Data Annotation Tools Market Size

Data Annotation Tools Market size was over USD 1.58 billion in 2024 and is poised to reach USD 32.36 billion by the end of 2037, witnessing around 25.9% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of data annotation tools is assessed at USD 1.91 billion.

The growth of the market can be attributed to the rising production of data, such as videos and photos. In order to train ML models, more information/metadata is added to various data kinds, such as text, audio, image, and video, using a data annotation tool. More than 3 billion photographs and around 720,000 hours of video are shared every day on social media, worldwide.

In addition to these, factors that are believed to fuel the data annotation tools market growth include the rise in advanced technologies, such as AI, ML, robotics, and others. Advanced technologies such as industrial robots are mostly propelled by high-quality data annotation. It is common to practice using labeled data for tasks such as developing and testing computer vision (CV) models for robotic navigation systems. In companies all around the world, there are now a record-breaking 2.7 million industrial robots at work, up 12% from the previous year, according to the new World Robotics 2020 Industrial Robots research published by the International Federation of Robotics. Moreover, there was a worldwide shipment of 373,000 units in 2019. Furthermore, the rising use of data annotation in machine learning is also anticipated to augment the market growth. In machine learning projects all across the world , more than 80% of the engineering labor is devoted to data preparation and labeling. Additionally, by 2024, the market for third-party data annotation is expected to nearly triple.