Emotion Recognition and Sentiment Analysis Software Market Overview
As per MRFR analysis, the Emotion Recognition and Sentiment Analysis Software Market Size was estimated at 17.38 (USD Billion) in 2022.
The Emotion Recognition and Sentiment Analysis Software Market Industry is expected to grow from 21.89(USD Billion) in 2023 to 174.44 (USD Billion) by 2032. The Emotion Recognition and Sentiment Analysis Software Market CAGR (growth rate) is expected to be around 25.94% during the forecast period (2024 - 2032).
Key Emotion Recognition and Sentiment Analysis Software Market Trends Highlighted
Emotion recognition and sentiment analysis software market is experiencing a surge, fueled by advancements in AI and increased demand for customer insights. Key market drivers include growing adoption of AI-powered customer service solutions, rising demand for personalized marketing campaigns, and increasing focus on understanding customer emotions and preferences. Opportunities for growth lie in the healthcare, finance, and transportation sectors.
Recent trends include the integration of emotion recognition into social media platforms, the development of real-time sentiment analysis tools, and the rise of emotion AI in e-commerce. Companies are leveraging these technologies to enhance customer engagement, improve decision-making and drive innovation.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Emotion Recognition and Sentiment Analysis Software Market Drivers
Growing Adoption of AI and ML Technologies
Currently, the Global Emotion Recognition and Sentiment Analysis Software Market Industry is witnessing a substantial proliferation of artificial intelligence and machine learning technologies. With the help of these technologies, the software can analyze a large amount of data, from text and audio to video, in order to recognize and analyze people’s emotions and sentiments. The increase in the adoption of artificial intelligence and machine learning is primarily attributed to businesses’ need to understand their customers’ emotions and sentiments better.
With the help of appropriate software, the data can be analyzed and used to improve customer service product quality or choose more effective marketing provisions. For instance, in the retail industry, emotion recognition software is utilized to analyze the customers’ feedback regarding their shopping experience and identify the improve that can be made to the store. The retailer can change the layout of the store, its product range, or its customer service and improve its sales and customer satisfaction.
Therefore, currently, one of the supplied drivers of the Global Emotion Recognition and Sentiment Analysis Software Market Industry is the increase in the adoption of artificial intelligence and machine learning technologies.
Increasing Demand for Personalized Customer Experiences
Emotion recognition and sentiment analysis software are becoming more and more popular among companies trying to adjust to the contemporary competitive business environment and offer their customers personalized experiences. For instance, in the healthcare industry, emotion recognition software helps identify patients who feel pain or anxiety, which lets healthcare professionals provide better care to these people. In the education industry, sentiment analysis software is used to analyze feedback from students and identify areas to improve the learning process.
All in all, the increased demand for personalized experiences for customers can be seen as one of the key drivers of growth of the Global Emotion Recognition And Sentiment Analysis Software Market Industry.
Rising Awareness of the Importance of Emotional Intelligence
One of the key drivers of growth in the Global Emotion Recognition and Sentiment Analysis Software Market Industry is the increasing acknowledgment of the prescient significance of emotional intelligence in both personal life and professional fields. Emotional intelligence can be defined as the ability to understand and manage one’s emotions, as well as the emotions of others. As a result, emotion recognition and sentiment analysis software can enable people to improve their emotional intelligence skills by obtaining a better understanding of their own emotions and the sentiments of other individuals.
For instance, in the context of the professional field, emotion recognition software could the employees to notice and manage their stress levels, ultimately resulting in a substantial increase in their performance and satisfaction at work. On the other hand, in the context of the academic field, sentiment analysis software could enable students to gain a better understanding of their emotions and manage them, which is likely to significantly improve their academic outcomes and social skills.
Emotion Recognition and Sentiment Analysis Software Market Segment Insights
Emotion Recognition and Sentiment Analysis Software Market Deployment Model Insights
The Global Emotion Recognition and Sentiment Analysis Software Market is segmented based on deployment model into on-premises and cloud-based. The cloud-based segment is expected to hold a larger market share during the forecast period. The increasing adoption of cloud-based solutions due to their scalability, flexibility, and cost-effectiveness is driving the growth of this segment. The on-premises segment is expected to witness significant growth during the forecast period. This growth is attributed to the increasing need for data security and privacy, as well as the growing adoption of hybrid deployment models.
In 2023, the Global Emotion Recognition and Sentiment Analysis Software Market size was valued at 21.89 billion USD. These technologies enable emotion recognition and sentiment analysis software to accurately identify and analyze human emotions and sentiments from text, speech and images. The market is also driven by the growing need for customer experience (CX) improvement. Emotion recognition and sentiment analysis software can help businesses understand customer emotions and sentiments, which can be used to improve customer satisfaction and loyalty.
The Global Emotion Recognition and Sentiment Analysis Software Market is highly competitive, with a number of vendors offering a variety of solutions. Key vendors in the market include Google, Microsoft, IBM, Amazon Web Services and Salesforce.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Emotion Recognition and Sentiment Analysis Software Market Organization Size Insights
The Global Emotion Recognition and Sentiment Analysis Software Market is segmented by Organization Size into Small and Medium-Sized Enterprises and Large Enterprises. The market is currently occupied by the Large Enterprises segment, which accounts for around 55.4% of the market share and is estimated to reach 56.1% by 2023. This segment is expected to continue its dominance due to the increasing adoption of Emotion Recognition and Sentiment Analysis software by large enterprises to enhance the customer experience, improve marketing campaigns, and understand customer behavior.
On the other hand, the SME segment is projected to register a higher CAGR from 2023 to 2032 of around 28.12%. By the end of 2032, the Global Emotion Recognition and Sentiment Analysis Software Market for SMEs is expected to be valued at USD 65.43 billion as a result of the increasing realization of the benefits of Emotion Recognition and Sentiment Analysis software by SMEs. Emotion Recognition and Sentiment Analysis software are increasingly being adopted by SMEs to detect patterns and trends in customer data to understand their emotions and preferences, improve customer service and optimize marketing strategies.
Emotion Recognition and Sentiment Analysis Software Market Industry Vertical Insights
The Global Emotion Recognition and Sentiment Analysis Software Market for the Industry Vertical segment is anticipated to grow significantly in the coming years. In 2023, the E-commerce industry held the largest market share due to the increasing adoption of emotion recognition and sentiment analysis tools to enhance customer experience and personalize marketing campaigns. The Healthcare industry is also expected to witness substantial growth, driven by the rising demand for solutions that can analyze patient emotions and improve treatment outcomes.
The Banking, Financial Services, and Insurance (BFSI) sector is projected to contribute significantly to the overall market revenue, as emotion recognition and sentiment analysis tools can help identify and mitigate financial risks, enhance customer service and detect fraudulent activities. The Government sector is expected to adopt these solutions to improve public services, understand citizen sentiments, and enhance policymaking. The Manufacturing industry is anticipated to witness increasing demand for emotion recognition and sentiment analysis software to optimize production processes, improve worker safety, and enhance quality control.
The Media and Entertainment industry is also expected to leverage these tools to analyze audience emotions, personalize content and create more engaging experiences.
Emotion Recognition and Sentiment Analysis Software Market Application Insights
The application segment plays a crucial role in shaping the Global Emotion Recognition and Sentiment Analysis Software Market. Key applications include Customer Relationship Management (CRM), Market Research, Predictive Analytics, Risk Assessment and Social Media Monitoring. Among these, CRM is expected to hold a significant market share in the coming years. The growing adoption of CRM solutions to enhance customer experience and drive sales growth is a major factor driving this segment. Market Research is another key application, with businesses increasingly leveraging sentiment analysis to gain insights into customer preferences and market trends.
Predictive Analytics is also gaining traction as organizations seek to anticipate future outcomes and make data-driven decisions. Risk Assessment and Social Media Monitoring are other important applications that help organizations identify potential risks and monitor brand reputation.
Emotion Recognition and Sentiment Analysis Software Market Analytics Type Insights
Analytics Type Segment Insights and Overview The global Emotion Recognition and Sentiment Analysis Software market is segmented by Analytics Type into Emotion Recognition and Sentiment Analysis. The Emotion Recognition segment is expected to grow at a CAGR of 25.94% during the forecast period, while the Sentiment Analysis segment is expected to grow at a CAGR of 25.94%. Emotion Recognition Analytics helps businesses understand the emotional state of their customers, which can be used to improve customer satisfaction and engagement. For instance, in 2023, the Emotion Recognition segment accounted for approximately USD 21.89 billion in revenue.
Sentiment Analysis Analytics, on the other hand, helps businesses understand the sentiment of their customers, which can be used to improve product development and marketing campaigns. The growth of the Emotion Recognition and Sentiment Analysis Software market is being driven by a number of factors, including the increasing use of social media, the growing popularity of e-commerce, and the increasing need for businesses to understand their customers.
Emotion Recognition and Sentiment Analysis Software Market Regional Insights
The Global Emotion Recognition and Sentiment Analysis Software Market is segmented into North America, Europe, APAC, South America and MEA. North America is the largest regional market, accounting for over 35% of the global revenue in 2023, driven by the presence of major technology companies and early adoption of advanced technologies. Europe is the second-largest regional market, with a significant share of over 30%, due to the high adoption of emotion recognition and sentiment analysis solutions in various industries. APAC is expected to witness the fastest growth over the forecast period, owing to the increasing adoption of these technologies in emerging economies such as China and India.South America and MEA are expected to have a steady growth rate during the forecast period.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Emotion Recognition and Sentiment Analysis Software Market Key Players And Competitive Insights
Major players in Emotion Recognition and Sentiment Analysis Software Market are implementing various strategies to expand their market share and enhance their offerings. This includes partnerships, acquisitions, and new product development. For instance, in 2023, Affectiva acquired EmoVu, a provider of emotional AI solutions for the automotive industry. This acquisition enabled Affectiva to strengthen its position in the automotive market and expand its product portfolio. Leading Emotion Recognition And Sentiment Analysis Software Market players are also focusing on developing and integrating advanced technologies into their solutions. This includes the use of machine learning, deep learning, and artificial intelligence (AI) to improve the accuracy and efficiency of emotion recognition and sentiment analysis. Emotion Recognition And Sentiment Analysis Software Market development is also driven by the increasing adoption of these solutions across various industries, including customer service, marketing, healthcare, and education.
One of the leading companies in the Emotion Recognition And Sentiment Analysis Software Market is Affectiva. The company was founded in 2009 and is headquartered in Boston, Massachusetts. Affectiva provides a range of emotion recognition and sentiment analysis solutions, including facial expression analysis, emotion detection, and sentiment analysis. The company's solutions are used by businesses in various industries, including retail, automotive, healthcare, and education. Affectiva's clients include some of the world's largest companies, such as Coca-Cola, Ford, and Unilever.
A major competitor of Affectiva is Noldus. Noldus is a Dutch company that was founded in 1989. The company provides a range of emotion recognition and sentiment analysis solutions, including facial expression analysis, body language analysis, and speech analysis. Noldus's solutions are used by businesses in various industries, including healthcare, education, and research. Noldus's clients include some of the world's leading research institutions, such as Harvard University, MIT, and Oxford University.
Key Companies in the Emotion Recognition And Sentiment Analysis Software Market Include
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Medallia
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Sprinklr
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Affectiva
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NICE
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Beyond Verbal
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Amazon
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Clarabridge
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Microsoft
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CallMiner
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SAS Institute
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Qualtrics
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Google
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Verint Systems
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IBM
Emotion Recognition And Sentiment Analysis Software Market Industry Developments
The Emotion Recognition and Sentiment Analysis Software Market is projected to reach USD 174.44 billion by 2032, exhibiting a CAGR of 25.94% from 2024 to 2032. This growth can be attributed to increasing adoption in customer service, marketing, and healthcare industries. For instance, in 2023, Google Cloud launched Document AI, a tool that uses machine learning to analyze unstructured documents, including customer feedback and reviews. This tool helps businesses understand customer sentiment and improve their products and services accordingly.
Additionally, advancements in artificial intelligence (AI) and machine learning (ML) are expected to further drive market growth. For example, in 2024, Microsoft introduced Azure OpenAI Service, which provides access to OpenAI's GPT-3 language model for building AI-powered applications. This service can be used to develop emotion recognition and sentiment analysis tools with improved accuracy and efficiency.
Emotion Recognition And Sentiment Analysis Software Market Segmentation Insights
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Emotion Recognition And Sentiment Analysis Software Market Deployment Model Outlook
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Emotion Recognition And Sentiment Analysis Software Market Organization Size Outlook
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Emotion Recognition And Sentiment Analysis Software Market Industry Vertical Outlook
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Emotion Recognition And Sentiment Analysis Software Market Application Outlook
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Emotion Recognition And Sentiment Analysis Software Market Analytics Type Outlook
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Emotion Recognition
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Sentiment Analysis
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Emotion Recognition And Sentiment Analysis Software Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
17.38(USD Billion) |
| Market Size 2023 |
21.89(USD Billion) |
| Market Size 2032 |
174.44(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
25.94% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Medallia, Sprinklr, Affectiva, NICE, Beyond Verbal, Amazon, Clarabridge, Microsoft, CallMiner, SAS Institute, Qualtrics, Google, Verint Systems, IBM |
| Segments Covered |
Deployment Model, Organization Size, Industry Vertical, Application, Analytics Type, Regional |
| Key Market Opportunities |
1 Increasing Adoption in Healthcare2 Growth in Retail and E-commerce3 Advancements in Artificial Intelligence4 Rising Demand for Customer Experience Analysis5 Government Initiatives and Funding |
| Key Market Dynamics |
Growing demand for customer insights Advancement of AI technologies Increasing focus on employee engagement Rising adoption in healthcare and education |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Emotion Recognition and Sentiment Analysis Software Market was projected to reach a valuation of 21.89 billion USD in 2023.
The Emotion Recognition and Sentiment Analysis Software Market is projected to reach a valuation of 174.44 billion USD in 2032.
The Emotion Recognition and Sentiment Analysis Software Market is expected to grow at a CAGR of 25.94% from 2024 to 2032.
North America and Europe are expected to be the key regions driving the growth of the Emotion Recognition and Sentiment Analysis Software Market.
Emotion Recognition and Sentiment Analysis Software finds applications in various industries, including customer service, market research, and healthcare.
Key competitors in the Emotion Recognition and Sentiment Analysis Software Market include IBM, Microsoft, Google and Amazon.
The growing demand for customer insights, the increasing adoption of AI and machine learning, and the rising need for personalized customer experiences are driving the growth of the Emotion Recognition and Sentiment Analysis Software Market.
Challenges faced by the Emotion Recognition and Sentiment Analysis Software Market include data privacy concerns, the need for accurate and reliable data, and the lack of skilled professionals.
Opportunities for the Emotion Recognition and Sentiment Analysis Software Market include the increasing adoption of IoT devices, the growing popularity of social media, and the rising demand for personalized advertising.
Key trends in the Emotion Recognition and Sentiment Analysis Software Market include the integration of AI and machine learning, the development of new and innovative applications, and the growing focus on customer experience.
