Asia Pacific Data Annotation Tools Market Size, Share & Trends Analysis Report By Type (Text, Image/Video, Audio), By Annotation Type, By Vertical, By Country, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The Asia Pacific data annotation tools market size was estimated at USD 307.9 million in 2023 and is anticipated to grow at a CAGR of 28.05% from 2024 to 2030. The rising usage of mobile devices and tablets along with the rising dominance of social networking sites in developing economies such as India and China is anticipated to fuel the market growth.

Key mergers & acquisitions of prominent companies based on data annotation tools are augmenting the market growth in this region. For instance, Japanese-based outsourcing services provider Transcosmos acquired D-incubator, a Japanese-based data labeling solutions provider. D-incubator specializes in image and video annotation and provides services for various industries, including the automotive industry. The acquisition allowed Transcosmos to expand its capabilities in AI and data labeling solutions and strengthen its position in the Japanese market.

Data labeling solutions providers in India are expanding their services into new industries beyond the traditional tech and IT sectors. For instance, in recent years, there has been a growing demand for data annotation tools in the healthcare and finance industries, which has led companies such as Foiwe Info Global Solutions and Optimum Data Analytics to launch data labeling services for medical and financial data.

Type Insights

The text segment dominated the market with a 37.5% revenue share in 2023. Text is majorly used to train automated annotation tools. While automated annotation can be faster and cheaper than human-in-the-loop solutions, they may not be as accurate or reliable, especially for complex tasks. Emerging human-in-the-loop services solutions which involve human annotators manually annotating text data are significantly contributing to segment growth. This can be done in-house or through a third-party service. Human-in-the-loop tools can be time consuming and expensive, but they can also provide high-quality annotations.

The audio segment is expected to witness the fastest CAGR of 28.8% during the forecast period. The increasing demand for annotated audio data to train speech recognition and natural language processing (NLP) models has led to the development of more advanced audio data annotation tools and platforms, with features such as automatic transcription, speaker identification, and sentiment analysis.

Annotation Type Insights

The manual annotation type held the largest revenue share in 2023. The manual annotation is popular due to its benefits over other annotation types such as higher accuracy level, more integrity, and lesser chance of redundancy.  Since data quality is the most crucial element in establishing the annotation’s accuracy, with manual annotation, only the approved items are released for analysis after being checked for quality by knowledgeable individual data annotators.

The automatic annotation type is anticipated to be the fastest growing segment at a CAGR of 41.17% during the forecast period. Automated data annotation saves businesses costs spent on operating time and other expenses that would be spent on hiring technical human consultants or putting together an internal team. It also needs little to no human input. However, the data still needs to be quality checked by human annotators to maintain high accuracy.

Vertical Insights

The IT segment held the largest revenue share of 36.5% in 2023. With the rise of the Internet of Things (IoT), there is an increasing need for real-time data processing and analytics. In addition, the adoption of edge computing solutions is increasing which offer data processing at the network’s edge closer to where it is generated. Properties such as reducing latency and improving data security, make edge computing the perfect ground for data annotation tools to perform.

The government segment is anticipated to grow at a substantial CAGR over the forecast period. Data annotation provides crucial insights for government policy planning, decision-making, and resource allocation. The tools are used to annotate census data further to identify patterns, demographic characteristics of populations and more. Government bodies are further using data annotation tools to annotate videos and images captured by surveillance cameras, drones, and other devices for good public safety. With the data captured, agencies can identify patterns, track criminals, and improve public safety by annotating data related to criminal activities, traffic violations, or other incidents.

Country Insights

China Data Annotation Tools Market

The China data annotation tools market held a 26.3% revenue share in 2023. Key players are using merger & acquisition in China as a key strategy for market growth. For instance, Datatang, a China-based data annotation solutions provider, acquired Infotech, another China-based data annotation solutions provider. Infotech specializes in image and video annotation and provides services for various industries, including the automotive industry. The acquisition allowed Datatang to expand its capabilities.

India Data Annotation Tools Market

The market for data annotation in India is expected to grow at the fastest CAGR of 29.4% during the forecast period. Indian companies are placing a strong emphasis on ensuring high-quality data annotation for their clients. This includes implementing strict quality control processes and training programs for their annotation teams, as well as using advanced technologies such as computer vision and natural language processing (NLP) to automate quality control checks.

Key Asia Pacific Data Annotation Tools Company Insights

The leading players in the market are taking several strategic initiatives to strengthen their position in the market. These initiatives include mergers & acquisitions, collaboration, and partnership. The companies are further investing into aggressive R&D to develop new products.

Recent Development

• Labelbox partnered with Google Cloud to provide a fully managed service for evaluating large language models (LLMs) leveraging human evaluation. This service, named Vertex AI LLM Evaluation, allows customers to launch evaluation jobs directly within the Vertex AI platform, set evaluation criteria, and receive quality-reviewed results within days from skilled evaluation professionals. The partnership aims to enhance the development of LLMs by integrating human evaluation and AI assistance directly into the process.

Asia Pacific Data Annotation Tools Market Report Scope

Asia Pacific Data Annotation Tools Market Report Segmentation

This report forecasts revenue growth at regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the Asia Pacific data annotation tools market report based on type, annotation type, vertical, and country:

• Vertical Outlook (Revenue, USD Million, 2018 - 2030)

  • Automatic

  • Semi-supervised

  • Manual

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Text

  • Image/Video

  • Audio

• Annotation Type Outlook (Revenue, USD Million, 2018 - 2030)

  • IT

  • Automotive

  • Government

  • Healthcare

  • Financial Services

  • Retail

  • Others

• Country Outlook (Revenue, USD Million, 2018 - 2030)

  • China

  • Japan

  • India