Emotion Analytics Market Size

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.