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Global Data Annotation Outsourcing Service Market 2025 by Company, Regions, Type and Application, Forecast to 2031

Publisher GlobalInfoResearch
Published Sep 24, 2025
Length 132 Pages
SKU # GFSH20418062

Description

According to our (Global Info Research) latest study, the global Data Annotation Outsourcing Service market size was valued at US$ 3402 million in 2024 and is forecast to a readjusted size of USD 7730 million by 2031 with a CAGR of 12.4% during review period.

Data Annotation Outsourcing Service is a service that outsources data processing and annotation tasks to professional service providers. In the field of machine learning and artificial intelligence, data annotation is an important link, which involves classifying, labeling or encoding large amounts of data in order to train models and enable them to correctly identify and understand data.

The main purpose of data annotation outsourcing services is to help customers handle a large number of data annotation tasks, thereby saving time, reducing costs and improving the quality and accuracy of data annotation. These services are usually provided by professional data annotation teams who have rich experience and expertise to handle various complex data annotation needs.

By outsourcing data annotation services, companies can focus on their core business and hand over tedious tasks such as data annotation to professional service providers. This helps companies improve operational efficiency, reduce costs, and focus on developing high-quality artificial intelligence and machine learning solutions. In addition, data annotation service providers are usually capable of processing large amounts of data and are able to provide scalable services to meet customers' growing data needs.

The global data annotation outsourcing service market has been witnessing remarkable growth in recent years, propelled by the exponential rise of artificial intelligence (AI) and machine learning (ML) applications. Data annotation, which involves tagging raw data such as images, videos, text, and audio to make it suitable for training AI and ML models, has become an indispensable part of the AI development ecosystem. As more industries, from healthcare and automotive to finance and e - commerce, adopt AI technologies, the demand for high - quality annotated data has surged, leading to the expansion of the outsourcing service market.

North America dominates the global data annotation outsourcing service market. The region is home to a large number of leading technology companies, such as Google, Microsoft, and Amazon, which are at the forefront of AI research and development. These companies often outsource their data annotation needs to specialized service providers to take advantage of cost - savings and access to a global talent pool. In the United States, for example, there is a high demand for data annotation services in the automotive industry, particularly for autonomous vehicle development. Companies are outsourcing the annotation of vast amounts of sensor data, including lidar and camera images, to ensure accurate training of self - driving car models. The presence of a well - developed AI ecosystem, significant investment in research and development, and a high level of technological awareness among businesses contribute to North America's leading position in the market.

Europe also holds a significant market share in the data annotation outsourcing service market. Stringent data protection regulations in the region, such as the General Data Protection Regulation (GDPR), have led companies to seek outsourcing partners that can ensure compliance while providing high - quality data annotation services. Countries like the United Kingdom, Germany, and France have a strong base of AI - focused research institutions and technology companies. In the healthcare sector, for instance, European companies are outsourcing data annotation for medical image analysis, such as annotating X - rays and MRIs. The region's skilled workforce in the fields of data science and technology, along with a growing emphasis on digital transformation across industries, further supports the growth of the data annotation outsourcing market.

The Asia - Pacific region is emerging as a rapidly growing market for data annotation outsourcing services. The region benefits from a large and relatively low - cost labor force, making it an attractive destination for outsourcing. India, in particular, has become a major player in the global data annotation outsourcing market. With its strong IT services background and a large pool of English - speaking graduates, India offers cost - effective data annotation solutions. Many global companies outsource their text and image annotation tasks to Indian service providers. China is also witnessing significant growth in the market, driven by the expansion of its domestic AI industry. Chinese companies are increasingly outsourcing data annotation for applications in e - commerce, such as product image tagging, and in the development of smart home devices. The rising disposable incomes, growing awareness of AI technologies, and government support for the digital economy in the Asia - Pacific region are fueling the market growth.

Latin America, the Middle East, and Africa are also showing potential for growth in the data annotation outsourcing service market. In Latin America, countries like Brazil and Mexico are experiencing economic growth, which is leading to increased investment in technology and digital transformation. The region's growing e - commerce sector is creating a demand for data annotation services, such as annotating product images and customer reviews. In the Middle East, wealthy countries are investing in advanced technologies, including AI, for various applications, such as smart city initiatives and healthcare. These projects often require data annotation services, and outsourcing can be a cost - effective solution. In Africa, although the market is still in its infancy, the increasing availability of mobile technology and the growth of the digital economy are expected to drive the demand for data annotation outsourcing in the future.

This report is a detailed and comprehensive analysis for global Data Annotation Outsourcing Service market. Both quantitative and qualitative analyses are presented by company, by region & country, by Type and by Application. As the market is constantly changing, this report explores the competition, supply and demand trends, as well as key factors that contribute to its changing demands across many markets. Company profiles and product examples of selected competitors, along with market share estimates of some of the selected leaders for the year 2025, are provided.

Key Features:

Global Data Annotation Outsourcing Service market size and forecasts, in consumption value ($ Million), 2020-2031

Global Data Annotation Outsourcing Service market size and forecasts by region and country, in consumption value ($ Million), 2020-2031

Global Data Annotation Outsourcing Service market size and forecasts, by Type and by Application, in consumption value ($ Million), 2020-2031

Global Data Annotation Outsourcing Service market shares of main players, in revenue ($ Million), 2020-2025

The Primary Objectives in This Report Are:

To determine the size of the total market opportunity of global and key countries

To assess the growth potential for Data Annotation Outsourcing Service

To forecast future growth in each product and end-use market

To assess competitive factors affecting the marketplace

This report profiles key players in the global Data Annotation Outsourcing Service market based on the following parameters - company overview, revenue, gross margin, product portfolio, geographical presence, and key developments. Key companies covered as a part of this study include Mindy Support, Anolytics, Clickworker, Annotation support, Transform Solutions, Quantanite, Damco Solutions, Flatworld Solutions, iTech Data Services, Appen Limited, etc.

This report also provides key insights about market drivers, restraints, opportunities, new product launches or approvals.

Market segmentation

Data Annotation Outsourcing Service market is split by Type and by Application. For the period 2020-2031, the growth among segments provides accurate calculations and forecasts for Consumption Value by Type and by Application. This analysis can help you expand your business by targeting qualified niche markets.

Market segment by Type
Text
Image
Others

Market segment by Application
Large Enterprises
SMEs

Market segment by players, this report covers
Mindy Support
Anolytics
Clickworker
Annotation support
Transform Solutions
Quantanite
Damco Solutions
Flatworld Solutions
iTech Data Services
Appen Limited
CloudApp
Cogito Tech LLC
Deep Systems
Labelbox, Inc.
LightTag
Lotus Quality Assurance
Playment Inc.
CloudFactory Limited

Market segment by regions, regional analysis covers

North America (United States, Canada and Mexico)

Europe (Germany, France, UK, Russia, Italy and Rest of Europe)

Asia-Pacific (China, Japan, South Korea, India, Southeast Asia and Rest of Asia-Pacific)

South America (Brazil, Rest of South America)

Middle East & Africa (Turkey, Saudi Arabia, UAE, Rest of Middle East & Africa)

The content of the study subjects, includes a total of 13 chapters:

Chapter 1, to describe Data Annotation Outsourcing Service product scope, market overview, market estimation caveats and base year.

Chapter 2, to profile the top players of Data Annotation Outsourcing Service, with revenue, gross margin, and global market share of Data Annotation Outsourcing Service from 2020 to 2025.

Chapter 3, the Data Annotation Outsourcing Service competitive situation, revenue, and global market share of top players are analyzed emphatically by landscape contrast.

Chapter 4 and 5, to segment the market size by Type and by Application, with consumption value and growth rate by Type, by Application, from 2020 to 2031

Chapter 6, 7, 8, 9, and 10, to break the market size data at the country level, with revenue and market share for key countries in the world, from 2020 to 2025.and Data Annotation Outsourcing Service market forecast, by regions, by Type and by Application, with consumption value, from 2026 to 2031.

Chapter 11, market dynamics, drivers, restraints, trends, Porters Five Forces analysis.

Chapter 12, the key raw materials and key suppliers, and industry chain of Data Annotation Outsourcing Service.

Chapter 13, to describe Data Annotation Outsourcing Service research findings and conclusion.

Table of Contents

132 Pages
1 Market Overview
2 Company Profiles
3 Market Competition, by Players
4 Market Size Segment by Type
5 Market Size Segment by Application
6 North America
7 Europe
8 Asia-Pacific
9 South America
10 Middle East & Africa
11 Market Dynamics
12 Industry Chain Analysis
13 Research Findings and Conclusion
14 Appendix
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