Data Annotation Tools Market Size, Share & Trends Analysis Report By Type (Text, Image/Video, Audio), By Annotation Type, By Vertical, By Region, And Segment Forecasts, 2024 - 2030

Research Methodology

A three-pronged approach was followed for deducing the data annotation tools market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for data annotation tools market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of data annotation tools market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Data Annotation Tools Market Categorization:

The data annotation tools market was categorized into four segments, namely type (Text, Image/Video, Audio), annotation type (Manual, Semi-supervised, Automatic), vertical (IT, Automotive, Government, Healthcare, Financial Services, Retail) and regions (North America, Europe, Asia Pacific, South America, Middle East & Africa).

Segment Market Methodology:

The data annotation tools market was segmented into type, annotation type, vertical, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The data annotation tools market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into ten countries, namely, the U.S.; Canada; Mexico; Germany; the UK.; France; China; Japan; India; Brazil

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Data annotation tools market companies & financials:

The data annotation tools market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• ANNOTATE.COM - Annotate.com is a technology company that offers document collaboration and communication tools for digital workplaces. The company is an operating division of Opus 2 International Limited, a developer of collaborative analysis software. The products offered by the company are used across departments such as sales and customer management, marketing, finance, IT, R&D, human resources, and legal. The key industries the company caters to include professional services, financial services, technology, media, marketing & entertainment, government and public sector, and education. The list of the company’s more than 250,000 customers includes renowned institutions/organizations such as the University of Cambridge, FedEx, Samsung, IBM, Hyundai Motor Company, Deutsche Bank AG, and Accenture.

• APPEN LIMITED - Appen Limited provides human-annotated datasets used for enhancing video, text, speech, and image data for use in artificial intelligence and machine learning models. The company partners with governments as well as with leading eCommerce, automotive, and technology companies around the globe to help them secure the data that is needed to provide innovative services and products that rely on machine learning and natural language processing technologies. The company has access to a global crowd of over 1,000,000 skilled contractors, offers solutions in more than 130 countries, and expertise in more than 180 languages and dialects. Moreover, it has also processed more than 500,000 hours of audio and has also made more than 3 billion judgments. The company’s workforce of more than 500 employees is spread across its nine offices around the globe. The services offered by the company include annotation; a collection of image, video, speech, and text data; consultative services; content moderation; field testing of client’s project; linguistics; personalization; search relevance; secure services; transcription; and translation & localization.

• CLOUDAP - CloudApp provides a visual sharing platform that helps users share, host, and record GIFs, short videos, visuals, and images to make team conversations succinct and faster. The company has a presence across two continents and has 17 employees. The company’s platform is used by more than 3 million professionals.

• COGITO TECH LLC - Cogito Tech LLC provides training data services for artificial intelligence and machine learning algorithms. The company offers an image annotation tool data sets that are used to enhance and build various business applications. The company offers solutions that include capturing and enriching a wide variety of data types including video, image, text, and speech. The company also offers various services, including healthcare training data, chatbot training data, virtual assistant training, contact center services, transcription (including audio transcription, video transcription, and OCR transcription), visual search, content moderation, sentiment analysis, data collection, data classification, search relevance, and machine learning.

• DEEP SYSTEMS, LLC - Deep Systems, LLC offers deep learning solutions for several business sectors. The company’s primary areas of focus are recommendation systems and computer vision. Furthermore, it provides solutions for the healthcare industry and applications such as self-driving vehicles, video analysis, data mining, finance, and recommendation systems. Its product offering includes Supervise.ly and Movix.ai.

• LABELBOX, INC - Labelbox, Inc provides an AI training data labeling platform. The platform acts as an interface for human experts through which training data can be annotated for a variety of AI applications. The training data can be used to teach AI algorithms how to look for relevant signals so their accuracy can be continuously improved. The company’s product offering includes Labelbox, which is a complete training data platform for artificial intelligence. This platform is used for various applications in industries including automotive, geospatial, industrial, and insurance.

• LIGHTTAG - LightTag provides a text annotation platform that helps scientists quickly create training data for their Artificial Intelligence (AI) systems. The LighTag platform offers various features for different users and applications, including labelers, project managers, and automation (provides suggestions) by learning from the client’s team. For instance, for labelers, the platform offers features such as classifying entire documents or sections, dragging and dropping relationship interfaces, and quick annotations with the help of optimized keyboard shortcuts.

• LOTUS QUALITY ASSURANCE - Lotus Quality Assurance is a quality assurance services provider. The services offered by the company include general testing services and data annotation for AI models. With data annotation tools provided by the company for AI, a user can annotate images, with different types of lines and shapes, for various kinds of objects including trees, animals, humans, and cars. In terms of general testing services, the company offers software/hardware integration testing, mobile application testing, desktop application testing, web application testing, and hardware product testing, among others.

• PLAYMENT INC. - Playment Inc. provides a data labeling platform that generates training data for computer vision models. The company helps businesses in areas such as mapping, drones, and autonomous vehicles, and with high-precision annotation services. The company’s platform is powered by a trained workforce of more than 300,000 users. Furthermore, it is used by various research institutions and businesses such as the University of Illinois Urbana-Champaign (UIUC), Cyngn Inc., Starsky Robotics, and Drive.AI. The company’s platform supports multiple annotation types, including segmentation (yet to be launched), point annotations, polylines, polygons, cuboids, and bounding boxes for both video and image data types.

• TAGTOG SP. Z O.O. - Tagtog Sp. z o.o. is a software company that focuses on democratizing text analytics. This analytics is accessible to data scientists and software developers as well as to domain experts. Its text annotation platform allows users to utilize text as domain-specific insights efficiently. Furthermore, with the help of the platform, a user can generate high-quality data for their Neuro-linguistic programming (NLP) algorithms. The company also provides manual text annotation services as per the client's requirements. It works with international clients in the public and private sector, including Fortune 500 companies.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Data Annotation Tools Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2022, historic information from 2017 to 2021, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Data Annotation Tools Market Report Assumptions:

• The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.