Emotion Detection and Recognition (EDR) Market

The global Emotion Detection and Recognition Market size was valued at $23.5 billion in 2022 and it is projected to reach $42.9 billion by the end of 2027 at a CAGR of 12.8% during the forecast period. The major factors driving the market growth include the adoption of AI, ML, and deep learning technologies across the globe, rising need for emotion recognition models by intelligent systems, and growing popularity of wearable devices. Moreover, the increasing demand for IoT technology and applications and the increasing government initiatives to leverage benefits of EDR technology will drive the demand for these products in the near future.

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COVID-19 Impact

Amidst the COVID-19 pandemic crisis, various governments and regulatory authorities mandate both public and private organizations to embrace new practices for working remotely and maintaining social distancing. Since then, the digital ways of doing business became the new Business Continuity Plan (BCP) for various organizations.

• Rise in government initiatives on technology advancements in AI for security and public safety during COVID-19.
• Increase in demand in telehealth systems to drive the demand for effective computing technology adoption
• Emerging touchless identity verification systems to increase the demand for effective computing systems

Emotion Detection and Recognition Market Dynamics

Driver: Growing popularity of wearable devices

Skin-conductance sensors are widely used by psychologists and therapists in clinics, hospitals, and other settings. Additionally, bracelets now have emotional components as a result of the Internet of Things (IoT). These emotion-based sensors are simple to use and moderately priced and have a wide range of applications. They can be used to monitor and analyze physical health, access responses to stressful events, and enhance how people deal with stress and anxiety. Emotional Artificial Intelligence (AI)-supported hardware and software may detect and analyze eye movements, facial expressions, voice changes, and more, in addition to monitoring and analyzing skin conductance, breathing, and heart rate. They do not require costly hardware, but rather the installation of some recognition software or new code for PCs or cellphones.

Restraint: High production cost

EDR system manufacture is much expensive and the subsequent return on investment is less substantial, making it difficult for organizations with limited financial resources to use the platform. The bulk of supporting technologies, such as wearable computing and gesture recognition, have high development costs, posing a barrier to the industry's growth. One of the primary challenges to organizations implementing these solutions and services is the expense of educating Al enablers to perform a certain task. Understanding and triggering human emotions is a variable that requires substantial programming, training, and debugging methods. The financial expense of implementing emotion detection technology solutions and the cultural understanding of human society is huge and complicated, leading to a slow adoption rate during the forecast period.

Opportunity: Increasing government initiatives to leverage benefits of EDR technology

Emotion detection technology is becoming increasingly popular with businesses and governments all over the world. For instance, the UK government is utilizing Al to identify and gauge residents' emotions on social media. Additionally, government agencies and EDR organizations are creating councils, defining new norms and rules, and constructing frameworks to implement Al governance solutions. Corporations have organized committees to identify risk issues for Al technology, and local governments and industrial clusters have invested in Al technology and organized committees to perform in-depth investigations on the ethical usage of Al. For instance, in March 2021, the French government funded USD 2.4 billion for Al technology development and organized an international study committee in conjunction with Canada to investigate the consequences and new potential of Al technology.

Challenge: Ethical issues in EDR technology

EDR has been operating for a while, but it has recently come under scrutiny. This is mostly due to the ethical problems that customers and technology developers are becoming increasingly aware of. Scepticism is mostly motivated by inefficiencies and biases in EDR models. This technology is immensely divisive, especially in the realm of law enforcement. Several cases of wrongful incarceration may be traced back to defective facial and emotion detection technologies. As a result, many firms have abandoned EDR, while others are unwilling to adopt it. For instance, following the George Floyd case, IBM stopped providing face and emotion recognition software to law enforcement groups for mass monitoring or racial profiling. After IBM's announcement, Amazon set a one-year embargo on the use of face and EDR technology. Similarly, Microsoft prohibited the police from using their facial recognition technology until new government regulations and policies were enacted.

Emotion Detection and Recognition Market Ecosystem

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By vertical, the healthcare and social assistance segment to grow at the highest market size during the forecast period

Emotion detection technology is becoming increasingly useful in medical emergencies and healthcare, allowing doctors to spend more time with their patients. It also helps patients become more aware of their emotional states and better manage their emotions in stressful or demanding situations. Additionally, AI can help doctors and therapists increase emotional awareness for their patients, such as in expressing empathy, and deliver diagnoses more quickly and with more accuracy. It can also be an important tool to predict how patients will approach therapy and take steps to ensure they are successful and remain in treatment. Thus, these factors drives the healthcare and social assistance segment to grow at the highest market size during the forecast period.

By Software, the biosensing solutions and apps segment to grow at the highest market size during the forecast period

This technology is gaining popularity due to its dependability, precision, and low cost. Moreover, biometric identification technologies provide financial institutions with a competitive edge as clients want better security against fraud and identity theft. Additionally, the consumer electronics business is one that is always growing. This industry has seen a fast increase in new advances in recent years. Alexa, a voice assistant speaker or smartphone with speech and voice recognition capabilities, is a well-known example of these advancements. Due to its security and cost-effectiveness, biometrics is also considered to be one of the most groundbreaking technologies in the consumer electronics market. As a result, the biosensing solutions and applications category is expected to increase at the fastest rate over the projection period.

By component, the services segment is to grow at the highest CAGR during the forecast period

The increasing adoption of AI and ML in biometrics, as well as security and surveillance, has encouraged the growth of the emotion detection and recognition market, which, in turn, is projected to drive the growth of the services segment. Additionally, with several regions adapting to new image recognition technology trends, the usage rate of image recognition solutions and services by verticals, such as security and surveillance, retail, and automobiles, is increasing. Thus, driving the services segment to grow at the highest CAGR during the forecast period.

By region, North America to account for the highest market size during the forecast period

Many significant market players are present in North America, providing cutting-edge solutions to all regional end customers. In North America, the US and Canada are anticipated to contribute significantly to the expansion of the market for emotion detection and recognition due to their robust economies. Apart from this aspect, the geographical presence, strategic investments, collaborations, and substantial Research and Development efforts are influencing the extensive deployments of emotion detection and recognition systems. Enhanced emotion detection and recognition solutions are provided by leading vendors like Affectiva, Kairos, and Eyeris as well as a number of startups in the area to meet consumer demands. Thus, these factors are anticipated to support the market for global emotion recognition and detection in North America.

Key Market Players

NEC (Japan), IBM (US), Microsoft (US), Apple (US), Google (US), Tobii (Sweden), Affectiva (US), Elliptic Labs (Norway), Intel (US), Cognitec (Germany), NVISO (Switzerland), Noldus (Netherlands), Gesturetek (Canada), iMotions (Denmark), Numenta (US), PointGrab (Israel), Ayonix (Japan), Pyreos (UK), Eyeris (US), Beyond Verbal (Israel), Kairos (US), Sentiance (Belgium), Raydiant (US), and Sony Depthsensing Solutions (Belgium) are the key players and other players in the EDR market.

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Scope of the Report

The study categorizes the EDR market by component, software, application areas, end users, verticals, and region.

By Component:

• Software
• Services

By Software:

• Facial Expression Recognition
• Biosensing Solutions and Apps
• Speech and Voice Recognition
• Gesture and Posture Recognition

By Application Areas:

• Medical Emergency
• Marketing and Advertising
• Law Enforcement, Surveillance, and Monitoring
• Entertainment and Consumer Electronics
• Other Application areas (robotics and eLearning)

By End Users:

• Enterprises
• Defense and Security Agency
• Commercial
• Industrial
• Other End User (people using wearable devices, mobile phones, and independent institutions)

By Verticals:

• Academia and Research
• Media and Entertainment
• IT and ITES
• Healthcare and Social Assistance
• Telecommunications
• Retail and eCommerce
• Automotive
• BFSI
• Other Verticals (travel, security, energy and power, and consumer electronics)

By Region:

• North America
• Europe
• Middle East and Africa
• Asia Pacific
• Latin America

Recent Developments

• In February 2022, NEC has strengthened its strategic collaboration with SAP to accelerate NEC’s corporate transformation (CX) and to co-create business opportunities. It will utilize the latest SAP solutions to accelerate CX, based on the results of the reforms it has made using SAP solutions. Through this, NEC aims to achieve data-driven management, respond flexibly to changes in the business environment, and maximize the capabilities of its employees.
• In February 2022, IBM acquired Neudesic, a leading US cloud services consultancy specializing primarily in the Microsoft Azure platform, along with bringing skills in multi-cloud. This acquisition will significantly expand IBM's portfolio of hybrid multi-cloud services and further advance the company's hybrid cloud and AI strategy.
• In November 2021, Kyndryl and Microsoft announced a landmark global strategic partnership that will combine their market-leading capabilities in service of enterprise customers. The deal with Microsoft is Kyndryl’s first since recently becoming an independent public company and provides incremental multi-billion-dollar revenue opportunities for the two companies.
• In November 2021, Tobii confirmed that Microsoft implemented support for Tobii Eye Tracker 5 and Tobii Horizon in Flight Simulator. Tobii Eye Tracker 5, engineered for PC gamers, translates the player's eye and head movements into data to enable new levels of game control, game analytics, and streaming. For games like Flight Simulator, where situational awareness makes all the difference, the integration allows users to immerse themselves in the plane's cockpit and take command as a pilot.
• In August 2021, Apple acquired Primephonic, the renowned classical music streaming service that offers an outstanding listening experience with search and browse functionality optimized for classical, premium-quality audio, handpicked expert recommendations, and extensive contextual details on repertoire and recordings.

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