This site uses cookies, including third-party cookies, that help us to provide and improve our services. Privacy Policy

Data Labeling Solution and Services Market

Data Labeling Solution and Services Market

Data Labeling Solution and Services Market Analysis by Sourcing Type (In-House, Outsourced Data Labeling Solution and Services), by Type (Text-based, Image/Video-based, Audio-based), by Labeling Type (Manual, Semi-Supervised, Automatic), by Vertical & Region - Global Forecast to 2032

Data Labeling Solution and Services Market
FACT7099MR
  • Feb-2022
  • List of Tables : 60
  • List of Figures : 102
  • 170 Pages
  • Technology

Global Data Labeling Solution and Services Industry Outlook (2022-2032)

The global market for data labeling solution and services was valued at US$ 6.8 Bn in 2021, and is expected to surge Y-o-Y by 29% to reach US$ 8.8 Bn by 2022 end. From 2022 to 2032, the industry is forecast to accelerate at a 24% CAGR to reach US$ 74.5 Bn.

Report Attributes

Values

Market Value for 2021

US$ 6.8 Bn

Expected Market Size in 2022

US$ 8.8 Bn

Projected Market Valued in 2032

US$ 74.5 Bn

Growth Rate (2022-2032)

24% CAGR

Market Share of North America

37%

Revenue Share of Asia Pacific

26%

Key Companies Profiled

  • Alegion
  • Amazon Mechanical Turk Inc.
  • Appen Limited
  • Clickworker GmbH
  • CloudApp
  • CloudFactory Limited
  • Cogito Tech Ltd.
  • Deep Systems LLC
  • Edgecase
  • Explosion AI
  • Heex Technologies
  • Labelbox Inc.
  • Lotus Quality Assurance (LQA)
  • Mighty AI
  • Playment
  • Scale Labs
  • Shaip
  • Steldia Services Ltd.
  • Tagtog SP. Z.o.o
  • Trilldata Technologies Pvt. Ltd.
  • Yandex LLC
  • CrowdWorks Inc.

Outsourcing of data labeling solutions and services are most likely to comprise greater than 80% of total revenue in 2022. High growth is anticipated for image/video based data labeling solutions and services, expected to flourish at a 20% CAGR.

Avail customized purchase options for your needs

Revenue Analysis of Data Labeling Solution and Services 2015-2021 vs. Market Outlook 2022-2032

According to Fact.MR- a market research and competitive intelligence provider- demand for data labeling solutions and services experienced an astounding 18% CAGR between 2015 and 2021. Increasing reliance on the virtual space for data collection, classification and assimilation has widened prospects for labeling solutions and services to a very large extent.

Due to the mandatory imposition of a global lockdown, prospects for data labeling solutions and services increased even further during the COVID-19 pandemic. As businesses began shifting extensively to the virtual space, there was increased reliance on machine learning capabilities, for which data labeling solutions are highly important.

With the future of the virtual place cemented firmly, it is unsurprising to discover that the data labeling solution and services industry is expected to take a turn for the better. As more enterprises incorporate advanced analytical capabilities, including big data analytics, augmented reality and IoT, prospects for labeling solutions are set to widen even further. From 2022 to 2032, demand is anticipated to surge 8.4x.

Key Data Labeling Solution and Services Industry Drivers

Extensive Reliance on the Virtual Space Augmenting Need for Data Labeling Solutions

As the 21st century progresses, business leaders and research experts have repeatedly emphasized on the role of big data analytics, blockchain technology, artificial intelligence and machine learning in shaping daily operations. As the amount of data collected keeps expanding, enterprises are discovering ways to accumulate, assimilate and analyze the same in a timely and cost-effective manner.

As the reliance on machine learning becomes mainstream, engineers are looking for ways to identify objects and data more clearly. Data labeling techniques are thus being extensively used to make this data more recognizable and understandable to research stakeholders. Moreover, these annotation tools have made it possible to easily distinguish between important and not so important data.

A growing emphasis on picture annotation is likely to improve the operations of the automotive, retail, and healthcare sectors, driving demand for data labeling technologies. However, the high expenses involved with the manual annotation of complicated photos may limit the market's growth.

An Adaptive Approach to Modern-day Research Needs

Region-wise Analysis

What are the Data Labeling Solutions and Services Growth Prospects in North America?

A Flourishing AI Industry to Widen Expansion Prospects

According to Fact.MR, data labeling solutions and services industry is expected to accumulate 37% of global market revenue. Growth of this industry is majorly attributed to the presence of a robust AI landscape across the continent. Contemporary research requirements have prompted enterprises to incorporate robust virtual capabilities, leading to increased adoption of these services.

As part of the Global Partnership on Artificial Intelligence (GPAI) announced in June 2020, North America strives to advance AI capabilities in a manner consistent with democratic values and human rights. The mandate of the GPAI focuses on project-oriented collaborations, supported by responsible AI, data governance, future of work and commercialization and innovation.

As a founding member, the United States is playing a critical role in guiding the initiative, ensuring it complements the work of key international collaborations, including the Organization for Economic Co-operation and Development (OECD). Such endeavors are widening prospects for data labeling solutions and services.

How Opportunistic are Prospects likely to be in the Asia-Pacific?

Extensive Digital Literacy Penetration to Broaden Growth Opportunities

As living conditions continue to improve, the Asia Pacific is experiencing deepening penetration of digital literacy. This has consequently led to an increase in the ownership of smart gadgets, including laptops, mobile phones and tablets. The past few years have seen a considerable increase in digital literacy, especially in the emerging economies.

Since 2017, the region has experienced considerable growth in several areas of ICT infrastructure, access and use. While mobile cellular coverage is close to 100%, the number of individuals using the internet increased from 38.6% to 44.5% by the end of 2019. Consequently, businesses have incorporated advanced connectivity capabilities to smoothen operations.

Several end use verticals, including automotive, BFSI, IT, healthcare, government and retail services are making extensive usage of data labeling solutions and services, enabling them to streamline workflows and arrive at better output. According to Fact.MR, the region is forecast to flourish at a CAGR of 26% across the 2022-2032 assessment period.

Category-wise Insights

Which Data Labeling Solution and Services Sourcing Type is Highly Preferred?

Outsourcing of Data Labeling Solution and Services to be Most Sought After

Based on sourcing type, outsourced data labeling solution and services shall comprise bulk of the market revenue, accumulating over 80% share as of 2022. This is largely in response to the rising demand for cost-effectiveness and faster turnaround times by enterprises.

Outsourcing of data labeling solution and services enabled organizations to concentrate more on other important operations, including research and data collection. Furthermore, it provides a higher degree of flexibility in terms of developing annotative capacity and solid security protocols.

Will Text-based Data Labeling Solution and Services remain Prominent?

Extensive Reliance on Computer Vision to Encourage Adoption on a Large Scale

By type, text-based data labeling solution and services are expected to remain prevalent, attributed to increasing reliance on computer vision technologies across key industrial verticals. A revenue share of over 35% has been forecast for this segment.

At the same time, image/video based labeling solutions are set to gain significant prominence, given the far-reaching effectiveness of visual representation, especially across domains such as X-rays, CT scans and MRI. According to Fact.MR, the segment is slated to surge at a CAGR of 20% through 2032.

Which Labeling Type is forecast to dominate the Market?

Manual Segment to Enjoy Dominant Share, Automatic Labeling to Gain Traction

Manual data labeling solution and services are expected to account for the dominant market share, at more than 80% in 2022. This method is highly sought after because of its consistency, high integrity and low data annotation efforts. However, this process is often very time consuming and cumbersome.

Hence, automatic data labeling solutions are expected to become more popular, reflecting a robust 17% CAGR across the 2022-2032 forecast period. Automatic data labeling enables extraction of high level and sophisticated abstractions from datasets through a hierarchical learning process.

Which Verticals are expected to be Primary End Users of Data Labeling Solution and Services?

IT Industry, Automotive to make Maximum Usage of Data Labeling Solutions

According to Fact.MR, the IT industry is expected to account for 1/3rd of data labeling solution and services deployment across 2022 and beyond. Growth is majorly attributed to extensive usage of AI in the industry for a multitude of operations.

Simultaneously, the automotive industry is expected to generate lucrative expansion prospects, expected to accelerate at over 25% value CAGR throughout the 2022-2032 forecast period. This technology is likely to be most deployed across autonomous vehicles.

Interested to Procure The Data

Competitive Landscape

Prominent data labeling solution and services providers are focusing on expanding their outreach by virtue of collaborations, partnerships, acquisitions and mergers. Additionally, they are focusing on introducing new labeling technologies to tap into different industrial verticals. Some notable developments in the industry are as follows:

  • In April 2019, Appen Limited acquired Figure Eight, paving the way for a robust training data offering designed to enhance AI capabilities for a wide variety of use cases. This offering is uniquely positioned to deliver on the increasing volume, quality and speed requirements for training data to support business innovations and efficiencies which use ML and AI.
  • In October 2020, CloudFactory Limited launched a new computer vision offering- Data Annotation Solution- which bundles their professionally managed workforce with a market-leading data annotation platform. The offering is aimed at organizations that want a single partner to manage image and video annotations so they can apply their talents and expertise to higher-value work.

Report Scope

Attribute

Details

Historical Data Available For

2015-2021

Projected Forecast Period

2022-2032

Market Analysis

  • US$ Mn for Value
  • Units for Volume

Key Regions Covered

  • North America
  • South America
  • Europe
  • Asia Pacific
  • Middle East & Africa

Key Segments Covered

  • Sourcing Type
  • Type
  • Labeling Type
  • Vertical
  • Region

Key Countries Profiled

  • U.S
  • Canada
  • Brazil
  • Mexico
  • Germany
  • France
  • U.K
  • China
  • Japan
  • India
  • GCC
  • South Africa
  • Turkey

Key Segments Covered in Data Labeling Solution and Services Report

  • By Sourcing Type

    • In-House Data Labeling Solution and Services
    • Outsourced Data Labeling Solution and Services
  • By Type

    • Text-based Data Labeling Solution and Services
    • Image/Video-based Data Labeling Solution and Services
    • Audio-based Data Labeling Solution and Services
  • By Labeling Type

    • Manual Data Labeling Solution and Services
    • Semi-Supervised Data Labeling Solution and Services
    • Automatic Data Labeling Solution and Services
  • By Vertical

    • IT Data Labeling Solution and Services
    • Automotive Data Labeling Solution and Services
    • Government Data Labeling Solution and Services
    • Healthcare Data Labeling Solution and Services
    • Financial Data Labeling Solution and Services
    • Retail Data Labeling Solution and Services
    • Other Vertical Data Labeling Solution and Services

- FAQs -

By 2022, the market for data labeling solution and services is expected to reach US$ 8.8 Bn
From 2015 to 2021, data labeling solution and services demand flourished at an 18% CAGR
As of 2021, the data labeling solution and services market reached US$ 6.8 Bn
As per Fact.MR, data labeling solution and services are expected to garner 37% revenue in 2022
According to Fact.MR, the market in Asia-Pacific is likely to surge at a 26% value CAGR from 2022-2032
Outsourcing of data labeling solutions and services are expected to account for 80% of total market value
Image/Video based labeling solutions are expected to surge at a CAGR of 20% through 2032
Manual data labeling solutions and services will constitute 80% of total revenue
Automotive industry is expected to be the fastest growing vertical, experiencing over 25% CAGR

Need an Exclusive Report for your Unique Requirement?

- Related Reports -

Product Engineering Services Market

[170 Pages Report] Product Engineering Services Market research report Segmented By Service Type (Ne...

Blue Prism Technology Services Market

Blue Prism Technology Services Market expects to reach USD 7,688 Million during 2022-2032 at a robus...

Threat Lifecycle Services Market

Threat Lifecycle Services Market is likely to observe moderate growth throughout 2028 owing to the i...

Cloud Managed Services Market

Cloud Managed Services Market is projected to reach nearly US$ 237 Bn in 2032. Managed infrastructur...

- Our Clients -

Report Client