The global data annotation tools market size is expected to reach USD 2.57 billion by 2027, expanding at a CAGR of 26.9% from 2020 to 2027, according to a new report by Grand View Research, Inc. The advent of big data is expected to drive the artificial intelligence market as a large volume of information is required to be recorded, stored, and analyzed.
Adoption of artificial intelligence is expected to significantly boost the demand for data annotation tools as the annotated data acts as a catalyzer to train AI models and machine learning tools and systems in critical areas, such as speech recognition and image recognition. These tools offer AI its strength by directly providing information that is relevant to determining future outcomes and decision-making.
Growing trend of manufacturing autonomous vehicles in the automotive industry is attracting larger investments in the development of these vehicles. An autonomous vehicle is a combination of various sensors and networking systems that assist the computer in driving the vehicle. The annotated data allows autonomous vehicle’s computer models to recognize and learn from it. Several technology providers such as Google Inc.; Tesla Motors; Apple Inc.; and Huawei Technologies Co., Ltd. have also entered the autonomous vehicle market. Rising investments in the self-driving cars market are expected to drive the demand for data annotation tools.
Rising innovations in the retail segment, specifically in improving the e-commerce sector, using the data annotation tools is expected to drive the data annotation tools market over the forecast period. For instance, in 2019, Walmart Labs acquired Dataturks, an India-based start-up that offers tools for image and text by using machine learning. The acquisition helped Walmart to further drive innovations in the catalogue quality and other aspects of Walmart merchandising platform.
The market presents promising growth prospects throughout the forecast period owing to increasing investments and mergers & acquisitions by companies. For instance, in June 2017, Figure Eight Inc. received funds worth USD 20 million through a venture round with Industry Ventures as a lead investor amongst the six investors.
Companies are adopting client-base expansion strategy by raising funds for the development of data annotation platforms in order to gain a competitive edge in the market. For instance, in November 2018, Hive, a data labeling platform provider, raised funds worth USD 30 million in venture capital from PayPal founder Peter Thiel’s Founders Fund and others.
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Based on type, the image/video segment is expected to witness significant growth in the years to come owing to technological advancements in the automotive sector, specifically in the development of self-driving cars
The manual annotation type segment held the largest market share in 2019 and is anticipated to continue leading during the forecast period
North America dominated the data annotation tools market in 2019 and accounted for over 38% share of the global revenue share in 2019
Key market players include Annotate.com; 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; Mighty AI, Inc; Trilldata Technologies Pvt. Ltd. (Data Turks); Scale, Inc; and Google, LLC.
Grand View Research has segmented the global data annotation tools market based on type, annotation type, vertical, and region:
Data Annotation Tools Type Outlook (Revenue, USD Million, 2016 - 2027)
Data Annotation Tools Annotation Type Outlook (Revenue, USD Million, 2016 - 2027)
Data Annotation Tools Vertical Outlook (Revenue, USD Million, 2016 - 2027)
Data Annotation Tools Regional Outlook (Revenue, USD Million, 2016 - 2027)
Middle East and Africa
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