The global data annotation and labeling market is projected to register a CAGR of 33.2% during the forecast period, reaching 3.6 billion by 2027 from an estimated USD 0.8 billion in 2022. Nowadays, data had become the key foundation for many businesses across the globe. It fosters organizational development and progress and is crucial to decision-making. Businesses can gain a significant advantage over their competitors and find long-term success by utilizing data insights and experimenting with the trending data annotation solutions. Technologies such as artificial intelligence, machine learning, Internet of Things, and robots are generating large amounts of data on a daily basis. Data efficiency will therefore will become increasingly important in light of emerging trends for data annotation and labeling market.
Data Annotation and Labeling Market Dynamics:
Drivers:
- Increasing need to improve machine learning models and train AI algorithms
- Growing demand for annotated datasets in autonomous mobility technologies
- Rising popularity of labeled data in medical imaging
Restraints:
- High costs associated with manual data annotation
- Issues associated with poor quality of training data
- Failure regarding data security regulations and compliance
Opportunities:
- Rising efficiency of AI-assisted automated data annotation
- Rapid adoption of computer vision technologies in novel applications
- Increasing traction of crowdsourced data annotation for improved RoI
List of Top Companies in Data Annotation and Labeling Market:
- Google (US))
- Appen (Australia)
- TELUS International (Canada)
- IBM (US)
- Adobe (US)
- AWS (US)
- Alegion (US)
- Cogito Tech (US)
- Anolytics (US)
- AI Data Innovation (US)
- Clickworker (Germany)
- CloudFactory (UK)
- Oracle (US)
- CapeStart (US)
- DataPure (US)
The amount of data generated daily is increasing dramatically. The effectiveness of automated data annotation and labeling tools and the increasing utilisation of cloud-based computing resources for huge dataset annotation contributes to market expansion. Businesses' usage of data annotation tools can help them to grow in the near future because of their accuracy and ability to label huge amounts of data used for Al training.
The Data Annotation and Labeling Market has been segmented by component into solution and services. The market for data annotation and labeling depends heavily on services. Due to the growing number of data sources, more data every day needs to be examined. The services section is anticipated to be driven by the rising demand for cloud-based services and the rising usage of data annotation and labeling solutions. The effective delivery of services boosts operational effectiveness, system dependability, and cost savings. During the forecast period the services segment is projected to grow at a highest CAGR. The service segment is also anticipated to lead the Asia Pacific market, growing with the highest CAGR during the forecast period.
By deployment mode, the Data Annotation and Labeling Market has been segmented into on-premises and cloud. The cloud segment is expected to register the largest market size during the forecast period. The use of cloud based data annotation and labeling solutions offers flexibility to the businesses for adjusting dynamic business environments. Companies such as Dataloop offer AI annotation platform which is an end-to-end cloud-based annotation platform with integrated tools and automations for more quickly creating high-quality datasets.North America anticipated to account for largest market size during forecast period
Among the regions, North America is anticipated to account for the largest market size during the forecast period. The presence of various key market players and the demand for highly customized data sets curated by trained professionals would fuels the growth of data anootation and labeling market across the region. Due to its well-established economies, countries across North America are witnessing significant investments in data annotation and labeling projects.
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