Data Annotation Tools Market Size Worth $3.4 Billion By 2028

May 2021 | Report Format: Electronic (PDF)

Data Annotation Tools Market Growth & Trends

The global data annotation tools market size is expected to reach USD 3.4 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 27.1% from 2021 to 2028. The advent of big data is expected to drive the growth of the artificial intelligence market as a large volume of information is required to be recorded, stored, and analyzed. The adoption of artificial intelligence is expected to significantly boost market growth as the annotated information acts as a catalyzer to train AI models and machine learning 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.

Currently, there is a growing trend of manufacturing autonomous vehicles in the automotive industry, which is attracting larger investments for the development of these vehicles. An autonomous vehicle includes a combination of various sensors and networking systems that assist the computer in driving the vehicle. The annotated information allows autonomous vehicle computer models to recognize and learn from it. Several technology providers such as Google LLC; Tesla Motors; Apple Inc.; and Huawei Technologies Co., Ltd. have also entered the autonomous vehicle market. The rising investments in the self-driving market are expected to drive the future demand of the data annotation market. For instance, in February 2021, Appen Limited, a provider of effective training data and AI systems, announced the launch of new training data annotation and quality assurance services for autonomous vehicle manufacturers.

The rising innovations in the retail segment, specifically in improving the e-commerce sector, using the information labeling tools is expected to drive the market demand over the forecast period. For instance, in February 2019, Walmart Labs acquired Dataturks, an India-based data annotation start-up. Dataturks offers annotation tools for image and text information by using machine learning. The acquisition helped drive innovations in the catalog quality and other aspects of the Walmart merchandising platform.

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Data Annotation Tools Market Report Highlights

  • Rising demand for machine learning in automated data analytics is expected to augment demand for automatic information labeling tools in various data-driven applications. In addition, a rising focus on image annotation is anticipated to enhance the operations of the automotive, retail, and healthcare sector and thus is expected to propel market growth

  • In terms of annotation type, the manual segment captured the largest revenue share in 2020.The attributes such as accuracy, able to capture edge cases, and intelligent human resource is efficient enough to ensure high quality across large volumes of data. Which make manual annotation tools highly suitable to train machine learning algorithms for computer vision applications

  • Information labeling tools find greater acceptance in the automobile industry, especially for self-driving vehicles. High-resolution cameras, LIDAR sensors, and a huge amount of information are needed for creating the training data sets for such highly sensitive visual perception models in autonomous vehicles

  • To gain a competitive edge in the market, key players have started adopting the client base expansion strategy by raising funds for the development of their platform. For instance, in February 2020, Labelbox, Inc. raised a series B funding of around USD 25 million to enhance its platform with data labeling capabilities for AI training models. The funds were used to accelerate the computer vision and machine learning models by augmenting the size of the company’s sales and engineering teams

Data Annotation Tools Market Segmentation

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, 2017 - 2028)

  • Text

  • Image/Video

  • Audio

Data Annotation Tools Annotation Type Outlook (Revenue, USD Million, 2017 - 2028)

  • Manual

  • Semi-supervised

  • Automatic

Data Annotation Tools Vertical Outlook (Revenue, USD Million, 2017 - 2028)

  • IT

  • Automotive

  • Government

  • Healthcare

  • Financial Services

  • Retail

  • Others

Data Annotation Tools Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • The 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 of 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

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