Data Collection and Labeling Global Market Report 2024

The data collection and labeling market size has grown exponentially in recent years. It will grow from $2.86 billion in 2023 to $3.62 billion in 2024 at a compound annual growth rate (CAGR) of 26.4%. The expansion observed in the historical period can be attributed to factors such as adherence to regulatory compliance, ensuring quality assurance, addressing industry-specific requirements, fulfilling the demand for training data for AI models, and the prevailing trend of outsourcing.

The data collection and labeling market size is expected to see exponential growth in the next few years. It will grow to $9.28 billion in 2028 at a compound annual growth rate (CAGR) of 26.5%. The anticipated growth in the forecast period can be linked to the dynamic landscape of regulations, a surge in AI adoption across industries, the need for specialized labeling services, the escalating complexity of data, and the globalization of data labeling services. Key trends expected in the forecast period include the proliferation of training data for AI models, the growing significance of image and video labeling, a heightened demand for real-time data labeling, increased focus on security and privacy considerations, and the evolution of annotation tools.

The burgeoning adoption of autonomous vehicles stands as a catalyst for the anticipated growth in the data collection and labeling market. Autonomous vehicles, capable of independently sensing their environment and navigating without human intervention, rely significantly on data collection and labeling techniques. These methods enable self-driving cars to discern patterns in data, accurately categorize information, and make informed decisions for safe navigation, responding adeptly to various road elements such as pedestrians, vehicles, and traffic signs. According to the National Highway Traffic Safety Administration (NHTSA) in September 2020, a projection of 3.5 million autonomous vehicles on American roads by 2025 and 4.5 million by 2030 underscores the pivotal role of increased adoption of autonomous vehicles in propelling the data collection and labeling market.

The burgeoning advancement of machine learning and Artificial Intelligence (AI) is set to propel the expansion of the data collection and labeling market. Machine Learning involves algorithms enabling computers to enhance performance on specific tasks as they encounter more data, without explicit programming. Artificial Intelligence encompasses systems capable of simulating human intelligence. Leveraging AI and ML algorithms streamlines data collection from diverse sources such as sensors, IoT devices, and websites, automating data aggregation and preprocessing. As per the US Bureau of Labor Statistics, the projected 22% growth in employment for machine learning engineers from 2020 to 2030 indicates the significant role of rising AI and machine learning in driving the data collection and labeling market.

Technological advancements serve as a prominent trend fueling the growth of the data collection and labeling market. Companies operating within this market sphere are embracing innovative technologies, such as real-time data monitoring, to fortify their market presence. For instance, Sumake North America, in May 2022, introduced the EA-SC100 tool management system designed for data collection and tool setup. This system integrates a touch screen for real-time result visualization and a remote administration system for efficient tool setup and data retrieval. The EA-SC100 system not only reduces costs and boosts profitability but also streamlines assembly processes and aids businesses in upholding quality standards.

Major companies within the beer packaging market are strategically investing in data labeling to drive revenue growth within the data collection and labeling sector. This proactive investment approach is exemplified by Centaur Labs, a US-based company specializing in medical data labeling services. In September 2021, Centaur Labs secured a substantial $15 million funding round aimed at expanding its operations and bolstering capabilities to cater to the growing demand for top-tier training data within the healthcare industry. This strategic move aligns with the overarching objective of Centaur Labs to advance the labeling of clinical data globally, echoing the emphasis placed by AI pioneer Andrew Ng on ensuring high-quality healthcare data. The funding initiative, primarily led by Matrix Partners, witnessed participation from various other investors, showcasing the industry's confidence in Centaur Labs' vision and potential.

In July 2022, Renesas Electronics Corporation, a Japan-based provider of cutting-edge semiconductor solutions, completed the acquisition of Reality AI for an undisclosed sum. This acquisition marks a significant step for Renesas, broadening and enriching its portfolio while diversifying its offerings in software and AI tools. The strategic integration of Reality AI, a US-based software development company specializing in data collection and labeling, strengthens Renesas' capacity to deliver optimized endpoint solutions that seamlessly integrate hardware and software. This acquisition amplifies Renesas' capabilities, enabling the development of highly refined solutions in the realm of data collection and labeling while expanding its overall technological prowess.

Major companies operating in the data collection and labeling market report are Reality Analytics Inc., Globalme Localization Inc., Global Technology Solutions Inc., Alegion Inc., Labelbox Inc., Dobility Inc., Scale AI Inc., Trilldata Technologies Pvt. Ltd., Appen Limited, Playment Inc., Avery Dennison Corporation, Summa Linguae Technologies SA, SuperAnnotate AI Inc., Keylabs.ai Ltd., V7Labs Ltd., Datasaur Inc., Dataloop Ltd., CloudFactory Limited, Clarifai Inc., International Business Machines Corp., Oracle Corp., TELUS International, Amazon Mechanical Turk, Cogito Corp., Prodigy Math game India Pvt. Ltd., iMerit Technology Services Pvt Ltd., Snorkel AI Inc., Hive Digital Technologies Ltd., Samasource Group, Figure Eight Inc.

North America was the largest region in the data collection and labeling market in 2023. Asia-Pacific is expected to be the fastest-growing region in the data collection and labeling market report during the forecast period. The regions covered in the data collection and labeling market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data collection and labeling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary data types for data collection and labeling include text, image or video, and audio. In text-related applications, labeling and collecting data are essential for training machine learning models to make accurate predictions on new text data. These processes find applications in various areas such as dataset management, security and compliance, data quality control, workforce management, content management, catalog management, sentiment analysis, and more. Different industries, including information technology (IT), automotive, government, healthcare, banking, financial services and insurance (BFSI), retail and e-commerce, leverage these processes for various purposes.

The data collection and labeling market research report is one of a series of new reports that provides data collection and labeling market statistics, including data collection and labeling industry global market size, regional shares, competitors with a data collection and labeling market share, detailed data collection and labeling market segments, market trends and opportunities, and any further data you may need to thrive in the data collection and labeling industry. This data collection and labeling market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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