Data Labeling Solution And Services Market Growth Strategies Adopted by Top Key Players 2028

Data Labeling Solution And Services Industry Overview

The global data labeling solution and services market size is expected to reach USD 38.11 billion by 2028, according to a new report by Grand View Research, Inc. The market is anticipated to register a CAGR of 23.5% from 2021 to 2028. The rising popularity of data labeling solutions and services in the automotive industry, combined with autonomous vehicles that contain numerous sensors and networking systems that assist the computer driving the car, is propelling the growth of the market.

Data Labeling Solution And Services Market Segmentation

Grand View Research has segmented the global data labeling solution and services market based on sourcing type, type, labeling type, vertical, and region:

Based on the Sourcing Type Insights, the market is segmented into In-house and Outsourced.

• The outsourced segment led the sourcing type segment of the data labeling solution and services market. In 2020, the segment held the largest revenue share of 83.7%. The outsourced segment is expected to account for the largest revenue share and provide solid growth opportunities. The segment is expected to witness the fastest CAGR over the forecast period. Short-term commitments and cost-effectiveness are priorities for outsourcing organizations. Outsourced companies assist organizations in achieving a flexible approach to developing annotative capacity, solid security protocols, and consulting practice for their labeling needs.
• The in-house segment is estimated to witness moderate growth throughout the forecast period. Implementation of in-house data labeling solutions empowers businesses to develop reliable labeling processes and replicable systems for managing data. The companies can also set up custom practices according to the desires and requirements of the company. Moreover, positioning in-house data labeling teams provides a deeper understanding and improved control of operational procedures, which will profit the organizational viewpoint. These factors are expected to contribute to the growth of the segment.

Based on the Type Insights, the market is segmented into Text, Image/Video and Audio.

• The text segment led the market and accounted for the largest revenue share of over 37.0% in 2020. However, the image/ video segment will dominate the market over the forecast period. The high revenue share of the segment can be ascribed to the growing use of computer vision in various industries, including healthcare, automotive, media, and entertainment. For instance, medical imaging is one of the significant image labeling applications.
• Increased use of advanced technology is anticipated to further fuel the growth of the image/video segment. The growing use of computer applications in the healthcare industry for x-ray, CT scans, MRI, and patient treatments will also propel the growth. The text segment accounted for a significant revenue share in 2020, owing to its rising applications in clinical research and e-commerce. Over the projected period, the audio segment is expected to witness the highest CAGR.

Based on the Labeling Type Insights, the market is segmented into Manual, Semi-supervised and Automatic.

• In 2020, the manual segment dominated the market, with over 82.0% revenue share. The market is divided into manual, semi-supervised, and automatic annotation types. The process of humans categorizing or annotating any data is known as manual data annotation. Compared to automatic annotation, the method is appealing because of benefits such as consistency, high integrity, and low data annotation efforts. However, because manual annotation is costly and time-consuming, labeled data collected through crowdsourcing activities are used for various purposes.
• Over the projected period, the automatic annotation segment is expected to expand at a favorable CAGR. AI is becoming increasingly important in the data labeling sector as it enables the extraction of high-level and sophisticated abstractions from datasets through a hierarchical learning process. The demand is likely to increase as the necessity for mining and extracting meaningful patterns from large amounts of data grows. Semi-supervised systems can classify unlabeled data or identify specific labeled data. As a result of the restricted use of this annotation type, it will have a moderate market share.

Based on the Vertical Insights, the market is segmented into IT, Automotive, Government, Healthcare, Financial Services, Retails, Others.

• In 2020, the IT segment dominated the market with a 33.7 % revenue share, due to the widespread use of AI applications in the sector. The healthcare business is expected to increase significantly during the projection period. Artificial intelligence is widely employed in the healthcare industry for various applications, including diagnostic automation, gene sequencing, treatment prediction, medication discovery, deep learning, and machine learning methods to train datasets. Since highly accurate data labeling is required for efficient AI-based applications, it directly impacts its growth.
• Over the projected period, the automotive segment is expected to register the fastest CAGR of 25.2%. Data labeling technology is increasingly being used in autonomous vehicles, which is expected to contribute to the substantial growth in the automotive segment. With the help of data labeling technology, self-driving vehicles can detect barriers and notify the driver about the vicinity of pathways and guardrails. The technology is also capable of reading stoplights and road signs. All these factors are anticipated to contribute to the growth of the segment over the forecast period.

Data Labeling Solution And Services Regional Outlook

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Key Companies Profile & Market Share Insights

The competitive landscape of the market is fragmented and features the presence of several market players. The market has witnessed several mergers, acquisitions, and strategic partnerships in recent years. 

Some of the prominent players operating in the data labeling solution and services market include,

• Alegion
• Amazon Mechanical Turk, Inc.
• Appen Limited
• Clickworker GmbH
• CloudApp
• CloudFactory Limited
• Cogito Tech LLC
• Crowdworks, Inc.
• Deep Systems, LLC
• ai
• Explosion AI GmbH
• Heex Technologies
• Labelbox, Inc.
• Lotus Quality Assurance
• Mighty AI, Inc.
• Playment Inc.
• Scale AI,
• Shaip
• Steldia Services Ltd.
• Tagtog Sp. z o.o.
• Trilldata Technologies Pvt. Ltd
• Yandez LLC

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