Emotion Detection and Recognition Market Size, Share & COVID-19 Impact Analysis, By Type (Facial Recognition, Speech and Voice Recognition, Biosensing, Gesture and Posture Recognition), By Application (Healthcare, Automotive, Media & Entertainment, Recruitment, Education, Public Security & Law Enforcement, BFSI, Retail, and Others), and Regional Forecast, 2022-2029

The emotion detection and recognition market size was valued at USD 22.82 billion in 2021 and is projected to grow from USD 26.26 billion in 2022 to USD 74.80 billion by 2029, exhibiting a CAGR of 16.1% during the forecast period (2022-2029). North America dominated the global market with a share of 38.91% in 2021. North America accounted for a market value of USD 8.88 billion in 2021. Based on our analysis, the global market exhibited an average growth of 13.0% in 2020 as compared to 2019.

Emotion recognition is a technique of recognizing a person's emotional state. It is a software program that reads human face expressions using modern image processing. Besides happiness, sadness, surprise, anger, love, joy, and others, emotion recognition software also captures micro-expressions or exquisite body language cues that portray an individual's feelings without their knowledge.

• For instance, law enforcers use emotion recognition software to find more information about individuals during interrogation.

Emotion recognition continues to evolve in new technologies such as natural language processing, speech and voice recognition, facial recognition, biosensing, and gesture and posture recognition. The significant growth of the Internet of Things technology, the growing popularity of wearables, and the large adoption of smartphone usage drive the global emotion detection and recognition market growth. Therefore, technological advancement is expected to fuel the demand for Emotion Detection and Recognition (EDR) during the forecast period.

COVID-19 IMPACT

Growing Use of Emotion Recognition Software in Video Games to Boost Market Growth

The COVID-19 pandemic had a significant impact on enterprises' operating activities. The market has been enhancing significantly in recent years, but due to the outbreak of COVID-19, the market showcased moderate growth in 2020. With the introduction of emotion detection technology, companies are now focusing on generating a large level of player engagement. Video games are designed in a way to detect the player’s emotions, which is essential for the overall enjoyment of the game. The use of this software aids companies in understanding the player’s emotions through real-time analytics. The developers implement emotion detection into the customer experience to adjust or modify sequences in real-time, resulting in a more immersive gaming experience.

Moreover, the existence of audio, videos, and images data leads to a tremendous opportunity for emotion detection technologies, which is expected to show immense growth in the market.

LATEST TRENDS

Increasing IoT Applications and Adoption of EDR in Vehicles to Foster the Market Growth

The significant development in IoT-based technologies augmented the adoption of wearable and enormous growth in smartphone usage, nurturing the industry's growth. Emotion detection and recognition is a software-based technology equipped with computer vision and deep learning algorithms, enabling organizations to recognize humans' facial emotions. Furthermore, the rapid inclination of consumers toward digitization and IoT devices boosted the demand for speech and voice recognition technology.

The extensive demand for smart vehicles is attracting the demand for emotion detection and recognition solutions. Moreover, emotion detection and recognition is used in smart vehicles to identify the driver's emotions, such as drowsiness recognition for driver safety, to identify whether the driver is concentrating or distracted while driving, building a personalized and intimate experience. Emotion detection and recognition is fixed in a car to gather data on driver performance through real-time facial analysis and warns the driver, ensuring safety. 

Thus, rising IoT applications and adoption of emotion detection and recognition in vehicles are anticipated to drive the EDR market growth.

EMOTION DETECTION AND RECOGNITION MARKET GROWTH FACTORS

Integration of Emotion Detection Features into Smart Personal Devices and for Commercial Deployments to Boost Market Growth

The integration of speech technologies in cars, smartphones, computers, and smart assistants continues to drive market growth. Besides, Artificial Intelligence (AI)-based emotion detection and recognition has been extensively used in the consumer field to control smart home personal assistants. To have humanlike interactions, some companies have already integrated emotion recognition features into their personal assistant robots, such as humanoid robotics.

Along with tech giants, startups have been investing in AI-based emotion detection software for a decade, using either voice analysis or computer vision to recognize human emotions. Many of the firms started with a focus on market research, capturing and analyzing human emotions in response to a TV commercial or products. Furthermore, commercial deployments are gradually emerging in smart cars, Virtual Personal Assistants (VPAs), robotics, call centers, and smart devices. It is predicted that by 2022, around 10% of personal devices will be enabled with AI-based emotion detection capabilities, either via cloud services or on-device.

The aforementioned factors are expected to propel the growth of the EDR market.

RESTRAINING FACTORS

Increasing Manufacturing Cost of EDR Systems to Hinder the Market Growth

The cost of manufacturing EDR systems is greater, and the return on investment is low. These factors are a major obstacle to the growth of the market, as technologies, including gesture recognition and wearable computing, observed high development costs. Thus, enterprises that lack financial resources do not opt for the platform, despite their interest in increasing overall productivity using these solutions.

SEGMENTATION

By Type Analysis

Rising Demand for Facial Recognition Solutions to Boost the Market Growth

By type, the market is divided into facial recognition, speech and voice recognition, biosensing, and gesture and posture recognition. Facial recognition segment holds the highest market share and is also expected to grow at the highest CAGR during the forecast period as it offers fast & accurate results, reliable matching, and a non-contact process. Additionally, this technology benefits in the detection of user behavior. For instance,

• In November 2021, Disney implemented this technology to determine how viewers enjoy their movies, forming an AI-powered algorithm that identifies complex facial expressions and predicts upcoming emotions.

Emotion detection and recognition increases focus and production at work to make better decisions, handle stress and implement healthier and more productive working styles.

By Application Analysis

Rising Use of Emotion Detection and Recognition Solutions in Electronic Health Record Systems to Fuel Demand in Healthcare Industry

Based on application, the market is categorized into healthcare, automotive, media & entertainment, recruitment, education, public security & law enforcement, BFSI, retail, and others.

Healthcare segment is anticipated to gain rapid growth during the forecast period. Speech recognition improves the process of capturing data in electronic health record systems. This process enhances the interaction of doctors with the system by speaking a few words.

• For instance, the Health Insurance Portability and Accountability Act (HIPAA) manages the treatment of patients’ health records. Additionally, it protects biometric data privacy such as full-face photographs and similar images directly related to an individual. Thus, facial images used for FRT health applications are protected by HIPAA.

Moreover, several smart wearable device vendors are increasingly incorporating trackers as their health-tracking features. For instance, Amazfit GTS, Huami's modern smartwatch, is operated by its optical sensor, which enables 24-hour heart rate monitoring. Such integration of biosensors is anticipated to provide large-scale data sets to enterprises for data analysis.

REGIONAL INSIGHTS

In terms of region, the emotion detection and recognition market is studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further segmented into countries.

North America holds the largest market share, contributing USD 8.88 billion in 2021. The presence of key players across various countries, including the U.S. and Canada, is expected to be major contributors to the market's growth. Also, geographical presence, strategic investments, partnerships, and significant Research & Development (R&D) activities are contributing to the significant deployments of EDR solutions.

Therefore, such factors are anticipated to foster the global EDR market growth.

Asia Pacific is estimated to witness significant growth during the forecast period, owing to the rising need for high operational excellence and the growing need for artificial intelligent agents that contribute to the market. Developing countries, such as India and China, are anticipated to witness higher demand for extended technology rollout and plans to grow the market. Robust technical centers, growing population, and huge number of businesses in the region are driving the regional growth.

Europe is expected to showcase a steady growth rate due to substantial government investments in security and surveillance infrastructure, raising public awareness, adoption of advanced technologies, and other essential factors contributing to the expansion of the regional EDR market share.

The rising demand for emotion recognition software from retail businesses for behavioral predictions and marketing research drives the Middle East & Africa market. Furthermore, South America is gaining popularity in the market owing to the funds and investments received by the region for deploying these technologies.

KEY INDUSTRY PLAYERS

Focus on Business Expansion to Fuel Key Players’ Market Share

The market witnesses a substantial competitive intensity due to the presence of a massive number of companies. The companies are focusing on growing their consumer base to gain a competitive edge. Consequently, leading market players are considering numerous strategic initiatives, such as mergers & acquisitions and partnerships, to stay competitive in the market.

List of Key Companies Profiled in Emotion Detection and Recognition Market:

• Kairos AR, Inc. (U.S.)


• iMotions (Sweden)


• Noldus Information Technology BV (U.S.)


• Amazon.com, Inc. (U.S.)


• Realeyes (U.S.)


• IBM Corporation (U.S.)


• Google (U.S)


• Emotibot (China)


• NuraLogix Corporation (U.S.)


• Entropik Technologies Pvt. Ltd. (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• April 2022: Zoom, a video communication provider, developed an Artificial Intelligence (AI) based system to monitor and analyze the user's emotions. This system helps to understand the “emotional state” of the business deal.


• October 2021: Smart Eye acquired iMotions for USD 47 million to form behavioral AI behavioral research “powerhouse.” They created a research team for examining emotional, cognitive, and behavioral data by merging these technologies to analyze complex human behaviors.


• May 2021: China tested artificial intelligence cameras and facial recognition systems on Uighur Muslims to detect their emotions in the Xinjiang region.


• July 2020: NEC Corporation partnered with Realeyes to expand its products and services to measure emotion detection analysis for global brands. The partnership enables digital transformation to enhance safe and robust user experiences across media, entertainment, education, healthcare, and communication verticals throughout the world.


• June 2020: Biometric Emotion detection startup launched an Online Public Offering (OPO) to generate capital and expand its marketing, and pursue revenue streams. It enables users to analyze customers' facial expressions to recognize emotional responses.

REPORT COVERAGE

The study on the emotion detection and recognition market report includes prominent areas worldwide to get a better knowledge of the industry. Furthermore, the research provides insights into the most recent industry and market trends, as well as an analysis of technologies that are being adopted quickly worldwide. It also emphasizes some of the growth-stimulating restrictions and factors, allowing the reader to obtain a thorough understanding of the industry.

REPORT SCOPE & SEGMENTATION