Emotion Analytics Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 3.90 Billion |
| Market Size (2029) | USD 8.15 Billion |
| CAGR (2024 - 2029) | 15.93 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Emotion Analytics Market Analysis
The Emotion Analytics Market size is estimated at USD 3.9 billion in 2024, and is expected to reach USD 8.15 billion by 2029, growing at a CAGR of 15.93% during the forecast period (2024-2029).
Artificial intelligence (AI) has brought in a wave of digital transformation; the limitation of AI to understand human emotion remains a challenge. However, in the last decade, growing access to data, low-cost computing power, and evolving NLP capabilities, coupled with digital learning, have enabled systems to analyze emotions in humans. Key areas where emotion detection and recognition are expected to gain traction include entertainment (majorly gaming), transportation (autonomous cars), healthcare (various kinds of diagnostics), and retail (to enhance customer experience).
- The focus on customer experience enhancement is augmenting the spending on technologies that enable enterprises to gain consumer insights. According to Salesforce's consumer survey report, 84% of the customers mentioned that the company's experiences are as important to them as its services and products, and 62% of all customers were open to the use of AI to improve their experience. Such developments in the market are expected to augment the demand for technologies, such as emotion analytics.
- Owing to this, various vendors in the market, such as RealEyes and IBM, are increasingly launching several forms of API that are related to emotion detection and analysis. Furthermore, the launch of multi-modal solutions includes the integration of speech, text, and facial recognition. Also, the increasing role of muscle activity, brain activity, skin conductance, and heart rate monitoring in delivering better human emotional intelligence significantly led to huge customer awareness about the technology.
- The automotive industry is expected to be another major adopter of technology in the coming years. With the advent of autonomous cars, ADAS, and connected cars, the incorporation of IoT and sensors is on the rise; automotive vendors are expected to incorporate emotion analytics primarily for safety.
- The importance of comprehending human emotion in building effective brands, memorable customer experiences, and innovative content is now widely acknowledged. After all, buyer behaviour is influenced by emotions. Still feelings are all too frequently misunderstood or ignored. Organizations require the same emotional intelligence that individuals possess in order to comprehend their audiences and clients without forcing them to consider or even acknowledge their emotions. Traditional methods for understanding feelings are expensive, time-consuming, and not scalable.
- Also, Amid the COVID-19 situation, many people have shown signs of distress, as COVID-19 has taken an emotional toll. As a result, most of the population is turning to social media to express their feelings since they cannot do social interaction. This provides an opportunity for the vendors to explore their offerings. For instance, Expert System and Sociometrica use text analytics across social media to monitor people's emotions and general sentiments. Expert System's artificial intelligence technology extracts emotions from each published text, which are then analyzed and interpreted by Sociometrica.
Emotion Analytics Market Trends
Speech Analytics to Hold a Significant Share in the Emotion Analytics Market
- The global demand for voice-based solutions is increasing significantly. With the advent of smartphones connected to speakers and home devices, voice and speech analytics penetration is growing significantly. For example, according to Google, 20% of all the searches are on voice. Over 65% of Amazon Echo or Google Homeowners do not want to return to keyboard input.
- Additionally, the demand for devices that take voice input is increasing significantly. With growing adoption, enterprises in the market are innovating solutions to capture the user input better, thus enhancing the consumer experience. For instance, Amazon, one of the global giants in the e-commerce space, is increasingly focusing on developing AI-based emotion analytics capabilities in its smart speakers.
- Speech analytics in call centers is gaining widespread importance, as it can help evaluate and gather information from every single call. Speech analytics can identify top-performing human agents and streamline customer insights. In order to maximize human productivity and enable quicker resolution of crucial customer queries, customer care organizations might leverage data insights to better segmentation and resource allocation for a particular customer query.
- Speech analytics analyze every recorded conversation immediately to look for specific words and phrases. These words and phrases can then be automatically sorted and categorized to identify where an agent is excelling and where they need to improvise. Speech analytics is a fantastic approach to guarantee script conformance, which is essential in many industries.
- Such developments in the market are expected to influence the retail industry. A large number of enterprises involved in developing voice recognition, analytics, and AI are incorporating these solutions from the retail space, such as Amazon, Google, Alibaba, and JD.com.
North America Expected to Drive the Market Demand
- North America region is expected to hold a major market share due to the presence of countries like the US and Canada, which are home to one of the largest retail markets, R&D investments, demand for IoT, smart wearables, and ad spending. Marketers in the region are amongst the global leaders in adopting technologies that enable gaining consumer insights.
- Consequently, the growing advertisement expenditure is expected to influence the adoption of emotion analytics technology further. More marketers will likely incorporate technologies that enable them to gain insights and make data-driven decisions. Media business Group M estimates that when the market recovered from the effects of the coronavirus epidemic, media owners' worldwide ad income increased by 24.3%. The worldwide ad industry generated USD 772.4 billion in sales at that time. The market is anticipated to surpass USD 1 trillion by 2026. The biggest regional ad market is anticipated to be North America, closely followed by the Asia Pacific. Therefore, marketers are expected to incorporate emotion analytics solutions to gain consumer insights.
- The United States is one of the world's largest retail markets that drive a significant share of global retail, including e-commerce. With increasing retail sales, regional retailers are increasingly spending on ads targeting the right segment. The growing sales are enabling retailers to spend more on technologies that enable such capabilities.
- North America is also one of the largest markets in IoT in both consumer and industrial spaces. According to GSMA intelligence, the number of IoT connections in the region is expected to reach 5.9 billion by 2025. Such growth is expected to enable marketers to attain authentic consumer insights and improve ad training.
- Additionally, the region is home to an ample number of players in the market, including Affectiva, Neuromore Inc, Retinad Virtual Reality Inc, and Eyris. These vendors primarily rely on the region for their business operations.
Emotion Analytics Industry Overview
The emotion analytics market is consolidated due to a few players accounting for the major market share. Moreover, market entry for new entrants remains challenging due to higher investment and demand for personalized user experiences. Some of the key players in the market are Affectiva Inc, IBM Corporation, RealEyes, and Clarifai, among others.
- June 2023: Kouo, a pioneering product analytics company, launched its innovative AI-powered emotion analytics technology. By quantifying and analyzing real human emotions, Kouo enables companies to understand user behavior, prioritize feature development, and deliver personalized experiences that adapt to users' dynamic states.
- February 2023: Artificial intelligence-powered integrated market research platform provider Entropik has secured USD 25 million in Series B funding from Bessemer Venture Partners and SIG Venture Capital. This investment is set to build further its emotion AI technology suite that enables senior business leaders to understand what emotions customers are feeling while they’re sharing feedback.
Emotion Analytics Market Leaders
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IBM Corporation
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RealEyes OU
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Affectiva Inc.
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Clarifai Inc.
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Sensum Co.
*Disclaimer: Major Players sorted in no particular order
Emotion Analytics Market News
- Sept 2023: Affectiva, a Smart Eye company, announced a new attention metric in its cloud-based Emotion AI offering. This metric, bolstered by Smart Eye's advanced automotive safety-grade eye-tracking technology, represents a significant development in viewer attention measurement for brands, advertisers, entertainment companies, and their market researchers. The unique and comprehensive measurement analyzes gaze and head position, delivering unparalleled accuracy and insights.
- May 2023: Apple Inc. announced the introduction of an AI-powered healthcare app named Quartz that will be featured in the upcoming Apple Watch and iPhone models. Apple is adding tools for tracking emotions and managing vision conditions such as nearsightedness to the health app this year. The emotion tracker’s initial version will focus on collecting user data to create a database. Users will be able to log their moods, answer questions about their day, and monitor the results over time.
Emotion Analytics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Market Drivers
4.3.1 Growing IoT Applications and Adoption of Wearable Devices
4.3.2 Increasing Need for Advanced Marketing Tools
4.4 Market Restraints
4.4.1 Data Privacy Concerns and Data Regulation Adoption Across the World
4.5 Key Use Cases
4.5.1 Face Analytics
4.5.2 Video Analytics
4.5.3 Speech Analytics
4.5.4 Text Analytics
4.6 Assesment of Impact of COVID-19 on the Industry
5. MARKET SEGMENTATION
5.1 By Deployment
5.1.1 On-Premise
5.1.2 Cloud
5.2 By Application
5.2.1 Customer Service
5.2.2 Product/Market Research
5.2.3 Healthcare
5.2.4 Automaotive
5.2.5 Education
5.2.6 Gaming
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 Latin America
5.3.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Affectiva Inc.
6.1.2 RealEyes OU
6.1.3 IBM Corporation
6.1.4 Clarifai Inc.
6.1.5 Sensum Co.
6.1.6 Beyond Verbal
6.1.7 Noldus Information Technology (NIT)
6.1.8 Sentiance NV
6.1.9 Lexalytics Inc
6.1.10 Deloitte Touche Tohmatsu Ltd.
6.1.11 Gorilla Technology Group
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. FUTURE OF THE MARKET
Emotion Analytics Industry Segmentation
Emotion analytics, also known as affective computing, plays a crucial role by identifying and analyzing the entire human emotional spectrum, including mood, attitude, and dynamic personality, regarding brand perception and preferences. They serve as a tool for businesses to gauge customer loyalty to their brands. The reports cover the emerging trends in the emotion analytics market segmented by type, deployment, applications, end-user vertical across different regions studied.
The Emotion Analytics market is segmented by deployment (on-premise, cloud), application (customer service, product/market research, healthcare, automotive, education, gaming), and geography((North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Deployment | |
| On-Premise | |
| Cloud |
| By Application | |
| Customer Service | |
| Product/Market Research | |
| Healthcare | |
| Automaotive | |
| Education | |
| Gaming |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Latin America | |
| Middle East and Africa |
Emotion Analytics Market Research FAQs
How big is the Emotion Analytics Market?
The Emotion Analytics Market size is expected to reach USD 3.90 billion in 2024 and grow at a CAGR of 15.93% to reach USD 8.15 billion by 2029.
What is the current Emotion Analytics Market size?
In 2024, the Emotion Analytics Market size is expected to reach USD 3.90 billion.
Who are the key players in Emotion Analytics Market?
IBM Corporation, RealEyes OU, Affectiva Inc., Clarifai Inc. and Sensum Co. are the major companies operating in the Emotion Analytics Market.
Which is the fastest growing region in Emotion Analytics Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Emotion Analytics Market?
In 2024, the North America accounts for the largest market share in Emotion Analytics Market.
What years does this Emotion Analytics Market cover, and what was the market size in 2023?
In 2023, the Emotion Analytics Market size was estimated at USD 3.36 billion. The report covers the Emotion Analytics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Emotion Analytics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Emotion Analytics Industry Report
Statistics for the 2023 Emotion Analytics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Emotion Analytics analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
