Data Labeling Market Size and Forecast

The global data labeling market is estimated to be valued at USD 4.87 Billion in 2025 and is expected to reach USD 29.11 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 29.1% from 2025 to 2032.

Key Takeaways of the Global Data Labeling Market:

The image/video segment is estimated to lead the market, holding a share of 43.6% in 2025.
Based on vertical, the IT & telecom sector is projected to dominate with a share of 31.9% in 2025.
North America is the leading regional market, accounting for an estimated 31.6% of the market share in 2025, while Asia Pacific, holding a share of 28.4% in 2025, is expected to be the fastest-growing region.

Market Overview:

With the growth in popularity of machine learning and AI, there is a rising need for large volumes of annotated datasets for training algorithms. Additionally, advancements in computer vision and natural language processing techniques have also fueled the need for high-quality labeled datasets. Many technology companies and research organizations are investing heavily in creating their own datasets using data labeling platforms and crowd-sourced solutions to develop cutting-edge AI applications. The market is also witnessing new applications of annotated data such as in autonomous vehicles, image recognition, and others. The rapid expansion of AI and its ability to support new use cases is expected to drive continued demand for data labeling services and solutions through 2032.