Market Insight- Global Neuromarketing Solutions Market
Neuromarketing is a commercial field of marketing that uses medical technologies such as functional namely functional Magnetic Resonance Imaging (MRI) to analyze the brain’s response to marketing stimuli. In other words, it is a marketing communication sector that uses neuropsychology to study consumers’ cognitive, sensorimotor, and affective response to marketing stimuli. The primary objective behind neuromarketing is to understand the rationale behind how consumers make a decision for purchasing. Neuromarketing offers numerous benefits including effective and efficient marketing strategies and campaigns, fewer campaign and product failures, and ultimate control over the needs and wants of people to suit the needs and wants of marketing interest. The most commonly used technologies for neuromarketing are electroencephalography (EEG), eye tracking, functional magnetic resonance imaging (fMRI), magnetoencephalography (MEG), and positron emission tomography (PET).
The global neuromarketing solutions market is estimated to account for US$ 1,179.4 Mn in 2019 and is expected to grow at a CAGR of 10.2 % over the forecasted period 2019-27.
Market Dynamics- Drivers
- Increasing need to analyze consumers’ buying behavior is expected to drive growth of the global neuromarketing solutions market during the forecast period
Neuromarketing has evolved into an effective technology to study and analyze the consumers’ buying behavior and make better marketing decisions. Marketers employ neuromarketing, in order to understand factors influencing the consumers’ buying behavior. Understanding this behavior is crucial, in order to make decisions related to product design, product advertising, product branding, product advertising. Hence, rising needs to understand and study consumers’ buying behavior and make effective and efficient marketing decisions are expected to support growth of the market during the forecast period.
- Adoption of cutting-edge technology to understand consumers’ purchasing behavior is expected to propel the global neuromarketing solutions market growth over the forecast period
Major neuromarketing solutions providers in the market are focused on adopting cutting-edge technologies including biometrics that measures heart rate, eye tracking & facial coding, functional magnetic resonance imagery (fMRI), and galvanic skin response (GSR), in order to understand and analyze a person’s behavior towards visual and audio stimuli. This, in turn, has led to forming better and effective marketing strategies to endorse a product or service successfully. Therefore, these factors are expected to propel the global neuromarketing solutions market growth over the forecast period.
North America region dominated the global neuromarketing solutions market in 2019, accounting for 40.8% share in terms of value, followed by Europe and Asia Pacific, respectively.
Source: Coherent Market Insights
Market Dynamics- Restraints
- Challenges regarding regulatory policies with neuromarketing are expected to hinder the global neuromarketing solutions market growth during the forecast period
Although neuromarketing offers various benefits to marketers, the government has imposed regulatory policies regarding the use of neuroscience technologies on a large scale. In the U.S. and Europe, the neuromarketing solutions market is expected to face scrutiny from data-protection authorities and consumer-protection organizations. Moreover, the global neuromarketing solutions market is expected to face tort issues, as incorrect use of the scanning or tracking product may cause physical injury to the subject on whom the test is being conducted. Rising use of neuromarketing research has attracted the attention of regulators who believe these technologies are misleading consumers’ buying behavior since the consumers tend to make conscious or biased decisions since they are monitored while making the decisions. Hence, these factors are expected to hamper the market growth over the forecast period.
- High cost associated with neuromarketing is expected to restrain growth of the global neuromarketing solutions market growth over the forecast period
The capital investment and operational costs of scanners such as fMRI and MEG machines are high. As these systems are large in size, they occupy a lot of space and limit the mobility of workspace. The cost, mobility, and scalability of these bulky neuromarketing solutions such as fMRI and MEG scanners are major factors hampering their large-scale adoption. Therefore, high cost and mobility issues are expected to restrain the global neuromarketing solutions market growth over the forecast period.
- High adoption of eye-tracking solutions in market and advertising research can present lucrative growth opportunities
Eye-tracking solutions are used in gaming and virtual reality. These solutions are now being used in market research to check and track the eye movements of shoppers in a store. The eye tracking solutions segment holds significant potential for opportunities in the field of website design. Moreover, the segment is expected to witness high growth opportunities in the fields of market research and advertising research, in order to conduct online research.
- Increasing research and development activities are expected to provide significant business opportunities
Since neuromarketing solutions are expensive and unaffordable for small and medium-sized enterprises, it is crucial to provide cost-effective solutions. Many solutions providers are focused on investing in research and development activities, in order to develop scalable and cost-effective solutions. Market players can focus on R&D activities and expand their presence in the global market.
Source: Coherent Market Insights
In global neuromarketing solutions market, by technology segment functional magnetic resonance imaging (fMRI) sub-segment dominated the global neuromarketing solutions market in 2019, accounting for 48.4% share in terms of value, followed by electroencephalography (EEG) and eye tracking.
Source: Coherent Market Insights
- High growth of neuroscience industry
Rising applications of neuroscience marketing have resulted in growth of the global neuromarketing solutions market. Various neuromarketing techniques help study and analyze the decision-making mechanism of customers. The following are certain examples of neuromarketing used by marketers:
- In 2009, Microsoft Corporation used EEG to study the level of engagement of gamers using Xbox
- In 2015, Microsoft Corporation used two methods viz. survey and EEG to study the impact of technology on customers’ attention span
- Advent of cutting-edge technology
Eye-tracking is most widely used in conducting research related to pricing, package design, and advertising. Functional magnetic solutions imaging (fMRI) has been capable of attracting the attention of scientists and companies. Following fMRI, EEG is the most widely used technique in neuromarketing. PET and MEG are the less frequently used techniques in research.
Value Chain Analysis
- Prominent players in the neuromarketing solutions market value chain are component manufacturers, OEMs (original equipment manufacturers), distribution channel partners, and end-users
- OEMs procure different parts from component manufacturers. In a majority of cases, an OEM manufacturer ties up with more than one component supplier.
- In the backward integration scenario, an OEM may also be involved in the in-house manufacture of critical components, without relying on the component manufacturer
Key players operating in the global neuromarketing solutions market are SR Research, Shimmer Sensing, Tobii Technology, EB Neuro S.p.A., Lab, iMotions, Cadwell Industries, Inc., SensoMotoric Instruments, Compumedics Limited, LC Technologies, and ISCAN, Inc.
- Key players in the market are focused on product launches, in order to enhance product portfolio. For instance, in October 2019, Tobii Pro AB, a subsidiary of Tobii Technology, introduced Tobii Pro Fusion, a portable and powerful eye tracker for scientific research.
- Major companies in the market are involved in contracts and agreements, in order to gain a competitive edge in the market. For instance, in July 2016, Compumedics Limited entered into a US$ 3 million contract with Bestmed for distribution of Compumedics’ neurodiagnostic and monitoring systems.