Affective Computing Market - By Component (Hardware, Software, Services), By Deployment Model (On-premises, Cloud), Technology (Touch-based, Touchless), By End-user & Forecast, 2024 – 2032

Affective Computing Market Size

The global affective computing market was valued at USD 62 billion in 2023 and is anticipated to grow at a CAGR of over 25% between 2024 and 2032. The increasing demand for personalized experiences is driving the market growth.
 

As consumers and businesses seek more tailored interactions, affective computing technologies are becoming essential in delivering personalized services. These systems use emotional data to customize user experiences across various platforms. To gain market share major players are focusing on launching new solutions in the market. For instance, in June 2024, OMNIVISION Technologies launched OV01D1R intelligent CMOS image sensor. This sensor addresses human presence detection (HPD), infrared (IR) facial authentication and always-on (AON) technology with a single sensing camera.
 

The rising interest in emotional AI is anticipated to drive the market growth. Emotional AI, which focuses on creating systems capable of understanding and responding to human emotions, is gaining traction due to its potential to enhance user experiences. Businesses are leveraging emotional AI to improve customer service by developing chatbots and virtual assistants that can understand and react to emotional cues, leading to more personalized and effective interactions. To enhance business capacities market players are focusing on strategies initiatives.
 

For instance, in September 2024, Hume AI introduced EVI 2, a new foundational voice-to-voice AI model that enhances human-like interactions. EVI 2 is designed to adapt to user preferences through specialized emotional intelligence training. It aims to provide engaging and personalized interactions by maintaining a consistent voice identity across sessions. The increasing interest in emotional AI is boosting the affective computing market growth.
 

The collection and analysis of emotional data involves sensitive personal information, raising concerns related user consent and data protection. Regulations related to security impose strict requirements on how personal data, including emotional insights, must be handled. Companies must ensure that they obtain explicit consent from users before collecting emotional data and implement robust security measures to protect this information from unauthorized access and misuse. Failure to address privacy concerns can lead to legal repercussions, loss of user trust, and damage to a company's reputation. Addressing these concerns requires careful planning, transparent data practices, and adherence to legal standards, which can be complex and costly.
 

Affective Computing Market Trends

As mental health awareness grows, there is an increasing demand for technologies that can monitor and support emotional well-being. Affective computing systems play a crucial role by providing real-time emotional insights through advanced sensors and algorithms. These technologies enable the early detection of mental health issues by analyzing emotional data, which aids in personalized therapy and continuous patient monitoring. Emotion-recognition software is instrumental in tracking fluctuations in a patient’s emotional state, thereby facilitating timely interventions and customized treatment plans. Additionally, affective computing enhances telehealth services by enabling remote emotional assessments, which is particularly valuable in addressing mental health needs in underserved or remote areas. The integration of affective computing into healthcare improves patient outcomes and drives market expansion.
 

Affective Computing Market Analysis

Based on components, the market is divided into hardware, software, and services. The software segment held over 45% of the market share in 2023. The software segment of the affective computing industry is rapidly evolving, driven by advancements in artificial intelligence and machine learning. Affective computing, which focuses on developing systems capable of recognizing, interpreting, and responding to human emotions, relies heavily on sophisticated software algorithms. These algorithms analyze various inputs such as facial expressions, voice tone, and physiological signals to gauge emotional states. The growth of software is also fueled by increasing demand for more engaging and empathetic technology.
 

Based on the deployment model the affective computing market is divided into on-premises and cloud. The aftermarket segment is expected to hold around USD 300 billion market revenue by 2032. By leveraging cloud infrastructure, affective computing solutions can access vast computational resources and large datasets. This allows for real-time processing and analysis of emotional data enhancing the accuracy and responsiveness of emotion-recognition systems. Cloud deployment also facilitates scalability, enabling businesses to adjust resources based on demand and integrate updates seamlessly. Additionally, it supports accessibility from various devices and locations, promoting wider adoption and use of affective computing technologies.
 

North America dominates the global affective computing market with around 30% share in 2023. The North American market is driven by significant investments in artificial intelligence and machine learning technologies. The region's advanced technological infrastructure and high adoption rates of digital and smart technologies support the rapid deployment of affective computing solutions. Major companies and startups in North America are developing innovative platforms for emotion analysis, sentiment tracking, and adaptive user interfaces. This growth is further fueled by increasing demand for personalized user experiences and mental health applications.
 

European market is witnessing significant growth, fueled by rising focus on enhancing user experiences across various sectors. European countries, including Germany, the UK, and France, are rapidly integrating affective computing technologies into healthcare, automotive, and retail applications. European companies are leveraging affective computing to improve mental health solutions, customer service, and personalized experiences. Additionally, the emphasis on smart cities and digital transformation across Europe supports the adoption of affective computing.
 

Asia-Pacific market is experiencing robust growth, driven by rapid technological advancements and increasing consumer demand for intelligent, emotionally responsive systems. Innovations in emotion recognition and sentiment analysis are being applied to enhance user experiences, improve mental health support, and drive customer engagement. Additionally, as companies and governments in the Asia-Pacific region continue to prioritize technological advancements, the market for affective computing is expected to expand significantly, offering new opportunities for growth and development across diverse industries.
 

Affective Computing Market Share

Microsoft and IBM dominate the market with over 8% of the market share. Microsoft focuses on continuous innovation in emotional AI technology. By developing advanced emotion recognition algorithms and integrating them into various platforms, it enhances user engagement and experience. Their technology is particularly suited for several applications.
 

IBM utilizes its Watson platform to provide comprehensive AI solutions, including emotion and sentiment analysis. By integrating affective computing capabilities into Watson’s suite of services, IBM enhances its offerings for customer service, healthcare, and other enterprise applications. This integration allows IBM to cater to a wide range of industries, improving user interactions and data insights.
 

Affective Computing Market Companies

Major players operating in the industry are:

• Affectiva
• Amazon
• Google
• IBM
• Intel
• Microsoft
• Qualcomm
• Samsung
• Sensory Inc.
• Xilinx Inc.
   

Affective Computing Industry News

• In August 2024, Lenso.ai launched facial recognition tool with EyeMatch.ai. The new tool, developed in partnership with EyeMatch.ai, offers accuracy and speed, redefining user experience in facial recognition.
   
• In March 2024, Hume AI announced a USD 50 million Series B funding round led by EQT Ventures. The company also launched its new product, the Empathic Voice Interface (EVI), a conversational AI with emotional intelligence. EVI is designed to learn from users' reactions to self-improve by optimizing for happiness and satisfaction.
   

The affective computing market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Component

• Hardware
• Software
  • Analytics software
  • Enterprise software
  • Facial recognition
  • Gesture recognition
  • Speech recognition
• Services

Market, By Distribution Channel

• On-premises
• Cloud

Market, By Technology

• Touch-based
• Touchless

Market, By End-user

• Healthcare
• Automotive
• Consumer electronics
• Retail & e-commerce
• Education
• Gaming and entertainment
• Marketing and advertising
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of LATAM 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA