Machine Translation (MT) Market Size, Share & Trends Report

Machine Translation (MT) Market Size, Share & Trends Analysis Report By Application (Automotive, Military & Defense, Electronics, IT, Healthcare), By Technology, By Region, And Segment Forecasts, 2012 - 2022

  • Published Date: May, 2018
  • Base Year for Estimate: 2014
  • Report ID: 978-1-68038-419-2
  • Format: Electronic (PDF)
  • Historical Data: 2012 - 2013
  • Number of Pages: 94

Industry Insights

The global machine translation market size was valued at USD 433.0 million in 2016 and is expected to develop at a CAGR of 14.6% over the forecast period. Rising Internet penetration and increasing need to reduce operational costs are expected to drive market growth over the next few years. Soaring smartphone penetration and improvement in communication infrastructure have also positively contributed to industry growth.

U.S. machine translation market

The industry is witnessing a transition from human translators to MT as is an efficient tool to deliver similar linguistic conversion with significantly lower time and cost. Advances in MT technology and new implementation approaches including crowdsourcing are expected to reduce the cost of MT while improving its efficiency.

This technology finds high adoption among language service providers, who use the service to correlate and enhance output. Furthermore, use of big data for social media data mining to gather information about products and companies is providing growth opportunities to service providers. Such translated data can prove to be vital for marketing decision-making.

Technological advancements have resulted in development of translation theory with minimal errors and grammatical consistency, which has considerably broadened the scope for MT. Cost-effective and rapid conversion of documents in regional languages has spurred industry growth over the past few years. Moreover, several multinational companies use this method owing to its cost-effectiveness to develop multilingual content for their global websites. Use of professional linguists to provide post-editing of content that has been machine-translated can result in greater accuracy of translated content.

Growing number of Internet users worldwide has widened demand for cross-cultural interaction and understanding of content over the web. The necessity for such social interaction has spurred demand for modernization in MT services. Globalization and integration of communication technology has created opportunities for provision of machine translation as a service.

MT has evolved over the years due to ease of communication, linguistic diversity, hyper-globalization, and democratization of knowledge. The technology has also been enhanced with modern Artificial Intelligence (AI) techniques that help in efficient machine learning. However, lack of accuracy in MT tools is expected to hinder industry growth.

Application Insights

The automotive application accounted for a revenue share of over 10.0% in 2016. Despite continuous advancements in technology, car manufacturers are considering MT as an area of differentiation. They are exploring new ways of delivering performance and implementing software that can be updated regularly to enter mainstream usage in cars. Technology-centric car manufacturer Tesla, Inc. is already utilizing such conveniences and is likely to be followed by many more auto manufacturers.

Solution providers are partnering with language service providers to offer motor catalog content in multiple languages. For instance, KantanMT has partnered with Milengo GmbH to localize 300 thousand words into three languages within four weeks. This partnership has assisted the automotive industry in offering catalog content in multiple languages.

Healthcare is another promising sector aiding industry growth. Companies operating in the healthcare sector rely on MT services for doctor manuals, leaflets, patient brochures, instructional content, websites, and other crucial communication materials.

The military and defense sector has emerged as the dominant segment in the market, accounting for a revenue share of over 30.0% in 2016. In U.S., Machine Foreign Language Translation System (MFLTS) assists soldiers to communicate efficiently with non-English speaking populations. MFLTS enables continuous integration of additional language components to offer language translation capability to soldiers.

Technology Insights

The Statistical Machine Translation (SMT) segment dominated the machine translation market in 2016. The effectiveness of SMT over Rule-Based Machine Translation (RBMT) in terms of cost and time has significantly increased its demand over the past few years. SMTs are easy to build and maintain and can be adapted to multiple language pairs. SMT development reduces costs of human resources; however, high computational costs are involved in the process.

Furthermore, SMT systems are replacing current RBMT systems as major players such as Lionbridge, SDL Plc, and other language service providers are offering pure SMT services. Lionbridge uses IBM Corporation’s and Microsoft Corporation’s technology and has mostly shelved its entire old RBMT platform. Currently, Systran and PROMT Ltd. are among leading players offering RBMT technology.

Global machine translation market

With the development of the technology, automated language conversion is expected to foresee significant improvements in quality and productivity. Challenges pertaining to commercial exploitation of MT include cost of running the powerful Graphics Processing Unit (GPU). This issue can be addressed by combining the best MT with neural network technology.

Moreover, the industry gravitates towards use of Bilingual Evaluation Understudy (BLEU) as a useful measurement of translation quality. BLEU is adopted as a quality measurement standard that lies with a fully automated way for measuring Neural Machine Translation (NMT) quality.

Regional Insights

North America dominated the industry in 2016, with U.S. alone accounting for over 66.0% of the regional market. The growth is characterized by presence of a large number of service providers and favorable government initiatives. SMT services offered by Microsoft Corporation and Google, Inc., along with their free online engines, have gained increased popularity in U.S.

China and India have witnessed tremendous growth in recent years. The linguistically diverse culture of the Asia Pacific region has witnessed greater demand for translated content. Solution providers have significantly catered to regional demand.

The European Commission (EC) launched e-Translation services in November 2017 as an online MT service for public administration workers in several European countries. Apart from individual users, the service is available to EC information systems through Advance Passenger Information System (API). Moreover, the European Association for Machine Translation has provided opportunities for developers, researchers, and professional translators interested in translation-related tools to promote and foster development of these systems.

Machine Translation Market Share Insights

Key market players include Google, Inc.; SDL Plc; Lionbridge; and Microsoft Corporation. Companies such as Google, Inc. and Microsoft Corporation are working on ways to deploy Neural Machine Translation (NMT) in their product offerings to significantly improve fluency to translate documents in different languages. For instance, in 2016, Google, Inc. launched the NMT tool, which deploys an artificial neural network to undertake multilingual translations of decoding semantic data.

Furthermore, in October 2017, Google, Inc. launched Pixel Buds consisting of built-in Google Assistant and Google Translate, which can translate 40 different languages by using Google Translate technology. Pixel Buds deploys Artificial Intelligence (AI) through the new Google NMT framework. Google Assistant allows the earbuds to translate conversations in real time, along with web search and media connectivity.

In December 2014, Microsoft Corporation released a preview version of Skype Translator for Spanish and English audiences. The Skype Translator preview program was developed to combine features of machine learning, speech recognition, and MT. Skype Translator offers speech-to-speech translation that enables face-to-face interaction for users who speak different languages.

Report Scope

Attribute

Details

Base year for estimation

2014

Actual/Historical data

2012 - 2013

Forecast period

2015 - 2022

Market representation

Market revenue in USD Million, CAGR from 2015 to 2022

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2012 to 2022. For the purpose of this study, Grand View Research has segmented the global machine translation market report based on application, technology, and region:

  • Application Outlook (Revenue, USD Million, 2012 - 2022)

    • Automotive

    • Military & Defense

    • Electronics

    • IT

    • Healthcare

    • Others

  • Technology Outlook (Revenue, USD Million, 2012 - 2022)

    • RBMT

    • SMT

    • Others

  • Regional Outlook (Revenue, USD Million, 2012 - 2022)

    • North America

      • U.S.

      • Canada

    • Europe

    • Asia Pacific

    • Latin America

    • Middle East and Africa (MEA)

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