Data Annotation Tools Market Share, Size, Trends, Industry Analysis Report, 2024 - 2032
Data Annotation Tools Market Share, Size, Trends, Industry Analysis Report, 2024 - 2032

Data Annotation Tools Market Share, Size, Trends, Industry Analysis Report, By Type (Text, Image/Video, Audio), By Annotation Type (Manual, Semi-supervised, Automatic), By Vertical (IT, Automotive, Government, Healthcare, Financial Services, Retail, Others), By Region; Segment Forecast, 2024 - 2032

  • Published Date:Jan-2024
  • Pages: 111
  • Format: PDF
  • Report ID: PM2066
  • Base Year: 2023
  • Historical Data: 2019-2022

Report Outlook

The global data annotation tools market size was valued at USD 1090.00 million in 2023. The market is anticipated to grow from USD 1376.45 million in 2024 to USD 8951.85 million by 2032, exhibiting the CAGR of 26.4% during the forecast period.

The increasing market demand of these tools for enhancing machine learning models and rising requirements for more attractive & appealing images/text is the factors fueling the market growth of these tools. In addition, rising spending on R&D activities and intensifying implementation of the latest technologies such as AI and machine learning across the globe accelerates the data annotation tools market demand. The growing need for the integration of precise numbers for operating datasets also acts as a catalyzing factor that impels the market growth for these tools over the forecasting years.

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The outbreak of COVID-19 shows a positive impact on the global annotation tools market. Various governments apply mandatory social distancing laws and lockdown in several regions to prevent the spread of coronavirus. Thereby, it fuels the market demand for the data annotation tools for annotating production-grade training information for machine learning. The penetration of artificial intelligence (AI) in annotation tools facilitates organizations to decrease operational expenditures and enhance customer satisfaction by offering improved & convenient services. In addition, it also assists the healthcare sector by improving AI applications. AI-based machines create medical reports of the patients automatically with the help of analyzing from the statistical insight and their patterns. Therefore, the widespread of this pandemic reflects a significant impact on the global annotation tools market.

The Data Annotation Tools Market report details key market dynamics to help industry players align their business strategies with current and future trends. It examines technological advances and breakthroughs in the industry and their impact on the market presence. Furthermore, a detailed regional analysis of the industry at the local, national, and global levels has been provided.

Data Annotation Tools Market

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Industry Dynamics

Growth Drivers
The growing adoption of artificial intelligence (AI) in numerous verticals such as healthcare, automotive, IT, government, and others may impel the market growth for these tools globally. AI plays a major role in the healthcare sector as it is used in a number of applications, from assisting diagnosis to improving workflow efficiencies of operational healthcare. In addition, further applications integrating AI are personalized medicines, drug development, patient health monitoring, and others. These tools are also used for precise X-rays, CT scans, pathological tests, and MRI patterns.

The objective of these tools in the healthcare sector is to improve patient outcomes and increase the volume & availability of health-related data from personal and healthcare-related devices. Moreover, AI technology in healthcare can collect information and provide a well-defined output to the end-user compared to traditional technologies. Numerous medical institutions and companies have developed AI algorithms for their departments, such as Memorial Sloan Kettering Cancer Center, National Health Service, the Mayo Clinic, and Google and IBM.

Currently, AI technologies are broadly used by public and private health organizations to improve the totality and accuracy of electronic health records (EHR) by translating the free text into standardized information. Thus, increasing adoption of an EHR system and rising investments in AI-based healthcare are few factors that have triggered the market growth of AI in healthcare. Accordingly, increasing penetration of AI-based tools in the healthcare sector may boost the global data annotation tools market over the forecasting years.

Report Segmentation

The market is primarily segmented on the basis of type, annotation, vertical and region.

By Type

 By Annotation Type

 By Vertical

By Region

  • Text
  • Image/Video
  • Audio
  • Manual
  • Semi-supervised
  • Automatic
  • IT
  • Automotive
  • Government
  • Healthcare
  • Financial Services
  • Retail
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Spain, Netherland, Austria)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Insight by Annotation Type

The manual annotation tools segment was the leading segment in terms of revenue generation in 2020. The population mainly accepts this segment due to its features, such as it provides more accuracy, minimum data annotation attempt, and upsurge integrity level. In addition, it offers higher prospects for learning the fascinating approach of the numbers compared to automatic annotation tools that is subsequently integrated into an algorithm. Therefore, these are the certain factors that lead the segment dominancy around the world.

The automatic annotation tools segment is estimated to show the highest growth rate in the forecasting period. Automatic intelligence plays a major part in the annotation tools industry as technology facilitates the extraction of sophisticated information from the datasets by utilizing the associative learning process. The rising requirement for significant withdrawn data patterns from the huge collection of information is impelling the market demand for the AI that leads the segment market growth. Moreover, it also runs models on datasets by creating an annotation, which helps in increasing productivity forecasts further boosts segment growth.

Insight by Vertical

The healthcare segment is accounted for the highest shares in the global data annotation tools market in 2020. Factors like increasing penetration of the AI in numerous applications such as gene sequencing, automation of diagnostic, treatments estimations, and advancements of drugs & medicines in the healthcare sector are stimulating the market segment growth. In addition, the efficiency and accuracy of machine learning algorithms in the datasets are needed to be trained for developing AI-based applications. Moreover, AI-enabled products are the chief step for accessing high-quality and precise numbers sets across the healthcare sector. Hence, the growing adoption of AI leads the segment market growth by offering training data sets.

The automotive segment is expected to show the highest CAGR in the foreseen years owing to the data annotation tools that are majorly accepted for self-driving vehicles. The increasing investments in the research and development activities for advancing image annotation with the help of approaching development in the self-driving vehicle may propel the segment market growth.  For instance, in January 2021, TCS introduced its Autoscape solution suit to deliver Next-Gen autonomous and linked vehicle experiences. It includes automotive OEMs, fleet owners as well as start-ups. This solution offers data annotation studio and autonomous vehicle (AV) validation services. Data annotation studio categorized solutions that improve the workflow of the enterprises by providing model management and cost-effective data organization. Accordingly, product launches by the vendors may propel the segment market growth in the near future.

Geographic Overview

Geographically, North America is the major contributor of revenue and dominates the global market of these tools with the highest shares. The highest acceptance rate for the technologies like big data, cloud, IoT, machine learning, and AI is tied with the rising responsiveness regarding AI-based products that may lead the market growth for these tools. Moreover, the presence of numerous vendors such as Google Inc., Amazon Inc., and Mighty AI Inc., coupled with the existence of technical professionals, further contribute to the market growth in the region. Consequently, these factors create a productive market demand for data annotation tools due to the competitors increasing strategic developments and product portfolios in the future.

Moreover, Asia Pacific is projected to grow at the highest pace across the globe in the approaching years. Emerging economies such as China, India, South Korea in the APAC are accounted with the highest potential rate for adopting the data annotation tools, mainly in the financial services and healthcare verticals. Rising acceptance of the novel innovations and technologies in healthcare programs and growing market demand for image data annotation tools may further act as catalyzing factors for market growth.

For instance, Congenica Ltd. data analytics tool and clinically interpret sequencing data provider declared the company’s partnership with Camtech Diagnostics- the U.K.-based Technology Company, in April 2021. This collaboration is the growth of the genomic analysis platform growth in Asian countries such as South Korea, Malaysia, Japan, and Singapore. Accordingly, these factors are gaining significant prominence across the Asia Pacific in the near future.

Competitive Landscape

Some of the major players operating the global data annotation tools market include Amazon Mechanical Turk,, Appen Limited, Clickworker, CloudFactory Limited, Cogito Tech LLC, Dbrain, Explosion AI GMbH, Figure Eight Inc., Google LLC, Lighttag, Lionbridge Technologies, Inc., Lotus Quality Assurance, Playment Inc, Scale AI, INC., SuperAnnotate LLC, Tagtog, Trilldata Technologies Pvt Ltd.

Data Annotation Tools Market Scope

Report Attributes


Market size value in 2024

USD 1376.45 million

Revenue forecast in 2032

USD 8951.85 million


26.4% from 2024 - 2032

Base year


Historical data

2019 - 2022

Forecast period

2024 - 2032

Quantitative units

Revenue in USD million and CAGR from 2024 - 2032

Segments covered

By Type, By Annotation, By Vertical, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Key companies

Amazon Mechanical Turk,, Appen Limited, Clickworker, CloudFactory Limited, Cogito Tech LLC, Dbrain, Explosion AI GMbH, Figure Eight Inc., Google LLC, Lighttag, Lionbridge Technologies, Inc., Lotus Quality Assurance, Playment Inc, Scale AI, INC., SuperAnnotate LLC, Tagtog, Trilldata Technologies Pvt Ltd

Gain profound insights into the 2021 Data Annotation Tools Market with meticulously compiled statistics on market share, size, and revenue growth rate by Polaris Market Research Industry Reports. This thorough analysis not only provides a glimpse into historical trends but also unfolds a roadmap with a market forecast extending to 2028. Immerse yourself in the comprehensive nature of this industry analysis through a complimentary PDF download of the sample report.