The language industry is growing at a rapid pace, fueled by globalization and a need for effective communication across languages and cultures. From translation and interpreting services to language technology and language learning software, the language industry encompasses a wide range of products and services.
One way to identify the sectors where growth is taking place is to look at the companies with the highest percentage increase. In dollar terms, growth can be viewed and examined through another lens. About a dozen super agencies and leaders increased their revenue by at least USD 30 million in 2022; this is equal to the revenue of the (mean) typical LSPI 2023 company.
The two points of view exhibit different skews. Overall, the top 20 LSPs by US dollar growth increased by more than USD 0.8 billion, making up the great majority of the growth across all +300 LSPs. In contrast, just USD 0.2 billion was added to the entire expansion of LSPI enterprises in 2022 by the top 20 LSPs by percentage increase. Here are five of the fastest-growing sectors within the language industry.
5 Fastest Growing Sectors within the Language Industry
Translation Services
Translation services are one of the pillars of the language industry, providing a vital bridge between languages and cultures. With businesses and individuals looking to expand their reach in the global marketplace, demand for translation services is on the rise. The translation industry is projected to grow at a rate of 6.29% annually, with a total market size of $68.5 billion by 2021.
E-Learning and Language Learning Software
With more people learning languages online than ever before, the e-learning and language-learning software sector is experiencing significant growth. Whether it’s software that teaches a new language through gamification, AI-powered language learning, or apps and platforms offering opportunities for language exchange, the revenue generated from such services is anticipated to grow at a rate of 14.6% annually, with an estimated total market size of $325 billion by 2025.
Language Interpretation Services
Services for language interpretation are essential in promoting communication between people who speak different languages. The need to overcome language obstacles in multicultural and multilingual environments is increasing the demand for interpretation services. By 2021, the market for language interpretation is expected to be worth $12.5 billion, growing at an average rate of 4.39% per year.
Artificial Intelligence-powered Language Translation
Machine translation technologies are becoming increasingly sophisticated, allowing for faster and more accurate translations. The use of AI-powered language translation has the potential to transform the industry, with applications ranging from automatic website localization to voice assistants capable of instantaneous translations. The industry is projected to grow at a rate of 6.8% annually, with an estimated total market size of $982 million by 2023.
Localization Services
Localization involves adapting content to suit the cultural expectations and linguistic nuances of target markets. The localization industry is growing rapidly, driven by globalization and the need for businesses to effectively communicate with customers in international markets. The localization market is estimated to grow at a rate of 7.72% annually, with a total market size of $54.5 billion by 2025.
Conclusion
The language industry is growing at an unprecedented rate and shows no signs of slowing down in the future. Companies have begun to recognize the value that language technology and localization services can bring to their product or service, making it necessary for them to invest more in language-related products and services. Despite the tremendous growth within the language industry, there are still many gaps between languages, cultures, and regions that need to be addressed. This highlights the importance of using accurate translation, interpreting, localization, and other language services to ensure clear communication across different markets and ensure there is no misunderstanding between languages.
In order to supplement this growth, it will be beneficial for companies to become informed and proactive about which areas are currently the five fastest-growing sectors within the language industry: machine translation, natural language processing (NLP), localization services, speech recognition, and intelligent content technologies. Companies should use this knowledge as a guidepost in creating a successful international strategy for their product or service.
In conclusion, the language industry is a vast and rapidly growing sector, with a wide range of products and services. From translation and interpretation to e-learning and localization, the industry faces numerous challenges but also offers exciting opportunities for innovation and growth. With demand for multilingual services on the rise, these five sectors are set to experience continued growth in the years to come.
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