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The present document is the final report of a six-month study conducted by LTC which addresses the need of a comprehensive and systematic analysis of the size of the language industry in the European Union. As well as presenting a snapshot of the current situation, estimates are provided of how the industry will develop in the future. Thorough secondary and primary research allowed to propose an estimated value of the language industry within the European Member States of 8.4 billion € for 2008. This figure comprises the industry sectors of translation, interpreting, software localisation and website globalisation, language technology tool development, language teaching, consultancy in linguistic issue and organisation of international conferences with multilingual requirements. In addition, it includes language-related activities performed in corporate environments.