Data Annotation Tools Market Size, Share & Trends Analysis Report By Type, By Annotation Type, By Vertical, By Region And Segment Forecasts From 2022 To 2030

Report ID: MN17619945  |  Published: November 2022  |  No of Pages: 101
Format: Electronic (PDF)  |  Industry: Computing & Technology

The global data annotation tools market size was valued at USD 629.5 million in 2021 and is expected to expand at a CAGR of 26.6% from 2022 to 2030. A data annotation tool is a cloud-based, on premise, or containerized software-based platform used to interpret and evaluate machine learning training software. In addition, these tools are curated to be used with explicit data sets such as spreadsheets, image text, and video.

Data annotation tools allow users to add attribute tags to data and improve the value of the information. It eliminates the need to manage duplicate data at multiple locations. The increasing volume of data is aiding the adoption of artificial intelligence and machine learning technologies. This will propel the market demand in the forthcoming years. The market is predominantly driven by the rising adoption of machine learning and artificial intelligence solutions in end-use industries such as retail, automotive, and healthcare.

The applications of AI in the healthcare industry are on the rise and will play a vital role in market growth. AI-backed machines use computer vision or machine vision and simplify the diagnosis process. MRI, CT scans, and X-Ray datasets are easily scanned for injuries and tumors with AI-based data annotation software solutions. Innodata Inc. in March 2021 announced the expansion of its AI capabilities to include medical reports. The data annotation platform created by Innodata will combine its capabilities from the Synodex medical data extraction platform with the AI data annotation tools to high-quality AI training data, compatible with HIPAA and other security guidelines.

Massive amounts of data are produced by technologies like the Internet of Things (IoT), Machine Learning (ML), robotics, advanced predictive analytics, and Artificial Intelligence (AI). Data efficiency is crucial for developing new business ideas, infrastructure, and economics. These elements have considerably aided the industry's expansion. Companies creating AI-enabled healthcare applications are working with data annotation companies to provide the necessary data sets that can help them improve their machine learning and deep learning capabilities. This collaboration is taking place in response to the growing potential for growth in data labeling. For instance, Telus International, a provider of digital customer experience (CX) and digital IT solutions & services, said in November 2020 that it would purchase Lionbridge AI, a provider of training data and annotation platform solutions. This merger is aimed at designing AI algorithms to power machine learning.

Data Annotation Tools Market Report Key Takeaways

  • On the basis of type, the market is categorized into text, audio, image, and video. The text type annotation segment accounted for the highest revenue share of 36% in 2021 and has a widespread application in clinical research and e-commerce
  • The image/video segment is expected to emerge as the fastest growth during the forecast period as the market players are keen on fine-tuning AI capabilities in video telephony services
  • In April 2021, Zoom, Inc., launched advanced hardware solutions, enhanced screen annotation for zoom rooms, and expanded Zoom chat management abilities based on customer feedback
  • The manual annotation type segment captured a share of 81% share in 2021 due to its advantages, which include accuracy, integrity, and a better probability of finding interesting insights than with automatic annotation
  • In terms of verticals, the market has been segmented into automotive, IT, government, financial services, healthcare, retail, and others, of which the IT segment was the leading segment and captured a revenue share of 33% in 2021
  • Geographically, Asia Pacific is anticipated to emerge as the fastest growing by 2030 as emerging economies such as India and China exhibit tremendous potential for the broad adoption of data annotation technologies, particularly in the healthcare and financial services verticals


Data Annotation Tools Market Segments

  • Data Annotation Tools Type Outlook (Revenue, USD Million, 2017 - 2030)
    • Text
    • Image/Video
    • Audio
  • Data Annotation Tools Annotation Type Outlook (Revenue, USD Million, 2017 - 2030)
    • Manual
    • Semi-supervised
    • Automatic
  • Data Annotation Tools Vertical Outlook (Revenue, USD Million, 2017 - 2030)
    • IT
    • Automotive
    • Government
    • Healthcare
    • Financial Services
    • Retail
    • Others
  • Data Annotation Tools Regional Outlook (Revenue, USD Million, 2017 - 2030)
    • North America
      • U.S.
      • Canada
      • Mexico
    • Europe
      • Germany
      • U.K.
      • France
    • Asia Pacific
      • China
      • Japan
      • India
    • South America
      • Brazil
    • Middle East and Africa 
  • List of Key Players in the Data Annotation Tools Market
    • Appen Limited
    • CloudApp
    • Cogito Tech LLC
    • Deep Systems
    • Labelbox, Inc
    • LightTag
    • Lotus Quality Assurance
    • Playment Inc
    • Tagtog Sp. z o.o
    • CloudFactory Limited
    • Clickworker GmbH
    • Alegion
    • Figure Eight Inc.
    • Amazon Mechanical Turk, Inc
    • Explosion AI GMbH
    • Mighty AI, Inc.
    • Trilldata Technologies Pvt Ltd
    • Scale AI, Inc.
    • Google LLC
    • Lionbridge Technologies, Inc
    • SuperAnnotate LLC
What questions do you have? Get quick response from our industry experts. Request More information
Key questions answered in the report include
key questions
We also offers customization on reports based on specific client requirement.
Request for Customization

Choose License Type

Research Assistance

Ryan Manuel
Ryan Manuel

Research Support Specialist, USA

  1. Phone: +1-408-610-2300
  2. Toll Free: +1-866-831-4085
  3. Email: [email protected]
Connect With Expert
  • World's largest premium report database
  • Transparent pre & post sale customer engagement model
  • Unparalleled flexibility in terms of rendering services
  • Safe & secure web experience
  • 24*5 Research support service

Get a Free Sample

FREE sample contains market data points, ranging from trend analyses to market estimates & forecasts. See for yourself...