Language Services Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Language Services Market Analysis

The Language Services Market size is expected to grow from USD 72.22 billion in 2023 to USD 98.11 billion by 2028, at a CAGR of 6.32% during the forecast period (2023-2028).

The primary factors driving the demand for language services include the rapidly increasing globalization among businesses, the incremental rise of digitizing content, and the increased customer service that's becoming more personalized and international.

iFlytek, a speech recognition company based out of China and providing translation services, successfully raised USD 407 million (CNY 2.8 billion) from its investors, including the state-run investment fund China Reform Holdings and the Anhui Railway Development Fund. The company claims that the funding will be used to enhance the translation output, along with the output of the AI translation engine. Such developments provide significant scope for market growth over the forecast period, especially for startups.

The demand for language services is no longer concentrated on large multinational corporations. Still, small and large businesses and local and state governments, including other organizations, have increased their use of translation, interpretation, and different kinds of language services.

International trade has been steadily expanding over the past few decades, including the proliferation of free trade agreements that have led to a virtual explosion of international trade worldwide. Moreover, the increasing foreign competition and various government initiatives have led all kinds of businesses, irrespective of size, to take initiatives regarding opportunities available to them in foreign markets.

The ongoing trends in international marketing are also expected to accelerate the growth in the language services market. With these services, companies are now able to reach increasing audiences across the globe at a lower cost through the web. The market is expected to grow even further as these audiences are increasingly composed of foreign people.

The increase in internet usage, combined with the trend toward content marketing, has opened up new avenues for the language industry. PPC advertising and social media marketing aimed at foreign audiences are also expanding at remarkable rates. Social networking sites and multiple blogs that are active across the world are also providing platforms for effective content marketing that include articles, infographics, videos, and multimedia productions. All this content is localized for optimum effectiveness, which is one of the major factors driving the market.

Moreover, the market is witnessing multiple M&A activities by the players in order to strengthen their positions in the market. For instance, in October this year, in order to assist life sciences organizations with their needs for international communication, including over-the-phone interpreting (OPI) for global call centers, Acolad Life Sciences teamed up with Alphanumeric.

The lockdown restrictions amidst the pandemic forced the entire world to stay at home, which gave a strong impetus to developing trade and entertainment on the internet. YouTube, Netflix, social media, and Amazon witnessed a surge in the number of users, producing the need for more content globally. That implies higher demand for the services of translators, whose work is much easier to be organized remotely.

Another reason is the active exchange of the experience of fighting against the virus and treatment of the patients that drove the global discussion and information exchange between researchers in healthcare, virology, immunology, epidemiology, etc. The highest demand for translators could be expected from the medical sector.

The lockdown restrictions amidst the COVID -19 pandemic have forced the entire world to stay at home, which has given a solid impetus for developing trade via the internet. Applications like Netflix, YouTube, Amazon Prime, and social media have witnessed a surge in users. This has resulted in an increased need for more content across the globe and has served as good news for translators, owing to increased demand for their services while providing the ease of being organized remotely.

Language Services Market Trends

Translation Services is Expected to Witness Significant Growth

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Language Services Industry Segmentation

The term "language services" refers to a group of language assistance programs that provide varying levels of interpreting, translating, understanding, localization, and other training services. They include a variety of electronic, written, and multimedia materials for transcription, dubbing, narration, voice-over, and other uses. Language services offer many advantages to users, including efficient communication, broad geographic reach, high accuracy rates, skill development, and a highly participatory learning environment.

The language services market is segmented by services (translation, localization, and interpretation), end-user vertical (life sciences, media and entertainment, legal, finance, and patents and e-commerce), and geography (North America (United States and Canada), Europe (United Kingdom, Germany, France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, India, Japan, and Rest of Asia-Pacific), and Rest of the World).

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

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