Data Collection and Labelling Market Size, Share, Growth, and Industry Analysis, By Type (Text, Image or Video, audio), By Application (IT, Government, Automotive, BFSI, Healthcare, Retail and E-commerce and others) and Regional Insights and Forecast to 2032

Updated On: 17 June 2024

DATA COLLECTION AND LABELLING MARKET REPORT OVERVIEW

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The global data collection and labelling market size was USD 1450.4 million in 2022, and will touch USD 3955.4 million by 2028, exhibiting a CAGR of 18.2% during the forecast period.

The global data collection and labelling market is also poised for substantial growth in the coming years, driven by several factors. Data collection and labelling market is the process of gathering and categorization of data especially for the use in machine learning and artificial intelligence (AI) applications. Data collection involves gathering of raw information and observations from different sources in different forms, such as text, images, videos, sensor readings, and user interactions and are utilized to prepare a huge & diverse dataset that can be used for training and improving AI and machine learning models.

Data collection and labelling is the next step in which human interpreter or specialized software tools add meaningful labels or annotations to the collected data, which provide context and classifications based on patterns identified during training. This is labour-intensive processes, often requiring human expertise, since good quality labelling s essential for training accurate machine learning models. Technological advancements and increasing demand for convenience drive the data collection and labelling market growth.

COVID-19 Impact : Market Growth Restrained by Pandemic due to implementation of numerous containment measures

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic was an unprecedented event that disrupted several Industry verticals globally. There were implementation of numerous containment measures, travel restrictions, workforce limitations etc. Such disruptions resulted in a temporary decline in the data collection and labelling market, as companies decided to focus only on core business activities. However, gradually, the data collection and labelling market witnessed rising demand owing to increase in data being generated through social media platforms. This is because the pandemic led to an exponential increase in social media usage and active social media users. Thus, it can be inferred that the pandemic positively impacted the global data collection and labelling market. While the market may eventually recover as the situation improves, the immediate impact of COVID-19 was predominantly negative for the global market.

LATEST TRENDS

"Expansion of AI Applications in Data Collection and Labelling Drive Market Growth"

A latest trend in the global data collection and labelling market is expansion of AI application. As AI application continue to integrate in to various sectors, the market can cater to their specific needs by offering specialized datasets tailored to individual use case. Ensuring the quality and accuracy of the labelled data through validation methods is another opportunity. Additionally, niche markets and specialized datasets require domain expertise, allowing companies to capitalize on this by providing highly curated data sets for specific industries. Data privacy and compliance have become significant concerns, allowing companies to demonstrate robust privacy practise and offer data anonymization and protection solutions. Continuous dataset upgrades, as well as the development of effective labelling tools and automation approaches, represent additional market expansion potential making them a sought-after trend in the global market.

DATA COLLECTION AND LABELLING MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into text, image or video and audio.

• Text- Text data collection and labelling involves documents, emails, social media posts, and customer feedback, which is widely used in natural language processing applications, topic modelling, and text classification.

• Image or Video - Image data collection and labelling involves photographs, diagrams, and satellite imagery, which is widely used in computer vision applications, such as object detection, image segmentation, and facial recognition. There are various sources of video data, such as surveillance cameras, drones, smart phones, and webcams which use specialized tools like video cameras, video recorders, and video management software.

• Audio-data collection and labelling involves speeches, podcasts, and music which is widely used in speech recognition, speaker identification, and audio event detection.

By Application

Based on type the global market can be categorized into IT, Government, Automotive, BFSI, Healthcare, Retail and E-commerce and others.

• IT- Used for Machine Learning and AI Development, Natural Language Processing (NLP), Data Analysis, Quality Control, Data Privacy and regulatory Compliance.

• Government- Data collection and labelling market within the government sector is used for Data-Driven Decision Making, AI and Machine Learning, Outsourcing, limiting Regulatory Compliance burden, R&D activities, Security Concerns etc.

• Automotive- Automation technologies, rely on high-quality labelled data for training and validation. The automotive industry is directly related to the development of autonomated vehicles and uses Labelled data for training automated robots & systems to perform tasks of quality control, assembly, and logistics management accurately.

• BFSI- BFSI sector is increasingly relying on data collection and labelling for various purposes, Risk Management and Compliance, customer preferences, credit score determination, security concerns, operational concerns etc.

• Healthcare- It involves collecting patient data such as medical records, lab results, and imaging scans. This data can be used to train models for tasks such as diagnosing diseases, predicting patient outcomes, and identifying risk factors.

• Retail and E-commerce- it involves collecting data on customer behaviours, such as their browsing and purchase history. This data can be used to train models for tasks such as recommending products, predicting customer preferences, and detecting fraud.

DRIVING FACTORS

"Increasing Adoption of Autonomous Vehicles Boost the Market"

Adoption of autonomous vehicles is one of the key driving factors in the global data collection and labelling market growth. These Vehicles are manufactured to sensing their surroundings and navigate without human intervention or insight. Data collection and labelling is an important aspect for self-driving vehicles as it enables them to recognize patterns in data and properly categorize them to make correct and swift decisions on the road. It also enables them to respond appropriately to different objects and scenarios on the road, such as pedestrians, other vehicles, and traffic signs. Therefore, with the rapid rise in adoption of autonomous vehicles, growth of the data collection and labelling market is also being driven positively.

"Technological Advancements Boosts the Market"

Another key driving factor of this market is the technological advancements, which is gaining popularity in the data collection and labelling market. Companies operating in the this market are adopting modern technologies like real- time data monitoring in order to sustain their position in the market. The system uses a touch screen for real-time result viewing and remote administration for tool installation and data gathering. This lowers costs, enhances profit, streamlines the assembly process, and assists businesses in maintaining quality.

RESTRAINING FACTORS

"Stringent Compliance Requirements and Complexity in Handling Diverse Data Types Impede Market Growth"

One of the key restraining factors in the global data collection and labelling market is stringent compliance requirements and complexity in handling diverse data type. Data privacy regulations and the associated concerns pose multifaceted challenges before data collection and labelling providers’ profit growth.

Data privacy regulations impose compliance requirements on businesses such as obtaining explicit consent, ensuring data encryption, and providing individuals with control over their data. Meeting these requirements can be resource-intensive and may slow down data labelling processes. Data labelling involves handling diverse data types including the highly sensitive ones and hence ensuring compliance with privacy regulations becomes more difficult when dealing with private inputs like medical records, financial information, and personally identifiable data. This complexity can significantly impede labelling operations.

The stringent compliance requirements, potential legal risks, and the need to balance privacy with data utility can arise many hindrances for businesses in this sector.

DATA COLLECTION AND LABELLING MARKET REGIONAL INSIGHTS

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"North America Region Dominating the Market due to  due to the adoption of AI and growing utilization of smart devices"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America has emerged as the most dominant region in the global data collection and labelling market share due to several factors. The region's dominance is attributed to the adoption of AI services across various sectors and the growing utilization of smart devices and services by consumers in the region. In addition, the significant increase in manufacturing operations in the area enhances accessibility to technology and a wide range of products, all offered at affordable prices contributing to its dominance in the global market share.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Acquisitions and Collaborations"

The data collection and labelling market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. The key players possess developments in organic and inorganic growth strategies of the data collection and labelling market. Various companies are focusing on sustainable growth strategies along with activities witnessed in the market were acquisitions, and partnership & collaborations. These activities have paved way for expansion of business and customer base of market players. The market players from data collection and labelling market are anticipated to witness growth opportunities in the future with the rising demand for data collection and labelling.

List of Market Players Profiled

• Reality AI (U.S.)
• Global Technology Solutions (India)
• Globalme Localization (Canada)
• Alegion (Ireland)
• Dobility (U.S.)
• Labelbox (U.S.)
• Scale AI (U.S.)
• Trilldata Technologies (India)
• Playment Inc. (India)

INDUSTRIAL DEVELOPMENT

May 2022: Sumake, North America revealed the EA-SC100 tool management solution, a comprehensive solution for electrical, automotive and industrial applications. It features a real-time touch-screen interface and remote administration for tool configuration and data collection.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.