The data annotation tools market size is projected to reach US$ 7.92 billion by 2031 from US$ 1.58 billion in 2023. The market is expected to register a CAGR of 22.3% in 2023–2031. The emergence of advanced annotation tools, such as computer vision and natural language processing (NLP), is likely to remain a key data annotation tools market trends.
The data annotation tools market is growing at a rapid pace due to the growing adoption of AI in the healthcare industry and the increasing large volume of data generated by advanced technologies such as ML, IoT, advanced predictive analytics, AI, and robotics. The market is expanding steadily, driven by the increasing demand for self-service applications. Moreover, the increasing adoption of data annotation tools by organizations and the growing deployment of next-generation data annotation tools by industries are providing lucrative opportunities for market growth.
Data annotation tools are often built utilizing a mix of data science techniques and software development. The process begins with the selection of appropriate data samples for annotation, which are subsequently labeled or annotated by either human annotators or automated algorithms. Annotations can take the form of bounding boxes, key points, polygons, or text labels, depending on the type of data being annotated. Data annotation tools are essential in artificial intelligence and machine learning projects, as they support users in the labeling and annotation of data, making it suitable for training ML algorithms. These technologies are necessary for applications such as object detection, text categorization, image segmentation, and speech recognition. Significant benefits offered by data annotation tools such as zooming, resizing, and panning increase its adoption among organizations, hence driving the market.
Data annotation plays an important role in improving Al applications used in the healthcare industry. In medical imaging data technology, Al-powered systems use computer vision or machine vision to identify probable injuries and patterns, allowing health practitioners to automatically write reports once the patient has been analyzed. AI is used to quickly examine a database of X-ray images, CT scans, and MRI scans for diagnoses of various injuries. Data annotation tools help Al-based systems separate data acquired from average and injured medical photographs in order to generate the final reports of the examined individuals. This increases the adoption of data annotation tools for enhancing Al applications in the healthcare industry.
The effectiveness of automated data annotation tools and the growing usage of cloud computing to annotate large datasets are creating opportunities in the market. Businesses use data annotation tools to improve accuracy and manage their staff. AI-based data annotation tools have automated capabilities, which increases its adoption among organizations for workforce management. Data annotation tools are integrated with significant workforce management features, including task assignment and productivity analytics, which measure the amount of time spent on each job or subtask.
Data annotation tools provide organizations with a comprehensive method for managing the datasets and workflow. These tools support organizations in investigating, importing, and handling the large volume of data and file formats they need to label, which is expected to create opportunities for the market during the forecast period.
Key segments that contributed to the derivation of the data annotation tools market analysis are type, automation types, and end-user.
The geographic scope of the data annotation tools market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
In terms of revenue, the North America market accounted for the largest data annotation tools market share, due to the growing popularity of data labeling tools and increasing usage of AI and machine learning technologies by enterprises. Many organizations in North America use data labeling technology to ensure high-quality data input is driving the market. Moreover, the evolution of AI and deep learning technologies is boosting the market in the region.
The regional trends and factors influencing the Data Annotation Tools Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Data Annotation Tools Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 1.58 Billion |
| Market Size by 2031 | US$ 7.92 Billion |
| Global CAGR (2023 - 2031) | 22.3% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Data Annotation Tools Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Data Annotation Tools Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The data annotation tools market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for data annotation tools and strategies:
The “Data Annotation Tools Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
The incremental growth expected to be recorded for the global data annotation tools market during the forecast period is US$ 6.33 billion.
The key players holding majority shares in the global data annotation tools market are Appen Limited, CloudFactory Limited, Cogito, Keylabs.ai LTD, and Google LLC.
The global data annotation tools market is expected to reach US$ 7.92 billion by 2031.
The emergence of advanced annotation tools, such as computer vision and natural language processing (NLP), to play a significant role in the global data annotation tools market in the coming years.
The growing adoption of AI in the healthcare industry and the increasing large volume of data generated by advanced technologies such as ML, IoT, advanced predictive analytics, AI, and robotics are the major factors that propel the global data annotation tools market.
The global data annotation tools market was estimated to be US$ 1.58 billion in 2023 and is expected to grow at a CAGR of 22.3% during the forecast period 2023 - 2031.