The Data Annotation Tools Market Ecosystem is Expected to Grow at a CAGR of 24.4% by 2027. This report evaluates “Global Data Annotation Tools Market Ecosystem” by tudying Ecosystem analysis, trend intelligence and market revenue analysis. Data annotation is the process of highlighting and labeling data attributes to data. Combinations of data characteristics such as texts, image, video, etc., can be annotated. This helps end-users in maintaining data at a centralized location and eliminates duplicity. Before modeling into any Machine learning algorithms or other AR-VR application, it is an important step to annotate the data. The rise in adoption of advanced technologies such as AI also contribute to the growth of Data Annotation tool market ecosystem.

One of the most important processes of data annotation is making it usable for the artificial intelligence system. In the Healthcare industry, it helps physicians in automatic generation of reports after observing any patient symptoms. This also helps in accurate annotation for enhancing machine learning capabilities. In the automotive industry, data labeling is essential for autonomous vehicle application. Data annotation tools are used across many industries. This technology is also used in medical & healthcare applications like gene sequencing and drug development. According to our estimates, the global data annotation tool market – ecosystem was valued at US$ 319.5 Mn in the year 2018. 

Figure 1: Ecosystem Snapshot: Data Annotation Tools Market

 

Due to advancements in technology and rapid digitization, the use of real-time data is increasing in the BFSI Industry. Monitoring and evaluation of vast amounts of client data, including personal and security information, by Banks and other financial organizations have been made much simpler. Data annotation is essential for most banking services such as core banking, retail, private, corporate, investment, cards, etc. These factors contributes to the growth of overall Data Annotation tool market.

Image annotation is one of the vital applications used in the Retail industry. Image-based data annotation brings more accuracy and helps in smooth functioning of machine learning algorithms. In Feb 2019, Walmart acquired “Dataturks”, a Bangalore-based data annotation start-up. It will bring more advantages to the retail giant. The rise in start-ups also boost the growth of data annotation tool market.

Further, image and video annotation is also gaining momentum, especially in the automotive industry. There is a huge requirement for image and video annotation to train autonomous car applications. Waymo’s dataset has created more than 25 million 3D bounding and 22 million 2D bounding boxes. This also includes the data collected from their sensors. Such initiatives for autonomous car development will contribute to the growth of global data annotation tool market.

Data Annotation Tools Market Ecosystem: Segmentation

Data Form	Annotation Type	Operating System	Deployment	Technology	Devices	End User
Text	Supervised	Mac OS	Cloud	Computer Vision	Smartphones & Tablets	Logistics and Transportation
Image	Semi-Supervised	Windows	On- Premise	Machine Learning	Workstation	Healthcare
Video	Unsupervised	Linux		Others	CCTV	Automotive
Others		Others			Digital Camera	Retail
					Others	BFSI
						IT & Telecom
						Oil & Gas

Global Data Annotation Tools Market

One of the highest adoption of the Data Annotation tools market is the IT & Telecom industry. The technological evolution in the telecom industry results in huge demand for machine learning applications to analyse the vast amount of data. Artificial intelligence (AI) is playing a major role in various industries.  The IT & telecom segment accounted for the highest share of 25.08% in 2018 and is expected to dominate the market during the forecast period. The recent developments in digitalization in the US, China, and Japan, as well as in the European Union, have contributed to a rise in global demand. This is expected to boost the growth of advanced technologies in the IT and Telecom sector.

The North American region is expected to hold the pole position in the data annotation tools market owing to the increasing demand for self-driving cars across the region. The major manufacturers of automobiles such as Voyage and General Motors are using data annotation tools. Companies like Tesla are also using data annotation tools for its computer vision algorithms in self-driving cars. North America is holding around 39.6% share in the global data annotation tool market. These are some of the factors that will contribute to the growth of the overall Data annotation tools market during the forecast period.

Figure 3 -Data Annotation Tools Market Ecosystem Statistics Glimpse

 

There are many trends that are having an impact on the market forecast. These, when evaluated from a company’s perspective, can drive growth. Our numerous consulting projects have generated sizeable synergies across all regions and all sizes of companies.

The major players operating in the global data annotation tool market are as follows:

Table 2 Data Annotation Tools Market Ecosystem: Key Players

Company	Ecosystem Positioning	Total Revenue 2018 (US$ Mn)	Region
Innodata	Solution & Service Provider	$ 57.4 Million	Global
Appen Limited	Solution & Service Provider	$ 364.3 Million	Global
AMAZON.COM, INC.	Solution & Service Provider	$ 232.8 Million	Global
CloudFactory Limited	Solution & Service Provider	$ 80 Million	Global
Annotate	Solution & Service Provider	$ 2.06 Million	Global

Very few markets have the interconnectivity with other markets. Our Interconnectivity module focuses on the key nodes of heterogeneous markets in detail. Smartphone, Cloud computing, Machine Learning, Healthcare, and Automotive markets are some of our key researched markets.  

Data Annotation Tools Market Ecosystem: Major Interconnectivities

Glance on Global Data Annotation Tools Market Ecosystem Trends:

Table 3: Global Data Annotation Tool Market: Key Trends

Research Methodology:

Trends	Technology	Applications	End-users	Impact on Market
Data Annotation has become vital in decision-making processes in the Banking and Financial Services Industry. Investment banking and other businesses wherein real-time information is used, the volume as well as the velocity of data has become critical factors.		Customer Engagement	BFSI	1.0%
Increasing trend towards strong marketing has boosted the demand for attractive images and videos of products for gaining traction from customers.			Retail	1.2%
Rapid adoption of technology such as Artificial Intelligence (AI) boosts the growth of data annotation market	AI	Security & Surveillance	Retail, BFSI,  IT & Telecom	XX%

 

 

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