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), COVID19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Published Date: May 2021  |  Report ID: GMI3823  |  Authors: Preeti Wadhwani, Smriti Loomba

Report Format: PDF   |   Pages: 297   |   Base Year: 2020

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Data Annotation Tools Market size exceeded USD 1 billion in 2020 and is set to grow at a CAGR of over 30% between 2021 and 2027. Rapid deployment of data annotation tools by enterprises for accurately labeling vast volumes of AI training data is likely to drive industry growth. 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 market expansion.

Data Annotation Tools Market

Get more details on this report - Request Free Sample PDF

The importance of data annotation tools in the healthcare industry 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 in the midst of the pandemic to deal with an unprecedented wave of new infections coupled 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, boosting the data annotation tools market growth.

The growing importance of high-quality, well-labeled input data to enhance the accuracy of machine learning algorithms is spurring the industry demand. Data labeling tools convert large volumes of unstructured data into structured information, assisting in the development of sophisticated AI applications such as facial recognition, natural language processing, and marketing automation.

Growing trend of image/video annotation for entity recognition propelling the France market revenue

France Data Annotation Tools Market Share, By Data Type

Get more details on this report - Request Free Sample PDF

In France, the image/video annotation tools segment held a substantial market share of around 50.12% in 2020 and is expected to continue its dominance over the forecast timespan. Increasing uptake of data annotation tools for labeling image/video to improve entity recognition is driving the segment demand. 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 surging the uptake of data annotation technologies across the regional market.

Increased accuracy and high precision fueling the manual data annotation tools market in the U.S.

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

Get more details on this report - Request Free Sample PDF

The manual data annotation segment in the U.S. held the majority of the market, accounting for over USD 277.49 million in revenues in 2020 due to the surging adoption to ensure high-quality input data. Manually labeled data is less prone to errors owing to the involvement of highly trained domain experts, who can handle complex data labeling scenarios, where machine-based algorithms would perform poorly.

As enterprises focus strongly on developing new & innovative solutions to cater to the growing market demand, the data annotation tools market will witness a sharp expansion from 2021 to 2027. For instance, Cogito Tech LLC is offering manual data labeling services for dentistry-based images, with experienced medical professionals to accurately label thousands of dental imaging datasets.

Data annotation tools are profoundly impacting the Japanese automotive market expansion

In Japan, the automotive segment is poised to expand at more than 35% CAGR 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 companies in developing smart applications for 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 of up to 20 meters.

Public sector investment catalyzing the European market growth

Europe Data Annotation Tools Market Share, By Country

Get more details on this report - Request Free Sample PDF

Europe captured above 25% of the data annotation tools market revenue share in 2020 and is likely to continue its dominance through 2027. 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 revenue.

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 industry growth.

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

Industry participants 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.

Some of the key data annotation tools market players 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.

This market research report on data annotation tools 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

Frequently Asked Questions (FAQ) :

Data annotation tools market size had exceeded USD 1 billion in 2020 and will witness a CAGR of over 30% through 2027.
In France, image/video annotation tools segment had held a market share of about 50.12% in 2020 and will grow with increasing demand for data annotation tools for labeling image/video to enhance entity recognition.
Manual data annotation segment in the U.S. had recorded a valuation of over USD 277.49 million in 2020 on account of rising product adoption to ensure high-quality input data.
Data annotation tools market will witness CAGR of over 35% through 2027 from Japanese automotive segment as the regional manufacturers are transitioning towards incorporating AI for developing self-driving vehicles and connected cars.
Europe data annotation tools market had accounted for over 25% revenue 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.

Premium Report Details

  • Published Date: May 2021
  • Pages: 297
  • Tables: 327
  • Charts / Figures: 49
  • Companies covered: 20
  • Countries covered: 22

Get a report that explains COVID-19 impact on this market

Buy NowImmediate delivery available

Need a Discount? Get in touch with us for special pricing

Request Discount

 Connect with our sales team

Chat with us
We use cookies to enhance user experience. (Privacy Policy) X