Language Services Market Size, Share & Trends Analysis Report By Services (Translation Services, Localization Services, Interpreting Services, Other Services), By Vertical, By Region, And Segment Forecasts, 2023 - 2030

Language Services Market Size & Trends

The global language services market size was valued at USD 71.77 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.2% from 2023 to 2030. Language services encompass the support offered in the adaptation of diverse languages into foreign local languages. These services encompass translation, transliteration, and interpretation, aiding individuals, be they leisure, tourist, or business travelers, in effectively communicating with locals within a specific geographical region. They play a key role in facilitating cultural adaptation and addressing various communication nuances. The market is experiencing significant growth due to increasing demand for content across diverse formats like video, audio, and written materials. Factors contributing to this surge include the widespread use of social media and online content and the growing numbers of international students and immigrants.

Numerous countries and regions globally have instituted language policies mandating businesses and organizations to offer information and services in particular languages. Adhering to these policies is a driving force behind the global market. Additionally, the rise in international students and immigrants in different countries has increased the demand for language training and translation services for educational and immigration-related purposes. Furthermore, the expansion of social media and online content has resulted in an increased need for real-time translation services to engage with audiences across different regions.

As businesses extend their reach globally, the importance of offering multilingual customer support becomes paramount. Language services play a crucial role in facilitating smooth communication and providing assistance to customers in their native languages. With the continuous growth of internet penetration on a global scale, an increasing number of people are accessing online content in various languages. Language services are instrumental in helping businesses effectively reach and engage with these diverse global audiences.

Services Insights

Based on the services, the language services market is segmented into localization services, translation services, interpretation services, and others. The translation services segment held the largest market share in 2022. Translation serves a crucial function in overcoming communication barriers among individuals, businesses, and organizations navigating diverse linguistic landscapes. The demand for translation services has surged due to the escalating globalization of businesses and the rapid expansion of international trade and partnerships. As companies venture into new markets, the challenge arises of connecting with and involving customers who speak different languages. This compels the translation of diverse documents and content, ranging from product descriptions and marketing materials to legal contracts and websites, into multiple languages to cater to their target audiences effectively.

Vertical Insights

Based on vertical, the language services market is segmented into healthcare & life sciences, legal, e-commerce & retail, IT & telecommunications, BFSI, government, and others. The legal segment secured a significant market share in 2022. Businesses benefit significantly from legal translation services, particularly through real-time on-site legal interpretation. The accuracy and precision of legal documentation translation contribute to ensuring compliance with legal requirements, facilitating globalization efforts, and building a crucial and reputable business image. The integration of advanced technologies in translation and interpretation services is anticipated to drive the demand for these services further, offering innovative solutions to meet the evolving needs of businesses in the global landscape.

Regional Insights

North America represented the largest market share in 2022. The North American language services market is poised for substantial growth, driven by the region's increasing diversity. As the population undergoes continuous shifts, becoming more diverse, there is a heightened demand for effective language services across all industries in the region. In addressing the needs of this increasingly diverse population, qualified translators and interpreters play a crucial role, emphasizing their importance in facilitating communication and understanding across various sectors.

Key Companies & Market Share Insights

Key players operating in the market are Hogarth Worldwide Limited, Keywords Studios Plc, LanguageLine Solutions, Lionbridge Technologies, LLC, The Mission Essential Group, LLC, RWS Holdings PLC, Iyuno, TransPerfect, Semantix, and Welocalize. Vendors active in the market are focusing on increasing their customer base and gaining a competitive edge over their rivals. Hence, they pursue various strategic initiatives, including mergers & acquisitions, partnerships, collaborations, and new product/ technology development. The following are some instances of such initiatives.

In March 2023, Microsoft expanded its language support by incorporating 13 new African languages into the Microsoft Azure Cognitive Services Translator. This enhancement allows for the translation of documents and text to and from these languages within the entire Microsoft ecosystem of services and products. This move reflects Microsoft's commitment to linguistic inclusivity and accessibility, empowering users to engage with their technology in a more diverse and inclusive linguistic landscape.

In September 2021, AJE (American Journal Experts), a division of Research Square Company, introduced its Standard Translation service. This service is a fusion of AJE's sophisticated artificial intelligence (AI) software and the expertise of its US-trained editors. The goal is to provide efficient delivery of high-quality technical English-language translations within a maximum timeframe of five business days. This approach signifies a strategic integration of AI technology and human editorial proficiency to meet the demands for precise and timely translations in the technical domain.