AI Training Dataset Market

AI training dataset market is anticipated to grow at a significant CAGR of 17.9% during the forecast period (2024-2031). The global AI training dataset market is experiencing significant growth due to the rapid expansion of AI applications across various industries. This has led to a surge in demand for high-quality training datasets, as AI algorithms require vast amounts of labeled data to improve their performance. The quality and diversity of training data significantly influence the performance and reliability of AI algorithms. As AI-driven industries emerge, demand for domain-specific training datasets grows, creating opportunities for dataset providers and vendors. Regulatory compliance and ethical considerations are also driving the demand for ethically sourced and diverse training datasets. Data annotation and labeling services are essential in preparing training datasets for AI model training, and industry partnerships between AI technology companies, dataset providers, academic institutions, and industry players accelerating innovation and knowledge sharing in the AI ecosystem.

Market Dynamics

Investments in cloud and data infrastructure drive the dataset market growth

The investments in data processing, administration, and cloud computing infrastructure are aimed at building efficient AI infrastructure for handling large data volumes and supporting AI model training. These investments are expected to drive the growth of the AI training dataset market. According to the Artificial Intelligence Index Report, in 2023, a substantial amount of money was invested in several AI emphasis areas in 2022. $6.1 billion proceeded to the medical and healthcare industry, and $5.9 billion moved to data processing, administration, and cloud computing. Fintech was additionally well-funded, with a total of $5.5 billion. The $1.5 billion Series E funding for Anduril Industries, the $1.2 billion investment in Celonis, and the $2.5 billion funding for GAC Aion New Energy Automobile are three noteworthy financial developments.

Expansion of AI Applications in Security and Surveillance

The AI applications in security and surveillance are expanding owing to biometric recognition technologies, that enhance access control, identity verification, and threat detection in various environments. For instance, Visual Inc. launched its first biometric video dataset series, featuring 1000 individual identities with full body biometrics and postures. The 4K resolution videos are licensed for machine learning training, with each model signing a biometric model release.

Market Segmentation

Our in-depth analysis of the global AI training dataset market includes the following segments by type, and vertical:

• Based on type, the market is sub-segmented into text, image/video, and audio.
• Based on organization size, the market is bifurcated into IT, automotive, government, healthcare, BFSI, retail & e-commerce, and others (manufacturing, and travel, and hospitality).

Automotiveis Projected to Emerge as the Largest Segment

Based on the vertical, the global AI training dataset market is sub-segmented into IT, automotive, government, healthcare, BFSI, retail & e-commerce, and others (manufacturing, and travel and hospitality). Among these, the automotivesub-segment is expected to hold the largest share of the market. For instance, in February 2024,Volkswagen established AI Lab, a global hub for identifying and developing AI-based product ideas for cars. The lab serves as an incubator and competence center, focusing on speech recognition, generative AI, and EV charging cycles, among other areas.

Image/VideoSub-segment to Hold a Considerable Market Share

The demand for diverse training datasets in AI development is driven by the increasing emphasis on inclusivity and fairness, driven by organizations’ need for representative and diverse data, promoting innovation. For instance, in March 2023, Meta released a new dataset of 26,467 face-to-face video clips, Casual Conversations v2, to aid AI researchers in making their tools more inclusive. The dataset, includes speech, visual, and demographic attributes, aims to address language barriers and physical diversity issues.

Regional Outlook

The globalAI training dataset market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

Rural AI Empowerment promotes Inclusive Growth in the Asia-Pacific

The involvement of rural communities in AI skill development and dataset development promotes inclusive growth by democratizing access to AI technologies and opportunities. For instance, in February 2024, Microsoft planned to train over 2 million Indians with AI skills by 2025, aiming to create more jobs. The initiative, involves 30,000 rural Indians to develop quality datasets through speech, text, images, and videos for training large language models in 12 Indian languages.

Global AI Training Dataset Market Growth by Region 2024-2031

North America Holds Major Market Share

The release of the AI patent dataset highlights the growing demand for AI-related data, including patents, research papers, and intellectual property assets, as organizations develop AI technologies and applications..For instance, in July 2021, the United States Patent and Trademark Office (USPTO) Office released the Artificial Intelligence Patent Dataset, identifying $13.2 million US patents and pre-grant publications incorporating AI. It is the dataset, constructed using machine learning models, offers superior performance.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global AI training dataset market includeAlegion AI, Inc., Appen Ltd., GumGum,iMerit, and Scale AI, Inc. among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in November 2023,OpenAI launched OpenAI Data Partnerships and partnered with external organizations to create AI training datasets. The quality of these datasets directly impacts the reliability of neural networks, making the process time-consuming and costly.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• ED3Key companies operating in the global AI training dataset market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.