Emotion Analytics Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, Germany, UK, China, Canada, Japan, France, UAE, India, Saudi Arabia - Size and Forecast 2024-2028

Emotion Analytics Market Size 2024-2028

The emotion analytics market size is forecast to increase by USD 4.44 billion, at a CAGR of 18.2% between 2023 and 2028.

• The market is experiencing significant growth due to the increasing demand for data-driven customer behavior management in various sectors, including IT and telecommunications. Emotion recognition technology, which includes tone of voice analysis and correlation engines, is increasingly being used in public safety and contact centers to enhance situational awareness and improve response times. In the automotive industry, emotion analytics is being utilized to provide personalized user experiences and optimize sales performance. Advanced audio mining algorithms and artificial intelligence are being employed to extract insights from labeled emotion data obtained from various sources, including wearable gadgets and audio recordings. The accuracy and reliability of emotion analytics solutions are key drivers of market growth, making them valuable tools for businesses seeking to improve customer engagement and satisfaction.

What will be the Size of the Market During the Forecast Period?

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• The market is witnessing significant growth as businesses increasingly recognize the value of understanding and responding to human emotions. Emotion analytics is a branch of artificial intelligence that focuses on the identification, analysis, and interpretation of emotions from various data sources. This market is poised to revolutionize industries by providing valuable insights into customer and employee behavior, public safety, and fraud detection. Behavioral analytics is a crucial application of emotion analytics. By analyzing voice tone, facial expressions, and text data, businesses can gain a deeper understanding of their customers' emotions and intentions. This information can be used to optimize sales performance, improve customer experience, and enhance brand reputation management. Another key application of emotion analytics is in risk management. By analyzing emotions in real-time, businesses can identify potential threats and take preventative measures. For instance, in public safety analytics, emotion analytics can be used to detect anomalous behavior and alert authorities.
• In fraud detection, it can help identify suspicious transactions based on the emotional tone of the communication. Emotion analytics also plays a vital role in human-computer interaction. Conversational AI, a subset of emotion analytics, enables machines to understand and respond to human emotions. This technology can be used to improve customer service, automate contact centers, and enhance the overall customer experience. predictive analytics is another area where emotion analytics is making a significant impact. By analyzing historical data and identifying patterns, emotion analytics can predict customer churn, agent performance, and product perception. This information can help businesses take proactive measures to retain customers and improve employee performance. Cloud-based technology is driving the adoption of emotion analytics in various industries. Emotion analytics software, which can be integrated with existing systems, offers real-time insights and easy scalability. Sentiment analysis tools, a popular application of emotion analytics, help businesses measure customer satisfaction and monitor brand reputation.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Customer experience management
  • Sales and marketing management
  • Competitive intelligence
  • Public safety and law enforcement
  • Others
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
  • APAC
    • China
    • India
    • Japan
  • Middle East and Africa
  • South America

By Application Insights

• The customer experience management segment is estimated to witness significant growth during the forecast period.

In today's business landscape, understanding user experience and emotions plays a pivotal role in gaining customer satisfaction and loyalty. Emotion analytics, a growing field, enables companies to diagnose and respond to customers' emotions using advanced machine learning algorithms. This data is collected through various sources such as virtual reality (VR), wearables, and user feedback. Emotion recognition technology, which includes facial recognition and haptic touch, is a significant component of emotion analytics. By analyzing customers' emotional responses, businesses can tailor their interactions, creating a more engaging experience. For instance, this technology can be used to gauge viewers' reactions to movie trailers or customers' feelings toward in-store displays.

Moreover, emotion analytics can be applied to various industries, including travel and healthcare, to improve treatment plans and customer service. In the travel industry, for example, this technology can help airlines understand passengers' emotional states during their journey and adjust their services accordingly. In the healthcare sector, emotion analytics can be used to monitor patients' emotional wellbeing and provide personalized care. In conclusion, emotion analytics offers valuable insights into customers' emotions, allowing businesses to create a more personalized and engaging user experience. By understanding customers' attitudes and emotions, companies can foster loyalty, improve customer satisfaction, and stay competitive in the market.

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The customer experience management segment was valued at USD 1 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

• North America is estimated to contribute 43% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In North America, the market is experiencing significant growth due to the region's high adoption of advanced technologies and analytics solutions. The US, in particular, is a major contributor to this market's expansion. The healthcare, retail, media and entertainment, and public safety and law enforcement industries in North America have some of the highest adoption rates of emotion analytics. This is because these sectors rely heavily on data-driven insights to optimize operations and improve customer experiences. Additionally, the widespread use of big data in the region facilitates the implementation and operation of emotion analytics solutions. With the increasing dependency on the internet and wearable devices, North Americans are increasingly relying on analytical tools to make informed business decisions.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Emotion Analytics Market?

Growing demand for data-based customer behavior management is the key driver of the market.

• Emotion analytics is gaining traction in the business world as a valuable tool for enhancing customer experience management and workforce optimization. By employing emotion recognition technology, companies can gain insights into human emotions, enabling them to connect with customers on a deeper level. With the widespread use of digital platforms for customer engagement, there is a growing need for businesses to understand their customers' emotions and respond appropriately. Emotion analytics goes beyond traditional customer support by providing real-time emotional intelligence. This intelligence can help businesses identify customer moods and respond accordingly, ensuring a positive customer experience.
• Additionally, emotion analytics can be utilized for workforce management, allowing companies to monitor and improve agent performance based on emotional engagement with customers. Emotion analytics solutions can be deployed on-premise or in the cloud, providing flexibility for businesses with varying IT infrastructure needs. By leveraging emotion analytics, companies can gain a competitive edge by providing personalized experiences, enhancing customer satisfaction, and improving overall brand perception.

What are the market trends shaping the Emotion Analytics Market?

Increasing the use of emotion recognition in automotive sector is the upcoming trend in the market.

• Emotion analytics is experiencing significant investment in the IT and telecommunications sector, particularly within the automotive industry. As competition intensifies, companies aim to build stronger emotional connections with consumers to attract new business and retain existing customers. Additionally, manufacturers and original equipment manufacturers are prioritizing the analysis of drivers' emotions to improve vehicle safety.
• This technology will soon be integrated into high-end cars, enabling the detection of driver attention levels and drowsiness, thereby enhancing overall safety. Furthermore, emotion data will provide car manufacturers with valuable insights into the driving experience of both the driver and passengers, allowing them to better understand consumer behavior and make informed business decisions.

What challenges does Emotion Analytics Market face during the growth?

Accuracy of emotion analytics is a key challenge affecting the market growth.

• Emotion analytics refers to the use of technology to identify and interpret human emotions through various channels, including speech and nonverbal cues. This field is gaining significance in various sectors, such as government and law enforcement, to better understand customer views and preferences. Emotion analytics solutions employ advanced technologies like AI and video analytics to analyze facial expressions, voice patterns, written words, body postures, and gestures.
• However, deciphering emotions accurately through these channels remains a challenge due to their complex and situational nature. Emotion analytics can provide insights with up to 75%-85% accuracy through voice, body language, and other cues. These insights can be valuable for businesses to tailor their offerings to customer attitudes and improve overall customer experience.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Adoreboard
• Affectiva Inc.
• Alphabet Inc.
• apple Inc.
• Clarifai Inc.
• Cogito Corp.
• Deloitte Touche Tohmatsu Ltd.
• Highstreet
• iMotions AS
• InMoment Inc.
• International Business Machines Corp.
• Kairos AR Inc.
• Microsoft Corp.
• neuromore
• Noldus Information Technology bv
• NVISO SA
• Realeyes OU
• SAS Institute Inc.
• Sentiance NV
• Tobii AB

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

Emotion analytics is an emerging field that focuses on the identification and analysis of human emotions through various means, including facial expressions, tone of voice, and speech content. This technology has gained significant traction in various industries, including customer experience management and workforce management, due to its ability to provide valuable insights into customer views and preferences. Emotion analytics goes beyond traditional methods of customer feedback and sentiment analysis by utilizing advanced technologies like artificial intelligence, machine learning algorithms, and biometric technology to accurately identify emotional states and nonverbal cues. The market is witnessing technological progress with the adoption of cloud and on-premise solutions, as well as the integration of wearable gadgets and IoT devices.

This market caters to various sectors, including government, IT and telecom, and customer support agents, among others. Emotion analytics software is used to analyze emotional data from various sources, including video analytics, facial analytics, speech analytics, and audio mining, to provide personalized user experiences and improve sales performance. Privacy and security are crucial considerations in the market, with the need for language-agnostic and secure solutions to protect sensitive emotional data. The market also caters to various applications, including mental health diagnosis, student engagement, and public safety, among others. The use of emotion analytics has been shown to improve customer satisfaction, loyalty, and treatment outcomes, making it a valuable tool for businesses and organizations.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, APAC, Middle East and Africa, and South America
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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