Data Annotation Tools Market Size By Data Type (Image/Video [Bounding Box, Semantic Annotation, Polygon Annotation, Lines and Splines], Text, Audio), By Annotation Approach (Manual Annotation, Automated Annotation), By Application (Telecom, BFSI, Healthcare, Retail, Automotive, Agriculture), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Jan 2020  |  Report ID: GMI3823  |  Authors: Preeti Wadhwani, Sachin Kasnale

Report Format: PDF   |   Pages: 230   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Data Annotation Tools Market size exceeded USD 700 million in 2019 and is estimated to grow at a CAGR of over 30% between 2020 and 2026. Human assistance coupled with machine learning capabilities helps seamlessly turn unstructured & raw data into structured & highly useful Business Intelligence (BI) by deploying data annotation tools, augmenting the market growth.
 

Data Annotation Tools Market

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Data annotation tools assist in significant improvement of the training input data used by smart AI models, enabling them to address complex data challenges. The data annotation tools market is witnessing a profound growth as enterprises are rapidly deploying these tools for accurately labeling vast volumes of AI training data.
 

Data labeling tools are enabling automotive manufacturers in developing smart applications for vehicle to vehicle communication (V2X) and connected car technologies such as speech recognition and Natural Language Processing (NLP). Data annotation tool providers are focusing on developing specialized techniques for facilitating the automation of 2D and 3D annotation for sensors and LiDAR data.
 

Data Annotation Tools Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: 700 Million (USD)
Historical Data for: 2015 to 2018 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: Over 30% 2026 Value Projection: 5,500 Million (USD)
Pages: 230 Tables, Charts & Figures: 288
Geographies covered (22): U.S., Canada, UK, Germany, Italy, Spain, France, Netherlands, Nordics, China, India, Japan, South Korea, Australia, Singapore, Brazil, Mexico, Colombia, South Africa, Saudi Arabia, Israel, UAE
Segments covered: Data Type, Annotation Approach, Application and Region
Companies covered (20): Alegion, Inc., Appen Limited, Amazon Web Services, Inc., Clickworker GmbH, CloudApp, Inc., CloudFactory Limited, Cogito, Google LLC, Hive, IBM Corporation, iMerit, Labelbox, Inc., LionBridge AI, Mighty AI, MonkeyLearn Inc., Neurala, Inc., Playment Inc., Samasource Inc., Scale, Inc., Trilldata Technologies Pvt. Ltd., and Webtunix AI.
Growth Drivers:
  • Rising demand for annotated data to improve machine learning models
  • Increasing investments in the development of autonomous driving technologies
  • Growing adoption of data annotation for medical imaging data
  • Surging uptake of text annotation for document classification
Pitfalls & Challenges:
  • Inaccurate data labelling due to poor content quality
  • Lack of skilled professionals
  • High costs associated with manual data annotation

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Growing trend of image/video annotation for entity recognition propelling the data annotation tools market growth

The image/video annotation tools segment held over 45% revenue share in 2019 and is expected to continue its dominance in the data annotation tools market over the forecast timespan. This is attributed to increasing uptake of data annotation tools for labeling image/video to improve entity recognition. They enable the automated identification of image contents and individual frames of videos.
 

For instance, in June 2019, FRITZ AI, a mobile-based machine learning platform provider, launched image labeling tools for identifying skincare diseases by analyzing the images of patients. The other market segments by data type include text and audio-based alternatives.
 

Increased accuracy and high precision driving the uptake of manual annotation tools

Data Annotation Tools Market By Annotation Approach

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The manual annotation segment held a majority of the market share, accounting for over 75% in 2019 due to surging adoption of data tools 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 data.
 

Data annotation service providers are offering innovative data labeling services and annotated healthcare training data validated by medical experts to strengthen their presence in the data annotation tools market and add value to their offerings.
 

For instance, in November 2019, Cogito Tech LLC launched manual data labeling services for dentistry-based images. The company hired experienced medical professionals to accurately label thousands of dental imaging datasets. As enterprises focus strongly on developing new & innovative solutions to cater to the growing market demand, the data labeling tools market will witness a sharp expansion over the forecast timespan.
 

Data annotation tools significantly impacting the APAC automotive sector

APAC Data Annotation Tools Market By Application

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In Asia Pacific, automotive applications of the data annotation tools market are set to grow at nearly 40% CAGR till 2026 as automotive OEMs in the region are leveraging AI for developing self-driving vehicles and connected cars.
 

In August 2018, Toyota invested USD 500 million in Advanced Technologies Group (ATG), a division of Uber focused on the self-driving car program to develop autonomous taxis. ATG utilized these funds for acquiring Mighty AI, a data labeling startup that specializes in autonomous vehicle data annotation.
 

In November 2019, Bessic BasicFinder Beijing Technology, a Chinese data labeling enterprise, which offers custom labeling features for autonomous datasets, launched BasicFinder HIVE privatized data annotation system, which automates the labeling process for large volume LiDAR mapping datasets. As automotive enterprises gradually acknowledge the benefits of high-quality labeled data to develop reliable onboard AI, the market will undergo a rapid growth.
 

Public sector augmenting the adoption of data annotation tools in Europe

Europe Data Annotation Tools Market

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Europe data annotation tools market held over 25% global revenue share in 2019, spurred by growing interest of government agencies and public sector enterprises in leveraging the benefits of data annotation tools for machine learning and data science.
 

In August 2019, the UK government awarded a supplier contract to Appen Limited, an AI service provider, to deliver data annotation services on the UK Government’s digital marketplace. Through this initiative, the government aimed at accelerating the research & development in the field of medical services through the deployment of machine learning & AI. The rising number of data labeling startups in the region has also propelled the growth of the market.
 

Providers such as Appen UK, CloudFactory, and Hive, have created a positive outlook for the market in Europe. These players are offering novel AI solutions & sophisticated BI solutions through high-quality annotated data to increase their market share in a highly competitive landscape.
 

Industry players focusing on new alliances and improving R&D

Prominent players operating in the data annotation tools market are focusing on forging new strategic partnerships to create new profitability avenues and expand their market share. For example, in December 2018, Playment and Scale AI, two major data annotation tools providers, partnered to jointly develop advanced deep learning labeling tools for Ouster, a global manufacturer of high-resolution LiDAR sensors. The partnership helped the companies develop high-performance APIs to quickly and accurately label LiDAR data streamed by Ouster’s sensors.
 

Startups operating in the industry, such as Mighty AI, iMerit and MonkeyLearn, are focusing on developing low-cost data labeling tools with innovative features such as Big Data support and fully automated data labeling to expand their market share.
 

Some of the key players operating in the market include Alegion, Inc., Appen Limited, Amazon Web Services, Inc., Clickworker GmbH, CloudApp, Inc., CloudFactory Limited, Cogito, Google LLC, Hive, IBM Corporation, iMerit, Labelbox, Inc., LionBridge AI, Mighty AI, MonkeyLearn Inc., Neurala, Inc., Playment Inc., Samasource Inc., Scale, Inc., Trilldata Technologies Pvt. Ltd., and Webtunix AI.
 

The data annotation tools market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

By Data Type

  • Image/video
    • Bounding Box
    • Semantic Annotation
    • Polygon Annotation
    • Lines & Splines
  • Text
  • Audio

By Annotation Approach

  • Manual Annotation
  • Automated Annotation

By Application

  • IT & Telecom
  • BFSI
  • Healthcare
  • Retail
  • Automotive
  • Agriculture

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Netherlands
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Singapore
  • Latin America
    • Brazil
    • Mexico
    • Colombia
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa
    • Israel
       

Frequently Asked Questions (FAQ) :

The market size of data annotation tools exceeded USD 700 million in 2019.
The industry share of data annotation tools is estimated to grow at a CAGR of over 30% between 2020 and 2026.
In Asia Pacific, the automotive application segment will grow at nearly 40% CAGR till 2026 as automotive OEMs in the region are leveraging AI for developing self-driving vehicles and connected cars.
The image/video annotation tools segment held over 45% market share in 2019 and is expected to continue its dominance over the forecast timespan.
The Europe market held over 25% global revenue share in 2019, spurred by growing interest of government agencies and public sector enterprises in leveraging the benefits of data annotation tools for machine learning and data science.

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Premium Report Details

  • Published Date: Jan 2020
  • Pages: 230
  • Tables: 259
  • Charts / Figures: 29
  • Companies covered: 20
  • Countries covered: 22

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