Data Annotation Report Cover TrendFeedr

Data Annotation Report

: Analysis on the Market, Trends, and Technologies
908
TOTAL COMPANIES
Established
Topic Size
Strong
ANNUAL GROWTH
Plummeting
trending indicator
4.3B
TOTAL FUNDING
Inceptive
Topic Maturity
Balanced
TREND HYPE
162.0K
Monthly Search Volume
Published: May 17, 2024
Updated: July 17, 2025
Author: Thomas Ryan

The global data annotation industry is witnessing rapid growth driven by the increasing need for accurately labeled datasets to train artificial intelligence (AI) and machine learning (ML) models, with internal data trends showing that 991 articles have been published and 908 companies are actively working in this space. This forward‑looking report analyzes key activities, emergent trends, and technologies shaping the industry while outlining investment opportunities in less‑saturated market segments and providing insights that financial institutions, technology providers, and end users can utilize to optimize their strategies.

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Topic Dominance Index of Data Annotation

The Topic Dominance Index trendline combines the share of voice distributions of Data Annotation from 3 data sources: published articles, founded companies, and global search

Dominance Index growth in the last 5 years: 112.51%
Growth per month: 1.69%

Key Activities and Applications

  • Image and Video Annotation:
    Labeling images and videos with bounding boxes, polygons and key‑points, crucial for tasks such as object detection in autonomous vehicles and medical imaging (Mordor Intelligence).

  • Text Annotation:
    Tagging text for sentiment analysis, entity recognition and text classification to power natural language processing (NLP) applications, enhancing chatbot performance and customer‑sentiment insights (Allied Market Research).

  • Audio Annotation:
    Transcribing and labeling speech data to train speech‑recognition systems and improve audio‑based NLP models, a segment forecast to grow at one of the fastest rates (Grand View Research).

  • Sensor and Multimodal Data Annotation:
    Integrating data types such as LiDAR and point clouds for robotics and augmented reality, addressing the increasing convergence of multi‑sensor data in emerging applications (Research and Markets).

Technologies and Methodologies

  • Human‑in‑the‑Loop (HITL) Systems:
    These integrate human oversight with automated processes to ensure nuanced and accurate data labeling, particularly in complex domains such as medical imaging.

  • Cloud‑Based SaaS Platforms:
    Cloud solutions offer scalable, on‑demand data annotation capabilities with enhanced collaboration and centralized management.

  • Machine Learning and AI Algorithms:
    Automated annotation tools leverage deep learning, active learning and few‑shot learning algorithms to process large volumes of unstructured data efficiently.

  • Multimodal Annotation Frameworks:
    These frameworks allow simultaneous handling of text, image, video and sensor data, enabling richer contextual tagging and enhanced ML‑model performance.

Data Annotation Funding

A total of 148 Data Annotation companies have received funding.
Overall, Data Annotation companies have raised $4.3B.
Companies within the Data Annotation domain have secured capital from 551 funding rounds.
The chart shows the funding trendline of Data Annotation companies over the last 5 years

Funding growth in the last 5 years: -72.85%
Growth per month: -2.22%

Data Annotation Companies

  • Annotation Support:
    Based in Chennai, India, this company specializes in providing a comprehensive range of data‑annotation services including bounding‑box, polygon and 3D‑LiDAR annotations. With a focus on quality and timely delivery, it supports industries ranging from healthcare to autonomous vehicles.

  • Unitlab:
    A collaborative, AI‑powered annotation platform offering on‑premise solutions to help organizations optimize data‑labeling workflows. With a small team of 18 employees, Unitlab emphasizes efficiency and quality for specialized data‑annotation projects.

  • Annotate AI:
    A lean startup with just two employees, Annotate AI delivers high‑quality, human‑powered data‑labeling services at transparent pricing. Its streamlined approach is ideal for companies looking to outsource annotation while maintaining strict quality control.

  • Nanyatt Data Solutions:
    A boutique firm based in Hyderabad, India, offering end‑to‑end data‑management and annotation services tailored for AI and ML projects. With a team of seven employees, it provides personalized services to ensure precise, cost‑effective labeling.

  • WeLabelData:
    Headquartered in Wilmington, Delaware, this company offers high‑end annotation services for image, video and text data. With a team of 11 employees, WeLabelData emphasizes precision and data security in its labeling process.

Gain a better understanding of 908 companies that drive Data Annotation, how mature and well-funded these companies are.

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908 Data Annotation Companies

Discover Data Annotation Companies, their Funding, Manpower, Revenues, Stages, and much more

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Data Annotation Investors

Gain insights into 734 Data Annotation investors and investment deals. TrendFeedr’s investors tool presents an overview of investment trends and activities, helping create better investment strategies and partnerships.

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734 Data Annotation Investors

Discover Data Annotation Investors, Funding Rounds, Invested Amounts, and Funding Growth

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Data Annotation News

Gain a competitive advantage with access to 991 Data Annotation articles with TrendFeedr's News feature. The tool offers an extensive database of articles covering recent trends and past events in Data Annotation. This enables innovators and market leaders to make well-informed fact-based decisions.

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991 Data Annotation News Articles

Discover Latest Data Annotation Articles, News Magnitude, Publication Propagation, Yearly Growth, and Strongest Publications

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Executive Summary

In summary, the data‑annotation industry is set for significant expansion as AI and ML continue to permeate multiple sectors. Leveraging a balanced mix of human expertise and automated tools, companies are meeting the escalating demand for high‑quality labeled data. Additionally, the strategic shift toward cloud‑based and multimodal annotation solutions, coupled with increased attention to data security, is paving the way for sustainable growth. Enterprises, particularly within specialized verticals, are advised to explore innovative and scalable annotation methodologies to secure a competitive edge in this fast‑evolving market.

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