The data annotation tools market expected to grow from US$ 897.5 million in 2020 to US$ 6,450.0 million by 2027; it is estimated to grow at a CAGR of 32.54% from 2020 to 2027.
Increasing investments by market players is attributing to the growth of the market. With the growing demand for labelled data, many companies that offer data labelling services are increasingly investing in data annotation. For instance, Alegion, founded in 2012 and headquartered in Austin, Texas, has the most powerful and flexible annotation platform for training data. In August 2019, the company raised US $12 million for data annotation. The investment will accelerate both the expansion of its 75-person team and the integration of advanced technologies into its product portfolio. In addition, iMerit, founded in 2012, focuses on providing high-quality tech-enabled data labelling services to achieve best results from their algorithms. In February 2020, the company invested US$ 20 million to expand its data annotation business. With the invested funds, the company plans to triple its workforce, from 3000 to 10,000 employees. The company will also invest in enhancing innovation for its proprietary AI platform.
Furthermore, Appen (Australia) acquires Figure Eight (San Francisco) for ~US$ 300 million. Figure Eight has machine learning software platform that uses highly automated tools to transform unlabeled text, image, audio, and video data into high-quality AI training data. This acquisition will enhance the development of high-quality, human annotated datasets for machine learning and artificial intelligence; thus, increasing investments by the market players is likely to propel the market growth during the forecast period.
Lucrative Regions in Data Annotation Tools Market
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Market Insights–Data Annotation Tools Market
Increasing Organic Development by Market Players
Crowdsourcing cannot be considered as an option while evaluating, updating, and removing data from structured documents such as medical reports, or related contracts. A better understanding of the information is required to accurately annotate and mark AI details. Data preparation, annotation, and labeling are essential for training AI and machine learning models, which has, in turn, propelled the demand for data annotation tools. Owing to the increasing demand for data annotation, market players are taking part in various organic developments in the field of artificial intelligence, machine learning, image recognition, and robotics for training data. For instance, in April 2019, CloudFactory, one of the global leaders in managing workforce solutions for artificial intelligence (AI), launched a solution and partnered with AI technology providers Hivemind, Labelbox, and Dataloop to tag, label, or annotate data. Similarly, in June 2019, Innodata Inc., founded in 1988, launched data annotation and labeling solutions for enterprises requiring complex training data in AI, which would, in turn, help in managing data annotation and labeling services in key industries such as financial services, legal, healthcare, and pharma.
Annotation Type-Based Insights
Based on annotation type, the data annotation tools market is segmented into manual, semi-supervised, and automatic. The manual segment held the largest market share in 2017.
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Data Annotation Tools Market: Strategic Insights
Market Size Value in US$ 897.5 Million in 2020 Market Size Value by US$ 6450.0 Million by 2027 Growth rate CAGR of 32.54% from 2021-2027 Forecast Period 2021-2027 Base Year 2021
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Data Annotation Tools Market: Strategic Insights
Market Size Value in | US$ 897.5 Million in 2020 |
Market Size Value by | US$ 6450.0 Million by 2027 |
Growth rate | CAGR of 32.54% from 2021-2027 |
Forecast Period | 2021-2027 |
Base Year | 2021 |
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Speak to AnalystPlayers operating in the data annotation tools market are mainly focused on the development of advanced and efficient products.
- In 2020, Google AI has just launched a new version (V6) of their photo dataset Open Images, which includes an entirely new type of annotation called localized narratives.
- In 2019, Appen Limited, launched the Appen secure workspace solution, which provides the right combination of technology, people, and processes to ensure that projects containing sensitive data can be annotated by a global crowd securely, which is likely to use for AI training data annotation.
The data annotation tools market has been segmented as follows:
Data Annotation Tools Market – by Type
- Text
- Image
- Others
Data Annotation Tools Market – by Annotation Type
- Manual
- Semi-Supervised
- Automatic
Global Data Annotation Tools Market – By End User
- Automotive
- Government
- Healthcare
- Financial Services
- Retail
- IT and Telecom
- Others
Data Annotation Tools Market – by Geography
North America
- US
- Canada
- Mexico
Europe
- France
- Germany
- Italy
- Russia
- U.K
- Rest of Europe
Asia Pacific (APAC)
- Japan
- China
- Australia
- India
- South Korea
- Rest of APAC
Middle East and Africa (MEA)
- Saudi Arabia
- UAE
- South Africa
- Rest of MEA
South America (SAM)
- Brazil
- Argentina
- Rest of SAM
Data Annotation Tools Market – Company Profiles
- Appen Limited
- CloudFactory Limited
- Cogito
- Deep Systems
- Google LLC
- Labelbox, Inc
- LIGHTTAG
- Tagtog Sp. z o.o.
- PLAYMENT INC.
- SCALE AI, INC.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type ; Annotation Type ; End-user
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
The List of Companies - Data Annotation Tools Market
- Cogito
- Google LLC.
- Deep Systems
- Appen Limited
- Labelbox, Inc
- LightTag
- PLAYMENT INC
- Scale AI, Inc.
- Tagtog Sp. z o.o.
- CloudFactory Limited
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Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
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We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
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The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
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