Japan Data Annotation Tools Market is estimated to make a major leap forward in its revenue from US$ 73.6 Mn in 2021 to US$ 1,363.8 Mn by 2030. The market is registering a CAGR of 38.3% during the forecast period 2022-2030. Data annotation is the categorization and labeling of data for AI applications. Unorganized piles of data can be reframed into organized & extremely useful information with the support of data annotation tools deployed through human assistance and machine learning capabilities. Training data must be properly categorized and annotated for a specific use case. With high-quality, human-powered data annotation, companies can build and improve AI implementations. The result is an enhanced customer experience solution such as product recommendations, relevant search engine results, computer vision, speech recognition, chatbots, and more.

The market is majorly driven by factors such as the increasing demand for data annotation across medical and industrial purposes and growing technological advancements in Japan. The rise in the adoption of advanced technologies such as AI also contributes to the growth of the data annotation tool market ecosystem. Japan's AI industry has mostly concentrated on robotics as a sub-domain of artificial intelligence, with AI being developed in particular for medical and industrial applications. Furthermore, according to a poll conducted by the Ministry of Internal Affairs and Communications of Japan in 2018, about 53% of Japanese businesses use cloud computing services for file storage and data sharing, with around 33% saying they have already deployed cloud computing throughout all departments. As a result, the deployment of data annotation tools has increased across organizations. Moreover, advanced data annotation tools are expected to emerge in Japan as regulatory standards get more widely implemented and cloud-based security solutions become more widely adopted. However, limited access to cutting-edge tools & technologies and workforce management poses a challenge to the market growth. 

Key Insights of the Report: 

• The latest study published by Astute Analytica analyzes the Japan Data Annotation Tools Market for the study period of 2017-2030; where historical years are 2017-2020, the base year is 2021, and the forecast period is 2022-2030.
• The research report offers a detailed study of market determinants including market drivers, restraints, opportunities, and trends; along with an attractive presentation in the form of impact analysis to gain a simpler and easy comparison view of all market determinants.
• The research study is a compilation of 9 chapters distributed across 111 pages with 15 lists of tables and 22 lists of figures.
• The market is segmented based on data type, technology, device type, and end-user.
• The market estimates are presented in terms of value (US$ Mn).
• Along with market estimations, the market study was conducted on the basis of various economic models such as PESTLE and Porter’s five force models.
• Detailed value chain analysis of the industry was conducted. It includes data sets, data annotation tools, technology integration, and end-users.
• The competitive dashboard section includes analysis on the basis of Concentration Ratio (CR), based on market size and market presence of key companies.

Impact of COVID-19

The outbreak of COVID-19 contributed significantly to the growth of the Japan data annotation tools market. During the COVID-19 pandemic, demand for data annotation tools is estimated 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. Additionally, initiatives such as preparing lung datasets to research the impact of the disease on lungs are projected to boost the data annotation business, which began during the COVID era. Thus, developments in artificial intelligence, augmented reality, and virtual reality will continue to be critical in sustaining industry growth despite the pandemic’s difficulties. The Japan data annotation tools market, on the other hand, was hampered by a scarcity of skilled workers during the lockdown.

Key Takeaways from the Japan Data Annotation Tools Market Report

• Based on data type, the text segment accounted to hold the highest share in the Japan Data Annotation Tools Market in 2021. The text data type can be done for language-to-language translation, to convert a complete text into a summary, and to accomplish other tasks. The video segment has the highest CAGR over the forecast period as is often used in the automotive sector to train machine learning algorithms that power autonomous vehicles.
• In terms of technology, the supervised segment accounted to hold the highest share in 2021. However, the automatic segment is projected to grow at the highest annual growth rate during the forecast period, since deploying automation in the annotation process frees up resources for rigorous and more focused quality checks and enables retraining - more data means better-trained algorithms.
• Based on device type, the Mac OS segment leads the data annotation tools market of Japan and is further estimated to continue its dominance over the forecast period. In Mac OS, accessing an application's Markup toolbar lets the user draw on and annotate images or PDF documents within the app using arrows, shapes, and text. The user can also use it to quickly sign a document with a digital signature.
• The telecommunication & IT industry are the highest end-users of the data annotation tools market in Japan. However, the retail segment is projected to grow at a faster growth rate during the forecast period in the Japan Data Annotation Tools Market. AI offers a boost in efficiency for retailers while lowering costs, thereby propelling market growth.

Competitive Insight

The key players in the Japan Data Annotation Tools Market are Google, Inc., Amazon.com, Inc., Labelbox, Inc., Scale AI, Inc., Appen limited, Cogito Tech LLC, Annotate Software, Playment, Inc., and Deep Systems 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 the emerging market. Furthermore, leading companies are expanding their geographical boundaries by acquiring small brands and domestic companies.

Segmentation Overview

The following are the different segments of the Japan Data Annotation Tools Market:

By Data Type segment of the Japan Data Annotation Tools Market is sub-segmented into:

• Text
  • Sentiment
  • Text Classification
  • Entity
• Image
  • Boundary Boxes
  • Line Annotation
  • Image Transcription
• Video 
  • Semantic
  • Polygon
  • Key point
• Audio
  • Voice Activity Detection (VAD)
  • Speaker Identification
  • Automated Speech Recognition

 By Technology segment of the Japan Data Annotation Tools Market is sub-segmented into:

• Supervised
• Semi-Supervised
• Automatic

 By Device Type segment of the Japan Data Annotation Tools Market is sub-segmented into:

• Mac OS
• Windows
• Linux
• Others

By End Users segment of the Japan Data Annotation Tools Market is sub-segmented into:

• Automotive
• Healthcare
• Retail
• Transportation and logistics
• BFSI
• Telecommunication and IT
• Others