Emotion AI Market Expected to Reach $13.8 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Emotion AI Market," The emotion AI market was valued at $1.8 billion in 2022, and is estimated to reach $13.8 billion by 2032, growing at a CAGR of 22.7% from 2023 to 2032.

Due to emotion AI’s ability to capture and analyze human gestures and emotions, it is being widely adopted in several organizations including healthcare, manufacturing, and other sectors which is expected to propel the market growth in the coming years. In addition, several large and small-sized enterprises are increasingly employing emotion AI solutions to expand their portfolio. Moreover, in the financial sector, AI examines user emotional behavior and transaction data to identify trends that may represent fraud, assisting financial institutions in the detection and prevention of fraud. This sector deals with a vast amount of sensitive data, which in turn provides lucrative opportunities for the growth of emotion AI in this sector. Meanwhile, there is an increasing demand for emotion AI solutions in the healthcare sector as AI is used to predict the emotional state of dementia patients' conduct, speech, and facial expressions accurately. These multiple applications offered by emotion AI solutions in several industries are expected to propel the global emotion artificial intelligence market demand.

On the basis of enterprise size, the large enterprises segment dominated the emotion AI market sizein 2022 and is expected to continue this trend during the forecast period, as emotion AI solutions are increasingly being deployed in these organizations. In addition, the key palyers is heavily investing in adavanced technologies such as artificial intelligence (AL)-based solution, IoT, cloud computing and others. These factors further drive the demand for emotion AI solutions in large enterprises. However, the small and medium-sized enterprises segment is expected to exhibit the highest growth during the forecast period. This is attributed to the cost-efficient solutions provided by various organizations, which is expected to enhance the market growth in the upcoming years.

By region, North America dominated the market share in 2022 for emotion artificial intelligence market. Businesses in this area are embracing emotion AI solutions at an increasing rate, which in turn are expected to propel the emotion AI market growth. In addition, incresing digitalization and advanced thechonlogy in businesses to enhnace productivity, efficiency and end-user experience are expected to propel the growth of the emotion artificial intelligence market during the forecast period. However, Asia-Pacific is expected to exhibit the highest growth during the forecast period. The presence of strong government policies regarding privacy and security in this region has been driving the growth of the emotion AI industry.

The outbreak of COVID-19 is projected to provide a range of new avenues for the market to grow over the forthcoming period. These novel opportunities include a surge in integration for cloud-based and AI solutions and the growing adoption of advanced technologies in facial recognition solutions across different end-use industries. It is offering the service providers to provide superior emotion AI solutions continuously and rapidly in many industries during the outburst of the COVID-19 crisis. Besides, in the past few years, there has been a significant increase in the solid demand for developing technologies with modular designs that are suitable for enterprise demands. In addition, several companies are also incorporating advanced and innovative solutions, as well as providing better visibility in emotion AI to create diversity and attract a wide customer pool. For instance, in July 2022, NVISO SA launched a Human Behavioral AI SDK Evaluation Kit (EVK) for the BrainChip Akida neuromorphic processing platform. This implementation of NVISO's Human Behavioral AI takes advantage of the BrainChip Akida neuromorphic processor IP's better performance capabilities with latencies under 10ms and model storage requirements under 1MB for a full target solution. These factors create numerous opportunities for emotion AI market forecast.

Key Findings of the Study

• By component, the software segment accounted for the largest emotion AI market share in 2022.
• By enterprise size, the large enterprises segment accounted for the largest emotion AI market share in 2022.
• By application, the retail and e-commerce segment accounted for the largest emotion AI market share in 2022.
• Region wise, North America generated the highest revenue in 2022.

The market players operating in the emotion AI market analysis are IBM Corporation, Microsoft Corporation, Cogito Corporation, Eyesight Technologies, Apple, Inc., Affectiva, Nuralogix Corporation, Realeyes, NVISO, and Emotibot. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the emotion AI industry globally.