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Language Services Market

Language Services Market

Language Services Market Analysis, By Service (Interpretation, Language Instruction, Language Testing, Localization, Transcreation, Translation, Subtitling, Dubbing, Transcription, Proofreading), By End-use Industry - Global Market Insights 2022 to 2032

Language Services Market
FACT7703MR
  • Sep-2022
  • List of Tables : 41
  • List of Figures : 74
  • 170 Pages
  • Consumer Goods

Language Services Market Outlook (2022-2032)

The global language services market is valued at US$ 60.68 billion in 2022 and is predicted to reach US$ 96.21 billion by the end of 2032, expanding at a CAGR of 5.94% over the said period.

The average translation budget for large-scale companies ranges from 0.25% to 2.5% of their annual turnover. The U.S. federal government, one of the largest spenders on language services, spends around US$ 700-800 million annually on outsourced language services.

Report Attributes

Details

Language Services Market Size (2021A)

US$ 54.02 Billion

Estimated Market Value (2022E)

US$ 60.63 Billion

Forecasted Market Value (2032F)

US$ 96.21 Billion

Global Market Growth Rate (2022-2032)

5.94% CAGR

North America Market Share (2021)

41.3%

East Asia Market Growth Rate (2022-2032)

6.4% CAGR

United States Market Growth Rate (2022-2032)

6.3% CAGR

Market Share of Top 5 Companies

7%

Key Companies Profiled

  • TransPerfect
  • RWS
  • LanguageLine Solutions
  • Keywords Studios
  • Iyuno-SDI Group
  • Appen
  • translate plus
  • Acolad Group
  • Welocalize
  • Hogarth Worldwide
  • Poletowin Pitcrew Holdings
  • STAR Group
  • Pactera EDGE
  • Pixelogic Media
  • AMN Language Services
  • CyraCom International
  • Translation Bureau
  • President Translation Service Group International (PTSGI)
  • Dubbing Brothers
  • Voice and Script International (VSI)
  • GTCOM (Global Tone Communication Technology)
  • Honyaku Center
  • Thebigword
  • United Language Group

Interested to Procure The Data

Revenue Analysis of Language Services (2017-2021) Vs. Market Forecasts (2022-2032)

“Myriad of Service Needs Pushing the Boundaries of Language Services”

Language services consist of vivid language-related services such as translation, interpretation, localization, instruction, and others. It bridges the rhetorical barrier between countries and strengthens the relationship between consumers and business organizations to expand socially.

Businesses shifting towards digitalization is a key factor in the rigorous adoption of language services across the world. The personal online experience for a customer is now the key focus of businesses, which leverage the demand for content services among technology-driven companies.

Technical translators have created user guides, technical reports, regulatory documents, and other formats that are convenient to customers in domain-specific, precise language. Around 90% of the world’s total translation output is covered by technical translators.

To cater to the large consumer base, proper interpretation of products and services is essential with excessive accuracy and high quality. Significant sales in a product could be achieved to a large audience with precise interpretation. Also, the language barrier could be broken by hiring translation and interpretation service professionals.

  • Short Term (2022 Q2 to 2025): The pandemic has made us more comfortable in virtual spaces and has given a strong impetus to the development of commerce and connectivity through the Internet, which is driving market growth.
  • Medium Term (2025-2028): Companies going global are expected to demand legal translator services. Localization in developing economies is projected to revolve around enhancing consumer experience and satisfaction.
  • Long Term (2028-2032): Integration of artificial intelligence and machine learning is an opportunistic factor for the language services market. The healthcare industry will attract higher demand for translation & interpretation services with changes in region, language, and rules & regulations.

Over the 2017-2021 historical period, the global market for language services registered a CAGR of 4%. As per analysis by Fact.MR, a market research and competitive intelligence provider, the market is forecasted to expand at 5.94% CAGR between 2022 and 2032.

Language services market forecast by Fact.MR

Market share analysis of language services based on service and region. Under the service segment, localization currently dominates with 23% market share.

Why is the Need for Language Services Steadily Increasing?

“Localization of Business Anchoring Demand for Language Services”

The globalization of businesses is anticipated to result in a considerable increase in demand for language service offerings. International marketing is being adopted to cater to foreign audiences worldwide at a lower cost through the web.

Businesses that are entering new markets are learning that localizing their communication is just as important as translating them. The language must be localized in more ways than only by being translated; it must also be modified to conform to the cultural norms and expectations of the target audience.

Although it is a challenging and intricate procedure, it is crucial for companies that are looking to expand into new markets. One of the key variables influencing the market is the fact that all of this information has been localized for maximum efficacy.

“R&D in Pharma Industry to Drive Life Science Translation Services”

Pharma companies with huge geographical presence require some kind of language services in different stages of drug creation, from R&D to sales and marketing. As it is crucial, especially in industries such as pharma, to communicate clearly to regulators, governments, and end users, it has become essential to use language-related services.

The COVID-19 pandemic triggered a global response by health workers, aid agencies, and government sectors to communicate essential information to people. Translation services were routed towards drug & life science information to patients. More than 500 different languages have found access to verifiable COVID information, proving the importance of multilingual information distribution.

These translation initiatives have included everything from more than 400 videos that have been translated into at least 150 languages to fact sheets from the World Health Organization (WHO).

An Adaptive Approach to Modern-day Research Needs

What Could Hamper Language Services Industry Expansion?

“Lack of Consistency & Reliability in Results”

To complete complex projects with multiple languages, numerous professional native-speaking translators are required. This creates inconsistency in the level of accuracy and can sometimes change the actual meaning of the content. Translation machines may also make mistakes through faulty translations or accidentally altering the actual message.

These factors could prove to be costly, especially if some serious decisions need to be made. It will always be a matter of concern to have a second pair of eyes on important documents so that nothing of this sort happens and jeopardizes any project.

Country-wise Analysis

Why is the Need for Language Services High in the United States?

Immigration and globalization are both contributing to the industry's expansion. Only in the United States, there are more than 350 different languages spoken.

  • The Bureau of Labor Statistics anticipates a 19% rise in employment for interpreters and translators by 2028 as a result of this diversity and the steadily rising number of Americans who do not understand English. The number of Americans who speak a language other than English at home has more than doubled over the past 30 years, reaching 67.3 million, according to the bureau.

Additionally, around 25 million Americans are classified as limited English proficient (LEP). These individuals do not speak English as their first language and possess poor writing, reading, and comprehension skills that are needed to effectively communicate. As such, the demand for translation services is high in the United States and will continue to be so going forward.

What’s Driving the Popularity of Online Translation Services in the United Kingdom?

In the United Kingdom, the demand for online-translation services is at its peak. These services find applications in various end-use industry verticals such as e-Commerce, finance, technical companies, and others. These services are being used to enhance the quality of work along with customer experience.

With the help of the Internet, businesses going rich worldwide demand professional translation services along with online translation services. These translation services are cost-effective and help enhance the work productivity of consumers.

Moreover, the presence of some large market players such as Translator UK, Mars Translation, CCJK Technologies, Wolfestone, and Speakt, in the United Kingdom, is another reason that the market is prominent in the country.

Category-wise Insights

Will the Legal Sector Drive Demand for Translation & Interpretation Services?

The legal sector holds around 10.90% share of the global language services market.

Large-size organizations going are global to enhance their product and service offerings. The language barrier in legal business processing is a major challenge faced by these businesses as regulations differ from nation to nation.

Legal translation services are an abetment to these businesses, offering a real-time on-site legal interpretation. Legal documenting benefits from translation in a precise way with zero errors. All these factors promote compliance with the law, globalization, and establishing a crucial business reputation.

Integration of advanced technologies in translation & interpretation services is expected to boost the demand for such services.

  • In 2021, a leading litigation support service provider - U.S. Legal Support - introduced AI-powered translation services to deliver a full suite of litigation support solutions.

Why Do Localization Services Account for Prominent Share of Translation Services?

Localization improves customer understanding and the experience with products. It also helps in enhancing brand development and loyalty. These factors are attributed to the high demand for translation services in the business sector as many companies are catering to a global audience.

  • As per a report published by the Central Intelligence Agency (CIA), only 4.83% of the global population speaks and uses English for communication; however, more than 50% of the language on the Internet is English.

This factor is expected to stimulate the need for translation services among businesses to improve communication in their languages and the language with which their clients are comfortable.

Competitive Landscape

Prominent language service providers are TransPerfect, RWS, LanguageLine Solutions, Keywords Studios, Iyuno-SDI Group, Appen, translate plus, Acolad Group, Welocalize, Hogarth Worldwide, Poletowin Pitcrew Holdings, STAR Group, Pactera EDGE, Pixelogic Media, AMN Language Services, CyraCom International, Translation Bureau, President Translation Service Group International (PTSGI), Dubbing Brothers, Voice and Script International (VSI), GTCOM (Global Tone Communication Technology), Honyaku Center, Thebigword, and United Language Group.

The language services market is substantially competitive due to less chance of service differentiation. In niche businesses such as language services, market players can focus on reducing the turnaround time of their services to gain an advantage.

They can also focus on the rationalized archetyping of clients. Language service providers need to distinguish their clientele based on the type of service request. In this way, they can prioritize high-value customers and also parallelly serve low-value clients with templatized service offerings.

  • In May 2022, Interpreters Unlimited introduced a mobile app for booking language services.
  • In May 2021, Telelanguage launched a new website to offer interpretation and translation services.
  • In April 2022, European legal translation company Lawlinguists partnered with BIG Language Solutions, a leading global language service provider, to offer high-quality legal translation services.

Fact.MR has provided detailed information about language service providers positioned across regions, sales growth, and product offering expansion, in the recently published report.

Segmentation of Language Services Industry Survey

  • By Service :

    • Interpretation
    • Language Instruction
    • Language Testing
    • Localization
    • Transcreation
    • Translation
    • Subtitling
    • Dubbing
    • Transcription
    • Proofreading
  • By End-use Industry :

    • Professional Services (Legal)
    • Banking and Finance
    • Gaming
    • Media
    • Engineering & Manufacturing
    • Aerospace & Defense
    • Life Science
    • Technology
    • Travel & Retail
    • Public Sector
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • MEA

- FAQs -

The global language services market is valued at US$ 60.63 billion in 2022.
The market for language services is anticipated to reach US$ 96.21 billion by 2032.
From 2017 to 2021, revenue from the sales of language services increased at 4.8% CAGR.
North America accounts for 41.3% share of the global language services market.
Localization leads and accounts for 23% market share.

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