Machine Translation Market Analysis by Technology (Statistical Machine Translation, Neural Machine Translation, and Rule-Based Machine Translation); Deployment (On-Premise, and Cloud); and by End User (Military & Defense, Automotive, E-Commerce, IT, and Healthcare)– Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4767 | Published Date: Mar 29, 2023
The global machine translation market size is estimated to reach ~USD 5000 Million by the end of 2035 by growing at a CAGR of ~20% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of machine translation was ~USD 400 Million. The growth of the market can be attributed to the increasing use of e-commerce platforms for shopping. In the world of growing digitization, the need for e-commerce is also propelling. People from different parts of world are using the services, which makes the need for machine translation even more important. Food delivery and same-day choices might propel e-commerce in South Korea to around a 45% growth rate over the next five years. Moreover, e-commerce in the United States may increase from about 23% of sales to nearly 31% by 2026.
In addition to these, factors that are believed to fuel the market growth of machine translation include the rise in the number of languages used by corporate to expand their business. For its Canadian viewers, Netflix launched French and Indonesian on its international website in 2018. In total, Netflix has increased its linguistic diversity from around 17 to 26 languages during the last two years. Moreover, in the same year, Uber added seven more languages to its apps and websites. Also, it has released an Uber Mini app for Indian users. In addition to this, Ford's website is multilingual in around 42 languages, whereas Jack Daniel's is proficient in nearly 23 languages.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~20% |
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Base Year Market Size (2022) |
~ USD 400 Million |
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Forecast Year Market Size (2035) |
~ USD 5000 Million |
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Regional Scope |
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Growth Drivers
Challenges
The global machine translation market is segmented and analyzed for demand and supply by end users into military & defense, automotive, e-commerce, IT, and healthcare. Out of the five types of end users, the military & defense segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the higher use of AI technologies and machine translation to communicate with the military forces of other countries. Machine translation is crucial in finding out information, helping others, and building connections with the country where we are not familiar with the knowledge local language. For instance, with the aid of a 600gm artificial intelligence-based device created by an Indian start-up, Indian soldiers patrolling the Line of Actual Control (LAC) may soon be able to understand Mandarin and respond back immediately. It was one of the 75 AI-enabled products and applications currently undergoing advanced evaluations with the Army.
The global machine translation market is also segmented and analyzed for demand and supply by deployment into on-premise, and cloud. Amongst these two segments, the cloud segment is expected to garner a significant share in the year 2035. Globally, cloud services are used by around 94% of businesses. Moreover, approximately, 67% of business infrastructure is cloud-based. A multi-cloud strategy is in place or being developed by nearly 92% of enterprises. The growth of the segment is primarily attributed to the rising adoption of cloud services, which further facilitates the deployment of machine translation within the companies. The introduction of cloud coworking and machine translation technology, has the potential to lower operating costs. It permits the smooth use of technologies and machine translation techniques. Furthermore, the responsiveness is enhanced via cloud-based machine translation. As a result, a lot of businesses are moving their workload to the cloud.
Our in-depth analysis of the global machine translation market includes the following segments:
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By Technology |
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By Deployment |
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By End User |
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The market share of machine translation in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~40% by the end of 2035. The growth of the market can be attributed majorly to the rising investment in advanced technologies such as artificial intelligence and machine learning as a service. In 2019, the United States made USD 37 billion in the market for machine learning applications. Additionally, funding for AI companies in the US has increased significantly in recent years, going from just under USD 300 million in 2011 to over USD 17 billion in 2019. Artificial intelligence is used in machine translation to translate text from one language to another without the need for a human translator. Furthermore, with the growing digitization, the prevalence of e-commerce is also surging, that is further expected to boost the growth of the market in the region.
The European machine translation market is estimated to be the second largest, registering a share of about ~25% by the end of 2035. The growth of the market can be attributed majorly to the rising efforts put by the government to boost the conservation of technology for multilingualism. The EU promotes language technology research, development, and application in order to remove language barriers while conserving and advancing multilingualism. According to European Commission, there are two active programs in Europe to remove the language barrier. For instance, by supporting language technology across sectors, the Horizon Europe Program promotes research and innovation. Moreover, the Digital Europe Program promotes the use of linguistic technology by the public and corporate sectors in Europe.
Further, the market in the Asia Pacific, amongst the market in all the other regions, is projected to hold a significant share of ~20% by the end of 2035. The growth of the market can be attributed majorly to the rising efforts to put natural language processing in use across all sectors. In July 2022, Fronteo Inc. and NTT East Japan formed a partnership to research how digital health will advance after natural language AI is applied to it. It is done to boost Japan natural language processing. On the other hand, growing investment to boost the implementation of AI technology is also expected to boost the market growth in the region. For the implementation of technology that can improve the analysis of massive amounts of data for AI-assisted systems and put it to use in the future, the Japanese government allocated about USD 19 million. Furthermore, rising demand for the technology enabling multiple languages is also anticipated to augment the market’s growth in the region.
AAppTek announces the launch of a new neural machine translation system that takes metadata into account as inputs to modify the output and gives localization specialists access to more precise user-influenced machine translations. Apptek also added hundreds of language and dialect pairs to its main machine translation platform.
uly 2022: Lilt, Inc. collaborated with Foresite Technology Solutions to bring multiple language content to the platform of Foresite and increase the productivity and skills of construction workers. Moreover, Foresite seeks to reduce communication-related safety concerns for construction workers.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: Increasing demand for multiple languages, growing E-commerce, and rising use of NLP of over-the-counter drugs are the major factors driving the market growth.
Ans: The market size of machine translation is anticipated to attain a CAGR of ~20% over the forecast period, i.e., 2023 – 2035.
Ans: Lack of skills to understand the context, inaccuracy in the translation, and high cost of implementation are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are AppTek, Amazon Web Services, Inc., Alibaba Cloud, Baidu, Cloudwords Inc., Google LLC, IBM Corporation, Lionbridge Technologies, LLC, Microsoft Corporation, Smart Communications, Inc., Lilt, Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by technology, deployment, end user, and by region.
Ans: The military & defense segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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