Data Labeling Solution and Services Global Market Report 2024

The data labeling solution and services market size has grown exponentially in recent years. It will grow from $13.21 billion in 2023 to $16.4 billion in 2024 at a compound annual growth rate (CAGR) of 24.1%. The growth witnessed in the historical period can be credited to several factors including the increasing prominence of machine learning and AI, growing demand for labeled data, the emergence of computer vision applications, the expansion of natural language processing (NLP), and the proliferation of autonomous vehicles and robotics.

The data labeling solution and services market size is expected to see exponential growth in the next few years. It will grow to $39.35 billion in 2028 at a compound annual growth rate (CAGR) of 24.5%. The anticipated growth in the forecast period can be attributed to the widespread adoption of IoT devices, advancements in edge computing, increasing integration of autonomous systems, the rise of industry-specific AI applications, and heightened attention towards data privacy and security. Key trends expected in the forecast period include the incorporation of AI-driven automation, the surge in hybrid human-machine labeling approaches, the emergence of specialized vertical solutions, the expansion of data labeling-as-a-service (DLaaS), and a greater emphasis on ethical and bias-aware labeling practices.

The anticipated surge in data volume is set to propel the expansion of the data labeling solution and services market in the future. Data, encompassing raw facts and statistics often in digital form, is experiencing rapid growth due to increased digitalization and the proliferation of interconnected devices. Managing such vast datasets requires efficient data labeling solutions and services to clean, transform, and organize data for analysis effectively. For instance, in December 2022, according to a report published by the Linux Foundation, a US-based non-profit consortium, an average end-user organization with a storage capacity of up to 20 petabytes experienced annual data growth of 566 terabytes (TB) in 2021 and 1,746 terabyte (TB) in 2022. Similarly, annual data growth for organizations with a storage capacity of up to 25 petabytes reached a significant 2,208 TB in 2022, three times more than in 2021 (700 TB). Therefore, the rapidly growing volume of data will drive the growth of the data labeling solution and services market.

Key players in the data labeling solution and services market are prioritizing the development of platforms featuring Large Language Models (LLMs) to automate data labeling, thereby enhancing efficiency, accuracy, and scalability in data annotation processes. LLMs are advanced AI systems capable of understanding and generating human-like text across different languages and domains. For instance, in October 2023, Refuel AI Inc., a US-based technology company, launched the Refuel Cloud platform to automate data labeling. This platform leverages Large Language Models (LLMs) to automate data cleaning, labeling, and enrichment at scale for various industries, providing clean and accurately labeled datasets for AI training in minutes. Refuel Cloud's innovative approach allows data teams to specify dataset labels in natural language, enhancing efficiency and reducing human error. Additionally, Refuel Cloud offers enhanced data security by enabling deployment within a customer's own cloud or on-premises environment, ensuring data privacy and control.

In July 2021, Telus International, a Canada-based technology company, acquired Playment, an India-based provider of data labeling and annotation services. This strategic acquisition enhances Telus International's capability to meet the growing demand for diverse datasets and solidifies its position as a global leader in the data annotation market.

Major companies operating in the data labeling solution and services market are Google LLC, Amazon Web Services Inc., International Business Machines Corporation, Oracle Corporation, Uber Technologies Inc., Adobe Inc., Telus International, CloudFactory Limited, iMerit Technology Services Private Limited, Databricks Inc., Scale AI Inc., Appen Limited, The Hive AI Inc., BigID Inc., Encord LLC, Labelbox Inc., SuperAnnotate Inc., Adept Technologies Limited, Kili Technology Inc., Label Your Data LLC, Alegion Inc., SuperbAI Inc., Pure Moderation LLC, Data Labeler LLC, AI Data Innovations Inc., Amazon Mechanical Turk Inc., Cogito Tech LLC, Labellerr Inc., KeyMakr Inc.

North America was the largest region in the data labeling solution and services market in 2023. The regions covered in the data labeling solution and services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the data labeling solution and services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Data labeling solutions and services involve the processes and tools utilized to annotate or label raw data, rendering it suitable for machine learning algorithms. These services offer scalable, accurate, and efficient labeling procedures, employing either human annotators or automated algorithms. Their primary objective is to ensure the production of high-quality labeled data, which is indispensable for enhancing the performance of AI models across diverse industries.

The primary categories of data labeling solutions and services include text, image or video, and audio. Text data labeling involves adding annotations or labels to textual data, such as articles, documents, or social media posts, to enhance its comprehension for machine learning algorithms. Labeling methods encompass manual, semi-supervised, and automatic approaches, while sourcing options include in-house and outsourced solutions. These services find applications across various sectors including information technology, automotive, government, healthcare, financial services, retail, and others.

The data labeling solution and services market research report is one of a series of new reports that provides data labeling solution and services market statistics, including data labeling solution and services industry global market size, regional shares, competitors with a data labeling solution and services market share, detailed data labeling solution and services market segments, market trends and opportunities, and any further data you may need to thrive in the data labeling solution and services industry. This data labeling solution and services 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 data labeling solution and services market consists of revenues earned by entities by providing services such as text annotation services, audio annotation services, video annotation services, sensor data annotation, and quality assurance and data validation processes. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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