Global Emotion Detection and Recognition Market Is Estimated To Witness High Growth Owing To Rising Demand For Customer Service Optimization And Growing Popularity Of Enabling Emotion in AI Systems
The Global Emotion Detection and Recognition (EDR) Market is estimated to be valued at US$ 49.54 Bn in 2024 and exhibit a CAGR of 19.5% over the forecast period 2023-2031. Furthermore, rising demand for optimized customer service solutions and growing popularity of enabling emotion capabilities in AI systems is expected to drive the market growth during forecast period.
Market Dynamics:
The Global Emotion Detection and Recognition market is primarily driven by growing demand for customer service optimization across industries and increasing focus on enabling emotion capabilities in AI systems. Constantly evolving customer expectations and demand for personalized experience has led organizations to focus on optimizing customer service workflows and interactions. Emotion Detection and Recognition technologies help organizations gain deeper customer insights by understanding customer sentiments and emotions during digital conversations or support transactions. This allows for more meaningful customer engagements and issues resolution. Furthermore, growing traction towards developing human-like AI with abilities to detect and understand human emotions has emerged as another key driver. Major tech companies are investing heavily in developing emotion-enabled AI assistants and robots with applications in healthcare, education and automotive. However, technical challenges around developing highly accurate EDR models and privacy concerns related to processing biometric data remains key market restraints.
Growing Popularity of Biometrics and Facial Recognition Technologies is Driving the Emotion Detection and Recognition (EDR) Market Growth
The growing popularity of advanced biometric technologies like facial recognition is a major driver for the EDR market. Facial recognition systems rely on emotion detection and recognition capabilities to analyze facial expressions and identify individuals. Governments and law enforcement agencies across the world are increasingly adopting facial recognition at public places like airports, railway stations for security purposes. Leading technology companies are also integrating emotion detection into their facial recognition products to make them more effective. The growing use of biometric authentication in smartphones, laptops, and other consumer devices is also boosting demand for emotion recognition technologies.
Increasing Demand from Media and Entertainment Industries
The media and entertainment industries have emerged as another big adopter of emotion detection and recognition systems. Media companies are integrating EDR to analyze audience reactions and improve content. For instance, EDR technologies are being used to gauge viewer experience and engagement levels with TV shows and digital content. Streaming platforms also use emotion AI to customize content recommendations. EDR also enables more humanized virtual assistants by allowing them to detect human emotions. The rising popularity of virtual and augmented reality is expected to further drive growth in this segment.
High Development Costs and Technical Complexity pose Challenges
One of the major challenges restraining the growth of the EDR market is its high development costs. Advanced EDR solutions involve complex deep learning algorithms that require massive datasets for training neural networks. Sourcing, annotating and preparing such large-scale facial and voice datasets demands heavy investments of time and money. For many smaller companies and startups, the technical and financial barriers are prohibitive for developing high-performing emotion recognition products. High performance GPUs and specialized hardware also increase capital costs. The complexity of accurately recognizing human micro-expressions and multilingual support also makes EDR technologies difficult to scale.
Privacy and Ethical Concerns Hampering Wider Adoption
Privacy issues and ethical concerns around personal data collection are limiting the adoption of emotion recognition in some domains. There are fears that sensitive personal data related to facial expressions and emotions could potentially be misused. Regulators are also yet to introduce clear guidelines around the collection and processing of biometric and emotion data. The ‘creepiness factor’ associated with technologies that detect human inner states makes consumers wary of their applications in areas like digital marketing and personalized advertising. Addressing privacy through improved anonymization and data transparency will be critical for the EDR market to realize its full potential.
Growing Applications in Healthcare Sector Present Opportunity
One of the major opportunities for EDR vendors is in the healthcare industry. Emotion detection and recognition is finding increasing usage in patient monitoring, diagnosing psychological conditions and enhancing patient-doctor communication. For instance, analyzing facial expressions and vocal tones can help assess pain, depression and anxiety levels in patients. EDR is also being researched for applications in dementia care, autism therapy and treating post-traumatic stress disorder. As the global healthcare expenditure rises, investments into digital health technologies are also growing. This growing digitization of the medical industry will drive significant demand for emotion AI platforms and tools.
Integration with Conversational AI and Virtual Assistants is Promising Avenue
Integration with conversational AI platforms and virtual assistants presents a huge growth opportunity. Advanced virtual agents powered by conversational AI, NLP, and EDR capabilities can deliver truly human-like interactions. It allows virtual assistants to understand customer emotions, gauge engagement and customize responses for better service experiences. As virtual agents increasingly replace live agents, the need for emotion detection will rise significantly. Major tech giants have started incorporating these multimodal capabilities into their assistant products to stay ahead. This convergence of technologies is projected to open new use cases and substantially increase demand for EDR systems.
Link: https://www.coherentmarketinsights.com/market-insight/emotion-detection-and-recognition-market-5349
Key Developments:
- In September 2022, CyberLink Corporation, a leader in AI and facial recognition technology, integrated its FaceMe AI face recognition engine into MediaTek's new Genio AIoT platform. This integration with MediaTek’s Genio 1200 enhances FaceMe’s precision in facial recognition, enabling versatile deployment across various sectors, including security, smart banking, access control, public safety, and smart retail.
- In July 2022, Secunet, a prominent security and biometrics firm based in Germany, announced its plans to equip Zurich Airport with technology to ensure compliance with the European Entry/Exit System (EES). This system mandates that third-country nationals register with a facial image and four fingerprints to cross the Schengen area's land, sea, and air borders.
- In February 2022, NEC Corporation, a global leader in IT and network solutions, enhanced its strategic partnership with SAP, a major enterprise software provider, to accelerate NEC’s corporate transformation (CX) and co-create new business opportunities. By leveraging the latest SAP solutions, NEC aims to drive CX improvements, build on the reforms achieved with SAP technologies, achieve data-driven management, adapt flexibly to business changes, and optimize employee capabilities.
- In February 2022, IBM, a global leader in technology and consulting services, acquired Neudesic, a prominent US cloud services consultancy specializing in the Microsoft Azure platform and multi-cloud solutions. This acquisition will greatly enhance IBM’s hybrid multi-cloud services portfolio and advance its hybrid cloud and AI strategy.
Key Players:
Affectiva (a subsidiary of Smart Eye), AIBM Watson, Beyond Verbal, EmoVu, Face++ (a part of Megvii Technology), Noldus Information Technology, Realeyes, Sension, Sensum, iMotions, Xpression, Neuro-Insight, Cognitec Systems, NuraLogix, and Hume AI
