Data Annotation Tools Market
Data Annotation Tools Market Analysis by Data Type (Text, Image/Video, Audio Data Annotation Tool), by Annotation Type (Manual, Semi-supervised, Automatic Data Annotation Tool), by Vertical & Region - Global Forecast 2022-2032
Global Data Annotation Tools Industry Outlook (2022-2032)
The global data annotation tools market is anticipated to expand at a CAGR of 15.1% during the forecast period from 2022-2032. The market is expected to be valued at US$ 1.3 Bn by 2022-end, and is expected to reach US$ 5.3 Bn by 2032.
Anticipated Market Value for 2022
US$ 1.3 Bn
Projected Market Value for 2032
US$ 5.3 Bn
Growth Rate (2022-2032)
Key Data Annotation Tool Providers
Globally, organizations are adopting the ‘do-it-yourself’ method which is expected to drive the market significantly during the forecast period. Also, the increasing penetration of AI and machine learning solutions in the healthcare sector can further augment the demand for data annotation tools in the coming time.
Revenue Analysis of Data Annotation Tools 2017-2021 vs. Future Outlook 2022-2032
According to Fact.MR- a market research and competitive intelligence provider- demand for data annotation tools experienced a substantial increase, growing at a CAGR of approximately 12% from 2017 to 2021. Rising consumerization of IoT, AI and machine learning have set the stage for extensive deployment of data annotation tools.
From online lending services to smartphone facial recognition, every step towards digitization impels the demand for data annotation tools for advanced products and services. Training AI programs with the help of data annotation tools will witness an uptake in demand as the consumer demand for automated homes increases.
With an increasing number of enterprises leveraging big data analytics to streamline data collection and assimilation processes, demand for data annotation tools is expected to rise impressively in the forthcoming decade. As per the report, the market is slated to surge at a CAGR of 15.1% from 2022 to 2032.
How did COVID-19 impact the global data annotation tool market?
Increased Usage of Annotation Tools for Machine Learning Boosted the Market in COVID-19
The outbreak of COVID-19 played a major role in bolstering the global data annotation tools market size. The increasing usage of artificial intelligence and machine learning solutions is anticipated to drive the demand for data annotation tools in the COVID period. Further, the rise in the adoption of text annotation for document classification is spotted to be another salient cause that drove the market during the outbreak of the pandemic.
The healthcare sector is likely to make significant applications of artificial intelligence and machine learning to innovate equipment to tackle the virus as severe as corona. Further, initiatives such as preparing lung datasets to study the impact of the disease on lungs is expected to grow the data annotation took market during the COVID era.
On the contrary, lack of expertise and skilled workforce caused hindrances in executing the operations efficiently, which is likely to have impacted the market negatively.
What are the Factors Driving Market Demand for Data Annotation Tools?
Increased Deployment of Data Annotation Tools by Organizations to Boost the Market
The market growth can be attributed to the efficiency of automated data annotation tools and the increasing usage of cloud-based computing resources to annotate large datasets.
The deployment of data annotation tools by organizations for their accuracy and for labeling volumes of AI training data are other salient causes that can grow the industry in the forthcoming period.
Also, the growing demand for annotated data for the betterment of machine learning models along with the increasing investments for the advancements in autonomous driving technologies is projected to augment the industry.
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Why is North America expected to lead the Market?
High-Disposable Income to Play Significant Role in Driving the Regional Market
Regionally, North America is projected to maintain its hegemony during the forecast period. The region is estimated to garner 32% of the global market share. Canada, Mexico, and the United States are projected to make the maximum contribution in developing the regional market.
The region is estimated to exhibit a CAGR of 13% by 2032. High-disposable income is projected to play a significant role in strengthening the regional market in the assessment period.
In the U.S, the increasing adoption of manual data annotation tools to assure high-quality input data is expected to be a salient cause that can strengthen the market in the country. The high precision and increased accuracy are further likely to augment the demand for the manual data annotation tools market.
How is South Asia & Oceania Contributing to the Global Market Revenue?
Increased Advancements in the Sphere of Digitization to Boost the Regional Market
On the contrary, South Asia & Oceania is projected to develop at the maximum CAGR of 18% during the forecast period. The growing advancements in the sphere of digitization in Australia, Indonesia, and Malaysia can make remarkable participation in strengthening the regional market.
The increasing initiatives by the government to develop healthcare, public infrastructure, the automotive sector with the assistance of big data analysis is expected to drive the regional market significantly in the coming time.
Why is Manual Data Annotation Segment likely to dominate the Market?
Accurate Insights to Enhance demand for Manual Data Annotation Tool
On the basis of annotation type, data annotation tools can be segregated into automatic, manual, and semi-supervised. Among all, the manual annotation segment is projected to acquire the maximum market share and garner 76% of the total market value in the forecast period. The accuracy and enhanced insights of manual annotation are likely to be significant factors that can drive the development of the segment.
On the contrary, the automatic annotation tool is anticipated to exhibit the highest growth trajectory. The segment is projected to expand at a CAGR of 17% during the assessment period. The enhanced penetration of AI programs is likely to augment the growth of this segment.
An Adaptive Approach to Modern-day Research Needs
Several players of the global data annotation tool market are providing various services which are expected to give the players a higher position against their competitors in the market. The key players majorly focus on investments, expansions, delivery, acquisitions, brand development, and portfolio expansion.
- In August 2021, Appen Limited, an Australian company that offers high-quality training data for organizations that build AI systems, announced its plan to acquire Quadrant, the global player in mobile location data, corresponding compliance services, and Pint-of Interest data.
- In May 2021, CloudApp, a cross-platform for the modern workplace, announced a partnership with Slack and Atlassian products Jira and Confluence.
Key Segments Covered in the Data Annotation Tool Industry Report
- Text Data Annotation Tool
- Image/Video Data Annotation Tool
- Audio Data Annotation Tool
- Manual Data Annotation Tool
- Semi-supervised Data Annotation Tool
- Automatic Data Annotation Tool
- Data Annotation Tool for IT
- Data Annotation Tool for Automotive
- Data Annotation Tool for Government
- Data Annotation Tool for Healthcare
- Data Annotation Tool for Financial Services
- Data Annotation Tool for Retail
- Data Annotation Tool for Other Verticals
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