Market research firm Common Sense Advisory announces the release of its annual ranking of the top translation and localization companies globally. The list, which is based on the 2008 fiscal year and has expanded from the top 25 language services providers (LSPs) to the top 30, includes Purple Communications (PRPL), SDL International (SDL), Lionbridge Technologies (LIOX), Global Linguist Solutions, and AAC Global Corporation. Overall, the language service providers (LSPs) in Common Sense Advisory’s Top 30 list averaged 19.7 percent growth over the previous year. The revenue data reveals that 2008 was a strong year for many suppliers in the language services industry.
Among the Top 25 players that appeared in the 2007 ranking, the average year-over-year growth rate was slightly lower than the previous year, in which the average was 26.68 percent. Taking into account the somewhat less aggressive growth reported by LSPs in 2008 compared with 2007, Common Sense Advisory predicts that the market will reach US$22.5 billion by 2012, slightly less than its prior estimate of US$24 billion. That growth equates to a compound annual growth rate (CAGR) of 10.76 percent over the next five years.
“Acquisitions continued to fuel the growth of companies like AAC Global and SDL; however, most companies reported significant organic growth from the increased demand for their language services. LSPs are reaping the benefits of a more international economy and are growing despite a global recession,” explains Common Sense Advisory’s Chief Connector and report lead analyst, Renato Beninatto.
Looking forward, we expect the demand for language services to continue to grow. This demand is fueled by many factors including the need for companies to compete for new market share in a global economy and organizations adhering to multilingual requirements in regulated industries,” explains Beninatto.
The list for 2008 includes suppliers from 15 countries across the globe: the U.S. (9), U.K. (4), Belgium (2), Japan (2), Sweden (2), Switzerland (2) and China, Czech Republic, Finland, France, Ireland, Italy, Luxembourg, Netherlands, and Spain (one each). While American and British companies still dominate the rankings, Asia continues to expand its share of dominant players with a total of three LSPs from China and Japan.
The firm’s “Ranking of Top 30 Language Services Companies for 2008” is an update to the 2004, 2005, 2006, and 2007 rankings and is available at http://www.commonsenseadvisory.com/members/res_cgi.php/090513_QT_2009_top_30_lsps.php.