PUBLISHER: The Business Research Company | PRODUCT CODE: 1455441
PUBLISHER: The Business Research Company | PRODUCT CODE: 1455441
Emotional AI represents a subset of artificial intelligence designed to analyze, respond to, and simulate human emotions. Employing various techniques, it senses, learns about, and interacts with human emotional experiences through methods such as sentiment analysis, voice emotion AI, facial movement analysis, and biometric sensing.
The primary components of emotional AI are software and services. Software comprises a set of instructions or programs enabling a computer system to execute specific tasks, incorporating tools such as facial recognition, speech and voice recognition, and gesture and posture recognition. This is particularly relevant in both large enterprises and small and medium-sized enterprises. Emotional AI finds application across various sectors, including banking, financial services and insurance (BFSI), healthcare, IT and telecommunication, retail and e-commerce, government, media and entertainment, automotive, and other diverse domains.
The emotional AI market research report is one of a series of new reports from The Business Research Company that provides emotional AI market statistics, including emotional AI industry global market size, regional shares, competitors with an emotional AI market share, detailed emotional AI market segments, market trends and opportunities, and any further data you may need to thrive in the emotional AI industry. This emotional AI market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The emotional AI market size has grown strongly in recent years. It will grow from $27.33 billion in 2023 to $30.02 billion in 2024 at a compound annual growth rate (CAGR) of 9.8%. The growth observed in the historical period can be attributed to heightened competitive pressure, market uncertainties, the pursuit of efficiency and productivity gains, a customer-centric focus, and the widespread adoption of DevOps practices.
The emotional AI market size is expected to see strong growth in the next few years. It will grow to $43.33 billion in 2028 at a compound annual growth rate (CAGR) of 9.6%. The anticipated growth in the forecast period can be attributed to a heightened focus on employee experience, regulatory changes and compliance, integration with business strategy, rapid market changes, and resilience planning. Significant trends expected in the forecast period encompass cybersecurity concerns, the continuous evolution of technology, globalization and remote collaboration, digital transformation initiatives, and the leveraging of agile tools and technologies.
The anticipated rise in the demand for an enhanced customer experience is set to propel the growth of the emotional AI market. Customer experience (CX) encompasses the overall interaction and perception that customers have with a brand or company throughout their entire journey, spanning from initial awareness and consideration to the actual purchase, usage, and post-purchase support. Emotional AI plays a crucial role in customer experience by deciphering and responding to customers' emotions. This integration aims to enhance interactions by analyzing responses, products, and services, ultimately creating more personalized, empathetic, and emotionally resonant experiences. The end goal is to foster increased customer loyalty and satisfaction. As exemplified by a survey conducted by Verint, a US-based customer engagement solutions company, in June 2022, where 39% of respondents would dissuade friends and family from purchasing from a brand after a negative customer experience, and 64% had ceased doing business with such companies. Notably, 79% of respondents under 45 years of age deemed having a positive digital platform experience as highly important. Therefore, the growing demand for an improved customer experience emerges as a key driver propelling the growth of the emotional AI market.
Prominent entities in the emotional AI market are strategically directing their efforts towards developing solutions that personalize the customer experience by catering to emotional needs. In a notable example, in September 2023, AB Tasty, a France-based software development company, introduced EmotionsAI, an AI tool designed to detect users' emotional needs. This innovative technology enables brands to personalize customer experiences by understanding the emotional needs of their customers. It categorizes visitors into ten segments based on their interactions with a business website. These features collectively empower brands to comprehend and address the emotional needs of their visitors, thereby enhancing customer experiences and potentially increasing conversion rates and revenue.
In February 2023, Uniphore, a US-based automation technology company, completed the acquisition of Hexagone for an undisclosed amount. This strategic move positions Uniphore to potentially offer more comprehensive solutions, integrating emotion recognition and analysis into their conversational service automation platform. Hexagone, a France-based emotional AI company, specializes in leveraging voice, visual, and text-based data to provide AI-derived insights.
Major companies operating in the emotional AI market report are Apple Inc., Alphabet Inc., Microsoft Corporation, Sony Group Corporation, Panasonic Corporation, Intel Corporation , International Business Machines Corporation (IBM), Latent View Analytics Ltd., Nvidia Corporation, NEC Corporation, Baidu Inc., UiPath Inc., Cogito Corporation, Tobii Technology AB, Gorilla Technology Group, Noldus Information Technology, Entropic Technologies, Affectiva Inc., Realeyes OU, Lexalytics Inc., Beyond Verbal Communication Ltd., iMotions A/S, Sentiance NV, NuraLogix Corporation, NVISO Inc., Kairos AR Inc., Sensum, MetaSoul Inc
North America was the largest region in the emotional AI market in 2023. The regions covered in the emotional AI market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the emotional AI market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The emotional AI market includes revenues earned by entities by providing services such as virtual assistants with emotional intelligence, sentiment analysis, emotionally aware content creation, entertainment, and gaming. The market value includes the value of related goods sold by the service provider or included within the service offering. The emotional AI market consists of sales of sentiment analysis tools, emotionally intelligent chatbots, biometric wearables and emotionally responsive robots. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Emotional AI Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on emotional ai market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for emotional ai ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The emotional ai market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.