Emotion Analytics Market Expected to Reach $10.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Emotion Analytics Market," The emotion analytics market was valued at $2.6 billion in 2021, and is estimated to reach $10.5 billion by 2031, growing at a CAGR of 15.3% from 2022 to 2031.

Emotion analytics data is derived from actual customer contacts and follow-ups may be started in real time; proponents of EA contend that the insights offered by emotions analytics programs are more important than those gleaned from customer satisfaction surveys. Gaining information and data from an emotional response may give a more accurate perspective on consumer sentiment given the evidence that humans react emotionally first and think rationally second. This drives the growth of the emotion analytics market. In addition, marketing tactics can be changed by using software that analyses emotions. Marketers can better understand how to deal with the feelings of potential customers and establish a deeper connection with company and products when enterprises take into account human emotions and sentiment analysis. Unfavorable results can be utilized to improve products before things are made available to the general public. Emotion analytics are used to find out how new products are accepted by test group of customers.  

Furthermore, surge increase in demand from the automotive sector and surge in need for customer behavior management using data primarily drive the growth of the emotion analytics market. However, analysis of emotional misunderstandings hamper the market growth to some extent. Moreover, applications for emotional recognition are in greater demand and are expected to provide lucrative opportunities for the market growth during the forecast period. 

Depending on type, the text analytics segment dominated the emotion analytics market forecast in 2021, and is expected to maintain its dominance in the upcoming years, owing to surge in penetration of mobile phones and tablets with access to internet coupled with ever-growing user volume on social media platform. However, facial analytics segment is expected to witness highest growth, owing to improve the customer satisfaction, and also increase value for real time emotion analysis. 

Region-wise, the emotion analytics market size was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to R&D expenditure, demand for IoT, and adoption of new technology across a range of industries. However, Asia Pacific is expected to witness significant growth during the forecast period, owing to fastest-growing economies and high levels of technology penetration in the region.

COVID-19 has impacted all industries majorly. However, the emotion analytics market was barely impacted, this pandemic has imposed governments and enterprises to switch their priorities and policies. Businesses in the banking, insurance, real estate, automobile, cosmetics, and other sectors employ ML-based emotion analysis to comprehend and analyze such news so that they may make predictions, make plans, and be prepared for any eventuality. Planning supply chains, handling public relations, adjusting the launch of new products, and other marketing and operational tasks are made easier by emotion analytics. Thus, emotion analytics market is expected to grow further. 

KEY FINDINGS OF THE STUDY 

• By type, the text analytics segment accounted for the largest emotion analytics market share in 2021. 

• On the basis of deployment, the on-premises segment generated the highest revenue in 2021. 

• On the basis of enterprise, the large enterprise segment generated the highest revenue in 2021. 

• By application, the customer experience management segment accounted for the largest emotion analytics market share in 2021. 

• On the basis of end user, the retail segment generated the highest revenue in 2021. 

• Region-wise, North America generated the highest revenue for emotion analytics industry in 2021 

The key players profiled in the emotion analytics market analysis are Adoreboard, Affectiva, Apple, Inc., Beyond Verbal Communication, IBM Corporation, iMotions A/S, Microsoft Corporation, Neuromore, NVISO SA and Retinad. These players have adopted various strategies to increase their market penetration and strengthen their position in the emotion analytics industry.