Data Annotation Tools Market Trends

Growth Drivers

• Growing Demand for Smart Autonomous Driving Technology– It takes a lot of annotated picture and video data to construct an autonomous vehicle and address all safety concerns. This allows the self-driving system to be trained to recognize objects. Almost 1.4 million vehicles sold globally in 2019 had at least Level 3 autonomy. Between 2019 and 2030, sales of autonomous vehicles are anticipated to increase. Moreover, the expected value of these cars' global sales in 2030 is around 58 million units.
• Rising Use of Artificial Intelligence– Data labeling enables the AI to handle all projects accurately and improves its capabilities.  AI is used by about 37% of companies and organizations across the globe. In addition, nearly Investments in AI technologies are made by nine out of ten top companies.
• Massive Generation of Data –Data labeling enables the identification of objectives in raw data forms. The total amount of data in the globe was predicted to be over 40 zettabytes in 2020. According to the most recent estimates, more than 4 billion people use the internet daily, producing around 3 quintillion bytes of data.
• Rise in the Number of Devices Connected to IOT– With the rise in IoT-connected devices, production, and consumption have increased rapidly, and these data can be turned into a value with the use of a data annotation tool. IoT devices are predicted to number around 25 billion by 2030, all across the world. There are currently around 400 IoT platforms in use. Moreover, by 2025, there may be 27 billion connected IoT devices.
• Growing Popularity of Facial Recognition–The foundation for facial and emotional identification is high-quality facial annotation. For facial recognition algorithms to work properly, the accuracy and quality of video and image annotation are important. Globally around 96 million mobile devices had facial recognition hardware installed as of 2019. Yet, around 1 billion devices, worldwide are expected to have software-based facial recognition solutions by 2024.

Challenges

• Inaccuracy in data labeling owing to low-quality content - Doing a data annotation project was thought to present the biggest barrier in terms of data quality. High data quality must be maintained throughout the annotation process, which requires consistency. The quality of machine learning model's overall accuracy may be impacted by biased estimates caused by poor data quality. Inconsistency can also cause difficulties in the review process and in communication.
• Risk of data breaches
• Lack of enough skilled workers to train the huge amount of data