Analysis of the European Language Industry Survey 2024

Two months after publication, I took a bit of time to review the ELIS survey results.

In case you don’t know, ELIS was originally initiated by European Union of Associations of Translation Companies (EUATC ) a decade ago and is now a joint initiative by international language industry associations and organizations. Apart from the EUATC, those participating are the European Language Industry Association (Elia ), the European Master’s in Translation (EMT), the European Regional Centre of the International Federation of Translators (FIT Europe ), the Globalization and Localization Association (GALA ), the European Commission’s Language Industry Platform (LIND) and Women in Localization (WiL ).

The European Language Industry Survey (ELIS) 2024 presents a comprehensive look at the current state of the language industry, capturing trends, challenges, and sentiments from various stakeholders.

This year’s report, the most extensive to date, received 1,776 responses across different segments, including independent language professionals, training institutions, students, language departments, and language companies.

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Industry structure and demography

The language industry remains highly fragmented, with a predominance of small to medium-sized enterprises (SMEs) and independent professionals. The survey highlighted that 84% of participating language companies reported revenues of less than 5 million euros. Notably, 33% of these companies are woman-owned, indicating significant female representation in ownership roles. The gender distribution within the industry is also noteworthy, with women constituting 79% of independent professionals and 55% of language service company employees.

In terms of seniority, the survey revealed an increase in average years of experience among both language professionals and companies, indicating a trend toward a more seasoned workforce. This shift raises concerns about the industry's ability to attract and retain young talent.

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Market performance

2023 was a challenging year for the language industry, with many companies and independent professionals reporting declines in activity and prices. This decline has resulted in a cautious outlook for 2024, with reduced investment and staffing levels. Interestingly, despite these challenges, the survey noted that some market segments and specific countries still show optimism and positive performance.

Language companies reported a net decrease in activity and profitability for 2023. For the first time in ELIS history, a majority of respondents experienced negative growth. Independent professionals echoed these sentiments, with many expressing concerns over reduced demand and falling rates. Smaller language companies and freelancers were particularly hard-hit, while larger firms showed more resilience.

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Trends and challenges

Artificial Intelligence (AI) and Machine Translation (MT) dominate the current trends, overshadowing traditional concerns such as pricing and competition. The integration of AI in the language industry is viewed with mixed feelings—while it offers efficiency and new work opportunities, it also raises concerns about quality and remuneration. Independent professionals, in particular, express fears about AI diminishing the value of human translation.

The survey identified several other key trends. Consolidation within the industry is seen as a double-edged sword: while it can lead to more robust companies, it also increases competition and may drive down prices. Specialization is emerging as a crucial strategy for differentiation, with niche markets and high-value services gaining importance.

Among the challenges, price pressure remains a top concern. The survey highlighted the growing difficulty in maintaining fair remuneration, especially for post-editing tasks, which are perceived as less rewarding than traditional translation. Other significant challenges include the increasing complexity of client demands and the need to adapt to rapid technological changes.

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Operational practices

The survey detailed various operational practices across the industry. Language companies report a stable geographic origin of revenue, with a slight increase in domestic business. Independent professionals continue to rely heavily on direct clients, which correlates positively with better performance and higher rates. Outsourcing remains a critical business model, with significant portions of work outsourced to freelancers.

Operational changes in 2023 included a noticeable shift towards more technology-driven services. Post-editing and interpreting saw significant growth, while traditional human translation services experienced a decline. Language companies also reported a continued trend towards diversifying their service offerings to include more technology-based solutions like MT services, language data services, and quality evaluation.

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Technology implementation

The adoption of technology, especially AI and MT, is growing steadily. Most language companies and professionals now use some form of MT, and AI is increasingly being integrated into their workflows. However, satisfaction with technology training provided by tool manufacturers has decreased, indicating a need for better support and resources.

In terms of specific technologies, the survey revealed that CAT tools and translation management systems are the most widely implemented. Machine translation usage is on the rise, with a majority of professionals incorporating it into their work. AI tools, while still in the early stages of adoption, show significant potential for future growth. Interestingly, independent professionals report higher usage rates of MT and AI compared to language companies, suggesting a more proactive approach to leveraging new technologies.

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Industry sentiment

The overall sentiment in the industry is cautious. While there are pockets of optimism, especially among larger companies and international agencies, many independent professionals and smaller companies are concerned about their financial stability and future prospects. The survey highlights the need for a more stable political climate and a revival of the global economy to improve industry sentiment.

Language company investment mood has hit an all-time low, even lower than during the peak of the COVID-19 pandemic. The willingness to make major investments or acquisitions has decreased significantly, reflecting uncertainty about the future. Independent professionals are particularly pessimistic, with many questioning the sustainability of a freelance career in the face of declining rates and increased competition from technology.

Work-Life balance and career satisfaction

Work-life balance and career satisfaction emerged as significant themes in the survey. Many independent professionals report that financial pressures and increased workloads are adversely affecting their quality of life. The rise of post-editing and the lower remuneration it offers compared to traditional translation work is a major contributor to this stress.

Career satisfaction varies significantly across segments. Language company employees generally report higher satisfaction levels, partly due to more stable employment conditions and benefits. In contrast, independent professionals are less satisfied, citing financial instability and the pressures of self-employment as key factors.

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Training and continuous professional development (CPD)

Training and continuous professional development are crucial for keeping pace with industry changes. The survey found that while many professionals recognize the importance of CPD, there are significant barriers to accessing quality training. Cost, time constraints, and the lack of relevant training opportunities are major obstacles.

Language companies and institutions are increasingly offering in-house training and development programs to bridge this gap. However, independent professionals often rely on external providers, and there is a call for more affordable and accessible training options tailored to their needs.

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Preparing for the future

The ELIS 2024 report underscores the need for the language industry to adapt to changing market conditions and technological advancements. While challenges abound, there are also opportunities for those willing to innovate and specialize. The rise of AI and MT presents a clear example of how technology can be both a challenge and an opportunity.

Collaboration across the industry will be key to navigating these changes. Language companies, independent professionals, training institutions, and industry associations must work together to develop strategies that leverage the benefits of new technologies while maintaining the quality and value of human translation.

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Conclusion

Not surprisingly, the ELIS 2024 report paints a picture of an industry at a crossroads. The integration of AI and MT presents both opportunities and challenges, and the industry's ability to adapt will be crucial in determining its future.

As an optimistic observer myself, I believe that the language industry will continue to thrive, but only if it can harness the benefits of new technologies while maintaining the value and quality of human translation.

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