×
Request Free Sample ×

Kindly complete the form below to receive a free sample of this Report

* Please use a valid business email

Leading companies partner with us for data-driven Insights

clients tt-cursor
Hero Background

US Data Collection Labelling Market

ID: MRFR/ICT/58419-HCR
200 Pages
Aarti Dhapte
October 2025

US Data Collection and Labeling Market Size, Share and Trends Analysis Report By Data Type (Text, Image/ Video, Audio) and By Vertical (IT, Automotive, Government, Healthcare, BFSI, Retail & E-commerce, Others)-Forecast to 2035

Share:
Download PDF ×

We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

US Data Collection Labelling Market Infographic
Purchase Options

US Data Collection Labelling Market Summary

As per analysis, the US data collection labelling market is projected to grow from USD 626.66 Million in 2024 to USD 8,261.27 Million by 2035, exhibiting a compound annual growth rate (CAGR) of 26.42% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US data collection labelling market is experiencing robust growth driven by technological advancements and increasing demand for high-quality data.

  • The demand for high-quality data is surging, particularly in the image recognition segment, which remains the largest in the market.
  • Automation is increasingly integrated into labelling processes, enhancing efficiency and accuracy across various applications.
  • Compliance and data privacy are becoming focal points, especially in the healthcare sector, which is the largest segment.
  • The rising adoption of AI and machine learning, along with the expansion of e-commerce, are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 626.66 (USD Million)
2035 Market Size 8261.27 (USD Million)
CAGR (2025 - 2035) 26.42%

Major Players

Amazon Web Services (US), Google Cloud (US), Microsoft Azure (US), IBM (US), Appen (US), Scale AI (US), Lionbridge (US), iMerit (US), Cognizant (US)

Our Impact
Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
Partnering with 2000+ Global Organizations Each Year
30K+ Citations by Top-Tier Firms in the Industry

US Data Collection Labelling Market Trends

The US data collection labelling market is currently experiencing a notable evolution, driven by the increasing demand for high-quality datasets across various sectors. As organizations strive to enhance their machine learning models and artificial intelligence applications, the need for precise and accurate data labelling becomes paramount. This market appears to be influenced by advancements in technology, which facilitate more efficient labelling processes. Furthermore, the growing emphasis on data privacy and compliance with regulations may shape the strategies employed by companies in this space. The interplay between technological innovation and regulatory frameworks suggests a complex landscape for stakeholders in the US data collection labelling market. In addition, the rise of automation and artificial intelligence tools is likely to transform traditional labelling methods. Companies are exploring innovative solutions that combine human expertise with machine learning capabilities to improve efficiency and accuracy. This trend indicates a shift towards hybrid approaches, where human annotators work alongside automated systems. As the market continues to mature, it may witness the emergence of new players and partnerships, further diversifying the competitive landscape. Overall, the US data collection labelling market is poised for growth, driven by technological advancements and evolving industry needs.

Increased Demand for High-Quality Data

The US data collection labelling market is witnessing a surge in demand for high-quality datasets. Organizations across various sectors are recognizing the importance of accurate data labelling for enhancing machine learning models and artificial intelligence applications. This trend suggests that companies are prioritizing investments in data quality to ensure better outcomes in their technological initiatives.

Integration of Automation in Labelling Processes

The integration of automation tools in the US data collection labelling market appears to be a significant trend. Companies are increasingly adopting automated solutions to streamline labelling processes, which may lead to improved efficiency and reduced turnaround times. This shift towards automation indicates a potential transformation in how data is labelled and processed.

Focus on Compliance and Data Privacy

As regulations surrounding data privacy become more stringent, the US data collection labelling market is likely to see a heightened focus on compliance. Organizations are expected to adapt their labelling practices to align with legal requirements, which may influence their operational strategies. This trend underscores the importance of maintaining data integrity while adhering to regulatory standards.

US Data Collection Labelling Market Drivers

Government Initiatives and Funding

Government initiatives and funding aimed at promoting technological advancements are playing a crucial role in the growth of the US data collection labelling market. In 2025, the US government allocated significant resources to support AI research and development, which includes funding for data collection and labelling projects. This support is intended to foster innovation and ensure that the US remains competitive in the global technology landscape. As a result, companies engaged in data collection labelling are likely to benefit from increased funding opportunities and partnerships with government agencies. This trend not only enhances the capabilities of the US data collection labelling market but also encourages collaboration between public and private sectors, ultimately leading to improved data quality and accessibility.

Emergence of New Technologies and Tools

The emergence of new technologies and tools for data collection and labelling is reshaping the landscape of the US data collection labelling market. Innovations such as advanced annotation tools, automated labelling software, and cloud-based platforms are streamlining the labelling process, making it more efficient and cost-effective. In 2025, the market for data annotation tools was estimated to exceed 1 billion USD, reflecting the increasing investment in technology to enhance data labelling capabilities. These advancements not only improve the speed and accuracy of data labelling but also enable organizations to handle larger volumes of data. As a result, the US data collection labelling market is likely to experience accelerated growth as companies adopt these new technologies to meet their data needs.

Rising Adoption of AI and Machine Learning

The US data collection labelling market is experiencing a notable surge in demand due to the increasing adoption of artificial intelligence (AI) and machine learning technologies. As organizations strive to enhance their AI models, the need for accurately labelled data becomes paramount. In 2025, the AI market in the US was valued at approximately 190 billion USD, indicating a robust growth trajectory. This growth directly correlates with the demand for high-quality labelled datasets, as AI systems require vast amounts of data to learn and improve. Consequently, businesses are investing heavily in data collection labelling services to ensure their AI applications are effective and reliable. The US data collection labelling market is thus positioned to benefit significantly from this trend, as companies seek to leverage AI capabilities to gain competitive advantages.

Expansion of E-commerce and Digital Services

The rapid expansion of e-commerce and digital services in the United States is driving the growth of the US data collection labelling market. As online retail sales reached over 900 billion USD in 2025, businesses are increasingly reliant on data-driven insights to optimize their operations and enhance customer experiences. This reliance necessitates the collection and labelling of vast amounts of data, including customer interactions, product information, and transaction histories. Companies are investing in data labelling solutions to ensure that their data is accurately categorized and analyzed, enabling them to make informed decisions. The US data collection labelling market is thus witnessing a surge in demand as organizations seek to harness the power of data analytics to improve their e-commerce strategies and drive revenue growth.

Growing Importance of Data-Driven Decision Making

The growing importance of data-driven decision making across various sectors is significantly influencing the US data collection labelling market. Organizations are increasingly recognizing the value of data in shaping their strategies and operations. In 2025, approximately 70% of US companies reported that data analytics played a critical role in their decision-making processes. This trend underscores the necessity for high-quality labelled data, as accurate insights depend on the integrity of the underlying datasets. Consequently, businesses are investing in data collection labelling services to ensure that their data is well-organized and reliable. The US data collection labelling market is thus poised for growth as companies prioritize data quality to enhance their operational efficiency and competitive positioning.

Market Segment Insights

By Application: Image Recognition (Largest) vs. Natural Language Processing (Fastest-Growing)

In the US data collection labeling market, image recognition holds the largest market share among applications, driven by its extensive use in various sectors such as healthcare, automotive, and retail. Natural language processing (NLP) follows closely, with a significant share fueled by the increasing demand for chatbots and virtual assistants, indicating a robust distribution of market share among these applications. Video analysis and sentiment analysis play vital roles as well, albeit with smaller shares, highlighting diverse utilisations across industries.

Natural Language Processing (Dominant) vs. Sentiment Analysis (Emerging)

Natural language processing is becoming a dominant force within the US data collection labeling market, leveraged for its ability to extract insights and automate communication through advanced algorithms. This segment is characterized by rapid advancements in deep learning and machine learning technologies, which enhance text analysis and comprehension. In contrast, sentiment analysis is emerging as a vital tool for businesses looking to gauge consumer emotions and opinions, particularly in social media analytics. While still developing, sentiment analysis is gaining traction, driven by the increasing importance of consumer feedback. Together, these segments reflect a shifting landscape towards a more automated and insightful approach to data collection.

By End Use: Healthcare (Largest) vs. Automotive (Fastest-Growing)

In the US data collection labeling market, the Healthcare sector holds the largest market share, driven by the increasing demand for accurate data management and compliance in medical environments. This sector benefits from stringent regulatory requirements and the need for precise labeling in patient care documentation and pharmaceutical distribution. Automotive, while currently smaller, is emerging rapidly as manufacturers increasingly rely on data integration for vehicle diagnostics and maintenance, allowing for enhanced customer service and operational efficiency. The growth trends in these sectors are significantly influenced by technological advancements and regulatory changes. In Healthcare, the rise of electronic health records and telemedicine has propelled the need for data labeling solutions that ensure high accuracy. Conversely, the Automotive sector is experiencing accelerated growth as automotive technology becomes more sophisticated, with data labeling essential for the development of autonomous vehicles and smarter transportation solutions.

Healthcare: Dominant vs. Automotive: Emerging

In the US data collection labeling market, Healthcare is positioned as the dominant sector due to its critical need for precise data labeling in various applications, such as patient records and medication packaging. The ongoing digitization in this field has led to a surge in labeling requirements, facilitating better patient care and compliance with regulations. Automotive, although currently an emerging sector, is showing tremendous potential for growth driven by advancements in smart vehicle technology and the increasing complexity of supply chains. As vehicles incorporate more data-driven features, the demand for specialized labeling solutions is likely to rise, reflecting a transformative shift in how automotive manufacturers approach data collection and utilization.

By Data Type: Text Data (Largest) vs. Image Data (Fastest-Growing)

In the US data collection labeling market, text data currently holds the largest market share, being a critical component for various data-driven applications, including natural language processing and machine learning. It serves a broad range of industries, contributing significantly to the labeling landscape by providing valuable insights through structured and unstructured formats. Conversely, image data is emerging as the fastest-growing segment, propelled by the increasing demand for visual recognition technologies and advanced computer vision applications.

Text Data (Dominant) vs. Image Data (Emerging)

Text data continues to be the dominant force in the US data collection labeling market, characterized by its essential role in machine learning and AI applications that require immense textual datasets for training models. Its utility spans across sectors like finance, healthcare, and marketing, where sentiment analysis, predictive analytics, and personalized content generation are paramount. In contrast, image data is swiftly gaining traction, positioned as an emerging segment, largely driven by the rapid advancements in artificial intelligence functionalities like facial recognition, object detection, and real-time visual analysis. The surge in e-commerce and social media platforms is further boosting the adoption of image data, making it a competitive player in the landscape.

By Labeling Technique: Automated Labeling (Largest) vs. Manual Labeling (Fastest-Growing)

In the US data collection labeling market, Automated Labeling has established itself as the largest segment, capturing a significant share of the market due to its efficiency and reduced operational costs. Manual Labeling, while still widely used, is gradually losing ground as businesses transition to more advanced technologies. On the other hand, Semi-Automated and Crowdsourced Labeling are gaining traction, though their market shares currently remain smaller compared to Automated methods. Overall, the trend appears to push towards more streamlined options.

Automated Labeling (Dominant) vs. Manual Labeling (Emerging)

Automated Labeling is leading the pack in the market with its ability to deliver high-volume outputs efficiently, making it the preferred choice for large-scale projects. This segment thrives on the integration of powerful algorithms and machine learning techniques that enhance label accuracy and speed. In contrast, Manual Labeling, although traditionally dominant, is now viewed as an emerging segment due to the rising demand for personalized and context-specific labeling solutions. Companies utilizing Manual Labeling methods are increasingly focusing on augmentation with semi-automated processes, thus blending the human touch with technological support to enhance productivity and adaptability.

By Industry: E-commerce (Largest) vs. Telecommunications (Fastest-Growing)

In the US data collection labelling market, E-commerce is the largest segment, commanding a significant portion of overall market share. This dominance is driven by the thriving online retail landscape, where precise data and consumer insights are pivotal for success. Telecommunications is emerging rapidly, as companies seek to optimize customer interaction and network management. This sector is increasingly adopting data labelling for effective communication strategies, positioning itself as a vital player in the evolving market landscape. The growth trends indicate a robust demand for data labelling services in the E-commerce sector, fueled by the rising competition and the need for personalized customer experiences. On the other hand, the Telecommunications sector’s growth is driven by rapid technological advancements and an increasing focus on data-driven decision making. As companies invest in digital transformation, the demand for quality data labelling rises, making this segment one of the fastest growing in the market.

E-commerce (Dominant) vs. Telecommunications (Emerging)

The E-commerce segment stands out in the US data collection labelling market as a dominant force, leveraging comprehensive data strategies to enhance user experience and optimize conversions. Companies within this industry understand that accurate data labeling is crucial for effective product recommendations, customer targeting, and market analysis. Meanwhile, the Telecommunications sector is deemed an emerging market player, increasingly recognizing the importance of data management for customer retention and service enhancement. With the rise of 5G technology and increased digital interaction, telecommunications firms are ramping up their data collection efforts, highlighting a growing need for personalized services. Both segments showcase unique characteristics that shape their strategies and positioning within the competitive landscape.

Get more detailed insights about US Data Collection Labelling Market

Key Players and Competitive Insights

The US data collection labelling market is characterized by a dynamic competitive landscape, driven by the increasing demand for high-quality training data in artificial intelligence (AI) and machine learning (ML) applications. Key players such as Amazon Web Services (US), Google Cloud (US), and Appen (US) are strategically positioned to leverage their technological capabilities and extensive resources. Amazon Web Services (US) focuses on enhancing its cloud infrastructure to support scalable data labelling solutions, while Google Cloud (US) emphasizes partnerships with AI startups to expand its service offerings. Appen (US), on the other hand, is concentrating on diversifying its data collection methods to cater to various industries, thereby shaping a competitive environment that prioritizes innovation and adaptability.

In terms of business tactics, companies are increasingly localizing their operations to optimize supply chains and enhance service delivery. The market appears moderately fragmented, with a mix of established players and emerging startups. This structure allows for a competitive interplay where larger firms can exert influence through technological advancements, while smaller entities may offer niche services that cater to specific client needs.

In December 2025, Amazon Web Services (US) announced the launch of a new AI-driven data labelling tool designed to streamline the labelling process for image and video datasets. This strategic move is likely to enhance the efficiency of data preparation, thereby attracting clients seeking rapid deployment of AI solutions. The introduction of this tool underscores Amazon's commitment to maintaining its competitive edge through continuous innovation in data services.

In November 2025, Google Cloud (US) expanded its partnership with a leading AI research institute to co-develop advanced data labelling techniques. This collaboration is expected to enhance the quality of labelled datasets, which is crucial for training robust AI models. By aligning with academic institutions, Google Cloud (US) not only strengthens its technological capabilities but also positions itself as a thought leader in the data labelling domain.

In October 2025, Appen (US) acquired a smaller data annotation firm specializing in natural language processing. This acquisition is indicative of Appen's strategy to broaden its service portfolio and enhance its capabilities in handling diverse data types. By integrating specialized expertise, Appen (US) aims to solidify its market position and respond effectively to the evolving demands of clients in various sectors.

As of January 2026, the competitive trends in the market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming pivotal, as companies seek to combine strengths and resources to deliver comprehensive solutions. Looking ahead, it is anticipated that competitive differentiation will increasingly pivot from price-based strategies to a focus on innovation, technological advancements, and the reliability of supply chains. This shift may redefine the parameters of competition, compelling firms to invest in cutting-edge technologies and sustainable practices to meet the evolving expectations of clients.

Key Companies in the US Data Collection Labelling Market include

Industry Developments

The US Data Collection and Labeling Market has witnessed significant developments recently, particularly with advancements in artificial intelligence and machine learning technologies. Companies like Snorkel AI and Scale AI are expanding their offerings, focusing on more efficient data annotation processes. In December 2022, Mighty AI was acquired by Uber, enhancing Uber's capabilities in mapping and autonomous vehicle technologies by leveraging advanced data labeling solutions.

Additionally, the partnership between Google Cloud and various data labeling startups is fostering innovations that align with the growing demands of businesses for high-quality datasets. The market has seen substantial growth, with companies like Appen and iMerit reporting increases in service demand due to a surge in AI applications across various industries.

Over the past two to three years, there has been a notable rise in investment pouring into data labeling services, aligning with the increasing need for precise training data in AI systems, as evidenced by the market valuation expanding by over 20% annually. These factors contribute to creating a dynamic environment where companies are striving to enhance their capabilities and offer comprehensive solutions in data handling and annotation.

Future Outlook

US Data Collection Labelling Market Future Outlook

The US data collection labelling market is projected to grow at a 26.42% CAGR from 2025 to 2035, driven by advancements in AI, increased data demand, and automation.

New opportunities lie in:

  • Development of AI-driven labelling software solutions
  • Expansion into niche markets like healthcare data labelling
  • Partnerships with tech firms for integrated data solutions

By 2035, the market is expected to be robust, driven by innovation and strategic partnerships.

Market Segmentation

US Data Collection Labelling Market End Use Outlook

  • Healthcare
  • Automotive
  • Retail
  • Finance

US Data Collection Labelling Market Industry Outlook

  • E-commerce
  • Telecommunications
  • Education
  • Entertainment

US Data Collection Labelling Market Data Type Outlook

  • Text Data
  • Image Data
  • Audio Data
  • Video Data

US Data Collection Labelling Market Application Outlook

  • Image Recognition
  • Natural Language Processing
  • Video Analysis
  • Sentiment Analysis

US Data Collection Labelling Market Labeling Technique Outlook

  • Manual Labeling
  • Automated Labeling
  • Semi-Automated Labeling
  • Crowdsourced Labeling

Report Scope

MARKET SIZE 2024626.66(USD Million)
MARKET SIZE 2025811.03(USD Million)
MARKET SIZE 20358261.27(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR)26.42% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Million
Key Companies ProfiledAmazon Web Services (US), Google Cloud (US), Microsoft Azure (US), IBM (US), Appen (US), Scale AI (US), Lionbridge (US), iMerit (US), Cognizant (US)
Segments CoveredApplication, End Use, Data Type, Labeling Technique, Industry
Key Market OpportunitiesIntegration of artificial intelligence in the us data collection labelling market enhances efficiency and accuracy.
Key Market DynamicsGrowing demand for accurate data labeling driven by advancements in artificial intelligence and machine learning technologies.
Countries CoveredUS
Leave a Comment

FAQs

What is the current valuation of the US data collection labelling market?

As of 2024, the market valuation was 626.66 USD Million.

What is the projected market size for the US data collection labelling market by 2035?

The market is expected to reach a valuation of 8261.27 USD Million by 2035.

What is the expected CAGR for the US data collection labelling market during the forecast period?

The market is projected to grow at a CAGR of 26.42% from 2025 to 2035.

Which companies are considered key players in the US data collection labelling market?

Key players include Amazon Web Services, Google Cloud, Microsoft Azure, IBM, Appen, Scale AI, Lionbridge, iMerit, and Cognizant.

What are the primary applications driving the US data collection labelling market?

The main applications include Image Recognition, Natural Language Processing, Video Analysis, and Sentiment Analysis.

How does the market perform in terms of data types used for labelling?

The market segments by data type include Text Data, Image Data, Audio Data, and Video Data, with Image Data valued at 3500.0 USD Million.

What labeling techniques are prevalent in the US data collection labelling market?

The market utilizes Manual Labeling, Automated Labeling, Semi-Automated Labeling, and Crowdsourced Labeling.

Which industries are the largest consumers of data collection labelling services?

The largest industries include Retail, Healthcare, Automotive, and Finance, with Retail valued at 2500.0 USD Million.

What is the significance of automated labeling in the market?

Automated Labeling is projected to be a major segment, with a valuation of 3500.0 USD Million.

How does the US data collection labelling market compare across different industries?

The market shows varied performance across industries, with Entertainment leading at 3461.27 USD Million.

Download Free Sample

Kindly complete the form below to receive a free sample of this Report

Compare Licence

×
Features License Type
Single User Multiuser License Enterprise User
Price $4,950 $5,950 $7,250
Maximum User Access Limit 1 User Upto 10 Users Unrestricted Access Throughout the Organization
Free Customization
Direct Access to Analyst
Deliverable Format
Platform Access
Discount on Next Purchase 10% 15% 15%
Printable Versions