Data Annotation Tools Market to Grow at 26.6% CAGR from 2022 to 2030

Posted on 2022-05-19 by researchinsights in Technology // 0 Comments

San Francisco, California , USA, May 19, 2022 — /EPR Network/ —

Data Annotation Tools Industry Overview

The global data annotation tools market size was valued at USD 629.5 USD million in 2021 and is anticipated to expand at a compound annual growth rate (CAGR) of 26.6% from 2022 to 2030.

The growth is majorly driven by the increasing adoption of image data annotation tools in the automotive, retail, and healthcare sectors. The data annotation tools enable users to enhance the value of data by adding attribute tags to it or labeling it. The key benefit of using annotation tools is that the combination of data attributes enables users to manage the data definition at a single location and eliminates the need to rewrite similar rules in multiple places. The rise of big data and the surge in the number of large datasets are likely to necessitate the use of artificial intelligence technologies in the field of data annotations. The data annotation industry is also expected to have benefited from the rising demands for improvements in machine learning as well as in the rising investment in advanced autonomous driving technology.

Gather more insights about the market drivers, restrains and growth of the Global Data Annotation Tools Market

Data annotation is expected to play a major role in enhancing the applications of AI in the healthcare sector. AI-backed machines use machine vision or computer vision in medical imaging data technologies to sense patterns and identify possible injuries, which assists medical practitioners in automatically generating reports after the individual is examined. The database of CT scans, MRI, and X-Ray images can be easily screened by the AI to determine various injuries. Data annotation tools help train AI systems in differentiating data obtained from normal and injured medical images to generate the final reports of the examined individuals. Thus, data annotation is expected to play a major role in enhancing the applications of AI in the healthcare sector. For instance, in March 2021, Innodata Inc., a U.S.-based company, announced its expansion of AI data annotation tools capabilities to include the medical reports of the patients. Innodata has established plans to synthesize its capabilities from the AI Data annotation tools platform and Synodex medical data extraction platform, to create a medical record data annotation platform. Via this, high-quality AI training data will be created that is likely to carry HIPAA compliance and follow all the security protocols.

Technologies such as the Internet of Things (IoT), Machine Learning (ML), robotics, advanced predictive analytics, and Artificial Intelligence (AI) generate massive data. With changing technologies, data efficiency proves to be essential for creating new business innovations, infrastructure, and new economics. These factors have significantly contributed to the growth of the industry. Owing to the rising scope of growth in data labeling, companies developing AI-enabled healthcare applications are collaborating with data annotation companies to provide the required data sets that can assist them in enhancing their machine learning and deep learning capabilities. For instance, in November 2020, Telus International, a provider of digital customer experience (CX), and digital IT solutions & services announced to acquire Lionbridge AI, which offers training data and annotation platform solutions used for designing AI algorithms to power machine learning. The acquisition is expected to enhance Telus International’s next-generation digital solution portfolio and expand its reach worldwide.

However, the inaccuracy of data annotation tools acts as a restraint to the growth of the market. For instance, a given image may have low resolution and include multiple objects, making it difficult to label. The primary challenge faced by the market is issues related to inaccuracy in the quality of data labeled. In some cases, the data labeled manually may contain erroneous labeling and the time to detect such erroneous labels may vary, which further adds to the cost of the entire annotation process. However, with the development of sophisticated algorithms, the accuracy of automated data annotation tools is improving and thus reducing the dependency on manual annotation and the cost of the tools in the near future.

Browse through Grand View Research’s Next Generation Technologies Industry Research Reports.

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Data Annotation Tools Market Segmentation

Grand View Research has segmented the global data annotation tools market based on type, annotation type, vertical, and regions:

Data Annotation Tools Type Outlook (Revenue, USD Million, 2017 – 2030)
- Text
- Image/Video
- Audio
Data Annotation Tools Annotation Type Outlook (Revenue, USD Million, 2017 – 2030)
- Manual
- Semi-supervised
- Automatic
Data Annotation Tools Vertical Outlook (Revenue, USD Million, 2017 – 2030)
- IT
- Automotive
- Government
- Healthcare
- Financial Services
- Retail
- Others
Data Annotation Tools Regional Outlook (Revenue, USD Billion, 2018- 2030)
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa

Market Share Insights

November 2018: CloudFactory Limited- a cloud-based platform that offers machine learning, data enrichment services, and data transcription solutions raised funding worth USD 65 million in its growth equity round, thus equating its total raised amount to USD 78 million.
April 2021: Congenica Ltd, a provider of data analytics tools for annotating and clinically interpreting genomic sequence data, announced a partnership with Camtech Diagnostics, a U.K.-based technology company with a specialization in microfluidics.

Key Companies profiled:

Some prominent players in the Data Annotation Tools market include

Annotate.com
Appen Limited
Cloud App
Cogito Tech LLC
Deep Systems
Labelbox, Inc
LightTag
Lotus Quality Assurance
Playment Inc
Tagtog Sp. z o.o
CloudFactory Limited
ClickWorker GmbH
Alegion and many others

Order a free sample PDF of the Data Annotation Tools Market Intelligence Study, published by Grand View Research.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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