The Global Data Annotation Tools Market size is expected to reach $2.3 billion by 2027, rising at a market growth of 24.4% CAGR during the forecast period. A data annotation tool refers to a cloud-based, containerized, or on premise software solution that helps in annotating production-grade training datasets for machine learning. There are a few companies that adopt a do-it-yourself approach and develop their own equipment; however, several data annotation tools are accessible through open source or freeware that are adopted by many organizations. These solutions are provided commercially for purchase and lease. Data annotation tools are mainly developed for their usage in some specific kinds of data, like video, image, audio, spreadsheet, text, or sensor data. In addition, these tools also provide various deployment models that include on premise, SaaS (cloud), container, and Kubernetes.
In the machine learning domain, the process of labelling data to demonstrate the result a company want its machine learning model to forecast is termed as data annotation. Under this process, a dataset is labeled, marked, transcribed, tagged, or processed with the required features by its machine learning system to learn to identify. After the implementation of the model, the system identifies those features itself and responds to them. Annotated data uncovers features, which would train a company’s algorithms to recognize those same features in the dataset that has not been annotated. Data annotation is majorly utilized in supervised learning & hybrid, machine learning models, or semi-supervised, which include supervised learning.
The outbreak of the global covid-19 pandemic has affected every domain of society be it individuals or businesses. The several impositions rolled out by the governments across the globe to curb the spread of the coronavirus have disturbed the global supply of goods & services. The nationwide lockdown and temporary shutdown of the manufacturing units in the pandemic have resulted in the decreased labor on the supply side and a reduction in the demand for products & services on the other side.
All such restrictions have negatively affected the data annotation tools market. In addition, owing to the declining GDP, the market would witness a negative impact on the growth of the data annotation tools market. Though, it is estimated that the economy will get back on track and hence the data annotation tools market will also register a significant demand.
Based on Type, the market is segmented into Text, Image/Video and Audio. The text segment acquired the highest revenue share in the data annotation market in 2020. The image/video annotation segment is projected to witness a significant growth rate during the forecast period. Some of the key applications of image data annotation are in the medical sector in the domain of medical imaging. The text segment is anticipated to exhibit a substantial CAGR during the forecast period due to the increasing applications of data annotation tools in clinical research and e-commerce applications. The audio segment is projected to garner the fastest growth rate during the forecast period.
Based on Annotation Type, the market is segmented into Manual, Semi-supervised and Automatic. The manual segment procured the largest revenue share in the data annotation market in 2020. Manual data annotation refers to the process of annotating or labeling any generated dataset by humans. This approach is gaining traction owing to its advantages like high level of integrity, precision, minimal data annotation efforts, and more chance of generating intriguing insights related to the data in comparison to automatic annotation that could be combined into an algorithm in the future. Though, manual annotation is costly and time-consuming, thus labeled data collected via crowd sourcing activities are utilized for several applications.
Based on Industry, the market is segmented into IT, Automotive, Retail, Healthcare, Financial Services, Government and Others. The automotive market segment is estimated to witness the fastest growth rate during the forecast period. It is due to the wide acceptance of data annotation tools in self-driving vehicles. The increasing investment in R&D activities in order to improve the image annotation for boosting the developments in the area of self-driving vehicles would surge the growth of the market.
Report Attribute | Details |
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Market size value in 2020 | USD 475.1 Million |
Market size forecast in 2027 | USD 2.3 Billion |
Base Year | 2020 |
Historical Period | 2017 to 2019 |
Forecast Period | 2021 to 2027 |
Revenue Growth Rate | CAGR of 24.4% from 2021 to 2027 |
Number of Pages | 228 |
Number of Tables | 390 |
Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
Segments covered | Type, Annotation Type, Industry, Region |
Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
Growth Drivers |
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Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. North America emerged as a dominant region with the largest revenue share in the data annotation tools market in 2020. This growth is attributed to the quick product & geographical expansion strategy adopted by the key market players to achieve a competitive edge in the market.
Free Valuable Insights: Global Data Annotation Tools Market size to reach USD 2.3 Billion by 2027
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Google, Inc., Amazon.com, Inc., Uber Technologies, Inc. (Mighty AI, Inc.), Appen Limited, Scale AI, Inc., Labelbox, Inc., Annotate Software, Cogito Tech LLC, Deep Systems, and Playment, Inc.
By Type
By Annotation Type
By Industry
By Geography
The data annotation tools market size is projected to reach USD 6.6 billion by 2027.
The increasing applications of data annotation over several sectors are driving the market in coming years, however, more time-consuming process have limited the growth of the market.
Google, Inc., Amazon.com, Inc., Uber Technologies, Inc. (Mighty AI, Inc.), Appen Limited, Scale AI, Inc., Labelbox, Inc., Annotate Software, Cogito Tech LLC, Deep Systems, and Playment, Inc.
Though, it is estimated that the economy will get back on track and hence the data annotation tools market will also register a significant demand.
North America dominated the market in 2020.
The Asia Pacific is projected to procure the highest growth rate during the forecast period.
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