RWS Annual Report 2022 web - Flipbook - Page 10
Market Overview
RWS’s services and products form part of a market estimated at £47.1bn in
2021. Below is a breakdown of the large end markets we serve, alongside the
estimated market size for each.
Market size and sector breakdown
£30bn Language Services –
core localisation
£2bn
Language Services –
data annotation
£3bn
Life Sciences –
localisation
£47.1bn
MARKET SIZE
£4bn
Finance & Legal –
localisation
£3bn
Linguistic AI
£0.3bn Language Technology
£2.8bn Content Technology
£2bn IP Services
Source: OC&C analysis based on research from Slator, CSA, EPO, Companies House
LANGUAGE SERVICES – CORE
LOCALISATION
LANGUAGE SERVICES – DATA
ANNOTATION
Organisations that are looking to engage and
communicate with internal and external audiences,
across multiple geographies and languages, require the
linguistic and cultural expertise of a language services
provider.
Data annotation typically involves humans labelling data in
various formats (videos, images or text) so that machines
and Artificial Intelligence ("AI") applications can understand
and process the information. Companies looking to build
AI applications require a large network of people, across
multiple languages and geographies, in order to ensure
data is labelled correctly, accurately and consistently.
The core localisation services market (excluding Life
Sciences, Finance and Legal) is currently estimated at
£30bn, growing at 3-5% Compound Annual Growth Rate
(CAGR) (according to OC&C research). This growth is
driven by volume increases and companies looking to
expand internationally. The market is highly fragmented,
though we believe that RWS is the second largest player
by revenue.
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RWS — Annual Report 2022
STRATEGIC REPORT
The approximate market size for AI data training and
annotation services in 2021 was £2bn and is growing at
an attractive CAGR of approximately 20-25% between
2021-26, according to OC&C estimates. As AI capabilities
become more widely understood, demand for data
training is expected to increase across a wider variety of
industries (e.g. healthcare, financial, automotive and the
public sector).
