EMOTION DETECTION AND RECOGNITION (EDR) MARKET ANALYSIS

The global emotion detection and recognition (EDR) market size was valued at USD 20.6 billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 7.8% from 2022 to 2030.  The global emotion detection and recognition (EDR) market is primarily driven by artificial intelligence (AI) and the growing use of facial recognition. Artificial intelligence has made it possible to build machines that can recognize the emotions of individuals without requiring human intervention. Many developers are working to develop artificial intelligence-based facial recognition and emotion detection systems. Many of these companies are using open-source computer vision software libraries. As the field of artificial intelligence continues to advance, the emotion detection and recognition market is expected to follow suit.

Global Emotion Detection and Recognition (EDR) Market: Regional Insights

The global emotion detection and recognition (EDR) market is regionally segmented into North America, Europe, Latin America, Asia Pacific, and Middle East and Africa.

North America among regions, is anticipated to witness substantial growth in the global emotion detection and recognition (EDR) market over the forecast period. This can be attributed to presence of countries having largest retail markets such as Canada, and the U.S., demand for smart wearables, IoT devices and high ad spending across the region. Due to the increase in the retail sales, spending on ads by retailers for targeting the right segment is increasing in the region, and it is driving the market growth.

Moreover, Asia Pacific is also projected to witness high growth in the global emotion detection and recognition (EDR) market over the forecast period, owing to presence of growing economies such as India and China in the region, where the retail market is witnessing significant growth. The penetration of internet and shift towards e-commerce among consumers in the region is increasing, due to which, the adoption of different technologies in marketing is growing among retailers. Moreover, increasing adoption of online shopping is leading to adoption of robots, AI and unmanned stores and other such technologies in the region, which is driving the market growth.

Figure 1. Global Emotion Detection and Recognition (EDR) Market, by Region, 2021

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Global Emotion Detection and Recognition (EDR) Market Drivers:

The adoption of wearable devices is increasing around the world along with applications of IoT, and this in turn is expected to propel growth of the global emotion detection and recognition (EDR) market over the forecast period. The demand for IoT, connected wearable devices and their applications are driving several end-use industry around the globe. These devices can monitor, analyze biological vitals and collect data with the use of sensors. Moreover, these devices are becoming more advanced with biotrackers, with which they offer various health tracking features. Thus, with such benefits, demand for these devices is growing around the world, which is further driving the market growth. For instance, a new smartwatch, Amazfit GTS of Huami incorporates the Bio Tracker Optical sensor of the company, which enables 24 hour precision heart rate monitoring.

Furthermore, rise in need for advanced marketing tools is also expected to boost growth of the global emotion detection and recognition (EDR) market over the forecast period. The adoption of digital marketing tools continues to rise all over the world for enhancing and retaining customer experience, provide data insights, grow loyalty and enable vendors for making decisions that are data-driven. With growing smartphone penetration, the spending on marketing is increasing by enterprises. There are various tools used for marketing such as e-mail. It offers data analytics and highest ROI. Thus, growing demand for advanced marketing tools is likely to support the market growth.

Global Emotion Detection and Recognition (EDR) Market Opportunities:

Growing adoption of emotion detection and recognition in law and enforcement around the globe is likely to create growth opportunities for market players in the global emotion detection and recognition (EDR) market over the forecast period. EDR will be a part of individual profiling in the law and enforcement in order to help reduce the reaction times as well as to boost the efficiency. Thus, EDR vendors are increasing focusing on innovation of solutions specific to these terms. For instance, NVISO announced that it has filed a patent for the ‘An Image Processing System for Extracting Begavioral Profile from Images of an Individual Specific to an Event’. The patent described an automated method of assessment of behavioral profile of a person depending on the image processing.

Moreover, growing automotive industry applications are also expected to create lucrative environment for growth opportunities in the global emotion detection and recognition (EDR) market over the forecast period. The demand for EDR is likely to increase in the coming time in automotive industry applications, as this technology will be used as safety system of vehicles. Moreover, emotion detection and recognition systems will be used in automotive for enhancing the customer experience in car cabins, specifically in autonomous cars.

Global Emotion Detection and Recognition (EDR) Market Trends:

Increasing application of EDR technology in different industries is a growing trend in the global emotion detection and recognition (EDR) market. With the increasing demand for the emotion detection and recognition technology, large enterprises are likely to develop capabilities as the EDR tool is expected to be one of the important tools utilized to gain consumer insights as well as to improve customer experience. Hence, the adoption of EDR technology is rising in various industries and this trend is expected to continue over the forecast period.

Moreover, growing adoption emotion detection and recognition technology by governments around the world is another trend in the global emotion detection and recognition (EDR) market. Several governments worldwide are incorporating the technology as part of security, border control and law enforcement for reducing errors and increasing the potential of security personal. The use of this technology is likely to increase in border control and airports in the future, as facial recognition technologies are already in use at such places. Thus, the growing trend of adoption of EDR technology by governments is likely to support the market growth over the forecast period.

Global Emotion Detection and Recognition (EDR) Market Restraints:

The global emotion detection and recognition (EDR) market is likely to witness challenges such as concerns regarding data privacy, which is expected to hamper the market growth during the forecast period. Privacy concerns and awareness are the major developments pushing governments towards implementing laws regarding data protection. This dictates how companies can handle people’s data. There are initiatives being taken to grow privacy awareness. The data collected by EDR is highly sensitive and can be used for harmful purposes if breached. Thus, such data privacy concerns related to use of EDR systems are hampering the market growth.

Furthermore, increasing adoption of data regulations by governments is also expected to restraint growth of the global emotion detection and recognition (EDR) market over the forecast period. With increasing stringent regulations by governments, enterprises and marketers are obligated to adhere and restraint from adoption of technologies that can invade privacy of customers. Currently, GDPR of Europe is the most adopted data regulations that includes strict policies enforcing local data storage, data collection and right of customer to be forgotten. Thus, growing adoption of stringent regulations by governments across the globe is hampering the market growth.                                   

Figure 2. Global Emotion Detection and Recognition (EDR) Market, by Segment Type, 2021

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Global Emotion Detection and Recognition (EDR) Market Segmentation:

The global emotion detection and recognition (EDR) market report is segmented into Software and Service, End-User Vertical, and Region.

Based on Software and Services, the market is segmented into Facial Recognition, Speech and Voice Recognition, and Biosensing. Out of which, Facial Recognition segment is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of this technology in various industries for authentication, access control and validation. With emerging smart connected devices and smartphones, the access to devices capable of facial recognition is increasing significantly, which is likely to boost the demand for facial recognition software.

Speech and Voice Recognition segment is also expected to witness significant growth in the near future and this is owing to the high demand of these software. Voice-based solutions are increasingly being used in home devices, smartphones, and speakers, due to which demand for these speech and voice recognition software is increasing around the world. For instance, as per the Google data, the searches conducted using Google account for 20% of voice searches, and nearly 65% of people using Google Home or Amazon Echo do not wish to switch back to keyboard input.

Based on End-User Vertical, the market is segmented into Government, Healthcare, Retail, Entertainment, Transportation, and Other End-user Verticals. Out of which, Government segment is expected to dominate the global market over the forecast period and this is attributed to the increasing adoption of facial recognition by governments around the world as part of departments and initiatives. The facial recognition technology is increasingly being used in law and enforcement by governments. For instance, as per the Comparitech, the use of security cameras is high in China, with presence of eight out of 10 most-surveilled cities in the country, and it is likely to have one public CCTV camera for every two individuals by 2022.

Healthcare segment is also expected to witness significant growth in the near future and this is owing to the growing spending in healthcare around the world. Many countries around the globe are focused on providing cheaper healthcare, by incorporating technologies enabling fast and easy diagnostics and reducing the cost. For instance, as per the OECD Health Statistics 2019 report, the healthcare spending of the United States was the highest with 16.9% of GDP and the global average was 8.8%.

Global Emotion Detection and Recognition (EDR) Market: Key Developments

In May 2019, Affectiva Inc., announced to close funding of US$ 26 million. This funding is likely to allow the company to accelerate, scale and evolve the perceptive technology of the company in automotive industries among various others.

In June 2019, iMotions entered into partnership with Varjo for integration of Varjo devices into iMotions 8.0 software. With this integrated solution, the partnership will offer benefits such as synchronized data collection, seamless, and single platform for virtual experiments.

Global Emotion Detection and Recognition (EDR) Market: Key Companies Insights

The global emotion detection and recognition (EDR) market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global emotion detection and recognition (EDR) market are audEERING GMBH, Affectiva Inc., Nemesysco Ltd., Emotibot Technologies Limited, Kairos AR Inc., iMotions, Nviso SARL, Noldus, Realeyes OU, and Sight Corp.

*Definition:

Emotion detection and recognition is a field of science that involves identifying emotional states. Emotions can range in intensity and are not always easy to recognize. In order to detect emotions, researchers have designed systems that detect the presence of two categories: perceived and self-reported.