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The machine translation (MT) market size is forecast to increase by USD 1.23 billion at a CAGR of 15.89% between 2023 and 2028. The market is experiencing significant growth due to several key trends. The increasing demand for content localization in businesses and organizations is driving market growth, as companies expand their reach into new markets and seek to engage with customers in their native languages. Another trend is the rising use of multilingual AI, which is enabling more accurate and efficient translation services. Additionally, the availability of open-source machine translation service tools is making translation more accessible and affordable for businesses of all sizes. These factors are expected to continue fueling market growth in the coming years. Machine translation is revolutionizing the way businesses communicate with their global customers, enabling seamless cross-border interactions and fostering greater cultural understanding.
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Machine translation (MT) is a subfield of artificial intelligence (AI) that focuses on translating text from one language to another. The use of deep neural networks and multilingual communication in MT has revolutionized the way digital content is made accessible to global audiences. Natural language processing (NLP) and AI have been instrumental in enhancing the accuracy and fluency of MT. The e-commerce, travel, healthcare, and other industries have significantly benefited from MT, enabling seamless communication with international customers and patients. Neural networks and deep learning techniques have improved MT's ability to understand context and nuances, making it an essential tool for effective language localization.
The increasing internet penetration and smartphone penetration have expanded the market for MT, as more people use digital platforms for communication. Communication infrastructure and language service providers have also played a crucial role in the growth of the MT market. Big data and translation theory have provided valuable insights for developing advanced MT systems. Professional linguists continue to play a role in ensuring the quality and accuracy of MT outputs.
The market trends and analysis report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Defense segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the increasing adoption of artificial intelligence (AI) and natural language processing (NLP) technologies. With the growth in big data and the availability of language data, machine translation (MT) is becoming increasingly important for multilingual communication and content creation across various industries. E-commerce, education, healthcare, legal services, and travel industries are some of the key sectors that are leveraging machine translation for multilingual customer support and business expansion in emerging economies. Deep learning techniques, such as deep neural networks, are being used to enhance the accuracy and quality of machine translation.
Hybrid approaches that combine statistical and rule-based methods with AI and neural networks are also gaining popularity for domain-specific adaptation. The use of chatbots and speech recognition in real-time translation is further expanding the application areas of machine translation. The increasing penetration of smartphones and internet users has led to a growth in demand for multilingual content creation and localization. However, the limited language coverage and the need for professional linguists to ensure quality and accuracy remain key challenges for machine translation. Communication infrastructure and the availability of language data are also crucial factors that impact the market growth.
Overall, machine translation is set to revolutionize multilingual communication and content creation across various industries and applications.
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The Defense segment was valued at USD 287.63 million in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 29% 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.
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The market is experiencing significant growth, particularly in regions with high internet penetration and large numbers of internet users, such as North America. Driven by advancements in artificial intelligence (AI), natural language processing (NLP), and deep learning techniques, machine translation (MT) is becoming increasingly essential for multilingual communication and content creation across various industries. In North America, the US leads the market, with major tech companies like Google and Microsoft investing heavily in AI and MT. The healthcare, education, e-commerce, and legal services industries are among the key sectors adopting machine translation for domain-specific adaptation and multilingual customer support. The increasing availability of language data and the development of neural networks and deep neural networks are enhancing the quality and accuracy of real-time translation.
Furthermore, emerging economies with limited language coverage are also investing in machine translation to improve communication infrastructure and expand their digital content offerings. Chatbots and speech recognition are additional applications of machine translation that are gaining popularity, particularly in the travel industry. Overall, the market for machine translation is expected to grow significantly in the coming years, as the need for multilingual communication and content creation continues to increase.
Our machine translation market researchers analyzed the data with 2023 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 increasing demand for content localization is the key driver of the market. Artificial intelligence (AI) and big data are revolutionizing the way businesses communicate with their global customer base. Machine translation (MT), a subset of natural language processing (NLP), plays a crucial role in this digital transformation. MT uses deep learning techniques, such as deep neural networks, to understand and translate text from one language to another in real-time. This technology is increasingly being adopted in various industries, including e-commerce, education, healthcare, legal services, and travel, to cater to multilingual customer support and multilingual content creation. The emergence of chatbots and speech recognition further enhances the potential of MT. With the increasing internet penetration and smartphone usage, language localization has become essential for businesses to expand their reach in emerging economies.
However, limited language coverage and the need for quality and accuracy remain significant challenges. Hybrid approaches, combining the strengths of AI and professional linguists, are being explored to address these challenges. Domain-specific adaptation is also a crucial aspect of MT, ensuring the accuracy and relevance of translations in specific industries. Machine translation is not just about translating text but also about understanding the context and nuances of the language. It is an essential tool for multilingual communication infrastructure and is expected to create significant opportunities for language service providers in the digital age.
The rising use of multilingual AI is the upcoming trend in the market. In today's globalized business landscape, effective communication across linguistic boundaries is essential for organizations to engage with customers, partners, and stakeholders in various regions. Multilingual artificial intelligence (AI) solutions, including machine translation (MT), natural language processing (NLP), and natural language understanding (NLU), are revolutionizing the way businesses operate. These advanced technologies, which utilize deep learning techniques and deep neural networks, enable real-time translation and communication across multiple channels, such as chatbots and speech recognition. The education, healthcare, e-commerce, legal services, and travel industries are among those that have embraced multilingual AI to cater to the needs of their diverse customer base.
With the increasing penetration of the internet and smartphones, language data availability has expanded significantly, facilitating domain-specific adaptation and hybrid approaches. Machine translation providers are leveraging this data to offer high-quality and accurate translations, ensuring multilingual content creation, localization, and customer support. The integration of AI also allows for the analysis of big data, providing valuable insights into customer demographics, social trends, and purchase history, enabling targeted advertising and customized content.
The availability of open-source machine translation service tools is key challenge affecting the market growth. The market is witnessing significant growth due to the increasing use of artificial intelligence (AI) and natural language processing (NLP) technologies. Big data and deep learning techniques, including deep neural networks, are being employed to enhance the capabilities of machine translation (MT) systems. Communication infrastructure and digital content creation in various industries such as e-commerce, education, healthcare, legal services, and travel are driving the demand for multilingual communication and multilingual customer support. However, the limited language coverage and quality and accuracy concerns are major challenges. Hybrid approaches, including the use of professional linguists and domain-specific adaptation, are being adopted to address these challenges.
The emergence of chatbots and speech recognition technologies are also expected to boost the market growth. Internet penetration and smartphone penetration are expanding the reach of MT services to emerging economies and increasing the number of internet users. Open-source MT engines, such as Apertium and Moses, and CAT tools, such as Omega T Open TM2 and Anaphraseus, offer cost-effective alternatives to proprietary tools, making MT accessible to small and medium-sized enterprises (SMEs).
The market forecasting 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 market growth analysis strategies.
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.
Alphabet Inc. - The company offers advanced machine translation solutions, enabling the conversion of text, speech, images, documents, websites, and other forms of data across various devices.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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.
Machine translation (MT) is a subfield of artificial intelligence (AI) that focuses on translating text from one language to another. The market for machine translation is driven by the increasing demand for multilingual communication in various industries, including e-commerce, education, healthcare, legal services, and travel. The availability of big data and advancements in deep learning techniques, such as deep neural networks and natural language processing, have significantly improved the quality and accuracy of MT. Chatbots and speech recognition technologies have further expanded the application of MT in real-time communication channels. However, the limited language coverage and domain-specific adaptation requirements pose challenges for MT.
The growing internet penetration and smartphone usage have increased the number of internet users and digital content creation, leading to an increased demand for MT and language localization services. Hybrid approaches that combine AI and professional linguists are gaining popularity to address the challenges of MT, particularly in industries with high-stakes communication, such as healthcare and legal services. The emerging economies with increasing internet users and language data availability are expected to offer significant growth opportunities in the MT market.
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, market forecast, market analysis and report, 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 market forecast 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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