Market Size & Trends

The global data labeling solution and services market size was valued at USD 11.83 billion in 2022 and is projected to grow a CAGR of 21.3% from 2023 to 2030. By adding attribute tags, data labeling tools assist users in developing data value. Data labeling is a process for identifying raw data (text, videos images, etc.) and adding one or more significant and revealing labels to offer context. Machine learning has been incorporated in several industries, including facial recognition on social networking websites powered by data collection, automated picture organization of visual websites, and robots & drones. Prominent growth in the automotive business, particularly in self-driving vehicles, significantly fuels data labeling solutions and services. A self-driving vehicle has a multiplicity of sensors and networking devices that let the computer drive the vehicle.

The global data labeling solution and services market is expected to witness a surge in the adoption of the technology owing to assistance such as deriving business insights from socially shared photographs and auto-organizing untagged photo collections. Furthermore, data labeling technology is increasingly being used in autonomous vehicles, which is expected to contribute to significant growth in the automobile industry. With the help of this technology, self-driving cars can detect obstacles and notify the driver about the vicinity of walkways and guardrails. The technology is also capable of reading stoplights and road signs.

Gather more insights about the market drivers, restrains and growth of the Global Data Labeling Solution And Services Market

Generative AI In Data Labeling Solution And Services

Generative AI can be a valuable tool for data labeling, as it can help automate and speed up the labeling process. Several companies have been working to combine data labeling with generative AI and have introduced various innovative platforms like GPT (Generative Pre-Trained Transformer), ChatGPT, InstructGPT, etc., to automate the data labeling task. These platforms are neural network architectures widely used in natural language processing (NLP) tasks such as text generation, translation, and sentiment analysis. Companies are launching new services to fuel the demand for data labeling solutions & services.

Sourcing type Insight

Outsourced segment dominated the market and accounted for 84.1% of revenue in 2022. The outsourced segment is also anticipated offer promising growth prospects, expanding at the highest growth rate during the forecast period. For outsourcing companies, cost-effectiveness and short-term commitments are top considerations. Outsourced companies support organizations in accomplishing a flexible method to developing annotative capacity, solid security protocols, and consulting practices for their labeling needs.

Type Insights

The image segment led the market and accounted for the largest revenue share of over 36.6% in 2022. The high share can be ascribed to the growing use of computer vision in various industries, including automotive, healthcare, media, and entertainment. For instance, medical imaging is one of the significant image-labeling applications.

Labeling Type Insights

In 2022, the manual segment dominated the market, with over 76.9% of the revenue share. The data labeling solution & services is segmented into manual, semi-supervised, and automatic labeling types. Manual data labeling is the process of humans classifying or labeling any data. In contrast to automatic labeling, the method is appealing due to benefits such as high integrity, consistency, 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.

Vertical Insights

In 2022, the IT segment dominated the market, accounting for 32.6% of global revenue. The leading share is attributable to the widespread use of AI applications in the sector. Furthermore, 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 gene sequencing, diagnostic automation, diagnostic automation, treatment prediction, medication discovery, deep learning, and machine learning methods to train datasets. Since highly precise data labeling is essential for efficient AI-based applications, it directly impacts its growth.

Regional Insights

In 2022, North America led the market, accounting for more than 31.0% of total revenue. Emerging investment in data labeling solutions in this region is leading the market growth. Early adopters of AI in the North American market, such as Canada and the U.S., are at the edges of data labeling solutions and services. During the forecast years, the European market is anticipated to increase steadily. In addition, emerging growth in automotive obstacle detection technologies are expected to fuel the market's growth in the European region's automobile sector over the forecast period.

Key Companies & 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 and product launches in recent years. For instance, in February 2023, Appen launched automated NLP labeling which leverages generative AI capabilities and few shots learning techniques to speed up data annotation to build generative AI applications. This will enable users to unlock exceptional consumer experience.

Similarly, in September 2022, CloudFactory Limited announced the acquisition of Hasty GmbH, a data-centric machine learning platform that accelerates the transition from model-centric AI to data-centric AI, allowing companies to develop and deploy vision AI solutions faster using a data-centric approach. The acquisition would lead to the integration of Hasty GmbH’s AI-assisted automated labeling with CloudFactory Limited’s human-in-the-loop AI technology would ensure the faster realization of AI models.

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Some of the prominent players in the data labeling solution and services market are:

• Alegion
• Amazon Mechanical Turk, Inc.
• Appen Limited
• Clickworker GmbH
• CloudApp
• CloudFactory Limited
• Cogito Tech LLC
• Deep Systems, LLC
• edgecase.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

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.

Data Labeling Solution And Services Sourcing Type Outlook (Revenue, USD Million, 2017 - 2030)

• In-House
• Outsourced

Data Labeling Solution And Services Type Outlook (Revenue, USD Million, 2017 - 2030)

• Text
• Image/Video
• Audio

Data Labeling Solution And Services Labeling Type Outlook (Revenue, USD Million, 2017 - 2030)

• Manual
• Semi-Supervised
• Automatic

Data Labeling Solution And Services Vertical Outlook (Revenue, USD Million, 2017 - 2030)

• IT
• Automotive
• Government
• Healthcare
• Financial Services
• Retails
• Others

Data Labeling Solution And Services Regional Outlook (Revenue, USD Million, 2017 - 2030)

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Latin America
• Brazil
• Mexico
• Middle East and Africa (MEA)
• Kingdom of Saudi Arabia (KSA)
• UAE
• South Africa

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