Global Data Annotation Service Market Forecast, Trend Analysis & Competition Tracking - Global Industry Insights 2015 to 2031

Demand for Data Annotation Service from 2015 to 2020 Vs Future Market Projections for 2021-2031

From 2015 to 2020, sales of data annotation services were significantly high, expanding at under 20% CAGR. Data annotations services generally refer to labeling various forms of metadata/data fed to an AI/ML system. These services are provided by third-party vendors working on contracts with expertise in different data tagging tools and techniques. They understand the AI/ML model requirements and label the data as per the use case required by the model. The expert that labels such data can easily understand the domain vocabulary, format, and data category they intend to use. This is also referred to as ‘creating an ontology.’

Request Covid - 19 Impact

The COVID-19 pandemic has promised new growth in expanding the IT and telecom sector. The total IoT spending has increased and reached US$ 761 billion in 2020 and is further expected to grow more and reach US$ 1,386 billion in 2026. From 2021 to 2031, demand is likely to expand at a CAGR exceeding 11%. Increasing disposable incomes have resulted in the spike in demand for smart consumer electronic devices such as smartphones, tablets, laptops, smart wearable devices, etc. The growing use of AI technology in day-to-day activities. Additionally, with an increasing inclination towards e-Education, are some major factors anticipated to fuel opportunities for additional revenue growth in the coming years.

Global Data Annotation Service Market Revenue Outlook:

The global data annotation service market was valued at US$ 531.8 Mn in 2020 and is projected to register а САGR of 19.8% by 2031.

Nonetheless, various industry players in the global data annotation service market are now increasing their focus towards the establishment of successful collaborations, acquisitions, and joint venture activities as a means to enhance their respective customer bases in rapidly developing economies. In doing so, these players are also increasing their supply capabilities to meet customer requirements on a local and global scale. This factor, paired with promising industrialization prospects in developing economies of the Asia-Pacific region, such as China, India, Taiwan, South Korea, etc., are expected to create massive business opportunities for key players over the forecast period.

How is the Demand for Data Annotation Services Increasing?

The increasing prevalence of AI/ML in various sectors such as automotive, BFSI, e-commerce, etc., is a factor that is expected to fuel revenue generation opportunities for the different market players in this given industry. Moreover, AI/ML technologies play a vital role in the healthcare industry in applications such as machine vision/computer vision in medical imaging to identify patterns, determine potential injuries or cancer cells, and generate reports after the examination of an individual, etc. This factor is also expected further to boost the revenue growth for this target industry.

Incorrect annotations affect the Data Annotation Service Market

The incorrect annotation of a particular image, text, video or audio can lead to a massive roadblock as inaccurate results will be generated by AI/ML systems. This error is caused due to either the inability of human annotator, a low-resolution image/ video or by incorrectly examining the tags before feeding them into a system. This factor may hinder the market growth of this global industry in the coming years.

Rising adoption of Data Annotation Services

The increasing frequency of e-commerce and social media users allows the annotators the opportunity to collect and label massive amounts of data, which will be crucial for future applications and can also be used to enhance user experiences. This factor is expected to strengthen further prospects for the financial growth of this target market in the years to come.

Market Trend for the Data Annotation Services

There is an increasing prevalence of the Internet of Things, robotics, advanced predictive analysis, deep learning, etc. Massive amounts of data are being created with each passing day. This data can prove to be an essential factor in developing new business opportunities, innovations in various fields of science, economics, etc. This trend is expected further to propel the revenue growth of this global market.

Regional Analysis

North America is expected to have a significant market share, among others

The North American region is considered as one of the largest customer bases for the adoption of data annotation services due to the immediate product and geographical expansion strategy undertaken by market vendors to gain an edge in the market. Further, the growth of the healthcare industry in the region is marked by the increasing adoption of technology and innovative healthcare access programs.

Competitive Landscape

The data annotation service market landscape appears highly consolidated, with a major chunk of it being dominated by US players.

• TELUS Corp.
• Appen Ltd.
• Sama Inc.
• Cloudfactory International Limited
• Alegion
• Lotus Quality Assurance
• Cloud App
• Playment Inc.
• Clickworker GmbH
• Cogito Tech LLC
• Other Players

Some notable developments in the market include:

• In 2019, FRITZ AI, a machine learning platform for iOS, Andriod, and SnapML, launched an image tagging tool to identify skin disease by analyzing several patterns in the images of patients.

Report Scope

• Forecast Period: 2022-2031
• Actual Year: 2021
• Historical Data Available for: 2015-2020

Key Regions Covered

• North America

  • US

  • Canada

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Spain

  • Russia

  • Rest of Europe

• Asia Pacific

  • China

  • Japan

  • South Korea

  • India

  • Rest of Asia Pacific

• Latin America

  • Brazil

  • Mexico

  • Rest of Latin America

• Middle East & Africa

  • GCC

  • South Africa

  • Israel

  • Rest of MEA

Key Segments Covered

Data Annotation Service Market, By Product Type

• Text
• Image/Video
• Audio

Data Annotation Service Market, By Application

• IT & Telecom
• Automotive
• Government
• Healthcare
• BFSI
• Retails
• Other Applications