Machine Translation Market size is expected to cross USD 5000 Million by the end of 2035, growing at a CAGR of 20% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of machine translation was over 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 growth of machine translation market 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.
Growth Drivers
Challenges
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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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End-user (Military & Defense, Automotive, E-Commerce, IT, Healthcare)
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.
Deployment (On-Premise, Cloud)
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 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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North American Market Forecast
The machine translation market 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.
Europe Market Forecast
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.
APAC Market Statistics
Further, the machine translation market in the Asia Pacific 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.
AppTek 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.
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.
Author Credits: Abhishek Verma, Hetal Singh
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