Data Collection and Labeling Market Growth, Size, Share, Trends, Key Players Analysis, and Forecast by 2031

The data collection and labeling market size is projected to reach US$ 23.20 billion by 2031 from US$ 2.94 billion in 2023. The market is expected to register a CAGR of 29.5% in 2023—2031. The market growth is fueled by factors such as the widespread adoption of machine artificial intelligence (Al). Big data are likely to remain key data collection and labeling market trends.

Data Collection and Labeling Market Analysis

The data collection and labeling involve the integration of software, processes, and data annotators for cleaning, structuring, and labeling data. Such data forms the base for machine learning (ML) models. ML, when utilized with artificial intelligence (Al) and big data, aids in providing actionable insights from huge datasets that cannot be extracted by traditional data analytic solutions. Since ML models are completely dependent on the quality of data being fed, solutions developed by data collection and labeling market players are witnessing high growth rates globally.

Data Collection and Labeling Market Overview

The widespread adoption of machine artificial intelligence (Al) and big data have been driving the data collection and labeling market growth Internet of Things (loT)-enabled devices are being increasingly used in industrial, commercial, and residential scenarios. The growing penetration of the internet has been fuelling such demand. Businesses are utilizing the data for various purposes, including gathering competitive intelligence, promoting their products, improving manufacturing activities, and streamlining the supply chain. Such factors have been promoting the need for proper data collection and labeling solutions, which in turn have been fuelling the data collection and labeling market.

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Data Collection and Labeling Market Drivers and Opportunities

Increasing Implementation of AI and ML to Favor Market

There are many fields of AI, each working with a different type of data and requiring different data labeling types. The most common fields are computer vision for image and video, natural language processing (NLP) for text, and audio processing for speech recognition. Utilizing visual data from photos and videos, a computer vision model is constructed to recognize, categorize, and extract additional information about items that are included in the data. For this kind of model, labeling photos is part of the data labeling process, just like in the previous example. After that, the labeled data would be used to train the computer vision model to classify images, identify important things in an image, or recognize an object's position. NLP is a branch of AI that gives models the ability to understand natural language as it is spoken or written. This form of data labeling requires labelers to identify important sections of text or tag text with specific labels to train the model. The model would then develop the ability to understand and interpret the text, even when it's worded slightly differently.

Demand for high-quality labeled data in industries like autonomous vehicles and healthcare.

The data collection and labeling market is anticipated to experience some immersing opportunities by recognizing the increasing demand for high-quality labeled data in various industries such as autonomous vehicles and healthcare. Its advantages such as developing efficient labeling tools, expanding into emerging markets, and offering specialized labeling services.

Data Collection and Labeling  Market Report Segmentation Analysis

Key segments that contributed to the derivation of the data collection and labeling market analysis are data type and vertical.

• Based on data type, the data collection and labeling market is divided into text image/video and audio. The text segment is anticipated to grow in the forecast period.
• By vertical, the market is segmented into information technology, automotive, government, healthcare, BFSI, retail, and e-commerce, among others. The on-premise segment is anticipated to grow in the forecast period.

Data Collection and Labeling Market Share Analysis by Geography

The geographic scope of the data collection and labeling market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. North America has dominated the data collection and labeling market. High technology adoption trends in various industries in the North American region have fuelled the growth of the data collection and labeling market. Factors such as The dominance of North America in the data collection and labeling industry are majorly due to widespread penetration of the internet, a large smart gadget user base, and the presence of a large number of market players. Some of the key market players in the region include Alegion Inc., IBM Corporation, and Reality Analytics Inc. These data collection and labeling market players witness constant demand from various enterprises across different industry verticals. All these factors contribute to the region's growth of the data collection and labeling market.

Data Collection and Labeling Market Regional Insights

The regional trends and factors influencing the Data Collection and Labeling Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Data Collection and Labeling Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Data Collection and Labeling Market Report Scope

Data Collection and Labeling Market Players Density: Understanding Its Impact on Business Dynamics

The Data Collection and Labeling 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 Collection and Labeling Market are:

1. Alegion Inc.
2. Appen Limited
3. BasicAl, Inc
4. Cogito Tech LLC
5. Global Technology Solutions
6. Globalme Localization Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

Data Collection and Labeling Market News and Recent Developments

The data collection and labeling 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:

• In May 2022, DataRobot partnered with Labelbox to Bring Best-In-Class Unstructured Data Labeling Capabilities to the AI Platform. The leading provider of unstructured data labeling capabilities. Labelbox’s technology reduces the time required to label complex datasets by 5-10 times, allowing a small team to no longer need to iterate for months to deliver accurate training data for high model performance.

(Source: DataRobot, Press Release, 2022)

Data Collection and Labeling Market Report Coverage and Deliverables

The “Data Collection and Labeling Market Size and Forecast (2024–2031)” report provides a detailed analysis of the market covering the following areas:

• Data collection and labeling market size and forecast at global, regional, and country levels for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities

Data collection and labeling market trends.

• Detailed PEST/Porter’s Five Forces and SWOT analysis.
• Data collection and labeling covering key market trends, Global and regional framework, major players, regulations, and recent market developments.
• Data collection and labeling industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments.
• Detailed company profiles