32.54% Global CAGR for Data Annotation Tools Market Market to achieve US$ 6450.0 Mn by 2027

COGITO, APPEN LIMITED, SCALE AI INC., LABELBOX, INC, AND CLOUDFACTORY LIMITED – PROMINENT MARKET PARTICIPANTS IN DATA ANNOTATION TOOLS MARKET

Data annotation includes the process of labelling/tagging video, images, text, and speech. For machine learning, precisely labeled datasets are needed, so that machines can easily and clearly understand the input patterns. When the dataset is precisely labelled, an accurate output can be expected. Chatbots and virtual assistant devices solve user queries and can give information about a specific product, services, weather conditions, as well as latest news updates of a particular city or country. Web search engines also provide relevant results as per the past searching behavior of end users. The data annotation tools market operates in a highly fragmented and competitive marketplace. As leading companies in this market continue to broaden its addressable market, by expanding its current offerings, diversifying its client base, all the prominent players face an increasing level of competition, both from start-ups as well as the leading established companies in the globe. Several companies in the value chain are acquiring other players in the market to maintain their position in the market and provide efficient services to its customers. Major companies of data annotation tools providers are based in North America and mainly the US. However, the market is penetrating at a high growth rate in the APAC region.

The global market for data annotation tools has been segmented into five major regions— North America, Europe, APAC, MEA, and SAM. In 2018, North America led the global data annotation tools market with more than 35% revenue share, followed by Europe and Asia Pacific regions, respectively. North America region is characterized by the presence of well-developed countries such as the US and Canada, a strong industry base, and high technology adoption. The rising adoption of technologies in various industries is increasing the adoption of data annotation tools. The wide application of data annotation in various sectors like automotive, retail, healthcare and others is driving the Data Annotation tools market in the North America region. Autonomous cars are becoming popular among the population in North America.

In 2018, Europe held the second position with a revenue share and it is anticipated to grow with a steady growth rate from 2020 to 2027. The region is anticipated to witness growth owing to growing autonomous cars industry in Germany and other countries. In terms of growth rate, APAC is leading the market during the forecast period of 2020 to 2027. The APAC comprises of nations such as China, India, Japan, South Korea, Australia, and others. The presence of fast-growing countries, rising technology adoption, and rapidly growing industries like healthcare and automotive are major factors that are expected to drive the growth of data annotation tools in the APAC region. Other developing regions such as MEA and SAM are also projected to grow at a steady pace, owing to the increasing adoption of data annotation in healthcare.

The top five companies in the data annotation tools market Cogito, Appen Limited, SCALE AI INC., Labelbox, Inc, and CloudFactory Limited. The above listing of key players is derived by considering multiple factors such as overall revenue, current data annotation tools portfolio, new product launches, market initiatives, investment in technology up gradation, mergers & acquisitions and other joint activities. There are various other notable players in the global data annotation tools market such as, Deep Systems, Google LLC, LIGHTTAG, Tagtog Sp. z o.o., and PLAYMENT INC.

Most of the market initiatives were observed in North America and APAC region, which have a high potential of data annotation tools market-related service providers. Few of the important market initiatives and product developments from the industry are mentioned below: