Data Annotation Tools Market size is likely to surpass USD 10 billion by 2028, according to a new research report by Global Market Insights Inc.
Growing trend of leveraging AI technologies for document categorization and classification is driving the data annotation tools industry growth. 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. The market is also being reshaped by the rising use of data annotation tools for development of text-to-speech and NLP technologies.
Rising need for highly annotated medical datasets for automated patient diagnosis
Healthcare enterprises are increasingly adopting data annotation tools 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, which can provide approximate medical conclusions without any direct human input from medical experts. For instance, several AI algorithms have exhibited greater accuracy than human experts, with about 95% correct results compared to 86.6% detected by medical professionals.
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Developments in speech recognition and rising popularity of chatbots
The audio data annotation tools market captured over 15% of the revenue share in 2021, attributed to the increasing deployment of audio training data to develop sophisticated speech recognition applications such as virtual assistants, speech to text programs, and chatbots.
Browse key industry insights spread across 322 pages with 322 market data tables and 50 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 End Use (Telecom, BFSI, Healthcare, Retail, Automotive, Agriculture), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028” in detail along with the table of contents:
Rising difficulties in labelling unprecedented volumes of raw data through manual approaches
The automated annotation segment is set to witness around 35% CAGR through 2028. 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 is fueling the automated data annotation tools market demand. 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.
High focus on elevating customer experiencing and gaining market competitiveness
The IT & telecom sector will observe rapid 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.
Increasing number of AI startups in North America
North America data annotation tools market is estimated to account for about USD 4 billion by 2028 due to surging adoption of data labeling technologies by the AI sector. Presence of leading AI and ML corporations such as Google, Microsoft, Facebook, and Amazon is augmenting the regional industry statistics. 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 for complementing the value chain.
Focus on strengthening core AI competencies by key players
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 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 major data annotation tools market players include Alegion Inc., Appen Limited, Amazon Web Services, Inc. (Amazon.com, Inc.), Clickworker GmBH, CloudApp, Inc., CloudFactory Limited, Cogito Tech LLC., Dataturks, Defined AI, Google LLC., Hive, IBM Corporation, iMerit, Labelbox, Inc., Landing AI, Lionbridge AI, MonkeyLearn Inc., Neurala Inc., Playment Inc., Samasource Inc., Scale AI., Sigma AI, and Webtunix AI.