Posted by marwa-azam on May 24, 2023

How Is Globalization Contributing to Translation Industry Growth?

How Is Globalization Contributing to Translation Industry Growth?

The need for professional translation services is increasing proportionally to rapid globalization worldwide. There is indeed a positive correlation between increasing translation needs and globalization.

Just like globalization has transformed the entire world, the translation industry is not an exception; however, globalization is closely interconnected with the translation business and has a direct impact on its growth. When it comes to running an international business, seamless communication with foreign clients and customers is essential for business success. Today, any business that wants to capture global markets, can’t really do without professional translations.

In this blog post, we’ll evaluate the influence of globalization on the translation industry and how it is fueling its growth.

The Rise of Globalization and the Need for Effective Business Communication

International trading has increased exponentially since this globalization phenomenon started gaining momentum. More businesses expanding their roots to the international marketplace raises the need for effective business communication. Research conducted by the World Trade Organization stated that there is around an 80% increase in the volume of global merchandise trade over the past two decades.

We have also seen a rapid increase in professional translation services with more businesses making their way to the global marketplace. It happens because international trading always comes with linguistic and cultural diversity issues that can lead to non-effective brand communication internationally.

The Role of the Translation Industry in Bridging the Language Gap 

Professional translation services have a vital role to play when it comes to bridging language gaps around the globe. It is the main reason why the demand for language translation services is continuously increasing. Now, companies hire skilled linguists and language service providers to effectively communicate their brand message in different languages. A study by Common Sense Advisory reported that the language service and technology market researched $49.6 billion globally in 2019. The same report also estimated a CAGR of 6.46% from 2020 to 2025 because of the rapidly increasing demand for translation solutions.

Globalization and Increasing Demand for Translation Services

There are many factors that are fueling the growth of the translation industry. The rise of online businesses, the need to create multilingual brand identities, the use of advanced translation technology, and the emergence of novel industries have hugely contributed to the high demand for translation services. The following are some important factors to consider when it comes to understanding the correlation between globalization and the rising need for language solutions.

Growth of E-commerce and International Trade

Globalization leads to the increasing trend of e-commerce platforms that makes international trading seamless and easier. Whenever a business expands beyond its domestic markets, it will surely face linguistic challenges in foreign markets. In order to effectively communicate with overseas customers and clients, they must translate their product descriptions, marketing materials, and other business documents. Amazon is a good example here. Being one of the leading e-commerce marketplaces, it mostly relies on translation service providers to localize its platform for each region. It also allows this e-commerce giant to stay relevant with world audiences and enhance the online buying experience.

Rise of International Movies and TV Shows

Globalization also contributes to the popularity of international TV shows, movies, and seasons. Even entertainment content produced in local languages can reach global audiences through dubbing and subtitle translation services. It enhances the global accessibility of OTT platforms like Netflix and Amazon Prime Video. It allows producers and creators to reach out to global audiences and tell their stories to a larger audience. For instance, “Squid Game” is a South Korean drama series, originally made in the Korean language, and gained global popularity when dubbed in different languages. Language translators have given the movie and entertainment industry global exposure and allow production companies to make high-profit margins just by localizing their video content.

Demand For Multilingual Websites, Software, and Apps

To effectively reach out to diverse audiences globally, businesses have taken translations quite seriously. Many businesses are working to build their multilingual brand identities. To do so, they must translate their websites, software, and mobile apps to the local languages of target regions. According to research conducted by Common Sense Advisory, around 75% of customers prefer to buy products that are in their local languages. It means that language translations have a huge impact on the overall customer brand’s experience. Even leading companies like Google, Adobe, and Microsoft invest in translation services to enhance their global market reach.  

Use of Professional Translation Management Platforms 

With the development of advanced translation technology, premium language services providers and global enterprises prefer using cloud-based localization management systems. Professional translation and localization platforms help LSPs and linguists to effectively get away from their everyday translation challenges and have streamlined translation processes. It helps global businesses enhance their translation project management efficiency and create a safe digital environment for remote translation teams. TMS technology has revolutionized the way translation projects are managed, and enabled faster turnaround times.

Higher Need for Cross-Border Partnerships

More businesses are aspiring to partner with international clients and agencies to build a more solid global identity. Professional translations also play a critical role in helping businesses navigate through complicated cross borders communication and translate technical business documents, such as business licenses, merger and acquisition documents, income statements, and annual financial reports. It enables seamless communication with foreign clients and allows you to make valuable partnerships from different linguistic backgrounds. Businesses can also get help from professional interpreters to commune their message to international clients clearly and fluently.

Language Services in International Conferences and Events

We know that international events and conferences are great platforms for sharing knowledge, networking with like-minded people, and collaborating with global businesses. Such platforms are also perfect places to pitch your business ideas or make partnerships with foreign businesses. Professional interpretation and translation services are essential to facilitate seamless communication between participants speaking different languages. It also allows everyone to look beyond linguistic barriers and foster inclusivity.

Rapid Localization of Video Games 

We have seen rapid growth in the video game industry over the past ten years. Now game developers create games that are compatible with global audiences. To cater to the diverse demand of the international market, game developers acquire professional translation and localization services. It allows them to make their game more visible in foreign markets, increase game downloads, and earn higher revenue. Professional game localization also creates a more optimized and relevant game experience for players. A professional LSPs platform can help you translate the user-facing textual content, including dialogs, and instructions. So, it can be said that the emergence of the video gaming business is also one of the major drivers of translation industry growth.

Future of Translation Industry in Globalized World

The translation industry will continue to grow, and there will be a high demand for professional translation solutions and tools. Here are some key factors that are likely to shape the future of the translation business.

High Demand for Professional Language Solutions 

There will be an increasing demand for scientific and technical translation services, such as medical translations, legal translations, and financial translations. Companies would need professional and qualified linguists to translate such highly technical and complicated content. More businesses will take translations seriously, and professional language service providers will provide customized translation solutions to international clients.  

Integration of Machine Translation and AI 

Companies will continue to find new ways to improve their translation management processes to achieve better results in the quickest turnarounds. In the future, we can expect to see more MT tools with AI technology integrated. It will make the translation management process independent of human intervention and may have the ability to perform complicated translation tasks on its own. The integration of AI with MT tools will surely have revolutionary effects on the translation industry and the way businesses go about their everyday translation processes.

Challenges of Incorporating AR and VR in Translations

The possibility of incorporating AR (augmented reality) and VR (virtual reality) technologies in translation management systems is also expected. It will only improve the way translation projects are managed and QA testing is done. This technology can help global businesses and language services providers effectively address the linguistic and cultural relevance challenges in translations.


Undoubtedly, globalization has accelerated the growth of the translation industry and leads to the increasing demand for language translation services. To make the most of free markets and international trade, businesses have to ace the art of effective communication with their clients and customers. It is not possible unless there is a language barrier. Translating your brand into local languages can help you foster better communication with customers and make your brand more resonating with their culture. Localization helps you smoothly penetrate a foreign market, and you are also likely to face less resilience from audiences for your product because it speaks a foreign language.

It is a reminder for businesses that have not yet gotten into the waters of localization to start investing in user experiences and embrace inclusivity through language translations. This is the only way they turn things in their favor in a foreign market and build lasting relationships with foreign customers.

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