Data Annotation Tools Market

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Data Annotation Tools Market

Data Annotation Tools Market to Reach US$ 10.2 Bn by 2032, driven by rising demand for annotated data to improve machine learning models: Global Insight Services

New York, April 2023: According to a new research study by Global Insight Services (GIS), the global Data Annotation Tools market is expected to grow rapidly over the next 10 years to reach a value of more than the US $ 10.2 Billion by 2032.

Data annotation tools are software programs that allow users to label and categorize data for machine learning algorithms. The most common types of data annotation tools are image annotation tools and video annotation tools. Image annotation tools allow users to label images for object detection, classification, and segmentation tasks. Video annotation tools allow users to label video data for tasks such as action detection and recognition.

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Data Annotation Tools Market: Key Trends and Drivers

The growing importance of high-quality and well-labeled input data for augmenting the accuracy of machine learning algorithms is likely to drive the industry growth. Data annotation tools are highly suited for situations where unlabeled data is available in large volumes and will create new opportunities for the market expansion. Moreover, increasing need for data annotation tools to support the increasing volume of data coupled with the increasing number of data annotation tool providers.

Data Annotation Tools Market: Restraints & Challenges

One of the key restraints in the data annotation tools market is the need for high initial investment. Data annotation tools require significant investment in terms of hardware, software, and trained personnel. In addition, data annotation is a time-consuming process, which can further increase the overall cost. Another key challenge in the data annotation tools market is the lack of skilled personnel. Data annotation is a highly technical process that requires trained personnel to achieve desired results. The lack of skilled personnel can hamper the adoption of data annotation tools, especially in small and medium enterprises.

Data Annotation Tools Market Report Findings

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The image/video segment is likely to hold a dominant Data Annotation Tools market share and grow at a substantial CAGR during the forecast period.

By data type, the market is segmented into image/video, text, and audio. The image/video segment accounted for significant market share in 2021 and is expected to register lucrative CAGR over the forecast period. This is attributed to the increasing uptake of data annotation tools for labeling image/video to improve entity recognition. With the continuously evolving machine learning landscape in the region, data annotation tool vendors are developing new technologies for improving the accuracy of annotated images/videos and delivering high precision datasets for AI-based applications.

The manual annotation segment is anticipated to hold a majority of the Data Annotation Tools market size throughout the study period.

By annotation approach, the data annotation tools market is classified into manual annotation, and automated annotation. The manual annotation segment accounted for significant revenue in 2021. This is due to surging adoption to ensure high-quality input data. Manually labeled data is less prone to errors due to the involvement of highly trained domain experts, who can handle complex data labeling scenarios, where machine-based algorithms would perform poorly. Medical image labeling requires the expertise of specialist medical professionals in cases where the machine learning systems cannot accurately label the data. Data annotation service providers in the China are offering innovative data labeling services & annotated healthcare training data validated by medical experts to strengthen their market presence and add value to their offerings. As enterprises focus strongly on developing new & innovative solutions to cater to the growing demand, the market will witness a sharp expansion.

The automotive segment is anticipated to hold a majority of the Data Annotation Tools market size throughout the study period.

The end-use segment of the market is bifurcated into IT & telecom, BFSI, healthcare, retail, automotive, agriculture, and others. The automotive are expected to register highest CAGR between 2023 and 2032. The automotive manufacturers are transitioning toward leveraging AI for developing self-driving vehicles and connected cars. A gradual shift of the U.S. automotive industry toward full autonomy has been fueled with the development in AI and ML technologies, which make heavy use of labeled data to deploy self-driving mechanisms. The accurately labeled data assists on-board AI to make instantaneous decisions during complex road situations, avoiding major accidents and object collision. For instance, in December 2021, Tesla launched a new auto labeling tool for its self-driving vehicles. The auto labeling tool is able to use an extensive data set to improve its neural nets powering suite of autopilot feature. As automotive enterprises gradually acknowledge the benefits of high-quality labeled data to develop reliable onboard AI, the market will undergo a rapid growth.

The Asia Pacific region is estimated to exhibit the highest growth rate during the Data Annotation Tools market forecast period.

Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. Asia Pacific data annotation tools market revenue is poised to grow significant CAGR during the forthcoming years. Rapid growth of IT infrastructure, increasing number of data labeling start-ups, and wide-scale adoption of AI technologies have accentuated the regional market growth. With improvement in ICT landscape, abundance of skilled workforce, and increasing awareness regarding reliable training data among AI-related SMEs, the region is projected to become a major potential market. For instance, in June 2021, ByteBridge launched the world’s first mobile 3D cloud point data labeling service, which is the collaboration of various dots spread around 3D space. It is widely used for product development & analysis in aerospace, traffic, and others.

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Competitive Landscape

The global Data Annotation Tools market report includes players such as Annotate.com, Appen Limited, CloudApp, Cogito Tech LLC, Deep Systems, Labelbox, Inc., LightTag, Lotus Quality Assurance, Playment Inc., and Tagtog Sp. z o.o. among others.

Recent Developments in the Data Annotation Tools Market:

In June 2021, ByteBridge launched the world’s first mobile 3D cloud point data labeling service, which is the collaboration of various dots spread around 3D space. It is widely used for product development & analysis in aerospace, traffic, and other.
In June 2020, SuperAnnotate raised USD 3 million in venture funding. The investment was led by Point Nine Capital and used to speed up data labeling capabilities.

Data Annotation Tools Market Report Coverage

The report offers a comprehensive quantitative as well as qualitative analysis of the current global Data Annotation Tools market outlook and estimations from 2022 to 2032, which helps to recognize the prevalent opportunities.
A thorough analysis of market trends and restraints is provided.
Region-wise, as well as country-wise conditions, are broadly evaluated in this report.
The forecasts in this report are made by examining the recent trends along with future Data Annotation Tools market potential from 2022 to 2032 in terms of revenue.
Porter’s five forces analysis, SWOT analysis, COVID-19 impact analysis, Russia-Ukraine war impact, and PESTLE analysis of the Data Annotation Tools market are also analyzed.
Major players in the market are profiled in this report and their key developmental strategies are studied in detail. This will provide an insight into the competitive landscape of the global kidney stones management market.

Global Data Annotation Tools Market Segmentation

By Data Type

Image/video
Text
Audio

By Annotation Approach

Manual Annotation
Automated Annotation

By End-use

IT & Telecom
BFSI
Healthcare
Retail
Automotive
Agriculture
Others