The market for emotion analytics is expected to register a CAGR of 10% over the forecast period (2021 - 2026). Artificial intelligence (AI) has brought in a wave of digital transformation; the limitation of AI to understand human emotion remains a challenge. However, since 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, which include the integration of speech, text, and facial recognition. Also the increasing the role of muscle activity, brain activity, skin conductance, and heart rate monitoring to deliver better emotional intelligence of the human, 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.
- Additionally, the technology has gained a significant amount of focus from the video game companies. Video games are designed to induce a series of emotions in players, with these reactions often being essential for the overall enjoyment of the game. The developers are integrating emotion detection into the user experience to adjust or tweak sequences in real-time. This also resulted in a more immersive experience for gamers
- Also, Amidst 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 the emotions and general sentiment of the people. Expert System's artificial intelligence technology extracts emotions of each published text, which are then analyzed and interpreted by Sociometrica.
Key Market Trends
to Hold a Significant Share in Emotion Analytics Market
- The global demand for voice-based solutions is increasing significantly. With the advent of smartphones connected to speakers and home devices, the penetration of voice and speech analytics 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 wish to go back to keyboard input.
- Additionally, the demand for devices that take voice input is increasing significantly. For instance, in 2019, the smart speaker revenue stood at USD 11.9 billion, worldwide, and it is expected to reach USD 35.5 billion by 2025. With such growing adoption, enterprises in the market are innovating the solutions to better capture the user input, thus enhancing the consumer experience. For instance, Amazon, one of the global giants in 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. For instance, In February 2020, Ozonetel launched an AI-powered speech analytics dashboard for call centers. It tracks and displays a call center agent’s speech rate, speech volume, and customer sentiment. With this tool, businesses can effectively analyze recordings, and marketing departments can access live feeds from their call centers.
- 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 retail space, such as Amazon, Google, Alibaba, and JD.com.
North America Region is Expected to Drive the Market Demand
- North America region is expected to hold a prominent share of the market 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, 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 further influence the adoption of emotion analytics technology. More marketers are likely to incorporate technologies that enable them to gain insights and make data-driven decisions. According to Zenith, the global ad expenditure in 2019 stood at USD 640 billion, and among the modes, internet display held the major market share. Owing to this, marketers are expected to incorporate emotion analytics solutions to gain consumer insights
- The US is one of the world's largest retail markets that drive a significant share of global retail, including e-commerce. With increasing retail sales, the retailers in the region are increasingly spending on ads that target the right segment. The growing sales are enabling retailers to spend more on technologies that enable such capabilities.
- Additionally, the region is home for 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 its business operations. For instance, In March 2019, Realeyes announced its plans to hire key new executives across its markets in North America and APAC to feed the accelerated demand for scalable content intelligence levering its new emotion AI.
The emotion analytics market is consolidated due to a few players accounting for the major market share. Moreover, due to higher investment and demand for personalized user experiences, market entry for new entrants remains challenging. Some of the key players in the market are Affectiva Inc, IBM Corporation, RealEyes, Clarifai, among others.
- June 2019- Realeyes OU showcased its new emotion AI technology that uses webcams to capture the emotional engagement and attention of viewers worldwide. The platform offers a dashboard feature that helps marketers to gain insights about the viewers in 3 hours.
- April 2019 - Affectiva Inc. announced that it had closed USD 26 million funding to enhance its emotion and object detection AI for monitoring the vehicle passenger. The funding round was let by Aptiv, an automotive supplier. The company aims to deploy the solution into a car safety system to recognize the state of the driver's emotions.
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Table of Contents
1.2 Scope of the Study
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 Assesment of Impact of COVID-19 on the Industry
5.1.1 Face Analytics
5.1.2 Video Analytics
5.1.3 Speech Analytics
5.1.4 Text Analytics
5.2 By Deployment
5.3 By Application
5.3.1 Competitive Intelligence
5.3.2 Sales and Marketing Management
5.3.3 Public Safety and Law Enforcement
5.3.4 Customer Experience Management
5.3.5 Workforce Management
5.4 End-user Vertical
5.4.3 Media & Entertainment
5.4.6 IT & Telecommunication
5.4.7 Other End-user Verticals
5.5.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
184.108.40.206 Rest of Asia-Pacific
5.5.4 Latin America
220.127.116.11 Rest of Latin America
5.5.5 Middle East and Africa
18.104.22.168 United Arab Emirates
22.214.171.124 Saudi Arabia
126.96.36.199 Rest of Middle East and Africa
6.1.1 IBM Corporation
6.1.2 RealEyes OU
6.1.3 Affectiva Inc.
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
A selection of companies mentioned in this report includes:
- IBM Corporation
- RealEyes OU
- Affectiva Inc.
- Clarifai Inc.
- Sensum Co.
- Beyond Verbal
- Noldus Information Technology (NIT)
- Sentiance NV
- Lexalytics Inc
- Deloitte Touche Tohmatsu Ltd.
- Gorilla Technology Group