AI Training Dataset Market Expected to Reach $9.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “AI Training Dataset Market," The ai training dataset market was valued at $1.4 billion in 2021, and is estimated to reach $9.3 billion by 2031, growing at a CAGR of 21.6% from 2022 to 2031.

AI gives machines the ability to learn from past experience, carry out human-like functions, and adapt to new stimuli. These machines are taught to analyses vast amount of data and identify patterns in order to carry out a specific job. Moreover, some datasets are needed to build these machines. To meet this need, there is an increasing demand for training databases for artificial intelligence. AI (artificial intelligence) is used in machine learning, which enables systems to learn from experience without being expressly programmed automatically. Machine learning focuses on creating software that can acquire and use data to make its own discoveries. Data used to build a machine learning model is referred to as AI training data. The training set, training dataset, learning group, and regression coefficients data in the data are also ascribed to the AI training data. 

Furthermore, factors such as machine learning and Intelligence are expanding quickly, and the production of large amounts of data and technological advancements primarily drive the growth of the AI training dataset market size. However, poor expertise of technology in developing areas hampers market growth to some extent. Moreover, widening functionality of training data sets in multiple business verticals is expected to provide lucrative opportunities for the AI training dataset market forecast.

Depending on end user, the IT and telecom segment dominated the AI training dataset market share in 2021 and is expected to continue this dominance during the forecast period, owing to improve IT operations management and speed up problem resolution in complicated modern IT environments as IT infrastructures get more complex and clients. Moreover, the vast, changing, and challenging-to-manage IT landscape has found considerable use for the enormous advancement in AI. However, the healthcare segment is expected to witness the highest growth in the upcoming years, owing to analyzing enormous data sets that are well above the capacity of humans. Moreover, by automating the most error-prone repetitive tasks, this healthcare technology will improve their capacities and efficacy.

The COVID-19 pandemic's emergence has sparked advancements in numerous industries' use of apps and technology. Additionally, the pandemic has increased the pace at which AI is being used in fields like healthcare. All sectors now face difficulties in operating their businesses as a result of the crisis. AI-based tools and solutions have been widely adopted in all industries as a response to this scenario. The market's major players are concentrating on transforming their operations to be more digital, which has led to an enormous demand for AI solutions. Therefore, these variables are responsible for the COVID-19 pandemic's favorable impact on the market for AI training datasets. Moreover, businessmen had to use sophisticated analytics and other AI-based technologies to ensure that their operations ran smoothly during the pandemic. Additionally, businesses have grown dependent on cutting-edge technologies, which are predicted to accelerate market development in the years to come. Additionally, a number of sectors, including e-commerce, IT & automotive, and healthcare, are anticipated to accelerate the implementation of the AI training dataset. As a result, it can be predicted that during the forecast period, the market for AI training datasets will expand more quickly.

Region wise, the AI training dataset market analysis was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to industries moving towards automation, there is a higher demand for AI and machine learning tools. The demand for analytical solutions to acquire the best visualization and strategy developments is being driven by the rapid digitalization of company. However, Asia-Pacific is expected to witness the highest growth in the upcoming years, owing to the widespread release of new datasets to speed up the usage of artificial intelligence technology in developing sectors. Emerging technologies are being quickly embraced by businesses in developing nations like India in order to modernize their operations. Other important players are also focusing their efforts in the area.

Technology aspect

Businesses are looking to get a higher return out of artificial intelligence (AI) along with great insights. AI as applied to the business of decision-making enables the use of data to both analyze and formalize the decision-making process and automate the process. Organizations use AI training dataset models to enhance their services and improve productivity.  In addition, the use of AI training dataset involves machines and algorithms to make decisions in a range of contexts, including public administration, business, health, education, law, employment, transport, media and entertainment, with varying degrees of human oversight or intervention. For instance, in September 2022, NVIDIA enhanced their AI training dataset models and launched the open beta of the NVIDIA NeMo Megatron large language model (LLM) framework, which customers can choose to run on accelerated cloud instances from OCI.  Customers are using LLMs to build AI applications for content generation, text summarization, chatbots, code development and more.

KEY FINDINGS OF THE STUDY

• By type, in 2021, the text segment was the highest revenue contributor to the market, with an 19.8% impressive CAGR. However, the image/video segment is estimated to reach $9,292.93 million by 2031, during the forecast period.
• By end user, the IT and telecom segment is estimated to reach $1,807.43 million by 2031, with an 18.4% impressive CAGR, during the forecast period. However, healthcare segments are expected to witness approximately 24.9% CAGRs, respectively, during the forecast period respectively.
• Region-wise, the AI training dataset market growth was dominated by North America. However, Asia-Pacific and Europe are expected to witness a significant growth rate during the forecasted period.

Key players profiled in AI training dataset industry include Google LLC, Amazon Web Services Inc., Microsoft Corporation, SCALE AI, INC., APPEN LIMITED, Cogito Tech LLC, Lionbridge Technologies, Inc., Alegion, Deep Vision Data, Samasource Inc. Market players have adopted various strategies, such as product launches, collaboration & partnership, joint ventures, and acquisition to expand their foothold in the AI training dataset industry.