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Emotional AI Market Landscape 2025: Forecast Data and Growth Strategy Insights
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.What Is the Expected CAGR for the Emotional AI Market Through 2025?
In recent times, the Emotional AI market size has seen strong growth. It is projected to expand from $30.02 billion in 2024 to $32.91 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 9.6%. Factors contributing to the growth in the historic period include escalating competitive pressure, market volatility, improved efficiency and productivity, customer-oriented focus and the adoption of DevOps practices.
What's the Projected Size of the Global Emotional AI Market by 2029?
The sentimental artificial intelligence market size predicts a robust increase in the forthcoming years, reaching an estimated worth of $47.54 billion by 2029 with an annual compound growth rate (CAGR) of 9.6%. The projected growth in the aforementioned period is due to several factors like an emphasis on employee experience, adjustment to regulatory changes and compliance, effective incorporation with business strategy, quick market adaptations, and resilience planning. The forecast period also anticipates major trends such as addressing cybersecurity issues, consistent technology advancement, globalization with remote team collaboration, implementation of digital transformation strategies, and the utility of agile tools and technologies.
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Top Growth Drivers in the Emotional AI Industry: What's Accelerating the Market?
The emotional AI market is projected to expand due to an escalating requirement for superior customer experiences. The term customer experience encapsulates the entire spectrum of interactions and impressions customers form with a company or brand throughout the entire process, from initial awareness, consideration, actual purchase, usage, to after-sales support. The recognition by businesses that standout customer experiences are key to differentiating their brand, fostering customer loyalty, and meeting the expectations of consumers for customized, seamless interactions has spurred a higher demand. Emotional AI is utilized in customer experience to analyze and respond to customer emotions, enhancing interactions by scrutinizing responses, products, and services to craft more individualized, empathetic, and emotionally meaningful experiences. This ultimately leads to heightened customer loyalty and satisfaction. To illustrate, a survey conducted by Verint, a US-based customer engagement solutions firm, in June 2022, encompassing over 2000 US consumers aged from 18 to 75, found that 39% agreed they would discourage friends and family from buying from a firm if they had a poor experience with that brand. Furthermore, 64% revealed that they had already ceased doing business with such companies and 79% of participants under 45 agreed that it was vital to have a positive experience on digital platforms. Therefore, the mounting demand for superior customer experiences is fueling the emotional AI market's progression.
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What Trends Will Shape the Emotional AI Market Through 2029 and Beyond?
Leading players in the emotional AI sector are directing their efforts to create solutions aimed at personalizing client experiences by understanding their emotional needs. This includes the use of AI tools and software to delve into users' emotional needs. Such technologies examine user behaviours, sentiments, and interactions to craft experiences and responses that align with their emotional condition and preferences. For example, AB Tasty, a software development enterprise based in France, in September 2023 rolled out EmotionsAI, an AI tool specifically designed to perceive users' emotional demands. This tool assists brands in personalizing customer experiences by grasping their emotional requirements, sorting visitors into ten distinct categories based on how they interact with a company's website. Furthermore, these characteristics jointly enable brands to comprehend and fulfil their visitors' emotional needs, enhancing customer experiences and potentially driving higher conversion rates and revenue.
What Are the Main Segments in the Emotional AI Market?
The emotional ai market covered in this report is segmented -
1) By Component: Software, Service
2) By Tools: Facial Recognition, Speech And Voice Recognition, Gesture And Posture Recognition
3) By Enterprise Size: Large Enterprises, Small And Medium-Sized Enterprises
4) By Application: Banking Financial Services And Insurance (BFSI), Healthcare, IT And Telecommunication, Retail And E-commerce, Government, Media And Entertainment, Automotive, Other Applications
Subsegments:
1) By Software: Emotion Recognition Software, Sentiment Analysis Tools, Facial Recognition Software, Speech And Voice Analysis Software
2) By Service: Consulting Services, Integration Services, Support And Maintenance Services, Training And Development Services
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Which Top Companies are Driving Growth in the Emotional AI Market?
Major companies operating in the emotional AI market report are Apple Inc., Alphabet Inc., Microsoft Corporation, Sony Group Corporation, Panasonic Corporation, Intel Corporation, International Business Machines Corporation (IBM), Latent View Analytics Ltd., Nvidia Corporation, NEC Corporation, Baidu Inc., UiPath Inc., Cogito Corporation, Tobii Technology AB, Gorilla Technology Group, Noldus Information Technology, Entropic Technologies, Affectiva Inc., Realeyes OÜ, Lexalytics Inc., Beyond Verbal Communication Ltd., iMotions A/S, Sentiance NV, NuraLogix Corporation, NVISO Inc., Kairos AR Inc., Sensum, MetaSoul Inc
Which Regions Will Dominate the Emotional AI Market Through 2029?
North America was the largest region in the emotional AI market in 2024. The regions covered in the emotional ai market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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