Translation and Interpretation Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,700 translation and interpretation service providers in the US translate written material, interpret speech from one language to another, and offer sign language services. Specific services include localization (adapting digital content for a specific market), transcription, subtitling, voiceover/dubbing, and language testing or training.
Dependence on a Highly Skilled Workforce
Translation and interpretation agencies and companies rely on highly skilled workers to provide services.
Industry Growth
Globalization and increasing diversity within the US population has boosted demand for translation and interpretation services.
Industry size & Structure
The average translation and interpretation service provider operates out of a single location, employs fewer than 5 workers, and generates $2.4 million annually.
- The US translation and interpretation services industry consists of 2,700 firms that employ 37,000 workers and generate about $6.5 billion annually.
- The global language service provider (LSP) industry is estimated to be worth nearly $56 billion, according to the Business Research Company.
- The industry is concentrated at the top; the top 50 companies account for 68% of industry revenue.
- Types of companies include multi-national firms, language technology firms, local agencies and freelance interpreters and translators.
- Large firms include TransPerfect, Lionbridge, and LanguageLine Solutions (Teleperformance).
Industry Forecast
Translation and Interpretation Services Industry Growth
Recent Developments
Sep 24, 2024 - Netflix Fine-Tunes Translations to Improve Appeal of Non-English Programs
- Amid increased competition for streaming viewers, Netflix is working to improve the quality of dubbing and translation to widen the cross-border appeal of foreign-language programs, according to The Wall Street Journal. Netflix has focused on South Korean programs after the success of Squid Game, the streamer’s most widely-viewed show ever. Using South Korea as a test case, Netflix has employed hundreds of voice actors worldwide and is training them in Korean cultural nuance and traditions to offer more authentic and appealing dubs. The firm aims to leverage the cross-cultural appeal of South Korean reality shows, such as physical competitions, dating programs, and game shows, as they tend to cost much less than scripted programming. Netflix content is available in over 30 languages, and non-English offerings account for a third of its viewing.
- In September, Google released a research paper outlining its strategy for improving machine translation by large language models (LLMs) by having them follow workflows that mimic human translation processes. Google’s refined approach breaks the translation process into several steps, including pre-translation research, drafting, refining, and proofreading. The tech giant hopes that its new approach will streamline the translation process and generate more accurate and contextually appropriate translations while relying completely on the LLM’s internal knowledge and eliminating the need for outside resources.
- In July, document translation services firm ASTA-USA Translation Services issued a press release urging businesses and government agencies serving the defense sector to exercise caution in using AI to translate sensitive documents. ASTA-USA’s CEO said, "Entrusting defense sector translations to AI tools or unverified freelancers poses significant risks. Subject matter expert translators are imperative to ensure precision and cultural sensitivity while safeguarding our national interests and the integrity of our defense operations."
- The translation services industry is expected to experience slower sales growth in 2024 after an improvement in demand in 2023. The industry’s year-over-year sales growth fell to 0.1% in 2022 before rising to 7.34% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. The industry’s sales growth is forecast to moderate to 3.1% in 2024, then rise to 4.6% in 2025 before seeing an average annual rise of about 5.4% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
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