The study undertaken by Astute Analytica foresees a tremendous growth in revenue of the market for Global Data Annotation Tools Market from US$ 1,186.9 Million in 2021 to US$ 13,287.9 Million by 2030. The market is anticipated to grow at a CAGR of 30.9% during the forecast period 2022-2030. The 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.
Data annotation tool is a software solution that may be used to annotate production-grade training data for machine learning. Data annotation tool manufacturers are creating new technologies in order to improve the accuracy of annotated images/videos and deliver high precision datasets for AI-based applications as the machine learning landscape continues to evolve. Data annotation software is a critical component that can make or ruin AI project. In fact, the data annotation tools employ to train AI modules, which have a significant impact on the results outcome.
Based on device type, Text segment accounted to hold the highest market share in 2021 due to the substantial increase in its usage in e-business and healthcare research. Whereas, video annotation tool segment is likely to expand at a highest CAGR during the forecast period. Moreover, on the basis of technology automatic segment is anticipated to grow at a highest CAGR during the forecast period. Furthermore, in terms of device type windows segment dominated the global data annotation tools market in 2021 owing to its cheap pricing and a huge user base in the marketplace. In addition, healthcare segment is projected to grow at the highest CAGR during the forecast period as it uses AI incorporated with data annotation tools for numerous applications such as drug development, gene sequencing, treatment prediction and diagnostic automation.
Market Dynamics and Trends
Drivers
The global data annotation tools market has increased owing to rising demand for annotated data to improve machine learning models and enhancing the applications of AI in the healthcare sector. Also, the 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. With a wide range of firms incorporating AI technology and machine learning models into their operations have resulted in increasing necessity of high-quality, well-labelled input data for improving the accuracy of machine learning algorithms, which further is expected to propel the sector forward. 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. Moreover, increasing investment in R&D for the development of advanced technology in medical industry is expected to boost the data annotation tools market growth as AI in healthcare is proving beneficial for both patients and healthcare professionals by increasing efficiency and reducing significant costs.
Restraints
Factors such as data privacy compliance and workforce management inhibit the growth in global data annotation tools market. Data annotation organisations struggle to comply with global data security rules due to a serious lack of process understanding. With the high demand of big data, the privacy standards are becoming more stringent. Also, developing a machine learning and artificial intelligence model that works as a person requires a large amount of training data. Furthermore, data annotation is also labour-intensive as it requires cleaning, compiling and making unstructured data machine-readable with full accuracy and high quality.
Regional Analysis
Mexico Data Annotation Tools Market – Highest CAGR in North America Makret
Mexico is projected to grow with the highest CAGR of 29.0% during the forecast period. On the basis of data type, text segment dominated the market in 2021 due to the substantial increase in its usage in e-business and healthcare research. Moreover, by technology automatic segment is anticipated to grow at a highest CAGR during the forecast period as artificial intelligence is becoming extremely important for the data annotation tools globally.
Overview of Europe Data Annotation Tools Market
U.K. is the highest share holder country in 2021 in Europe data annotation tools market. In terms of device type, Mac OS segment is anticipated to grow at the highest CAGR of 30.0% over the forecast period owing to its exclusive features. Whereas, by data type video annotation tool segment is likely to expand at a highest CAGR during the forecast period owing to its rising adoption in the healthcare industry for medical imaging.
Japan to grow at the highest CAGR during 2022-2030
Japan is projected to grow with the highest CAGR of 38.3% over forecast period due to surging adoption of data annotation in order to ensure high-quality input data. By end user segment, healthcare segment is projected to grow at a fastest CAGR of 38.6% during the forecast period.
Supervised Segment accounted to hold the highest share in 2021
On the bases of technology, supervised segment accounted to hold the highest share in 2021 as for supervised learning, the data must be trained to enhance the machine’s understanding of the desired task at hand. Moreover, windows device type holds the highest market share in 2021 owing to its cheap pricing and a huge user base in the marketplace.
Overview of South America Data Annotation Tools Market
Brazil is the highest share holder country and Argentina is projected to grow with the highest CAGR of 31.4% in the South America data annotation tools market. In terms of data type, text segment is projected to hold the highest market share over forecast period.
Competitive Insight
Global Data Annotation Tools Market is highly competitive in order to increase their presence in the marketplace. Some of the key players operating in the global data annotation tools market include 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.
Segmentation Overview
Global Data Annotation Tools Market is segmented based on data type, technology, device type, end users and region. The industry trends in 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:
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