The global data annotation tool market was valued at $1,355.10 million in 2020. The global data annotation tool market is forecast to grow at a CAGR of 26.1% during the forecast period from 2021-2027.
The data annotation tool is a software solution that can be deployed on-premise, in the cloud, or as a containerized solution designed to interpret machine learning training tools. Data annotation tools can also be used to create and analyze an explicit set of data, such as video, image, text, spreadsheet, and sensor data, within different deployment models such as SaaS (Cloud), on-premises, and container. Additionally, data annotation tools are growing in popularity as organizations globally build their own annotation tools.
Factors Affecting the Global Data Annotation Tool Market
- The global adoption of open-source data annotation tools is further fueled by organizations building their data annotation tools themselves.
- The growing demand for data annotation tools could be attributed to artificial intelligence and machine learning solutions being increasingly implemented in the healthcare and IT sectors during the forecast period.
- A rise in the demand for annotated data to improve machine learning models is expected to propel the growth of the data annotation tools market during the forecast period.
- Data annotation tools are being driven by the growth of autonomous driving technologies and artificial intelligence/machine learning technology combining to spur investment in the field.
- This market growth is being stifled by the shortage of skilled workforce and the high costs of manual annotation.
- During the forecast period, the market for data annotation tools is expected to experience growth due to the growing adoption of medical imaging data annotation.
Covid-19 Impact on the Global Data Annotation Tool Market
Covid-19 was a major driver for the growth of the data annotation tools market because of the demand for artificial intelligence and machine learning-based solutions, which boosted the demand for annotation tools. In 2021, the market is projected to grow at a relatively high rate. A shortage of skilled workers during the lockdown really hurt the global market for data annotating tools. Additionally, the market growth during the forecast period will be driven by a surge in the usage of text annotation for document classification.
Regional Analysis: The Global Data Annotation Tool Market
The data annotation tool market in Asia-Pacific will grow at the highest compound annual growth rate during the forecast period of 2021-2027. Data annotation tools are widely adopted in emerging economies in the Asia Pacific, especially in the healthcare and financial services sectors. Health care in the region is experiencing rapid growth because of advances in technology and innovative programs for access to healthcare.
Key Players in the Global Data Annotation Tool Market
Several competitors in the global data annotation tool market are:
- Amazon Mechanical Turk Inc.
- Appen Limited
- tagtog Sp. z o.o.
- Lionbridge Technologies Inc.
- clickworker GmbH
- Scale AI Inc.
- Other Prominent Players
Aim of the Report: The Global Data Annotation Tool Market
The global data annotation tool market is segmented by Annotation Type, Component, End-User, and Region.
Segmentation based on Annotation Type
- Manual Annotation
- Automated Annotation
Segmentation based on Component
- Professional Services
- Managed Services
Segmentation based on End-User
- Retail & E-Commerce
- IT & Telecommunication
Segmentation based on Region
- North America
- The U.S.
- Western Europe
- The UK
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- Australia & New Zealand
- Rest of Asia Pacific
- Middle East & Africa (MEA)
- Saudi Arabia
- South Africa
- Rest of MEA
- South America
- Rest of South America