Machine Translation Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Machine Translation Market Analysis
The Machine Translation Market is expected to reach a CAGR of 7.1% during the period 2022-2027. The machine translation market is witnessing excess demand due to the increasing use of computer-assisted tools. Therefore, the necessity to use the technology in favor of a more efficient translation process is continuously increasing.
- The expansion of the machine translation industry will be fueled by the growing need for content localization among companies. The traditional methodology of using human translators to localize material accurately for a particular location or population is time-consuming and expensive. This has prompted companies to invest in machine translation software, which allows them to translate information for a specific audience swiftly. The demand for translation and localization services will rise in the future years as more enterprises make their products and services available in numerous markets.
- The rise of emerging economies and the globalization of many firms who wish to give their content, products, and services in as many languages as possible might be linked to this steady increase. As a result of this restriction, translation companies may be forced to rely more heavily on machine translation tools.
- Moreover, machine translation technologies translate the content at considerably higher speeds. A couple of translation companies use it to create multilingual content. Furthermore, this technology boosts translator productivity when it comes to translation, localization, and terminology work. Google Translate, which supports roughly 130 languages and is tightly linked with the search engine and Android OS, is one of the most frequently used machine translation technologies.
- The machine translation market is witnessing excess demand due to the increasing use of computer-assisted tools. Therefore, the necessity to use the technology in favor of a more efficient translation process is continuously increasing.
- COVID-19 has impacted nearly every area of translation, particularly demand, income, and employment methods. Despite the challenges translators face, the interpreting profession has been hit the hardest in the sector, with a 24% drop in revenue compared to an 8% drop for translators.
Machine Translation Industry Segments
Machine translation (MT) refers to fully automated software that can translate source content into target languages. Humans may use MT to help them render text and speech into another language; The MT software may operate without human intervention. MT tools are often used to translate vast amounts of information, involving millions of words that could not be translated the traditional way. The quality of MT output can vary considerably, and MT systems require training in the desired domain and language pair to increase quality.
The Machine Translation Market is segmented by Technology (Statistical Machine Translation, Rule-based Machine Translation, and Neural Machine Translation), Deployment (On-premise and Cloud), End User Vertical (Automotive, Military and Defense, Healthcare, IT, and E-commerce), and Geography.
|By Technology (Qualitative Trend Analysis)|
|Statistical Machine Translation|
|Rule-based Machine Translation|
|Neural Machine Translation|
|By End-user Vertical|
|Military and Defense|
|Other End Users|
|Rest of the World|
Machine Translation Market Trends
This section covers the major market trends shaping the Machine Translation Market according to our research experts:
Neural Machine Translation is Expected to Drive the Market Growth
- In the past few years, one of the most exciting developments in the automated translation domain has been the development of neural machine translation (NMT). The technology uses large quantities of data fed into an artificial neural network to predict the likelihood of a sequence of words, typically modeling the entire sentences in a single integrated model. The model learns by doing, in other words, artificial translation intelligence.
- NMT is also being improved continuously and refined and is anticipated to become even better in the next few years. They are expected to be embedded in the analytics and other software solutions used across the industry that can use these solutions even more efficiently, where the queries can be done in natural language while the machine answers them. This can significantly cut the cost of organizations adopting them, prompting them to go for these solutions.
- Companies are increasingly focusing on developing advanced machine translation systems to meet growing consumer needs. For instance, In July 2022, Amazon announced the launch of the latest version of its Sockeye toolkit, Sockeye 3, for the efficient training of more robust and faster neural machine translation (NMT) models. Sockeye 3 achieves speeds up to 126 percent faster than other PyTorch implementations on GPUs and up to 292 percent faster on CPUs.
- The Neural machine translation can process thousands of user-generated comments significantly less and deliver accurate, actionable results in record time. This will enable the organizations to interact more meaningfully with customers worldwide, which is critical for an effective global marketing strategy.
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North America to Hold Maximum Market Share
- North America is one of the most important markets for machine translation, owing to rising demand in the US IT sector, which accounts for most of the regional demand. Some of the region's most well-known IT firms are among the early adopters of this technology to fulfill the needs of global customers.
- The presence of several service providers and a favorable government characterized the region's growth. In the United States, for example, Microsoft Corporation and Google Inc.'s SMT services and free internet engines have grown in prominence. Furthermore, the technical behemoths' increased investments and breakthroughs in artificial intelligence and machine learning will likely boost the North American machine translation industry.
- The prominent players in the market are based in North America, which is one of the significant factors leading to the region's high market share. Some major businesses in the North American region have joined together to reap the benefits of the most recent technological developments that can be incorporated into their business models. For example, in its eDiscovery service offerings, Inventus has fully integrated automatic machine translation. Iconic Translation Machines Ltd, a leading translations software vendor, has teamed with Inventus to deliver Iconic's newest Neural Machine Translation on-premise or in the cloud.
- A few organizations in the region are concentrating on technological advancements. For example, Facebook is devoting significant resources to machine translation (MT). In addition to improving quality estimation and several other efforts, Facebook is now working on two more that will share information with the larger open-source community, allowing developers to improve the technology.
- Furthermore, in terms of volume, the region is a large market for smartphones and other consumer gadgets, such as tablets and laptops. The number of devices is likely to grow much more with the introduction of 5G. The increased use of these gadgets and the availability of virtual assistants in these devices are driving up the demand for machine translation.
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Machine Translation Market Competitor Analysis
The machine translation market is competitive and consists of several major players. Regarding market share, some major players, like IBM Corporation, Microsoft Corporation, Lionbridge Technologies Inc., etc., currently dominate the market. However, with the growing innovation in machine translation, most prominent companies are expanding their market presence by securing new contracts, thereby tapping into the new markets. Some of the recent developments in the market are:
- May 2022 - Google announced that Google translate now has the capability to translate words, sentences, and entire websites in 133 languages. The company has added 24 languages for translation. A few newly added languages were created from Zero-Shot Machine Translation, a machine learning model that only sees monolingual text.
- March 2022 - XTM International. a provider of translation management software to global blue-chip clients, announced its partnership with NMT provider SYSTRAN to deliver AI-matched TM. The new feature, released as part of XTM Cloud 13.0, works by providing mid-level fuzzy (partial) translation matches from Translation Memory to the Machine Translation engine, adding relevant missing text to produce an accurate translation.
Machine Translation Market Top Players
Lionbridge Technologies Inc.
Omniscien Technologies Inc.
*Disclaimer: Major Players sorted in no particular order
Machine Translation Market Recent Developments
- September 2022 - Tarjama, a language service provider in the MENA region, announced the launch of its Arabic Machine Translation (AMT) website, Tarjama Translate, focusing on the business that needs quick access to translation to extend their reach to the Arabic speaking customers.
- June 2021 - Translated, an Italy and US-based company, received an investment of USD 25 million from Ardian, a private investment company, to fuel future growth and scale the adoption of its AI-powered translation platform in Europe and the U.S.
Machine Translation Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation & Insight Generation
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of Covid-19 on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Demand for Content Localization
5.1.2 Increase in the Need for Cost Efficiency and High-speed Translation
5.2 Market Challenges
5.2.1 Lack of Quality and Accuracy
5.2.2 Accessibility of Open-Source Translation Engines
6. MARKET SEGMENTATION
6.1 By Technology (Qualitative Trend Analysis)
6.1.1 Statistical Machine Translation
6.1.2 Rule-based Machine Translation
6.1.3 Neural Machine Translation
6.1.4 Other Technologies
6.2 By Deployment
6.3 By End-user Vertical
6.3.2 Military and Defense
6.3.6 Other End Users
6.4 By Geography
6.4.1 North America
6.4.4 Rest of the World
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 IBM Corporation
7.1.2 Microsoft Corporation
7.1.3 SDL PLC
7.1.4 Lionbridge Technologies Inc.
7.1.5 Omniscien Technologies Inc.
7.1.6 Lingotek Inc.
7.1.7 RWS Holdings PLC
7.1.8 Welocalize Inc.
7.1.9 Smart Communications Inc.
7.1.10 Systran International Co. Ltd
7.1.11 AppTek Partners LLC
7.1.12 Google LLC
7.1.13 Cloudwords Inc.
7.1.14 PROMT Ltd
7.1.15 Yandex NV
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Machine Translation Market Research FAQs
What is the study period of this market?
The Machine Translation Market is studied from 2018 - 2028.
What is the growth rate of Machine Translation Market?
The Machine Translation Market is growing at a CAGR of 7.1% over the next 5 years.
Which region has highest growth rate in Machine Translation Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Machine Translation Market?
North America holds highest share in 2021.
Who are the key players in Machine Translation Market?
IBM Corporation, Microsoft Corporation, SDL PLC, Lionbridge Technologies Inc., Omniscien Technologies Inc. are the major companies operating in Machine Translation Market.
Machine Translation Industry Reports
In-depth industry statistics and market share insights of the Machine Translation sector for 2020, 2021, and 2022. The Machine Translation research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Machine Translation report PDF.