Data Annotation Tools Market size worth over $7 Bn by 2027
Published Date: May 11, 2021 Authors: Preeti Wadhwani, Smriti Loomba
Data Annotation Tools Market size is set to surpass USD 7 billion by 2027, according to a new research report by Global Market Insights, Inc.
Growing trend of leveraging AI technologies for document categorization and classification is likely to drive the data annotation tools industry demand. Annotated text data enables enterprises in streamlining workflows, minimizing delays, and eliminating bottlenecks caused due to manual document classification. With growing volumes of textual data and the increasing importance of accurately classifying documents, data annotation tools are rapidly gaining traction as viable solutions for document labeling.
Due to the COVID-19 pandemic, the data annotation tools market is witnessing portfolio innovations and expansions. In November 2020, Microsoft Corporation enhanced its Azure Cognitive service with an integrated data annotation tools and text analytics service along with support for regional languages. Data annotation tools providers have also launched several tools for medical data labeling and multilingual communication to combat the COVID-19 pandemic, creating a positive market outlook for data annotation tools.
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The rising emphasis on enhancing research capabilities across the healthcare industry is fueling the data annotation tools market growth
Healthcare enterprises are increasingly adopting data labeling solutions for annotating vast volumes of patient medical records, leading to improved AI-based diagnosis and medical care. Accurately annotated medical images/videos can assist healthcare institutes in implementing advanced AI technologies to provide medical conclusions without any direct human input. For instance, several AI algorithms have exhibited greater accuracy than human experts with over 95% correct results compared to 86.6% detected by medical professionals. With the continuously rising uptake of data annotation tools for developing automated diagnosis systems, the market is expected to exhibit a sharp increase.
The audio labeling segment to grow impressively with developments in speech recognition
The audio data annotation tools market accounted for over 15% share in 2020 on account of the increasing deployment of audio training data to develop sophisticated speech recognition applications such as virtual assistants, speech-to-text programs, and chatbots. For instance, high-performance automated data labeling tools are assisting Amazon in transitioning from conventional supervised learning models to fully unsupervised transcribing & annotation algorithms, vastly improving the performance and user experience of Alexa assistant.
Browse key industry insights spread across 297 pages with 327 market data tables and 49 figures & charts from the report, “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” in detail along with the table of contents:
Increasing volume of training datasets to propel the deployment of automated annotation
The automated annotation segment is set to witness a rapid growth rate of nearly 35% from 2021 to 2027owing to the growing importance of automated data labeling tools in handling large volumes of raw unlabeled data, which are too complex and time-consuming to be annotated through manual labeling approaches.
Fully automated data labeling can quickly and accurately convert datasets into high-quality input training data, assisting enterprises in accelerating the development cycle of their AI-based projects. As the manual data labeling process is time-consuming and more prone to errors, automated data labeling solutions can address these issues by precisely annotating data without issues of fatigue or errors.
Demand for cognitive computing in the telecom sector to propel data annotation tools market growth
The IT & telecom sector is likely to see exponential growth in the adoption of data annotation tools with increasing investments in machine learning and AI. According to the latest report published by the World Mobile Congress, more than 76% of the global telecom enterprises are focusing on integrating AI & related technologies into their business operations by 2021. Data labeling tools assist telecom enterprises in processing and analyzing data for a variety of applications including customer experience, network automation, business process automation, launching of innovative digital services, and timely maintenance of infrastructure.
Increasing number of AI startups fueling the uptake in North America
North America data annotation tools market is set to account for around USD 400 million in terms of revenues by 2027 impelled by surging adoption of data labeling technologies in the AI industry. Growth in the region has benefited strongly due to the presence of leading AI and ML corporations such as Google, Microsoft, Facebook, and Amazon. These enterprises are leveraging data annotation tools to develop and sell AI as a core product along with integrating AI technologies into their business operations to complement the value chain.
Focus on strengthening core AI competencies by key players to augment market share
Data annotation tools industry participants are emphasizing on forging strategic alliances and improving their research capabilities to offer new solutions and provide regular software updates, thus strengthening their market position and gaining a competitive edge. For instance, in October 2020, CloudFactory launched a new data annotation platform for enterprise customers. The solution provides flexibility, fast scale-up, and handles nearly any computer vision use case. This launch helped the company to strengthen its data annotation portfolio and acquire a competitive position in the market.
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.
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