Affective Computing Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, India, UK, Germany - Size and Forecast 2024-2028

Affective Computing Market 2024-2028

The Affective Computing Market size is estimated to grow by USD 236.41 billion at a CAGR of 35.75% between 2023 and 2028. The growing demand for data-based customer behavior management, driven by the need for businesses to understand and respond to customer preferences and trends, is driving market growth by increasing the adoption of computing solutions that enable data analysis and customer insights. The high demand for effective computing from the healthcare industry, driven by the need for advanced medical imaging, data analysis, and patient management solutions, is also boosting market expansion by driving the development and adoption of computing technologies tailored to healthcare needs. Additionally, the increasing demand for effective computing from the media and entertainment industry, driven by the need for high-performance rendering, video editing, and content distribution solutions, is driving market expansion by creating a demand for computing technologies that enhance media production and delivery.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by component (software and hardware), technology (touch-based and touch-less), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.

By Component

The software segment is estimated to witness a significant boost during the forecast period. Several developers can utilize affective computing software to create intelligent applications, whether they want to improve existing applications with machine learning or speech recognition or develop totally new applications using an AI platform. In addition, these developer tools, which support users in building machines and deep learning features for software, are frequently algorithms, libraries, frameworks, or developer kits.

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The software segment was the largest segment and was valued at USD 13.08 billion in 2018.  Moreover, affective computing software is expected to enhance employee experience and provide workers with efficient, automated solutions to do manual jobs. In addition, the companies will be able to function more efficiently and perform better decision-making due to the presence of effective computing software. Furthermore, software engineers may create solutions that will help employees in many sectors, including corporates, by using AI software, which gives them the means to perform necessary actions. Hence, such factors are fuelling the growth of the segment which in turn will drive the market growth during the forecast period.

By Technology

The rising consumer demand for emotion recognition technologies will fuel the touch-based segment which in turn will increase the market growth. This segment is mainly used in touch-based affective computing, which enables computers to recognize, comprehend, and react to emotional states and feelings in people. In addition, it comprises the incorporation of hardware and software elements that make it easier to sense, decode, and react to emotive cues based on human touch. Moreover, several factors such as the rising consumer demand for emotion recognition technologies as well as rising usage of touch-based devices such as wearables, tablets, and smartphones will fuel the growth of this segment which in turn drives the market growth during the forecast period.

Regional Overview

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North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Some of the main factors contributing to the growth of the market in North America include the presence of some of the most active research organizations in the region, working toward the development of innovative, effective computing devices capable of serving several end-user applications, especially in the healthcare, market research, and automotive sectors. In addition, it was one of the first regions to adopt artificial intelligence on an extensive scale globally. Furthermore, with the improved infrastructure for artificial intelligence, the region consists of mature infrastructure required for the deployment of affective computing. Hence, such factors are driving the market growth in North America during the forecast period.

Market Dynamics and Customer Landscape

The market is rapidly advancing with technology integrating into various electronic devices like headphones. These devices, equipped with infrared, radio frequency, and Bluetooth connectivity, offer noise cancellation and AI-assisted noise separation features. Consumers prioritize functionality and ingress protection, driving demand for eco-friendly and sustainable headphone options. However, challenges persist, including connectivity and compatibility issues and battery life concerns. Collaboration with smartphone manufacturers and other tech industries aims to address these issues and enhance user experience and consumer spending on these devices. This market is driven by consumer spending and the need for customizable options in electronic devices.

Key Market Driver

One of the key factors driving the market growth is the increasing demand for affective computing from the media and entertainment industry. In modern audio technology, headphones with varying functionalities such as Ingress Protection, Infrared, and Radio Frequency capabilities are designed for diverse device applications, ensuring seamless connectivity via the ubiquitous headphone port. Further, by comprehensively understanding audience emotions, including mood, attitude, and emotional personality, filmmakers can gauge how scenes and characters are perceived, thereby enhancing audience experiences. This technology's ability to analyze the complete range of human emotions aids in discerning audience preferences and dislikes, driving market growth in the forecast period.

In the realm of audio technology, various headphone types with different functionalities such as Ingress Protection, Infrared, Radio Frequency, and Bluetooth connectivity are produced in modern production facilities to cater to diverse user preferences. These headphones serve as indispensable devices for users engaging with music and various forms of media, with the headphone port being a ubiquitous feature across a wide range of device applications.

Significant Market Trends

A key factor shaping the market growth is the increasing use in the automotive sector. There are significant investments in affective computing from the automotive sector. In addition, with the growing competition, players in the automotive industry want to increasingly connect with people on an emotional level to make them potential customers and devise customer retention and acquisition strategies.

Moreover, the manufacturers and original equipment manufacturers in the automotive industry are increasingly focusing on analyzing the emotions of car drivers to enhance car safety measures. In addition, such affective computing features will be built in high-end cars in the near future. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.

Major Market Challenge 

Privacy and security concerns are one of the key challenges hindering the affective computing market growth. The proper execution of emotion recognition or capturing activity needs prior permission from an individual to record their facial expressions or emotions while they are viewing particular content. However, with the growing number of cyber crimes, many individuals regard such activities as suspicious even if permission is solicited.

Moreover, companies that depend on emotion recognition software, such as market research organizations and advertising agencies, must comply with the new regulation. In addition, risks related to security and leakage of sensitive information are some of the other major problems that organizations face while using emotion recognition solutions. Hence, such factors are negatively impact the market. Therefore, it is expected to hinder the market growth during the forecast period.

Market Customer Landscape

The market research and growth report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Affective Computing Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Alphabet Inc: The company offers affective computing solutions through its subsidiary Google is all about creating technology that can observe, understand, think, and act with simulated human emotion.
• Amazon.com Inc: The company offers affective computing solutions through its subsidiary AWS such as Amazon Rekognition face recognition APIs, that can detect, analyze, and compare faces for a wide variety of use cases, including user verification, cataloging, people counting, and public safety.
• Apple Inc: The company offers affective computing solutions such as AI-powered health app, named Quartz, in the new iPhones and Apple Watches that can monitor emotions, BP, and more.
  

The market growth analysis report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Affectiva Inc.
• audEERING GmbH
• Cipia Vision Ltd.
• Cognitec Systems GmbH
• Elliptic Enterprises Ltd.
• Eyeris Technologies Inc.
• GestureTek technologies
• Intel Corp.
• International Business Machines Corp.
• Kairos AR Inc.
• Microsoft Corp.
• Nemesysco Ltd.
• NVISO SA
• Qualcomm Inc.
• Raydiant Inc.
• Realeyes OU
• Sony Group Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The affective computing market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028.

• Component Outlook
  • Software
  • Hardware
• Technology Outlook
  • Touch-based
  • Touch-less
• Geography Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing rapid growth, driven by advancements in AI and ML technologies. It encompasses emotion AI solutions, facial recognition technology, and gesture-enabled IoT devices. These technologies enable emotional categorization and emotion detection, enhancing human-computer interactions. With applications in ADAS, smart wearable devices, and telehealth, affective computing ensures safety and security while enabling personalization and cognitive engagement. As wearable technology and virtual assistants become ubiquitous, the market expands to include speech emotion detection and voice-driven workstations, reflecting a shift towards emotionally intelligent and responsive systems.

Further, the market is rapidly expanding with the integration of artificial intelligence (AI) and machine learning (ML) technologies. It encompasses emotion AI solutions and emotional artificial intelligence to detect and interpret emotional signals from various sources, including facial gestures and physical gestures. These advancements enable applications such as biometric attendance systems and telehealth-related affective computing solutions. With the rise of autonomous cars and robotics, the demand for affective computing is growing, driving innovation in security applications, gesture recognition, and voice activity detection. This market growth is fueled by global technical breakthroughs and high-speed internet networks, facilitating technological compatibility and touchless interactions.

Furthermore, the market is witnessing significant growth, driven by advancements in artificial intelligence (AI) and emotion AI technologies. With the integration of advanced driver-assistance systems (ADAS) and in-car infotainment systems, affective computing solutions enhance safety and driver experience. These systems utilize cameras, sensors, and high-resolution cameras for face recognition technology and children detection, addressing concerns such as fraudulent activities and safety. Moreover, they play a crucial role in logistics, navigation systems, and parking aid software, providing real-time insights and enhanced functionalities. The market is also witnessing growth in applications like surgical robots and wearable computing, offering innovative solutions for healthcare and personalization.

Market Scope
Report Coverage	Details
Page number	166
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 35.75%
Market Growth 2024-2028	USD 236.41 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	35.25
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 36%
Key countries	US, China, India, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Affectiva Inc., Alphabet Inc., Amazon.com Inc., Apple Inc., audEERING GmbH, Cipia Vision Ltd., Cognitec Systems GmbH, Elliptic Enterprises Ltd., Eyeris Technologies Inc., GestureTek technologies, Intel Corp., International Business Machines Corp., Kairos AR Inc., Microsoft Corp., Nemesysco Ltd., NVISO SA, Qualcomm Inc., Raydiant Inc., Realeyes OU, and Sony Group Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Affective Computing Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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