Global neuromarketing solutions market is estimated to witness high growth, owing to rising adoption of neuroscience research & growing medical expenditure
Global neuromarketing solutions market is estimated to be valued at US$ 1.26 Bn in 2024, exhibiting a CAGR of 8.4% over the forecast period (2024-2031). Furthermore, rising adoption of neuroscience technologies across industries to analyze consumer preferences and growing medical expenditure on innovative technologies can drive the market growth.
Market Dynamics:
Global neuromarketing solutions market growth is driven by increasing adoption of neuroscience research for product development and rising medical expenses on innovative diagnostic technologies. Neuromarketing helps companies to analyze consumer behavior, understand decision-making patterns, and develop effective marketing campaigns accordingly. Growing investments by pharmaceutical companies in neuromarketing research to optimize clinical trial design and drugs development processes can drive the market growth in the near future. Understanding customers' psychological and physiological responses towards products and services aids companies to personalize their offerings as per target demographics, thereby positively impacting sales.
Advancements in neuroscience research and technology can drive neuromarketing solutions market growth
Advancements in neuroscience research leads to deeper understanding of how the human brain functions, especially in relation to decision making and emotional responses. Neuromarketing solutions leverage these insights by applying neuroscience methods like EEG, fMRI, eye tracking and biometrics to understand consumer behavior at a subconscious level. The continuous innovation happening in fields like brain imaging, data analytics and virtual/augmented reality enables neuromarketing firms to gather richer consumer insights. For example, new high density EEG systems can now detect subtle electrical activity from more locations on the scalp compared to older EEG devices. Such technological advancements helps neuromarketing solution providers to develop improved tools and gain a better understanding of their customers. As marketers recognize the value of neuro-insights to refine their marketing strategies, there will be huge demand for neuromarketing solutions.
Increasing focus on personalization drives the neuromarketing solutions market
Neuromarketing solutions plays a key role in helping companies to deliver personalized experiences. By gaining a view into consumers' innate preferences, emotions and decision-making patterns, neuromarketers can help design hyper-personalized marketing campaigns, websites, products and services tailored for individual customers. For instance, neuro data may reveal what colors, images or messages most effectively grab a person's attention or elicit positive emotions. Companies can then personalize the visual content, messaging and recommendations shown to each customer.
Privacy concerns can hamper neuromarketing solutions market
While neuroscience research has advanced understanding of consumer behavior, the collection and application of sensitive neuro data has raised privacy issues. Some consumers feel uncomfortable with the idea of companies scrutinizing their hidden thoughts, preferences and decision-making processes. Privacy advocates argue that neuromarketing may potentially undermine individual autonomy and manipulate choices. The storage, analysis and sharing of neuro data also brings data security risks. To alleviate such concerns, neuromarketing solution providers need robust practices to ensure ethical use of neuro insights, obtain clear consent from participants and securely manage neuro data.
Lack of skilled talent hampers the neuromarketing industry
Neuromarketing is an interdisciplinary field that requires expertise in neuroscience, psychology, data science, marketing and business. However, finding professionals with training across these diverse domains is challenging. There is a shortage of talent with hands-on experience in applying neuro research methods to solve real-world marketing and business problems. Gathering neuro data also demands specialized technical skills for operating equipment like EEG machines. The lack of skilled workforce limits the growth potential of many neuromarketing firms. Companies have to invest heavily in training existing employees or collaborating with academic institutions to develop talent pools.
Emerging markets present lucrative opportunities for expansion
While North America currently dominate the neuromarketing solutions market, high-potential growth regions include Asia Pacific and South America. With rising disposable incomes, growing middle classes and rapid digitalization in countries like India, China, Brazil and Mexico, consumer demand and spending is surging in these emerging markets. Local companies are recognizing the value of neuromarketing to better understand culturally diverse customer and customize their strategies. This presents opportunities for global neuromarketing solutions players to expand into new high-growth regions. Partnerships with regional research centers and local marketing firms can help tailor solutions.
Neuromarketing firms can tap opportunities in new application areas
Within the traditional retail and CPG industries, neuromarketing is mostly employed for understanding shopping behaviors, product preferences and advertising effectiveness. However, new application areas are emerging across sectors like healthcare, fintech, entertainment and transportation. For instance, neuro insights can aid drug development by finding biomarkers of treatment response or side effects. The gaming industry leverages neuroscience to optimize engagement and monetization. As neuromarketing expands its scope, solution providers have fertile ground to develop specialized applications and domain expertise.
Link: https://www.coherentmarketinsights.com/market-insight/neuromarketing-solutions-market-3679
Key Developments:
- In April 2023, Cadwell Industries, Inc., a worldwide innovator in neurodiagnostic and neuromonitoring solutions, introduced Arc Voyager for wireless In-Home EEG, marking its debut in the U.S. market. Arc Apollo+ enhances EEG data capture by automatically backfilling data, enabling physicians and technologists to remotely access real-time EEG data and video from patients undergoing home tests. This capability supports detailed real-time analysis with a comprehensive dataset for daily reporting purposes.
- In April 2023, Nielsen, a prominent figure in audience measurement, data, and analytics worldwide, partnered with Digital Audience, a leading Dutch data collaboration and cleanroom platform. Together, they aim to enhance open web measurement across key international markets in Northwestern Europe. Through this collaboration, Digital Audience will provide demographic data to the Nielsen Identity System, thereby improving Nielsen's digital advertising measurement on the open web. This integration connects digital impressions to demographics across millions of devices, ensuring broader coverage and increased accuracy.
- In September 2022, Tobii, a worldwide leader in eye tracking and a pioneer in attention computing, teamed up with HeadVantage, a U.S. start-up collaborating with NBC Sports and Sky Sports. This partnership aims to introduce eye tracking technology to sports enthusiasts and athletes, enabling viewers to gain insights into athletes' decision-making processes and supporting their training and improvement across various sports.
- In July 2022, Tobii, the leading global provider of eye tracking and attention computing technology, was chosen by Sony Interactive Entertainment (SIE) to supply the eye-tracking solution for the upcoming PlayStation VR2 headset. This collaboration underscores Tobii's capability to deploy its advanced technology on a large scale in the consumer market. With the PlayStation VR2 poised to set new standards in immersive virtual reality (VR) entertainment, integrating Tobii's eye-tracking features will enable millions of users worldwide to experience the full potential of this groundbreaking technology.
Key Players:
Behavior and Brain Lab, Cadwell Industries Inc., Compumedics Limited, Css/Data intelligence, EB Neuro S.p.A, ISCAN, Inc., iMotions, SensoMotoric Instruments, LC Technologies, Merchant Mechanics, Neural Sense, Neurospire Inc., Nielsen Consumer Neuroscience, Noldus Information Technology, NVISO SA, Tobii Technology
