Data Annotation Tools Market: Growing Need To Make Text/ Image More Interactive And Engaging To Drive Revenue To The Industry

Posted on 2022-06-30 by researchinsights in Industrial, Technology // 0 Comments

San Francisco, Calif., USA, June 30, 2022 — /EPR Network/ —

Data Annotation Tools Industry Overview

The global data annotation tools market size is expected to reach USD 5,331 million by 2030, exhibiting a CAGR of 26.6%, according to a new report by Grand View Research, Inc. The advent of big data is expected to drive the growth of the artificial intelligence market as a large volume of data is required to be recorded, stored, and analyzed. The adoption of artificial intelligence is expected to significantly boost the demand for data annotation tools as the annotated data 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 data that is relevant to determining future outcomes and decision-making.

Data Annotation Tools Market Segmentation

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

Based on the Type Insights, the market is segmented into Text, Image/Video and Audio.

The text segment led the market in 2021, accounting for over 36% share of the global revenue.
The text annotation segment is expected to expand at a promising pace over the forecast period, owing to the rising applications in e-commerce and clinical research applications.
The audio segment is expected to cater moderate share in the market.
The image/video annotation segment is expected to dominate the market over the forecast period. Some of the major applications of image data annotation are in the medical industry in the field of medical imaging.

Based on the Annotation Type Insights, the market is segmented into Manual, Semi-supervised and Automatic.

The manual segment led the market in 2021, accounting for over 81% share of the global revenue.
The automatic annotation segment is expected to grow at a promising pace over the forecast period.
AI is becoming vital to the data annotation industry as the technology allows the extraction of high-level and complex abstractions from the datasets using a hierarchical learning process.
The need for mining and extracting meaningful patterns from voluminous data is driving the growth of AI, which is expected to further drive the demand for automatic data annotation tools.

Based on the Vertical Insights, the market is segmented into IT, Automotive, Government, Healthcare, Financial Services, Retail and Others.

The IT segment led the market in 2021, accounting for a 33% share of the global revenue.
The healthcare segment is expected to grow at a good pace over the forecast period. Artificial Intelligence is widely adopted in the healthcare sector for various applications such as treatment prediction, diagnostic automation, drug development, and gene sequencing.
The automotive segment is anticipated to grow at the highest rate over the forecast period as data annotation tools find wide acceptance in self-driving vehicles.
The growing R&D spending towards improving image annotation for pushing developments in the field of self-driving vehicles is boosting the market growth.

Data Annotation Tools Regional Outlook

North America
Europe
Asia Pacific
South America
MEA

Key Companies Profile & Market Share Insights

Vendors in the market are taking several strategic initiatives, such as collaborations, acquisitions & mergers, and partnerships with other key players in the market. Moreover, these players are focusing on raising funds to support geographical expansion and product launches.

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