Data Annotation Tools Market: Growing Demand, Business Developments Forecast to 2031

The global data annotation tools market held a market value of USD 1,186.9 Million in 2021 and is projected to reach USD 13,287.9 Million by the year 2030. The market is anticipated to register a CAGR of 30.9% during the forecast period.

Data annotation tools can be on-premise, cloud-based, or containerized software solutions that can be utilized to annotate production-grade training data for machine learning.

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The data annotation tools industry is growing steadily due to the enhanced application of artificial intelligence, rising demand, and investing strategic activities by the key players. For instance, in October 2020, CloudFactory, a global leader in managed workforce solutions for artificial intelligence introduced a new computer vision offering, Data Annotation Solution, that bales their professionally managed workforce with a market-leading data annotation platform.

On the other hand, the data privacy compliance standards are not proper in all regions which hamper the market growth to a limited extent. Moreover, AI and machine learning continue to advance, yet many AI disruptors lack the aptitude to process and label the voluminous amount of data vital to feed complex AI, machine learning algorithms. Thus, such elements hinder the market growth.

Growth Influencers:

Rising demand for annotated data to improve machine learning models
The increasing focus and inclination of the major players operating in the industry drive the growth rate of the market. For instance, several firms are focusing on adding value to their current product portfolio and dicing newer technological advancements. For instance, Scale, a San Francisco startup employs a combination of human data labelers and machine learning algorithms to sort through raw, unlabeled streams for clients, such as nuTonomy, Lyft, Zoox, nuTonomy, Voyage, and Embark. Moreover, firms such as DefinedCrown utilize a smart data curation platform, providing a bespoke model-training service to clients in customer service, health care, automotive, retail, and enterprise sectors.

Increasing Investment by the players and technology advancements
The rising investment by prominent players, coupled with the surge in developments in data annotation tools fuel the market growth. For instance, in November 2019, CloudFactory, one of the global leaders in managed workforce solutions for artificial intelligence (AI), secured USD 65 Million in growth equity funding, led by FTV Capital and Weatherford Capital. Such an investment marks an exciting milestone in CloudFactory?s mission of offering meaningful work as the company seeks to scale operations while continuing to deliver high-quality data work for its global customers. Such measures drive the market growth.

Segments Overview:

The global data annotation tools market is segmented into data type, technology, device type, and end users.

By Data Type,

? Text
o Sentiment
o Text Classification
o Entity
? Image
o Boundary Boxes
o Line Annotation
o Image Transcription
? Video
o Semantic
o Polygon
o Key point
? Audio
o Voice Activity Detection (VAD)
o Speaker Identification
o Automated Speech

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The text segment is anticipated to hold an opportunity of more than USD 3,400 Million during 2022-2030. The video sub-segment is estimated to cross the mark of USD 1,000 Million revenue by 2026 owing to its growing adoption and awareness of data annotation tools for video datasets. On the basis of audio, the automated speech recognition sub-segment is anticipated to grow at the highest CAGR amongst all audio data type.

By Technology,

? Supervised
? Semi-Supervised
? Automatic

The supervised segment is estimated to cross the mark of USD 5,000 Million revenue by 2028 owing to the increasing use of this particular technology in the different applications and end uses.

By Device Type,

? Mac OS
? Windows
? Linux
? Others

The windows segment is anticipated to grow with the highest revenue generation of more than USD 1,000 Million in 2021 owing to the increasing applications and usage of this device type. Moreover, the Mac OS segment is expected to grow at the highest CAGR of 32.3%.

By End Users,

? Automotive
? Healthcare
? Retail
? Transportation and logistics
? BFSI
? Telecommunication and IT
? Others

The automotive segment is anticipated to hold an opportunity of more than USD 2,000 Million during 2022-2030 owing to the high demand for data annotation tools in automotive sector. The healthcare segment is expected to grow at the fastest growth rate of 33.2 over the forecast period.

Regional Overview

By region, the global data annotation tools market is divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

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The North American market for data annotation tools held the largest market share of more than 30% in 2021 owing to the highly developed infrastructure. Furthermore, the European market for data annotation tools is estimated to cross the mark of USD 1,000 Million revenue by 2026 owing to the rising awareness.

Moreover, the market in other regions of APAC, and Middle East and Africa are anticipated to grow at a considerable rate. For instance, in August, 2021, Appen Limited, an Australian company, signed a definitive agreement to acquire Quadrant, a leader in mobile location data, point-of-interest data, as well as corresponding compliance services. The merged firm of Quadrant and Appen will be well positioned to supply high-quality data to businesses that rely on geolocation. Thus, such measures drive the growth of the APAC regional market.

Competitive Landscape

Key players operating in the global data annotation tools market include Annotate.com, Appen Limited, Cloud Factory Limited, CloudApp, Cogito Tech LLC, Deep Systems, Google Inc., Labelbox, Inc, LightTag, Lionbridge Technologies, Inc., Lotus Quality Assurance, Playment Inc. Tagtog Sp.zo., among others.

Major five players in the market hold approximately 15% of the market share. These market players are capitalizing in collaborations, product launches, mergers, acquisitions, and expansions to sustain a competitive edge in the market. For instance, in November 2020, TELUS International agreed to purchase Lionbridge's artificial intelligence business segment for USD 935 Million, with the transaction anticipated to completion by December 31st. Lionbridge AI, a Lionbridge Technologies business unit, operates multilingual data for artificial intelligence algorithms, including human-annotated text, photos, audio, and video.

The global data annotation tools market report provides insights on the below pointers:

? Market Penetration: Provides comprehensive information on the market offered by the prominent players
? Market Development: The report offers detailed information about lucrative emerging markets and analyzes penetration across mature segments of the markets
? Market Diversification: Provides in-depth information about untapped geographies, recent developments, and investments
? Competitive Landscape Assessment: Mergers & acquisitions, certifications, product launches in the global Data annotation tools market have been provided in this research report. In addition, the report also emphasizes the SWOT analysis of the leading players.
? Product Development & Innovation: The report provides intelligent insights on future technologies, R&D activities, and breakthrough product developments
? Pricing Analysis: Pricing analysis of various metals and other components used in the manufacturing
? Manufacturing Cost Analysis: Cost-share of various components in data annotation tools
? Application of Data annotation tools in Service Sectors
? Performance of Data annotation tools in Service Sectors

The global data annotation tools market report answers questions such as:

? What is the market size and forecast of the global data annotation tools market?
? What are the inhibiting factors and impact of COVID-19 on the global data annotation tools market during the assessment period?
? Which are the products/segments/areas to invest in over the assessment period in the global data annotation tools market?
? What is the competitive strategic window for opportunities in the global data annotation tools market?
? What are the technology trends and regulatory frameworks in the global data annotation tools market?
? What is the market share of the leading players in the global data annotation tools market?
? What modes and strategic moves are considered favorable for entering the global data annotation tools market?

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