Global Language Services Market 2023-2030

Global Language Services Market 2023-2030

Global Language Services Market Size, Share & Trends Analysis Report by Type (Translation Services, Localization Services, and Interpreting Services), by Component (Software and Hardware), by end-user (BFSI, IT and Telecom, Media and Entertainment, Retail and E-Commerce, Healthcare, Government, Education, Travel and Transport) Forecast Period (2023-2030)

The global language services market is anticipated to grow at a CAGR of 6.6% during the forecast period. An increase in the outsourcing of translation and interpreting services is expected to propel the growth of the language services market over the forecast period. The outsourcing of translation and interpretation services refers to procuring language services from outside sources to a professional translation agency. Outsourcing of translation and interpretation services aids in the growth of language services as it offers substantial infrastructure, to support the technologies that make professional translation feasible. According to the European Language Industry Survey, conducted by a Europe-based association of translation companies, in May 2022, in Europe, the average (weighted) percentage of business that is outsourced to language companies is around 22.0% in 2022, with levels that are largely consistent across all small and medium-sized businesses. This is much higher than the reported 2020 figure of 18.0%. Therefore, an increase in the outsourcing of translation and interpretation services is driving the growth of the language services market.

Technological advancement is a key trend in the language services market. Major players in the market are creating technologically advanced products using artificial intelligence and machine learning to stay competitive in the market. For instance, in October 2022, Meta Inc., a US-based multinational technology conglomerate, launched an AI-powered speech translation system for an unwritten language. The AI-powered speech translation system is a part of the universal speech translator (UST) project which intends to develop AI systems that enable real-time translation from speech to speech in all languages, including those that are spoken but not frequently written. This AI system can reduce language barriers to promote communication and understanding in both the real world and the metaverse.

Segmental Outlook

The global language services market is segmented based on type, component, and by end-user. Based on type, the market is bifurcated into translation services, localization services, and interpreting services. By component, the market is bifurcated into software and hardware. Further, by end-user, the market is sub-segmented into BFSI, IT and Telecom, media and entertainment, retail and e-commerce, healthcare, and government. Among these, the IT and Telecom sub-segment accounted for the dominant share of the market during the forecast period. This can be attributed to the rapid advancements in the IT and telecommunication industry leading to software development for accurate translation and interpretation results.

Translation Services Sub-Segment is Anticipated to Hold a Prominent Share of the Global Language Services Market

An increase in demand for non-English languages is expected to propel the growth of the translation services market. The range of translation services is expanding to meet client demands based on preferred languages. According to the U.S. Census Bureau, in the US, 21.7% of households do not speak English. This translates to one in every five people. There are 3.3 billion multilingual people in the globe, accounting for 43.0% of the global population. Therefore, the increasing demand for non-English languages is driving the growth of the translation services market. Technological advancements are the key trend gaining popularity in the translation services. Major companies operating in the market are focusing on developing technologically advanced solutions. For instance, in October 2022, Google LLC, a US-based technology company launched Translation Hub, a new cloud service that allows companies to translate documents on a self-service basis.

Regional Outlook

The global language services market is further segmented based on geography including North America (the US and Canada), Europe (UK, Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East and Africa, and Latin America). Among these, the Asia-Pacific region is projected to expand at a significant CAGR during the forecast period, due to the increasing demand for foreign language skills in countries such as China and India.

Global Language Services Market Growth, by Region 2023-2030

Source: OMR Analysis

The North American Region is Anticipated to Hold a Significant Share of the Global Language Services Market

North America is expected to continue to account for a larger revenue share among other regional markets during the forecast period due to the increasing diversity in the region. According to the U.S. Census Bureau, more than 350 languages are spoken in the US. The Asian population is also rising owing to the increased immigration which will further drive the market growth. The players in the market are looking to strengthen their competitiveness through various efforts such as merger and acquisitions, increased R&D, and new product launches. For instance, in May 2022, Interpreters Unlimited headquartered in San Diego, California introduced a mobile app called New Interpreter Services for booking language services. The app uses IU’s proprietary auto-scheduling system on the back end which can book a linguist within minutes. All appointment management is handled completely inside the app.

Market Players Outlook

The major companies serving the global language services market include Atlas Language Services Inc., Lionbridge Technologies Inc., RWS Holdings PLC, and Semantix. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, funding, collaborations, and new product launches to stay competitive in the market. For instance, in August 2022, Telelanguage, a Portland-based industry language service provider specializing in remote interpreting, was acquired by Propio Language Services (Propio), a technology-enabled interpreting and translation service supplier. Propio joined the top five global remote interpreting companies in terms of volume with this acquisition. In April 2022, a leading global language services company, BIG Language Solutions, announced the purchase of Milan-based Lawlinguists, a provider of legal translation services. The purchase allowed BIG's European footprint to include Italy, Germany, and Spain, giving its clients access to legal translation services, tools, and technology.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global language services market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.