Already in last year’s Nimdzi 100 we predicted that it is unrealistic to expect this exceptional level of growth to continue, but that we can expect the industry to grow at a faster pace than before March 2020, thanks to a changed market that LSPs have adapted well to at this point in time. However, after a phenomenal 2021 with record growth our estimate for 2021 reflected a one-off increase of 10% compared to 2020. In 2020 we had reduced our growth estimate to reflect the impact of the pandemic, adjusting the market’s compound annual growth rate (CAGR) to 6.0%, down from 6.2% and 6.8% in previous years. We estimate that the language services industry reached USD 64.7 billion in 2022 and should grow to USD 69.3 billion in 2023. To illustrate, in this year’s ranking, companies in the top 100 grew 18.6% on average when calculated in USD, whereas growth would be at an average of 26.8% if calculated in the reporting currencies for companies on our list. This had an impact on the growth of the top 100 (and the industry as a whole). In 2022, a number of world currencies experienced significant devaluations against a strong US dollar.This trend holds true even in the lowest positions of our ranking, with the 100 th largest LSP confirming revenues of USD 14.0 million this year as compared with USD 12.6 million, USD 12.0 million, USD 11.6 million, and USD 10.3 million for the 100 th ranked LSPs in 2021, 2020, 20, respectively. Despite ongoing consolidation at the top, the industry as a whole continues to grow, producing larger LSPs every year.The segment with the strongest growth are the companies in the top 50 positions, whose combined revenues increased by 17.9% as compared to those holding the top 50 positions last year. The combined revenue of the companies comprising the top 10 positions in 2022 rose 14.2% compared to those from the previous year.Between 20, the combined revenues of the top 100 positions in our ranking increased by 17.3%, compared to 22.7% growth for the top 100 in the previous period. Data show that annual growth among the 100 largest industry players has increased as compared to last year, though more moderately than in the previous period where growth was exceptionally high.Looking at the results from the top 100, this is what the ranking already shows us about the state of the industry in 2023: Quite fittingly, during interviews for this year’s Nimdzi 100 many businesses reported a slow first half of 2022, followed by a strong second half of the year that outperformed expectations for the very same businesses. On the other side of the coin, the global economy is experiencing inflation and an energy crisis, there is war in Europe, and mass layoffs in the tech industry, all leading to an overall feeling of uncertainty. We have adapted to life after and with the pandemic, everyone is traveling again, conferences are being held onsite once more, all the while remote services are here to stay.
Putting the year into context, we can say that in many ways, life has returned to normal. 2021 then was a boom year that saw growth in the industry skyrocket due to backlog demand from 2020 paired with new demand as language service providers (LSPs) were reaping the rewards of the efforts put in at the start of the pandemic.Ģ022 was somewhat of a mixed bag as growth was certainly stronger than in 2020 but more moderate compared to the exceptional growth in 2021. In 2020 growth slowed down as the market adjusted to lockdowns and a changing environment. 2022 was a particularly interesting year to analyze because the language industry was coming out of two exceptional years.
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