Data Collection and Labeling Market is expected to reach US$ 9.07 Billion by 2028

Rising Application of AI and ML is Catalyzing the Data Collection and Labeling Market

The data collection and labeling market size is expected to reach US$ 9.07 billion by 2028 and registering at a CAGR of 27.2% between 2022 and 2028, according to a new research study conducted by The Insight Partners.

Source: The Insight Partners Analysis

The widespread adoption of machine learning (ML), artificial intelligence (AI), and big data have been fueling the data collection and labeling market. Data annotators, software, and various processes are integrated to create the base for a ML model. ML models are thus a representation of their input data. Therefore, the quality of data provided to the model will determine the performance of the model. Data can include audio, text, images, or video. Collecting, segregating, and labelling of such data can be a cost and time intensive process. In data labeling, each collected data is provided a unique label which aids in grouping it to a specific type. For instance, all images containing faces of people are separated. Then each individual in those images is identified and name is tagged. This basic process is done for zettabytes of data, containing various identifiers and millions of labels. Depending on the labels attached to a data pointer, ML models identify data vectors and provides a prediction. Any error in data labeling can result in erroneous models. Solutions from data collection and labeling market players can aid in mitigating such challenges and strongly aid in increasing the efficiency of ML models. The growing penetration of smartphones, coupled with rising number of internet users, has been revolutionizing the entire business landscape. Social media marketing is rising and enterprises are strongly utilizing such data for product marketing and business growth. Presently, business intelligence strategies are mostly driven by data collected from various different sources, including social media platforms. Such factors have been strongly boosting data generation and data utilization. This in turn is expected to strongly promote data collection and labeling market.

Innovative solutions provided by data collection and labeling market players have been the key factors the market. There is a growing shift from on-premise solutions to cloud-based solutions. Thus, the development of cloud-based automated image organization has been a strong selling point for data collection and labeling market players. The solution can easily identify and group images, thereby offering a smoother user experience within a fraction of time. Additionally, data collection and labeling market players have been partnering with several enterprises to design and provide custom made solutions. AI-driven data labeling platforms are also witnessing high demand. Heartex, Inc. raised nearly US$ 25 million funding in May 2022 for developing such a platform.

Information technology and retail & e-commerce are some of the largest users of solutions developed by data collection and labeling market players. E-commerce and retail are strongly reliant on social media marketing. Social media platforms are impacting the way consumers research a product, buy an item, and connect with their favorite brands. These digital touchpoints vary how often and quickly consumers share feedback, with their close ones, regarding retail experiences. With increasing digital browsing and purchasing, retail & e-commerce players are increasing their expenditure on data analytics for gaining consumer insights and business insights. IT & telecom industry players are strongly embracing data collection and labeling solutions, primarily to gain competitive edge. Companies such as Quantzig and MVNO Analytics have been aiding IT & telecom industry in gathering insightful data from social media platforms and leveraging the same for business growth. Such trends and factors can be expected to promote the data collection and labeling market growth.

Despite several technological advancements in data collection and labeling market, data cleaning still remains a challenge. Developing machine learning model is a cost intensive process and failure to provide clean and properly labelled data will result in failure of the model. Thus, despite data cleaning challenges, considering the growing demand for ML, the impact of the restraint on the data collection and labeling market growth is expected to become low by the end of the forecast period.

Alegion Inc.; Appen Limited; Dobility, Inc.; IBM Corporation; and Reality Analytics Inc. are among the key data collection and labeling market players profiled during the study. Several other major data collection and labeling market players were studied and analyzed during this research study to get a holistic view of the data collection and labeling market and its ecosystem.

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