How big is the data labelling market | Market Size, Trends & Outlook

Q: What is the market size of the data labelling market in 2025 and 2031?

The data labelling market was valued approximately USD 2.5 billion in 2025 and is projected to exceed USD 9.8 billion by 2031.

Q: What is the CAGR of the data labelling market between 2025 and 2031?

The data labelling market is anticipated to grow at a CAGR of 21.6% during the forecast period.

Q: What are the key trends in the data labelling market?

Key trends of data labelling market include automation in labelling tools, domain-specific annotation services, and increased adoption of cloud-based labelling platforms.

Q: What are the main drivers of the data labelling market?

The data labelling market is driven by rising AI and ML adoption, demand for annotated data, and advancements in computer vision and NLP applications.

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Code: MTA5778

Publication Date: Jul 2025

What is the Data labelling Market Size?

According to 6Wresearch internal database and industry insights, the Global Data Labeling Market was valued at USD 2.1 Billion in 2024 and is expected to reach USD 3.8 Billion by 2031, growing at a compound annual growth rate of 7.55% during the forecast period (2025-2031).

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This market is witnessing robust growth driven by the increasing adoption of artificial intelligence (AI) and machine learning (ML) across industries. The need for accurately annotated data to train AI algorithms is a major factor fuelling demand. Growth is further supported by the expansion of autonomous vehicles, healthcare diagnostics, e-commerce, and natural language processing applications. Outsourcing data labelling services and the rise of data annotation platforms are also contributing to the acceleration of this market.

Major Growth Factors of the Data labelling Market

Growing adoption of AI and ML technologies
Rising demand for high-quality training data
Expansion of autonomous driving and robotics
Increased investment in AI startups and research
Growth in natural language processing applications
Need for data annotation in medical imaging
Proliferation of image and video recognition systems
Outsourcing trends in data labelling services

Data labelling Market Trends

The data labelling market is anticipated to experience a massive surge in the use of automation tools and AI-assisted labelling to improve efficiency and accuracy. Crowdsourced and cloud-based labelling models are gaining popularity for scalability and cost-effectiveness. There's also a growing shift toward domain-specific labelling services, such as in healthcare and automotive sectors, where specialized knowledge is required for accurate annotations.

Emerging Developments in the Data labelling Market

The data labelling market is evolving with the integration of synthetic data generation and self-supervised learning to reduce manual labelling efforts. Companies are launching platforms that combine human-in-the-loop approaches with AI automation for enhanced scalability. Strategic collaborations between AI developers and data labelling firms are also fostering innovation and speed-to-market.