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Global Data Annotation Tools Market is estimated to witness a major jump in revenue from US$ 1,186.9 Mn in 2021 to US$ 13,287.9 Mn by 2030. The market is registering a CAGR of 30.9% over the projection period 2022-2030. A data annotation tool is a software solution that may be used to annotate production-grade training data for machine learning. In situations wherein unlabeled data is available in large volumes, these data annotation tools are most suitable to use and will also create new opportunities for market expansion. It can be cloud-based, on-premise, or containerized.
The rising need for annotated data to better machine learning models and enhance the application of AI in the healthcare sector, as well as greater investments in autonomous driving technology upgrades are projected to help the industry. Demand for data annotation tools is expected to soar in the coming decade, as an increasing number of firms use big data analytics to speed up data collecting and assimilation processes. Also, data annotation is making inroads in the healthcare field, supporting doctors with diagnosis, locating disease causes, recommending alternative treatment options, performing surgery, and forecasting whether the sickness is life-threatening.
AI in the manufacturing sector is mostly applied in the areas of industrial Internet, defect detection, intelligent handling, random sorting, network security, and robotics. The application is related to vehicle energy, electric power, pharmaceuticals, heavy metal, and so on. AI automation technology can assist industrial robot applications not only to be more powerful, but it can also help cut costs and enhance efficiency, dependability, and safety as data plays a crucial function in artificial intelligence systems.
Factors such as flexibility and customer service as the high-quality standard, data security, and scalability are the most significant measurements in data annotation service. In machine learning, engineers uncover new options for improving model performance with each round of testing, therefore the workflow is continually changing. Data annotation is fraught with ambiguity and variation. The growing usage of manual data annotation tools to ensure high-quality input data is predicted to be a major factor in the Data Annotation Tools Market's growth.
Rising demand for annotated data to improve machine learning models and increasing investment in R&D for the development of advanced technology in the medical industry is expected to boost the data annotation tools market growth. With the rising globalization and urbanization, industries are adopting better technologies to function. The increasing necessity of high-quality, well-labeled input data for improving the accuracy of machine learning algorithms is expected to propel the sector forward. Moreover, AI in healthcare is proving to be useful to both patients and healthcare providers by increasing efficiency and lowering costs. With the use of data annotation services that improve data annotation for the healthcare sector, all medical, laboratory administrative, financial and other data must be prepared and evaluated to make better results. However, data privacy compliance and workforce management restrict the deployment of data annotation tools and thus inhibit the market growth.
Key Insights of the Report:
Impact of COVID-19 on Global Data Annotation Tools Market
The outbreak of COVID-19 contributed significantly to the growth of the worldwide data annotation tools market. During the COVID period, demand for data annotation tools is expected to rise due to the increased use of artificial intelligence and machine learning solutions. A surge in the usage of text annotation for document classification has also been identified as a key factor driving the market during the pandemic's onset. The coronavirus pandemic is expected to force healthcare and pharmaceutical companies to invest more in artificial intelligence research. Developments in artificial intelligence augmented reality and virtual reality will continue to be critical in sustaining industry growth despite the pandemic's difficulties. Moreover, artificial intelligence and machine learning are likely to be used extensively in the healthcare sector to develop new technology to combat viruses as severe as the corona.
Key Takeaways from the Global Data Annotation Tools Market Report
The key players in the Global Data Annotation Tools Market are Annotate.com, Appen Limited, Cloud Factory Limited, CloudApp, Google LLC, Labelbox, Inc., Deep Systems, LightTag, Lionbridge Technologies Inc., Cogito Tech LLC, and Lotus Quality Assurance among others. Through extensive research, it is found that big players have adopted various competitive strategies such as mergers & acquisitions in order to have a grip on emerging markets. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.
Global Data Annotation Tools Market is segmented based on data type, technology, device type, end-users, and region. The industry trends in the global data annotation tools market are sub-divided into different categories in order to get a holistic view of the global marketplace.
Following are the different segments of the Global Data Annotation Tools Market:
By Data Type Segment of the Global Data Annotation Tools Market is Sub-Segmented into:
By Technology Segment of the Global Data Annotation Tools Market is Sub-Segmented into:
By Device Type Segment of the Global Data Annotation Tools Market is Sub-Segmented into:
By End Users Segment of the Global Data Annotation Tools Market is Sub-Segmented into:
By Region Type Segment of the Global Data Annotation Tools Market is Sub-Segmented into:
|Market Size Value in 2021||US$ 1,186.9 Mn|
|Expected Revenue in 2030||US$ 13,287.9 Mn|
|Unit||Value (USD Mn)|
|Segments covered||By Data Type, Technology, Device Type, End Users, and Region|
|Key Companies||Annotate.com, Appen Limited, Cloud Factory Limited, CloudApp, Google LLC, and other prominent players.|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
Global Data Annotation Tools Market is projected to grow at a CAGR of 30.9% during the forecast period 2022-2030.
A data annotation tool is a software solution that may be used to annotate production-grade training data for machine learning.
The size of the global data annotation tools market in 2021 was US$ 1,186.9 Million.
Global Data Annotation Tools Market is driven by the rising demand for annotated data to improve machine learning models and enhancing the applications of AI in the healthcare sector.
The major region in the industry is North America, Europe, Asia Pacific, Middle East & Africa (MEA) and South America.
The advantage of employing annotation tools is that the integration of data attributes allows users to manage data definition in one place and eliminates the need to rewrite similar rules in numerous places.
Data type, technology, device type and end users are the different segments of the global data annotation tools market.
On the basis of end users, the global data annotation tools market is segmented into automotive, healthcare, retail, transportation and logistics, BFSI, telecommunication and IT and others.
Factors such as data privacy compliance and workforce management inhibit the growth in global data annotation tools market.
Asia Pacific holds a major share in terms of revenue in the global data annotation tools market in 2021.
Automatic segment is anticipated to grow at a highest CAGR during the forecast period.
Annotate.com, Appen Limited, Cloud Factory Limited, CloudApp, Google LLC, Labelbox, Inc., Deep Systems, LightTag, Lionbridge Technologies Inc., Cogito Tech LLC and Lotus Quality Assurance among others.