Data Annotation Tools Market

Data Annotation Tools Market Insights- 2030

The global data annotation tools market was valued at $1,355.12 million in 2020, and is projected to reach $13,696.23 million by 2030, registering a CAGR of 26.3% from 2021 to 2030. Data annotation tool is an on-premise, cloud-based, or a containerized software-based solution designed to interpret production-grade training tools for machine learning. Furthermore, data annotation tools are designed to be used with an explicit set of data, such as video, image, text, spreadsheet, and sensor data, that are used in different deployment models such as SaaS (Cloud), on-premises, container, and Kubernetes. Moreover, organizations globally take a do-it-yourself approach and build their data annotation tools, which is further driving the growth of data annotation tools. In addition, rise in incorporation of artificial intelligence and machine learning solutions in the healthcare and IT sector is acting as a prime driver, resulting in the growing demand for data annotation tools during the forecast period. 

In the wake of COVID-19 pandemic, the data annotation tools market is growing tremendously due to rise of big data & growing number of large datasets which are likely to necessitate the use of artificial intelligence technologies in the field of data annotations.

The data annotation tools market is expected to witness notable growth during the forecast period, owing to rise in demand for annotated data to improve machine learning models. Furthermore, increase in investments in the development of autonomous driving technologies coupled with surge in penetration of artificial intelligence and machine learning technology is driving the growth of the data annotation tools market. However, lack of skilled workforce and high costs associated with manual annotation of complex is restraining the market growth. On the contrary, the growing adoption of data annotation for medical imaging data is expected to provide lucrative opportunities for the growth of the data annotation tools market during the forecast period.

Impact Of Covid-19 On Data Annotation Tools Market-

Emergence of COVID-19 acted as a major driver for the growth of data annotation tools market size, owing to rise in demand for artificial intelligence and machine learning powered solutions, which surges demand for data annotation tools. The market is estimated to witness relatively high growth by the end of 2021. However, the global data annotation tools market was primarily hit by several obstacles due to lack of availability of skilled workforce during lockdown. Moreover, surge in uptake of text annotation for document classification is expected to drive the market growth during the forecast period.

The global data annotation tools market is segmented into component, annotation type, end user, and region. On the basis of component, the market is bifurcated into solutions and service. The solutions segment is further segregated into text, image/video, and audio. The services segment further includes professional services and managed services. Based on annotation type, the market is segmented into manual annotation, semi-supervised, and automated annotation. By end user, the market is segmented into IT & telecommunication, retail & e-commerce, BFSI, healthcare, government, automotive, and others. Region wise, the market is analysed across North America, Europe, Asia-Pacific, and LAMEA. 

Top Impacting Factors

Significant factors that impact the growth of the global data annotation tools industry include rise in penetration of artificial intelligence and machine learning solutions coupled with increasing investment in the development of autonomous driving technologies. However, high cost and lack of skilled labor associated with manual annotation of complex is acting as a prime barrier for early adoption, which hampers the data annotation tools market growth. On the contrary, rising adoption of data annotation for medical imaging data is expected to offer potential growth opportunity for the market during the forecast period.

Competition Analysis

Competitive analysis and profiles of the major data annotation tools market players, such as Amazon Mechanical Turk, Inc., APPEN LIMITED, clickworker GmbH, Cogito, Dbrain, LightTag, Lionbridge Technologies, Inc. , Playment, Scale AI, Inc., and tagtog Sp. z o.o., are provided in this report. 

Key Benefits For Stakeholders

• This study comprises analytical depiction of the data annotation tools industry with the current trends and future estimations to depict the imminent investment pockets.
• The overall data annotation tools market size is determined to understand the profitable global market trends to gain a stronger foothold.
• The report presents information related to key drivers, restraints, and opportunities with a detailed impact data annotation tools market analysis.
• The current data annotation tools market forecast is quantitatively analyzed from 2021 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the market.
• The report includes the market of key vendors and data annotation tools market share.

 Data Annotation Tools Market Report Highlights