How Is The Global Data Labeling Solution And Services Market Defined?
Data labeling solutions and services refer to processes and tools used to annotate or label raw data to make it usable for machine learning algorithms. They offer scalable, accurate, and efficient labeling processes, utilizing human annotators or automated algorithms. These services ensure high-quality labeled data, which is crucial for improving AI model performance across various industries.
Data Labeling Solution And Services Global Market Report 2024 provides data on the global data labeling solution and services market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The Data Labeling Solution And Services market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Data Labeling Solution And Services Market Size Expected To Change, And What Are The Growth Rate Projections?
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 in the historic period can be attributed to the rise of machine learning and AI, increasing demand for labeled data, the emergence of computer vision applications, expansion of natural language processing (NLP), and growth 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 growth in the forecast period can be attributed to proliferation of IoT devices, advancements in edge computing, expanding adoption of autonomous systems, rise of industry-specific AI applications, and increasing focus on data privacy and security. Major trends in the forecast period include integration of AI-driven automation, rise of hybrid human-machine labeling approaches, emergence of specialized vertical solutions, expansion of data labeling-as-a-service (DLaaS), and emphasis on ethical and bias-aware labeling practices.
Which Drivers Are Accelerating Growth In The Data Labeling Solution And Services Market?
The rapidly growing volume of data is expected to propel the growth of the data labeling solution and services market going forward. Data refers to raw facts, figures, and statistics collected for analysis or reference, often in digital form. The rapidly growing volume of data is primarily due to increased digitalization and the proliferation of connected devices. Due to the complexity and scale of handling large datasets, the increasing volume of data necessitates data labeling solutions and services to clean, transform, and organize data for analysis efficiently. For instance, in December 2022, according to a report published by the Linux Foundation, 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 terabytes (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.
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What Are The Core Segments Of The Global Data Labeling Solution And Services Market?
The data labeling solution and services market covered in this report is segmented –
1) By Type: Text, Image Or Video, Audio
2) By Labeling Type: Manual, Semi-Supervised, Automatic
3) By Sourcing Type: In-House, Outsourced
4) By Vertical: Information Technology, Automotive, Government, Healthcare, Financial Services, Retails, Other Verticals
Which Emerging Trends Are Reshaping The Data Labeling Solution And Services Market Size?
Major players in the data labeling solution and services market are advancing platforms that use large language models (LLMs) to automate data labeling, improving efficiency, accuracy, and scalability. LLMs are sophisticated AI systems trained on extensive text data to understand and generate human-like text. For example, in October 2023, Refuel AI Inc., a US-based technology firm, launched Refuel Cloud. This platform uses LLMs to automate data cleaning, labeling, and enrichment, offering clean and accurately labeled datasets for AI training in minutes. It also enhances data security by allowing deployment within a customer’s cloud or on-premises environment, ensuring data privacy and control.
What Is The Largest Region In The Data Labeling Solution And Services Market?
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.
