Healthcare Data Annotation Tools Market Size, Share & Trends Analysis Report By Type (Text, Audio), By Technology (Manual, Automatic), By End-user, By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global healthcare data annotation tools market size was estimated at USD 129.9 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 27.5% from 2023 to 2030. The data annotation tools in the healthcare sector are reshaping diagnosis, treatment, and patient monitoring by significantly improving healthcare research and outcomes by generating precise diagnoses and enabling enhanced personalized treatments. These tools help in analyzing the vast amount of clinical documentation by healthcare professionals for quick identification of disease markers.

The potential applications of these tools include scanning radiological images for early detection of diseases to predict results from electronic health records. Annotation generates high-quality data to train AI/ML models in healthcare sectors to accelerate the search for biological and chemical interactions, which is useful in drug development. The analysis of a huge volume of data from patient records, clinical trials, patents, and research papers can help accelerate the development of new drugs.

In addition, data annotation can also make billions of inferred relationships among candidate drugs, species, tissues, symptoms, diseases, and genes. Moreover, specialized annotation teams label critical structures in millions of frames in surgical videos to perform computer vision-driven autonomous robotic surgery to enable safer and better treatments. Hence, increasing applications of these tools and the growing adoption of AI/ML technologies in the healthcare sector are propelling the market.

Moreover, the advantages of eHealth and telemedicine services, such as easy availability of health services, cost savings, and improvement in diagnostics & treatment services are anticipated to boost investments in digital health and other eHealth-related service. For instance, in September 2020, Aidoc raised USD 20 million in a Series B funding round led by Square Peg Capital to aid in the development of AI-based digital imaging & radiology offerings. In addition, an increase in the number of initiatives supporting eHealth and digital health is expected to drive the market over the forecast period. For instance, in May 2022, the European Health Data Space Program was unveiled to support the use of health data for improvements in research, innovative healthcare delivery, and policymaking.

Furthermore, several market players are introducing technologically advanced tools to meet the untapped opportunities in the market. For instance, in January 2023, CloudFactory introduced Accelerated Annotation, a Vision AI product that fuses industry-leading AI-assisted labeling technology with CloudFactory’s workforce to generate high-quality labeled data five times faster than manual labeling. Similarly, in October 2022, Google launched Medical Imaging Suite tools to create training datasets and automated image labeling through AI-assisted annotation. The Medical Imaging Suite aids in quicker and more accurate diagnosis than human clinicians, while decreasing the workload on radiologists. These strategic initiatives by major companies are likely to boost the adoption of these software solutions in healthcare during the study period.

Type Insights

Based on type, the image/video segment held the largest revenue share of 60.4% in 2022 and is anticipated to grow at the fastest CAGR of 28% from 2023 to 2030.This is attributed to the large scale-adoption of image/video data annotation tools in the medical field along with the increasing requirement for efficient and cost-effective solutions for medical diagnosis. These tools are used in the creation of visualizations of specific organs to diagnose unusual defects in the human body that are unidentifiable with the naked eye.

In cancer, image annotation is used to train AI models to predict cancer using labeled cancer image data. This decreases the possibility of human error and helps in the early detection of various types of cancers. Furthermore, in dental imaging, labeled X-ray image data is used to visualize teeth structure and detect tooth cavities, gum diseases decay, and other abnormalities. Moreover, video data annotation in healthcare facilitates various medical tasks such as surgery, etc.

Automated surgical bots are also trained with video annotation to assist surgical procedures and endoscopies including phase identification and lesion detection. Such capabilities are driving the image/video segment. Key players in the market are continuously launching novel image/video annotation tools for the healthcare industry, thereby propelling the segment. For instance, in April 2022, Encord introduced a DICOM image annotation tool for healthcare AI that allows users to run and train models for automating medical image annotation in 3D for modalities including MRI, CT, and X-ray and eradicating manual data labeling.

Technology Insights

In terms of technology, the semi-supervised segment held the largest revenue share of 39.8% in 2022. Based on technology, the market is categorized into manual, semi-supervised, and automatic. The semi-supervised technology uses a small amount of labeled and a large amount of unlabeled data. This reduces the expenditure on manual data annotation and cuts data preparation time. As unlabeled data is abundant, inexpensive, and easily available, semi-supervised technology is adopted in various applications, thereby boosting the segment.

For instance, early diagnosis of dental caries using semi-supervised technology can enable preventive treatment and prevent invasive treatment. According to an article published by Springer Nature Limited in 2023,the semi-supervised methods have been successful in the detection of dental caries and have provided competitive results compared to fully supervised learning methods.

The automatic segment is anticipated to grow at the fastest CAGR of 28.8% over the forecast period. This is attributed to the increasing prominence of quicker and cost-effective data labeling and delivery of annotated data. AI is becoming vital to this industry as the technology allows the extraction of complex and high-level abstractions from the datasets using a hierarchical learning process. The need for extracting and mining meaningful patterns from voluminous healthcare data is driving the growth of AI, which is expected to further drive the demand for automatic tools during the forecast period.

End-user Insights

Based on end-user, the hospitals segment led the market with a global revenue share of 40.8% in 2022 and is projected to witness significant growth over the forecast period. Healthcare data annotation tools are essential in the hospital sector as they streamline the annotation process, making it more efficient and scalable. By annotating healthcare data, hospitals can unlock the potential of machine learning algorithms and other data-driven applications, leading to improved healthcare outcomes and more effective decision support systems.

Machine learning and artificial intelligence have shown great potential in improving healthcare outcomes, diagnosis, and treatment. Furthermore, healthcare data annotation tools are crucial in clinical research studies conducted by hospitals. These tools facilitate the annotation of clinical notes and electronic health records (EHRs), extracting pertinent information related to study parameters, inclusion/exclusion criteria, and study outcomes. Hospitals can efficiently extract, analyze, and report on annotated clinical research data by utilizing healthcare data annotation tools, streamlining the research process and enabling valuable insights for study findings.

Application Insights

Based on the application, the diagnostic support segment held the largest revenue share of 32.9% in 2022. Data annotation tools in diagnostic support aid in the identification and rectification of human errors in X-rays, ultrasound scans, MRI, and CT. These tools can increase accuracy and speed by lowering costs. For instance, data annotation tools can aid AI models to detect COVID-19 pneumonia and execute embryo classification. In addition, these software tools allow the early diagnosis of various chronic diseases such as cancer by using AI. For instance, thermal sensors with AI can identify breast cancer by visually displaying the amount of infrared energy emitting from the tumor. Thus, diagnostic support offered by healthcare data annotation tools in the diagnosis of various chronic and infectious diseases is boosting the segment.

The virtual assistant segment is anticipated to grow at the fastest CAGR of 28% over the forecast period. The virtual assistants in the healthcare system accelerate the detection of illness, raise reminders for medication, monitor health status, and schedule doctor appointments to reduce waiting time. Moreover, virtual assistants provide several advantages such as better patient experience, boosted productivity, decreased employment cost by up to 70%, sustainable growth, and lowered likelihood of becoming burnout. Therefore, several benefits offered by virtual assistants are expected to boost the segment during the study period.

Regional Insights

In 2022, North America dominated the market with a revenue share of 43.8%. This large revenue share can be attributed to the high healthcare expenditure coupled with the growing acceptance of advanced technologies including AI, machine learning, big data, cloud, and IoT. In addition, increased usage of mHealth, e-prescribing, telehealth, and other healthcare IT technologies as a response to COVID-19, as well as increased government support & requirements for advanced AI/ML solutions in healthcare, are the primary growth factors fuelling the market. Moreover, rise in adoption of electronic health records is significantly increasing in the region. According to the Health IT reports until 2021, nearly 9 out of 10 U.S.-based physicians have adopted EHR. Therefore, a high adoption rate also plays a key role in driving market growth in North America.

The Asia Pacific region is anticipated to witness the fastest CAGR of 28.8% over the forecast period. This is due to the increasing healthcare expenditure in emerging Asian economies and the improvement in healthcare capabilities. In addition, the rising adoption of advanced technologies such as AI/ML to lower medical costs & streamline hospital workflow, are the major drivers of healthcare data annotation tools in the region. Furthermore, numerous government initiatives and supportive programs are also driving the adoption of these software solutions in the region. For instance, The National Health & Family Planning Commission (NHFPC) of the People’s Republic of China established the Chinese Jinwei Network Engineer, which promotes the development of telemedicine in the country.

Key Companies & Market Share & Insights

Various strategies such as expansions, investments, funding, partnerships, product development, etc. adopted by operating players are driving the market. For instance, in March 2023,Shaip, a leading provider of platforms and services in the AI Data industry expanded its operations by opening a new workplace in India. This initiative is expected to boost the company’s offerings in healthcare data annotation tools. Some prominent players in the global healthcare data annotation tools market include:

• Infosys Limited

• Shaip

• Innodata

• Ango AI

• Capestart

• Lynxcare

• iMerit

• Anolytics

• V7

• SuperAnnotate LLC

Healthcare Data Annotation Tools Market Report Scope

Global Healthcare Data Annotation Tools Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global healthcare data annotation tools market report based on type, technology, application, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Text

  • Image/Video

    • X-ray

    • CT Scan

    • MRI

    • Ultrasound

    • DICOM

    • NIFTI

    • Videos

    • Other Images

  • Audio

• Technology Outlook (Revenue, USD Million, 2018 - 2030)

  • Manual

  • Semi-supervised

  • Automatic

• End-user Outlook (Revenue, USD Million, 2018 - 2030)

  • Hospitals

  • Diagnostic Imaging Centers

  • Healthcare Technology Companies

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Virtual Assistants

  • Conversational Bots

  • Diagnostic Support

  • Drug Development Process

  • Robotic Surgery

  • Medical Documents

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Sweden

    • Norway

    • Denmark

  • Asia Pacific

    • Japan

    • China

    • India

    • South Korea

    • Australia

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait