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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 (IT & Telecom, BFSI, Healthcare, Retail, Automotive, Agriculture), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

  • Report ID: GMI3823
  • Base Year: 2020
  • Report Format: PDF

Industry Trends

Data Annotation Tools Market size surpassed USD 1 billion in 2020 and is predicted to grow at a CAGR of over 30% between 2021 and 2027.
 

The market growth is attributed to the rapid deployment of data annotation tools by enterprises for accurately labeling vast volumes of AI training data. The increasing efficiency of automated data annotation tools and support for handling big data on cloud and Hadoop platforms along with the growing use of cloud-based computing resources to annotate large datasets will create new opportunities for the market expansion.
 

Data Annotation Tools Market

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The importance of data annotation tools in the healthcare sector has become even more paramount, considering the second wave of COVID-19 that has hit the world again. The healthcare industry is under enormous pressure during the pandemic to deal with unprecedented wave of new infections along with taking care of admitted patients in near-full hospitals. Data annotation tools are vastly aiding the healthcare sector in detecting COVID-19 hotspots, predicting new patient inflow, and ensuring timely supply of critical medicines and medical care equipment.
 

Growing trend of image/video annotation for entity recognition in France

France Data Annotation Tools Market Share, By Data Type

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The image/video annotation tools segment held a substantial France market share of over 50% in 2020, due to increasing uptake of data annotation tools for labeling image/video to improve entity recognition. Image/video labeling tools enable the automated identification of image contents and individual frames of videos. The French government has forged partnerships with Samsung, Fujitsu, and DeepMind, which are expected to surge the uptake of data annotation technologies across the regional market.
 

Increased accuracy and high precision will drive demand for manual data annotation tools market in the U.S.

U.S. Data Annotation Tools Market Size, By Annotation Approach

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In the U.S. market, the manual data annotation segment revenue was more than USD 277 million in 2020, owing to the surging adoption of manual data annotation 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.
 

Data annotation tools are profoundly impacting the Japanese automotive sector expansion

The automotive application segment in the Japan data annotation tools market is expected to register around 35% growth rate through 2027, as the automotive manufacturers in the region are transitioning toward leveraging AI for developing self-driving vehicles and connected cars. Toyota has already 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.
 

Data labeling tools are enabling automotive manufacturers in developing smart applications for the vehicle-to-vehicle communication (V2X) and connected car technologies such as speech recognition and Natural Language Processing (NLP). For instance, Mitsubishi Electric Corporation is leveraging data annotation techniques to create a high precision 3D map, which is claimed to be accurate up to 25 centimeters, compared to GPS maps, which have an accuracy up to 20 meters.
 

Public sector investment catalyzing the European market growth

Europe Data Annotation Tools Market Share, By Country

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Europe data annotation tools market accounted for 25% revenue share in 2020. The growing interest of government agencies and public sector enterprises in leveraging the benefits of data annotation tools for machine learning and data science is augmenting the regional market demand.
 

For instance, the UK government awarded a supplier contract to Appen Limited 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 & artificial intelligence technologies. The rising number of data labeling startups in the region has also propelled the growth of the market.
 

Continuous developments in novel AI technologies to be the key market differentiator

Some of the key companies operating in the market include Appen Limited, Amazon Web Services, Inc., Clickworker GmbH, CloudApp, Inc., CloudFactory Limited, Cogito Tech LLC, Dataturks, Google LLC, Hive, IBM Corporation, iMerit, Labelbox, Inc., LionBridge AI, MonkeyLearn Inc., Neurala, Inc., Playment Inc., Samasource Inc., Scale, Inc., and Webtunix AI.
 

The industry players are laying emphasis on forging strategic alliances and improving their research capabilities to offer new solutions and provide regular software updates, strengthening their market position and gaining a competitive edge.
 

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.
 

The data annotation tools market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:

Market, By Data Type

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

Market, By Annotation Approach

  • Manual Annotation
  • Automated Annotation

Market, By Application

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

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

 

Authors: Preeti Wadhwani, Smriti Loomba

Frequently Asked Questions (FAQ) :

The market size of data annotation tools surpassed USD 1 billion in 2020 and is predicted to grow at a CAGR of over 30% between 2021 and 2027.

The image/video annotation tools segment held a substantial France market share of over 50% in 2020, due to increasing uptake of data annotation tools for labeling image/video to improve entity recognition.

Europe accounted for 25% market share in 2020, due to growing inclination of government agencies and public sector enterprises towards leveraging the benefits of data annotation tools for machine learning and data science.

In the U.S. market, the manual data annotation segment revenue was more than USD 277 million in 2020, owing to the surging adoption of manual data annotation tools to ensure high-quality input data.

The automotive application segment in the Japan market is expected to register around 35% growth rate through 2027, according to the analysts at GMI.

Some of the key companies operating in the market include Appen Limited, Amazon Web Services, Inc., Clickworker GmbH, CloudApp, Inc., CloudFactory Limited, Cogito Tech LLC, Dataturks, Google LLC, Hive, IBM Corporation, iMerit, Labelbox, Inc., LionBridge AI, MonkeyLearn Inc., Neurala, Inc., Playment Inc., Samasource Inc., Scale, Inc., and Webtunix AI.

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Premium Report Details

  • Published Date: May 2021
  • Companies covered: 20
  • Tables & Figures: 376
  • Countries covered: 22
  • Pages: 297

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