MarketsandMarkets has revised its forecast for the emotion detection and recognition market. The firm is now predicting that the market will climb to $37.1 billion by 2026, based on a 2020 valuation of $19.5 billion and a CAGR of 11.3 percent.
Those figures are significantly lower than the projections that the firm made last February. In that 2020 report, MarketsandMarkets suggested that the market would grow from $21.6 billion in 2019 to a whopping $56 billion by 2024, with a stellar CAGR of 21 percent. The diminished prospects reflect the negative impact of COVID-19.
Despite the bleaker outlook, the factors driving the emotion detection market remained largely consistent between the two reports. In both cases, MarketsandMarkets indicated that biosensors would make up the largest segment of the market, and that industrial manufacturers would have the most demand for the technology. Biosensors that can monitor someone’s emotional state have numerous applications in healthcare and defense, while industrial firms can use emotion detection to help mitigate the threat of fraud. The automotive industry will also use the technology to learn more about the emotional states of drivers and deliver more personalized customer experiences.
MarketsandMarkets expects to see an increased demand for speech-based emotion detection solutions, especially as IoT devices and AI technology become more readily available. North America will be the largest region due to its mature economy, and because the public and private sectors have both made major investments in research and development.
NEC, Cognitec, Kairos, Affectiva, and Eyeris are expected to be some of the biggest players in the emotion recognition space. They join a list that also includes perennial tech giants like Apple, Intel, Microsoft, and Google.
Allied Market Research previously released a separate report that echoed MarketsandMarkets’ optimism before the pandemic. That report predicted that the emotion detection market would reach $33.9 billion by 2023.
March 31, 2021 – by Eric Weiss