Data Collection and Labeling Market Size Worth $30.49 Billion By 2032 | CAGR: 28.6%

The global data collection and labeling market size is expected to reach USD 30.49 billion by 2032, according to a new study by Polaris Market Research. The report “Data Collection and Labeling Market Size, By Data Type (Audio, Image/ Video, Text); By Vertical (IT, Automotive, Government, Healthcare, BFSI, Retail & E-commerce, Others); By Region; Segment Forecast, 2023 – 2032” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Data collection and labeling are being increasingly adopted due to the increasing adoption of artificial intelligence (AI) and machine learning (ML) technology in various industries. The demand for highly accurate and well-labeled datasets for training AI and ML models is driving the growth of the market. For example, the healthcare industry relies heavily on image and voice data to develop and train machine-learning models for diagnostic automation, gene sequencing, and treatment prediction. Companies like DefinedCrowd provide data labeling services that help create highly accurate training data for voice recognition models.

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Additionally, the increasing focus on the development of cloud-based platforms for data collection and labeling allows for remote data collection and labeling, providing flexibility and scalability to companies. For instance, Appen, a provider of data collection and labeling services, offers a cloud-based platform that enables remote data labeling, improving efficiency and reducing costs. Moreover, the rise of e-commerce and digital shopping has led to a surge in data collection for annotation, driving the growth of the market.

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COVID-19 pandemic has both positively and negatively impacted the market. The surge in online activities has increased demand for data labeling services, especially in the healthcare industry. Remote work and cloud-based technologies have also accelerated, leading to increased demand for remote data collection and labeling services. However, budget cuts in industries such as retail and automotive have reduced demand for data collection and labeling services in those areas. Overall, the pandemic has emphasized the importance of accurate and efficient data collection and labeling services for AI models.

In March 2023, Appen, a leading provider of high-quality data for AI, announced the launch of three new products in March 2023, including Reinforcement Learning with Human Feedback, Document Intelligence, & Automated NLP Labeling. In January 2023, Amazon Web Services (AWS) launched Amazon SageMaker, a new data labeling service that uses machine learning to automate data labeling tasks. It reduces the time and effort required to label large datasets, allowing businesses to train their AI models more efficiently and effectively.

Data Collection and Labeling market Report Highlights

  • The image/video segment expected to hold largest growth throughout the forecast period due to the growing use of computer vision in the healthcare, automotive, media, and entertainment industries.
  • The IT Segment is accounted for the largest market share due to the widespread adoption of AI applications and the need for well-labelled datasets to train AI models.
  • North America accounted to witness significant growth over the projected period due to the increasing adoption of AI and machine learning technology.
  • The global players include Lionbridge, Appen, Amazon Mechanical Turk, Labelbox, and Scale AI.
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Key Features and Drivers:

Diverse Data Sources: Data collection and labeling services aggregate data from diverse sources such as images, videos, text, audio, and sensor data. These services may involve manual annotation by human annotators or automated processes using AI algorithms.

High-Quality Labeling: Ensuring accurate and high-quality labeling is crucial for training AI models effectively. Data collection and labeling services employ rigorous quality control measures, including multiple rounds of review and validation, to deliver labeled datasets with high precision and reliability.

Scalability and Flexibility: The market offers scalable solutions to meet the evolving demands of AI projects, ranging from small-scale labeling tasks to large-scale data annotation projects. Providers offer flexible pricing models and customizable workflows to accommodate diverse client requirements.


Computer Vision: Data collection and labeling services play a critical role in training computer vision algorithms for image and video analysis tasks such as object detection, image classification, facial recognition, and semantic segmentation.

Natural Language Processing (NLP): In the field of natural language processing, these services are used to annotate text data for tasks such as sentiment analysis, named entity recognition, text classification, and machine translation.

Autonomous Vehicles: The development of autonomous vehicles relies heavily on labeled datasets for training perception algorithms. Data collection and labeling services annotate sensor data from cameras, LiDAR, radar, and other sensors to train AI models for object detection, lane detection, and obstacle avoidance.

Polaris Market Research has segmented the Data Collection and Labeling market report based on data type, vertical and region:

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Data Collection and Labeling, Data type Outlook (Revenue, USD Billion, 2019 – 2032)

  • Text
  • Image/ Video
  • Audio

Data Collection and Labeling, Vertical Outlook (Revenue, USD Billion, 2019 – 2032)

  • IT
  • Automotive
  • Government
  • Healthcare
  • BFSI
  • Retail & E-commerce
  • Others

Data Collection and Labeling, Regional Outlook (Revenue – USD Million, 2019 – 2032)

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

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