Outlook
  • On-premises
  • Cloud

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is experiencing significant growth driven by factors such as increasing internet penetration and smartphone penetration worldwide, coupled with advancements in communication infrastructure. Language service providers leverage big data and social media data mining for marketing decision-making and to enhance translation theory for better grammatical consistency. Multinational companies rely on professional linguists for cross-cultural interaction, aided by communication technology integration and AI technologies like Machine Foreign Language Translation System (MFLTS). The healthcare and automotive segments benefit from language localization and Neural Machine Translation (NMT) for multilingual customer support and content management. Emerging technologies like chatbots, speech recognition, and AR/VR are reshaping the landscape, offering contextual and intent-based translation. Despite challenges like accuracy concerns, the market is propelled by cloud-based machine services and the continuous development of NLP, NMT, and hybrid approaches, enhancing quality and accuracy in voice and video translation for various industries, including education.

Further, the market is rapidly evolving with advancements in Artificial Intelligence (AI) and Natural Language Processing (NLP) technologies. While AI-powered solutions offer promising results, challenges like lack of accuracy persist, particularly in specialized domains like the healthcare segment. Content Management Systems (CMS) play a vital role in facilitating the seamless integration of translation tools into existing workflows, optimizing the handling of vast volumes of language data. Emerging technologies such as Augmented Reality (AR) and Virtual Reality (VR), Cloud-based machine translation services, and Statistical machine translation (SMT) are enhancing natural language understanding and enabling immersive translation experiences. Traditional approaches like rule-based machine translation (RBMT) and SMT continue to complement AI-driven methods, ensuring comprehensive language coverage in the landscape.

Market Scope
Report Coverage	Details
Page number	169
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 15.89%
Market Growth 2024-2028	USD 1.23 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	14.6
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 29%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Alphabet Inc., ARGOS TRANSLATIONS Sp. z o.o., Babylon Software Ltd., Cloudwords Inc., CSOFT International Inc., Global Lingo Ltd., Honyaku Center Inc., International Business Machines Corp., Lingotek Inc., Lingua Custodia, Lionbridge Technologies LLC, Microsoft Corp., Omniscien Technologies, Promt, SYSTRAN SA, Teleperformance SE, thebigword Group Ltd., TransPerfect Global Inc., Welocalize Inc., and RWS Holdings PLC
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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