Translation Software Market

Translation Software Market Outlook (2023 to 2033)

The global translation software market is anticipated to advance at a noteworthy CAGR of 16.5% and touch a valuation of US$ 37 billion by the end of 2033, up from US$ 8 billion in 2023.

Any computer program that assists humans in translating content from one language to another is referred to as translation software. Translation software consists of tools, features, and resources that streamline the entire translation process and quickly produce high-quality translations. The most effective translation software centralizes project management, data analysis and reporting, and content delivery.

Travel and hospitality companies are increasingly adopting translation software to manage the massive amount of web content, room specifications, trip brochures, and customer support documentation generated every second. The vast majority of consumers have been observed to make a purchase or make a reservation if the information is offered in their native language. In this case, translation software allows travel companies to enter new markets and serve customers on a worldwide scale.

As a result, airlines, hotel chains, car rental firms, and even government tourism portals are utilizing translation software solutions to broaden their business horizons globally.

Moreover, the demand for mobile-based translation software is increasing exponentially. With the growing adoption of smartphones, business organizations and individual learners are increasingly demanding mobile-based translation software. Due to the increasing popularity of translations and content localization, many app-development companies and developers are constantly attempting to reach as many people as possible to generate profits by building apps in different languages. As a result, many companies throughout the world are rapidly developing solutions for mobile users.

Furthermore, the adoption of cloud computing is swiftly rising around the world due to the flexibility and cost savings associated with cloud services. Organizations around the globe are concentrating on lowering their overall capital expenditure (CAPEX) and implementing innovative technologies with lower CAPEX. Small businesses and start-ups are turning to cloud solutions to take advantage of the scalability of hardware and resources provided by cloud providers.

With the increased popularity of cloud-based software, market vendors have begun to offer cloud-based translation software. The demand for cloud-based translation software among end-use sectors is predicted to increase in the future years.

The outbreak of COVID-19 had a devastating impact on the worldwide economy. Increased COVID-19 cases prompted governments around the world to enact emergency legislation, resulting in the closure of manufacturing, IT and corporate offices, transportation, and retail business units. However, since a vast majority of IT employees were compelled to work from home, cloud-based translation software providers benefited significantly from the outbreak.

Report Attributes	Details
Translation Software Market Size in 2023	US$ 8 Billion
Projected Market Value (2033)	US$ 37 Billion
Global Market Growth Rate (2023 to 2033)	16.5% CAGR
North America Market Share (2022)	34.5%
Leading Software Type	Rule-based Translation Software
Key Companies Profiled	IBM Corp Google Inc Lionbridge Technologies Inc SDL plc LanguageLine Solutions

Why is Demand for Translation Software Escalating?

“Surging Demand for Content Localization”

The global market is expanding speedily as a result of increased demand for content localization. Businesses find new reasons to localize their applications, products, and websites every day. Companies all over the world are looking to expand beyond their domestic markets.

Localization enables businesses to communicate with their target customers in their native language while blending industry-specific characteristics with a specific culture to build a local appeal. A localization plan is important not only for creating demand for a company's product in the target country but also for determining all the advantages and risks before making any decision.

Furthermore, it assists firms in designing effective marketing campaigns, as even the best marketing strategies can be ineffective without proper localization. Some companies are unable to attain their full potential simply because their target audience does not grasp what they are attempting to convey.

Moreover, the speed, quality, and cost of localization projects are significant hurdles in the application of localization techniques. Machine translation reduces the cost of converting content from one language to another and, as a result, the time to market. These solutions are best suited for large amounts of content that do not require precise translations, such as user-generated content and webchats. As a result, the global demand for translation software is skyrocketing.

Which Factor Can Adversely Impact Sales Growth of Translation Software?

“Increasing Availability of Open-source Translation Software”

Several open-source vendors offer a variety of translation software and apps in the global market. Nearly all of the features offered by web-based or cloud-based translation software vendors can be covered by a combination of different products from diverse open-source vendors.

Since most small-scale firms cannot spend money on pricey web-based and cloud-based translation software, open-source translation software is becoming incredibly popular in emerging countries such as China and India. Such factors can have an adverse impact on the sales of translation software during the forecast period.

Country-wise Insights

Why is the United States Taking the Spotlight in the North American Market?

“Influx of Migrants and Presence of Major Market Players”

According to Fact.MR, a market research and competitive intelligence provider, North America accounted for 34.5% of the worldwide market in 2022. Due to the strong usage of new technologies such as artificial intelligence, big data, and others in the region, North America is contributing significantly to the global market.

The United States is a key market for translation software in North America due to the migration of people from various countries and the presence of major companies. The major technological companies providing translation software, such as IBM Corporation, Google, Microsoft, and others, are supporting the market growth in the United States. These businesses are greatly expanding the functionalities of their translation software.

Which Countries are Driving Market Development in Asia Pacific?

“Japan & South Korea to Account for High Regional Market Growth”

The Asia Pacific market is predicted to expand rapidly throughout the projected period as a result of significant expenditures in translation technologies to improve company efficiency and offer BPO services to non-English speaking countries.

Moreover, Japan and South Korea are strongly supporting market expansion in Asia Pacific.

What is the Demand Forecast for Translation Software in Germany?

“Germany to Witness Massive Demand for Translation Software”

The European market is witnessing significant growth due to the growing need among enterprises for localizing marketing techniques and content. Several major automakers in Germany and Italy are extending their global footprint to diversify their markets and get access to new customers.

• For example, Fiat Chrysler Automobiles N.V., an Italian automaker, invested US$ 250 million in the production of four SUVs to increase its local product line-up in India in January 2021.

As more businesses go global and enter new markets, the demand for translation software to translate their websites, products, and services into their consumers' native language will grow.

Category-wise Insights

Why is Rule-based Translation Software in High Demand?

“Increasing Usage by Several End-use Industries”

Demand for rule-based translation software is rising exponentially. Rule-based machine translation software makes use of linguistic data from the source and target languages. It is most typically used to create grammar programs and dictionaries.

As it encompasses transfer-based machine translation, dictionary-based machine translation, and parallel language machine translation technologies, this type of machine translation software is extensively utilized by many end-use industries such as government, BFSI, healthcare, IT and telecom, and others.

Competitive Landscape

The global market is extremely fragmented, with multiple vendors present in both developed and emerging nations. The worldwide market has witnessed several new developments in recent years.

Key players in the translation software market are pursuing marketing techniques such as alliances, investments, technological advancements, R&D activities, and acquisitions to expand their international presence. Moreover, many start-ups are entering the market with innovative solutions to compete with established players.

• SLAIT, a start-up established in the United States, provides AI-powered sign language translation to help deaf and hearing individuals communicate. The software developed by the start-up is compatible with all video communication platforms. During the video connection, the deaf person signs, and the software's neural network model detects movements and translates them into text in real time. The person hearing it then reads the message and responds verbally, which is transformed to text for the deaf person. This allows deaf people to communicate with doctors, caretakers, and loved ones, who are not fluent in sign language. It also permits students to take online programs, which increases graduation rates. Furthermore, by utilizing this solution, enterprises can establish a deaf-friendly environment.
• uCareLINGO, a Canadian start-up, helps improve communication between caregivers and patients through its voice translation app. It enables two people to have free-flowing conversations in their own languages, with real-time translation. The software converts the most widely spoken second languages into phonetic English for proper pronunciation and provides original language audio. This breaks down language barriers, allowing caregivers to understand patients' needs better and eliminate delays in their care.
• KUDO, a start-up based in the United States, offers multilingual online conferencing via its cloud-based platform. Participants join and converse in their native languages while the platform provides real-time language translation via experienced interpreters. It allows users to enable real-time AI-powered captions in their favorite languages for added comprehension. Furthermore, the start-up provides a platform-agnostic solution, KUDO Language Access, which enables this translation service on any online event or meeting platform. This helps enterprises to develop their businesses globally and hold online events without having to worry about language limitations.

Key Segments of Translation Software Industry Research

• By Type :

  • Rule-based
  • Statistical-based
  • Hybrid

• By Deployment Type :

  • On-premise
  • Cloud

• By End Use :

  • Manufacturing
  • Government
  • IT & Telecom
  • Education
  • BFSI
  • Healthcare
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific & China
  • Middle East & Africa