The global Language Services Market size reached USD 75.5 Billion in 2024 and is forecasted to reach USD 111.3 Billion by 2033. The market is expected to grow at a CAGR of 4.4% during the forecast period from 2025 to 2033. The growth is driven by increasing globalization, technological advancements in AI and machine translation, and rising demand for localized content across multiple formats.
STUDY ASSUMPTION YEARS
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
LANGUAGE SERVICES MARKET KEY TAKEAWAYS
- Current Market Size: USD 75.5 Billion in 2024
- CAGR: 4.4%
- Forecast Period: 2025-2033
- Europe dominates the market with a 43.9% share in 2024, driven by international trade and migration.
- The United States is a major market disruptor with 87.70% share of North America in 2024, focusing on AI and machine translation.
- Translation services lead the market with 70.7% share in 2024.
- Software components dominate with a 71.3% share in 2024.
- IT and telecommunications sector leads applications with a 24.0% share in 2024.
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MARKET GROWTH FACTORS
Globalization drives language services, as companies often begin in a single country and seek to reach global markets. Additionally, 72.4% of consumers are more likely to buy from a brand that provides information in their language while 42% never buy in another language. These numbers support the case for language services in relation to brand loyalty and global competitiveness. The growth of immigrants and international students, especially in Europe, has also increased the demand for language services.
NLP, AI, and ML developed and increased the growth of the language services market. In 2024 a $300 million funding round for AI translation startup DeepL gave it a $2 billion valuation. Microsoft and Acolad use AI-driven translation and localization technologies to help improve quality and to reduce the costs and efforts involved in evolving workflows.
The market is increasingly driven by the digital revolution. 300 hours of video are uploaded to YouTube every minute. YouTube claims to show 5 billion daily video views, with 70% of views from non-U.S. locations. These trends drive demand for video translation and post-editing of machine translation (PEMT). Language services are used by businesses such as e-commerce, healthcare, legal, and many other industries to communicate with international customers and provide translated content.
MARKET SEGMENTATION
Analysis by Service:
- Translation Services: Led the market with 70.7% share in 2024, bridging communication gaps and catering to multiple linguistic environments, fueled by international trade activities and mergers and acquisitions.
- Interpretation Services: Present as a significant segment; detailed market share not provided.
- Others: Not provided in source.
Analysis by Component:
- Software: Dominant with 71.3% share in 2024, including advanced language processing tools aiding insights from large text volumes.
- Hardware: Included but explicit market share not provided.
Analysis by Application:
- IT and Telecommunications: Led with 24.0% share in 2024; these companies require translation and localization for multilingual product adaptation and collaboration.
- Commercial: Not provided in source.
- Government: Not provided in source.
- Automotive: Not provided in source.
- Healthcare: Mentioned but specific share not provided.
- Others: Not provided in source.
REGIONAL INSIGHTS
Europe leads the language services sector with a 43.9% share in 2024, due to increasing trade and economic links, machine learning and artificial intelligence use by the major firms, and a larger dependence on the services by governments. Cross-company cooperation, as well as large investment into translation software research and development, also serve to enable Europe to lead the market.
RECENT DEVELOPMENTS & NEWS
- April 2024: Lotte Department Store stores, a subsidiary of Lotte Group, installed SK Telecom's "TransTalker" AI translation system with transparent LED displays to show translations.
- March 2024: Google announced it would expand its Circle tool with language translation.
- In March 2024, Sergi Álvarez-Vidal and Antoni Oliver, researchers at the University of Oberta de Catalunya, released a new AI evaluation that improves machine translation quality and translator skills.
KEY PLAYERS
- Atlas Language Service, Inc.
- Globe Language Services Inc.
- Iyuno
- LanguageLine Solutions (Teleperformance SE)
- Lionbridge Technologies, LLC
- Mars Translation Services
- RWS Group
- Semantix
- TransPerfect
- Ulatus (Crimson Interactive Inc.)
- Welocalize, Inc.
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