Translation Service Market

Market Overview

The global translation service market size was valued at USD 40.95 billion in 2023. It is estimated to reach USD 49.02 billion by 2032, growing at a CAGR of 2.02% during the forecast period (2024–2032). The business environment has recently been highly globalized and has spread beyond the nation's borders. Thus, it becomes mandatory to use translation services for effective communication as different people's distinct languages come together. It is anticipated that this will foster market growth. Moreover, several nations' governments also support and provide funds for the development of translation services, thereby boosting the global market expansion.

Translation services refer to professional services that facilitate the conversion of written and spoken content from one language to another. Professional translation services generally provide translations in numerous languages and across various industries. This includes a range of content, including documents, websites, software, films, and other forms of media. The primary goal of translation services is to communicate the original text's intended meaning precisely. The translated text should be unambiguous and readily understandable.

Despite language limitations, businesses, government agencies, people, and organizations commonly employ translation services to facilitate successful communication. This is especially crucial in a globalized environment, when organizations may have operations in numerous countries and require effective communication with varied consumers. Translation services are essential for establishing effective cross-cultural communication and promoting mutual comprehension among individuals who speak various languages.

Highlights

• Interpretation services dominate the service type segment.
• Machine translation dominates the operation type segment.
• Legal dominates the application segment.
• Europe is the highest shareholder in the global market

Market Dynamics

Global Translation Service Market Drivers

Globalization of Businesses

The growing globalization and digitalization of businesses drive the translation service market. With the increasing globalization of businesses, firms must establish efficient communication channels in several languages to effectively engage with their customers, partners, and stakeholders in foreign markets. Utilizing a translation service enables individuals and organizations to surmount language obstacles, bolstering their brand image and reputation. 

As per a poll conducted by Common Sense Advisory, 75% of consumers prefer purchasing products in their native language, whereas 60% seldom or never make purchases from websites that are only available in English. Hence, using translation services is imperative for firms to allure and maintain customers in the international market.

Favorable Government Support

The governments of numerous countries promote translation services to facilitate communication among diverse linguistic and cultural communities. This holds specific significance in areas where there are numerous recognized languages. Moreover, considerable financial resources are being allocated by governments towards the advancement of translation services.

For instance, the Human Resources Development Programme of Bulgaria will develop a national digital platform and a mobile application for translation services into and from Bulgarian sign language in November 2023, according to a press release from the Labour and Social Policy Ministry, as reported by Bulgarian News Agency (BTA). The framework will ensure that deaf and deaf-blind individuals can access administrative services equally. The budget for the initiative is 3 million BGN. Such government initiatives are anticipated to spur market expansion.

Global Translation Service Market Restraint

Quality Concerns

An important limitation of the translation service sector is the inadequacy in the quality and precision of the translated product. Translation is a multifaceted and subtle procedure that demands linguistic proficiency and a deep understanding of culture and environment. Nevertheless, numerous translation service providers depend on automated or machine translation techniques, frequently falling short of capturing the original text's essence, tone, and manner.

Additionally, certain translation service providers may lack the knowledge and resources to effectively handle specialized and technical fields, such as law, medicine, or finance. Thus, the translated output may include mistakes, contradictions, or inaccuracies, which can impact the credibility and reliability of both the source and the destination. Lionbridge's study revealed that 40% of consumers experienced translation problems on websites, with 28% expressing reluctance to purchase websites exhibiting subpar translation quality. Such factors hinder the market expansion.

Global Translation Service Market Opportunities

Integration of AI and ML

Translation services are becoming more accurate and efficient with the use of machine learning and artificial intelligence technology. These technologies can help human translators and enhance machine translation quality. Similarly, the development of novel and inventive translation services, including neural machine translation, voice-based translation, and real-time translation, can be facilitated by AI and ML. The key players are integrating these technologies and launching new products with enhanced efficiency in the market.

For instance, in August 2023, Meta launched SeamlessM4T, a pioneering AI translation model that combines multiple modes of communication and supports multiple languages, enabling seamless speech and text-based communication across language barriers. Similarly, in November 2023, Samsung Electronics declared that its upcoming handsets would be equipped with a real-time call translation service, AI Live Translate Call. Therefore, integrating AI and ML in translation services is predicted to generate opportunities for market growth.

Regional Analysis

Europe Dominates the Global Market

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

Europe is the most significant global market shareholder and is expected to expand substantially during the forecast period. Europe is known for its rich heritage and several different languages regional languages. People from all over the world travel to Europe, and to better communicate with tourists, translation services are widely used in the region. Moreover, the market is boosted by the surging efforts of government bodies and other authorities, which mandate translation services for legal documents to be published in different languages. In June 2023, Eric Mamer, the European Commission (EC) spokesperson, revealed the initiation of a trial initiative. This initiative involves the utilization of the EC's proprietary "eTranslation" machine translation engine for the EC's press corner. Addressing a group of journalists, Mamer presented the news as a "housekeeping announcement" and explained that the tool and program were designed to provide faster access to translations of press material in the language of their preference, starting from the moment of publication.

Similarly, in January 2021, Semantix, in collaboration with its partner ES Team, received the GROW/2020/OP/0002 call for tender from the EU Commission, one of Europe's most significant translation contracts. This tender aims to provide EU language translation facilities to support the EU's transition towards a smart, sustainable, and inclusive economy. All these factors contribute to the market expansion in the European region.

The Asia-Pacific region is seeing the most rapid growth and displaying the highest level of dynamism in the market for translation services. There has been a surge in the initiatives to globalize this region's local and regional languages worldwide. For instance, The South Asian Languages and Civilizations Department (SALC) has just unveiled the South Asian Literature in Translation (SALT) project. These long-term imitative aims are to provide financial assistance and assistance to translate South Asian literature into English. The announcement was made through a press release on March 28th. SALT would facilitate translating written works from many South Asian nations, such as Bangladesh, India, Bhutan, the Maldives, Pakistan, Nepal, and Sri Lanka, into English for global publishing.

Furthermore, a group of Microsoft researchers from China and the US have created a translation system that uses artificial intelligence (AI) to accurately translate Chinese-language news articles into English, matching the quality of human translations. The researchers successfully attained human parity on a test set of news stories from industry and academic groups at a machine translation conference in 2017. Such initiatives are expected to propel the regional market expansion.

Segmental Analysis

The global translation service market is segmented by service type, operation type, and application.

Based on service type, the global translation service market is bifurcated into written translation services, interpretation services, and other translation services.

Interpretation services dominate the service type segment. Interpretation services are critical in facilitating real-time communication between people who speak different languages, making them indispensable for conferences, meetings, legal proceedings, healthcare settings, and international events. Globalization, increased cross-border communication, and the need for seamless language interpretation in various industries have all contributed to an increase in the demand for interpretation services. Interpretation services ensure accurate and immediate language translation, allowing for effective communication across language barriers. Interpretation services' market dominance stems from their critical role in bridging linguistic gaps and facilitating smooth communication in a variety of settings. Professional interpreters are highly skilled at accurately conveying messages while maintaining the nuances of language and culture, ensuring effective communication between parties who do not speak the same language. The rise in international business activities, global conferences, and the need for multilingual support in healthcare and the legal sectors are all driving up the demand for interpretation services.

Based on operation type, the global translation service market is segmented into technical translation and machine translation.

Machine translation dominates the operation type segment. Machine translation (MT) is the process of automatically translating text from one language to another using computer software that does not require human intervention. Machine translation has grown in popularity as artificial intelligence and natural language processing technologies have advanced. Machine translation engines use large datasets of translated text to learn patterns and rules for translating between languages. This enables faster and more cost-effective translations than traditional human translation.

Machine translation has established itself in the market due to its ability to handle large amounts of text at scale, making it ideal for applications such as website localization, content translation, and multilingual customer support. Machine translation can translate text in seconds, whereas human translation can take hours or days, depending on the volume. Furthermore, machine translation (MT) is built into many computer-assisted translation (CAT) tools, allowing translators to use MT suggestions to streamline workflows. This combination of human expertise and machine efficiency has made machine translation an indispensable tool for businesses operating in the global marketplace.

Based on application, the global translation service market is divided into legal, medical, financial and banking, tourism and travel, and other applications.

Legal dominates the application segment. Legal translation services are critical for ensuring the accurate and precise translation of legal documents, contracts, court proceedings, and other legal materials across multiple languages. The legal sector requires extreme accuracy and attention to detail, so specialized legal translation services are critical for law firms, courts, government agencies, and multinational corporations operating in a variety of legal environments. Legal translation services dominate the market due to strict requirements for legal accuracy, confidentiality, and adherence to legal terminologies and regulations. Legal translators are highly skilled professionals who specialize in legal terminology and ensure that legal documents are translated correctly while retaining the intended legal meaning and context.

The legal application segment is also fueled by the globalization of legal services, cross-border transactions, international litigation, and the demand for multilingual legal support in a globalized business environment. Furthermore, the increasing complexity of legal matters, as well as the growing demand for legal services in multiple languages, have propelled legal translation services to the forefront of the global market. The reliance on accurate and specialized legal translation services to navigate international legal frameworks, facilitate legal communication, and ensure legal compliance positions the legal application segment as a key player in the translation service market, catering to the legal industry's specific needs with precision and expertise.

Recent Developments

• June 2024- Google has recently included Tulu in its translation services, which is a notable effort to protect and encourage regional languages.
• July 2024- DeepL SE, a translation software firm with ample funding, has introduced its latest and most advanced AI model, which utilizes customized artificial intelligence models to achieve higher accuracy compared to conventional platforms. The startup's advanced language model is specifically intended for the purpose of translation and editing operations.