Emotional AI Market Size, Share, Opportunities, And Trends By Deployment (Cloud, On-premise), By Applications (Automotive, Consumer Electronics, Customer Services, Gaming, Healthcare, Others), And By Geography - Forecasts From 2023 To 2028
- Published : Apr 2023
- Report Code : KSI061614649
- Pages : 138
The emotional AI market is projected to grow at a CAGR of 12.13% to reach US$61.054 billion in 2028 from US$27.397 billion in 2021.
Emotional AI refers to the use of software applications and human intelligence to analyze and interpret the emotions of the user. It decodes facial movements, analyzes voice modulation, and detects body movements to offer insight into the emotions of the user. The technological advancements in artificial intelligence technology software and features have resulted in the adoption of this feature in the AI market. Emotional AI is very helpful for companies to understand their users and their preferences. The feature of receiving emotional feedback can help companies to work on improving their products to satisfy the requirements of their users. The rising demand for emotional AI across different sectors shall result in the expansion of the emotional AI market.
- Increasing investments in Chatbots
Major companies across the planet are investing in developing successful AI-assisted conversational chatbots to generate higher revenue and profit margin. For instance, Apple has been adding and enhancing the features of its voice assistance chatbot Siri to offer a better experience to its customers. The growing interest in consumers for innovative chatbots is encouraging companies to invest in and research new chatbot products. The adoption of emotional AI into AI-assisted chatbots can improve the overall functioning and performance of the chatbots by gaining better knowledge about the emotions experienced by their users. Therefore, the utilization of emotional AI in designing chatbots shall be a key factor in enforcing developments in the emotional AI market.
- Adoption of emotional AIs in schools and other educational institutions
The adoption of emotional artificial intelligence in the activities of schools and classrooms provides an opportunity of understanding the class environment and the emotional well-being of the children in the classroom. For instance, Find Solutions AI has collaborated with schools in Hong Kong to interpret the negative and positive changes in the emotions of school children by analyzing their facial muscle movements. This can help the teachers and school check whether the students are able to concentrate in class and understand the content of the teachings. Therefore, considering the key factors driving demand for emotional AI software, it can be anticipated that the emotional AI market will experience market expansion over the forecast period.
The complexity and individual variations of some human emotions could restrain the advancement of the emotional AI market.
There is a high risk of biased and inaccurate emotional reading by emotional AI software. Emotional AI software analyses the body language, facial expressions, and words of the user to get an understanding of the emotional state of the user. Apart from this, emotional artificial intelligence applications can only mimic emotions and do not possess the capability of producing emotions on their own. The possession of emotions by humans helps them develop a better understanding of the emotions felt by other humans. As a result of this, the emotional AI might sometimes detect incorrect emotions and are generally not able to interact with its customers using its own emotions. With further research and advancements in AI technology, it might be possible to overcome these limitations to a large extent, but until such developments, the emotional AI market might face resistance and skepticism from a fraction of its customer base.
- In January 2023, Cogito, a conversational and emotional AI targeting the tutoring field introduced new features to improve its emotional AI functions by including a transcription feature in its emotional AI software.
- In July 2022, Lightbulb Ai, an emotional AI startup in India secured an additional investment of US$1.5 million to expand its datasets and strengthen its machine learning algorithms. This startup has four clients including a Columbian company and is planning on using the investment to expand its operations to cater to the international market.
- In June 2021, Smart Eye, a Swedish AI technology company, purchased Affectiva, an emotional AI company that has programs to detect anger from voice notes in less than 1.3 seconds.
- In December 2020, Lia 27 Inc., a technology company specializing in emotional AI, launched a virtual being Lia 27, capable of interpreting human emotions and forming emotional connections with its users.
North America holds significant potential in the emotional AI market and is expected to grow in the forecast period as leading technology companies in North America are actively investing to innovate new developments in artificial intelligence software in all fields including emotional AI. Companies like Google, IBM, Microsoft, and Apple are constantly striving to improve their product portfolio and offer better services to their customers. To enhance the customer experience, they have been expanding artificial intelligence software into conversational chatbots and emotion detection fields. These developments are being applied in customer service, conversational chatbots, and gaming sectors. Therefore, considering the high amount of investment into emotional AI and the demand for AI across a few sectors in North America, it can be anticipated that the North American AI market will demonstrate significant expansion over the forecast period.
Emotional AI Market Scope:
|Market Size Value in 2021||US$27.397 billion|
|Market Size Value in 2028||US$61.054 billion|
|Growth Rate||CAGR of 12.13% from 2021 to 2028|
|Forecast Period||2023 – 2028|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Deployment, Applications, and Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Entropik Tech, Google Inc., IBM Corporation, Amazon Inc., Elokence, Hopelab, Emotibot (Zhujian Intelligent Technology Co., Ltd.), Affective, Nviso SA, Mad Street Den Inc.
|Customization Scope||Free report customization with purchase|
- By Deployment
- By Applications
- Consumer Electronics
- Customer Services
- By Geography
- North America
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.7. Base, and Forecast Years Timeline
2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Research Design
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Market Opportunities
4.4. Porter’s Five Forces Analysis
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Power of Buyers
4.4.3. Threat of New Entrants
4.4.4. Threat of Substitutes
4.4.5. Competitive Rivalry in the Industry
4.5. Industry Value Chain Analysis
5. EMOTIONAL AI MARKET BY DEPLOYMENT
6. EMOTIONAL AI MARKET BY APPLICATIONS
6.3. Consumer Electronics
6.4. Customer Services
7. EMOTIONAL AI MARKET BY GEOGRAPHY
7.2. North America
7.3. South America
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.6. Asia Pacific
7.6.4. South Korea
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.1. Entropik Tech
9.2. Google Inc.
9.3. IBM Corporation
9.4. Amazon Inc.
9.7. Emotibot (Zhujian Intelligent Technology Co., Ltd.)
9.9. Nviso SA
9.10. Mad Street Den Inc.
Emotibot (Zhujian Intelligent Technology Co., Ltd.)
Mad Street Den Inc.
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