Los Angeles, CA (PRWEB) June 02, 2012
The Translation Services industry has benefited from globalization and an increasing number of non-native English speakers in the United States. Industry revenue has increased an annualized rate of 2.8% to $3.1 billion in the five years to 2012. According to IBISWorld industry analyst Andrew Krabeepetcharat, “The industry has grown as companies look to cash in on an increasingly global marketplace.”
In spite of this growth, many clients have been hurt by the recession. As corporate profit fell, businesses started focusing on reducing costs instead of international expansion. In 2012, the industry is poised to once again return to growth, driven by an increase in international trade and tourism. However, continued pricing pressures will limit revenue growth to 4.8% during the year. While the increase in revenue will help industry profit improve marginally, pricing pressures will continue to limit profit growth over the next five years. In the five years to 2012, IBISWorld estimates that the number of operators in this industry has grown an annualized rate of 5.0% to 47,140 enterprises. “Many translators work part-time from home,” says Krabeepetcharat, and an estimated 95.0% of firms are self-employed individuals. The recession caused more non-employers to enter the industry, seeking additional wages to supplement their income. However, there are two major players in the Translation Services industry with market shares over 5.0%: Language Line Services and Lionbridge Technologies Inc.
The internet has been instrumental in increasing demand for translators because businesses moving into new countries use services to adapt websites and marketing materials to the new region. The process ensures more effective communications with customers between countries and across cultures. Technology has also helped automate some of the process, improving the speed and accuracy of translators; however, translation services remain relatively labor intensive. Some competition exists through programs and free internet websites, but these systems often give translations that do not provide a cultural context. During the five years to 2017, the industry will continue to be affected by global economic conditions and changing immigration patterns. As companies once again focus on international growth, they will turn to this industry to provide localization services. A growing population of immigrants is also expected to contribute to further growth. For more information, visit IBISWorld’s Translation Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes companies that translate written material and interpret speech from one language to another. It also includes companies that provide sign language services. The services provided by this industry include document translation and website localization, meaning translation of website information into languages for use in other countries, taking into account any unique cultural and linguistic traits.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.