Do you really need an annual reminder that localization is enormous and ever-evolving?
This year, I’m bringing you something different—actionable localization and translation statistics. You know, something that can help you recognize where the industry is headed and capitalize on it.
I admit: it’s a bold promise. Especially since I don’t know who you are. But I’m confident this localization industry analysis should deliver. It’s a people-pleaser, designed to be useful for:
- linguists
- language service providers (LSPs)
- companies seeking to localize their products.
So, let’s get straight to delivering on that promise.
Localization industry statistics
We’re about to explore the state of the localization industry through the prism of statistics. To truly understand its state, we’ll also look at the people and technologies shaping it. As you’ll learn, the two come together to drive the industry’s growth and changes, for better or worse.
Size and growth rate of the localization industry
According to the Nimdzi report, the localization industry reached $71.7B in 2024 and is projected to grow to $75.7B in 2025. Another report reveals that the industry is growing at an average rate of 7% per year.
What that means for linguists:
✅ More job opportunities.
What that means for LSPs:
✅ Thriving markets and potentially higher profits.
What that means for companies:
✅ Chances are your competitors are helping those numbers grow by being LSP customers. Don’t lag behind!
⚠️ Note: While Nimdzi is an authoritative source of LSP data, another industry heavyweight reports lower numbers. According to the report by CSA Research, the market size of the LSP industry in 2024 was a considerably lower $51.9B.
LSP market share
In 2024, the top 10 LSPs earned over $7.1B in revenue. Their collective market share is 9,9%.
Let’s take a look at the revenue breakdown of the top 10 LSPs, as reported by Nimdzi.
Rank | Company | Revenue ($M) | Services |
---|---|---|---|
1 | TransPerfect | 1,230.0 | Translation, life sciences, legal |
2 | LanguageLine Solutions | 1,100.0 | Interpreting, translation & localization, healthcare, government |
3 | Keywords Studios | 903.2 | Video game services |
4 | RWS | 901.1 | Translation, patents, life sciences, IT |
5 | Sorenson Communications | 800.0 | Sign language interpreting |
6 | Lionbridge | 546.7 | Translation, life sciences, technology, legal, games and entertainment |
7 | Lyuno | 394.8 | Media localization |
8 | Translate Plus | 380.0 | Translation, dubbing, manufacturing, marketing |
9 | Welocalize | 334.0 | Translation & localization, data and AI, technology, legal, life sciences |
10 | Propio Language Services | 332.0 | Healthcare and government |
As you can see, not one but two companies crossed the $1B revenue mark in 2024: TransPerfect and LanguageLinesSolutions. At the projected growth rate of 5.3%, two more companies could reach this milestone in 2026.
Top services in the LSP industry
Let’s examine the services offered by the top LSPs in 2024.
To no one’s surprise, translation and localization are provided by 97% of language services vendors. Similarly, machine translation and post-editing maintain their place at the top of the chart.
What has changed from the previous years, though, is the marked growth of supplementary services such as copywriting or cultural education.
What that means for linguists:
✅ More demand for your expertise outside of traditional translation.
✅ Need to expand your skill set.
What that means for LSPs:
✅ An opportunity to replace shrinking translation revenues with value-added services.
✅ Need to provide supplementary training for your linguists.
What that means for companies:
✅ An opportunity to integrate LSPs into your content creation process.
Common localization activities
You already know the major industry players and their revenue distribution. You also know the key services provided by LSPs are translation and localization. But what exactly does that entail? Let’s find out.
The chart below shows the most common localization activities, as reported by GlobalAppTesting:
According to the report, app and website copy translations account for the bulk of all localization activities. This information checks out with the findings of another localization report that highlights apps and websites as the most localized platforms:
Industries using LSP services
Here’s the industry lineup driving the remarkable LSP growth.
As reported by Nimdzi, IT companies are the primary users of LSP services, making up 65.3% of the client base. Slightly behind are healthcare, financial, and manufacturing companies.
Nothing has changed from the previous years: technical and specialized translation is still the bread and butter of LSPs.
What that means for linguists:
✅ Focus on specialized and technical translation to meet the ever-growing demand.
What that means for LSPs:
✅ Offer special training to your linguists to better meet the needs of customers that fuel your growth.
What that means for companies:
✅ Partner with vendors that employ certified translators with expertise in your industry.
Translation statistics
Let’s kick off the overview of translation statistics with a quick look at the languages and countries offering the highest potential ROI for your translation budget.
Top ROI languages for translation
Research Center Imminent suggests that by translating into the following languages, you can reach 80% of the world’s online purchasing power:
What that means for linguists and LSPs:
✅ Prioritize languages with higher online sales potential to access more potential customers.
What that means for companies:
✅ Prioritize languages with higher online sales potential to get higher localization ROI. Learn how to calculate localization ROI in our guide.
Consumer response to poor website translation
When asked how they would react to poor website translation, online buyers almost unanimously report negative reactions:
What that means for linguists and LSPs:
✅ Use localization platforms with quality checks, glossaries, translation memories, and other CAT tools that increase translation quality.
What that means for companies:
✅ Insist on your vendors using localization tools with quality assurance features. Also, ensure all translated content is reviewed by subject matter experts.
Consumer response to lack of website translation
This one is simple and sobering in equal measure: 87% of online consumers won’t buy from English-only websites.
What that means for linguists and LSPs:
✅ Use website localization solutions with CMS integrations to streamline website localization for your customers.
What that means for companies:
✅ Looking to grow in a specific region? Make sure to localize your website.
Video and image translation statistics
Clearly, website translation matters. It matters so much that it should extend beyond text to encompass video and imagery. The same holds true for the translation of your local social media accounts.
Findings from this localization report agree:
Localization technology statistics
Unsurprisingly, the tidal wave of AI collided with the localization industry. Here are statistics to prove it:
Use of AI for translation
Let’s take a look at the adoption rates of AI among localization professionals. A recent SOA survey reveals that over a third of linguists have started using AI for translation.
When asked whether AI makes them optimistic about the future of localization and translation, linguists are largely pessimistic. And there’s little surprise as to why it might be the case: 36% of translators have lost work over AI.
As you can see, AI doesn’t spark hope among most localization professionals. In large part, this is because AI continues to encroach on their roles, reducing the demand for their expertise.
What that means for linguists:
✅ Specialize in transcreation and value-added services
✅ Embrace AI-powered localization tools to evolve alongside AI.
What that means for LSPs:
✅ Enhance the efficiency of your linguists with AI-powered localization tools.
✅ Refocus the traditional role of translators to post-editing and cultural-adaptation services.
✅ Provide professional development opportunities to enhance translators’ job satisfaction and morale.
What that means for companies:
✅ Use AI-powered localization tools to speed up localization.
✅ Maintain human oversight to ensure quality.
Use of translation technologies
If most translation professionals are hesitant to use AI in their work, are there other technologies that they embrace more enthusiastically? The 2024 ELIS report sheds light on that matter:
As you can see on the chart above, translation memory (TM) tools are used almost universally by localization professionals. Similarly common are terminology management, machine translation (MT), and automated quality control tools—key features in most CAT solutions.
What that means for linguists and LSPs:
✅ Stay aligned with industry trends and leverage CAT translation tools.
What that means for companies:
✅ Have an in-house translation team? Provide your translators with CAT solutions to maximize their productivity.
Translation technology training
No matter how useful, translation technology is only as effective as the training behind it. Alas, the 2024 ELIS report shows that only 39% of language professionals are satisfied with the training provided by translation solution vendors.
What that means for linguists:
✅ Study onboarding materials and attend webinars from translation technology solution vendors.
What that means for LSPs:
✅ Provide sufficient technology training for your language professionals.
What that means for companies:
✅ Have an in-house translation team? Provide sufficient technology training for your language professionals.
Parting thoughts
Part of my job is to help you navigate the enormous, ever-evolving world of localization and translation. You know, making your job easier.
Hopefully, this industry overview did just that. But why leave anything to chance? Let’s make your job categorically easier.
Use a professional localization tool like Centus to automate your translation workflows and simplify collaboration. No matter how complex your project is, Centus can make its localization infinitely easier. Try Centus now!
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