Data Annotation Tools Market Analysis

End-user (Retail & E-Commerce, IT & Telecommunication, BFSI, Government, Automotive, Healthcare)

The global data annotation tools market is segmented and analyzed for demand and supply by end user into retail & e-commerce, IT & telecommunication, BFSI, government, automotive, healthcare, and others. Out of the six end users of data annotation tools, the retail & e-commerce segment is estimated to gain the largest market share in the year 2037. The growth of the segment can be attributed to the increasing prevalence of e-commerce and the rising integration of artificial intelligence in retail & e-commerce. According to a survey conducted in October 2020, around 70% of e-commerce decision-makers in North America and Europe said AI would aid personalization in their companies' operations in 2021. For both retailers and customers, AI & Data annotation services are greatly enhancing online shopping experiences. Companies witnessed a transformation in the e-commerce industry's adoption of AI and data annotation during the last few years. Therefore, for a better user experience and more effective solutions, several companies already utilize AI with data annotation services.

Type (Text, Pictures & Videos, Audio)

The global data annotation tools market is also segmented and analyzed for demand and supply by type into text, pictures & videos, and audio. Amongst these three segments, the text segment is expected to garner a significant share in the year 2037. Text is the most often used data type. In around 70% of businesses, the text is used. A wide variety of annotations, including sentiment, intent, and inquiry, are included in text annotations. The growth of the segment is primarily attributed to the rising use of annotation in data labeling. The labeling is used (Natural Language Processing) NLP technologies, automatic question-and-answer (Q&A) platforms, intelligent chatbots, sentiment analysis, and others. Therefore, the rising use of chatbots and text analytics based cloud NLP technologies is also expected to boost segment growth. Chatbot adoption as a brand communication channel has increased by around 92% globally since 2019. Almost 25% of customers interacted with businesses through chatbots in 2020, up from just under 13% in 2019.

Our in-depth analysis of the global market includes the following segments: