Vehicle Emotional Intelligence Market Size - By Vehicle (Passenger, Commercial, Autonomous), By Component (Hardware, Software), By Application, By Integration, By Technology & Forecast, 2024 - 2032

Vehicle Emotional Intelligence Market Size

Vehicle Emotional Intelligence Market size was valued at USD 1 billion in 2023 and is estimated to register a CAGR of over 16.5% between 2024 and 2032. Rising demands for passenger safety, advanced infotainment systems, and the adoption of connected vehicles, supported by the Internet of Things (IoT), are driving market growth. For instance, in January 2024, Smart Eye and Cerence showcased their collaboration on an emotionally intelligent in-car assistant at CES 2024. This partnership aims to enhance driver-vehicle interaction by incorporating emotional intelligence into automotive technology.
 

Additionally, this integration addresses new regulations requiring drowsiness detection systems in vehicles, aligning with global safety standards. Modern vehicles are equipped with various sensors and connectivity features that collect extensive data from multiple sources. This data enables vehicle emotional intelligence systems to accurately assess the emotional states of drivers and passengers. For instance, integrating in-car cameras and microphones allows real-time analysis of facial expressions and vocal tones, improving emotional recognition capabilities.
 

Furthermore, the increased focus on driver and passenger safety is significantly boosting the demand for vehicle emotional intelligence systems. These systems are crucial in enhancing safety by monitoring the driver's mental state, which can help prevent accidents. For instance, they can identify signs of fatigue, stress, or distraction and trigger timely alerts or corrective actions, such as recommending a break or adjusting driving parameters to ensure safety. Key applications of this technology include fatigue detection, which reduces the risk of accidents by monitoring emotional and physical indicators that may signal tiredness or decreased attention.
 

Privacy and data security concerns are significantly hindering the growth of the vehicle emotional intelligence market. These systems collect and analyze sensitive data, such as drivers' emotional states, facial expressions, and physiological symptoms. Managing this personal and potentially intrusive information raises serious privacy issues, leading to concerns about data storage, usage, and sharing. As consumers become more aware of privacy risks, they become cautious of technologies that rely heavily on data collection, resulting in reluctance to adopt this technology.
 

Vehicle Emotional Intelligence Market Trends

The vehicle emotional intelligence industry is undergoing significant changes due to innovations and the adoption of new features by key players in the automotive and technology sectors. Emerging trends, driven by technological advancements and changing consumer expectations, are also influencing the market growth. One key development is the integration of emotional intelligence with Advanced Driver-Assistance Systems (ADAS) to improve vehicle safety and driver support.
 

By incorporating emotional data into ADAS features like lane-keeping assist and adaptive cruise control, vehicles can offer more context-aware assistance. For instance, if the system detects driver fatigue or stress, it can adjust driving aids or provide alerts to prevent accidents. In October 2022, AVATR Technology positioned itself as a major player in the smart electric vehicle (SEV) market by focusing on creating an emotionally intelligent companion for users. AVATR's approach integrates emotional intelligence into its vehicles, allowing them to respond to users' feelings and needs, enhancing the overall driving experience.
 

Additionally, as consumers demand more personalized and connected experiences in their vehicles, manufacturers are investing in vehicle emotional intelligence technologies. These technologies are being developed to change as per the emotional moods of vehicle occupants. This includes adjusting climate control, audio settings, and seat positions to enhance comfort and satisfaction, reflecting a broader trend towards personalization in the automotive industry.
 

Vehicle Emotional Intelligence Market Analysis

Based on component, the market is divided into hardware and software. The software segment held over 60% of the market share in 2023 and is expected to cross USD 2.5 billion by 2032. The software segment plays a crucial role in collecting, processing, and analyzing large amounts of data from various sensors. It identifies emotional details, generates useful insights, and responds quickly when needed. Advanced data analytics and machine learning models help the software understand and react to emotional states effectively.
 

Additionally, the software is vital for integrating vehicle emotional intelligence technologies with existing vehicle systems and platforms. This includes seamless integration with infotainment systems, driver assistance technologies, and connectivity features. The software enables communication and coordination between different vehicle components, ensuring that emotional data enhances the driving experience and safety.
 

Based on application, the vehicle emotional intelligence market is categorized into driver monitoring & safety, passenger experience enhancement, safety and security, autonomous driving support, health and wellness monitoring. In 2023, the driver monitoring, and safety systems segment held a share of around 36%. Driver monitoring and safety systems are essential for improving road safety and they help by continuously assessing the driver's behavior and emotional state. These systems can detect signs of fatigue, distraction, and stress, which are major causes of accidents.
 

By addressing these issues in real-time, they help reduce risks and prevent accidents, which is a primary concern for both consumers and manufacturers. Additionally, with increasing regulatory focus on driver safety, many regions are implementing or considering regulations that require advanced driver monitoring systems. For instance, some areas mandate features like drowsiness detection and driver attention monitoring in new vehicles. Compliance with these regulations drives the adoption of driver monitoring and safety systems, helping the segment maintain a significant market share.
 

North America vehicle emotional intelligence market accounted for 35% of the revenue share in 2023. In North America, consumers are increasingly seeking vehicles with advanced features that enhance safety, comfort, and convenience. Vehicle emotional intelligence (VEI) technologies meet these needs by offering personalized in-car settings, real-time emotion-responsive adjustments, and improved safety measures. For instance, mood-responsive entertainment and adaptive climate controls provide a sophisticated and customized driving experience. As consumers become more aware of VEI benefits, their willingness to adopt these technologies grows, encouraging automotive manufacturers to include them in their vehicles.
 

For instance, in January 2021, Mercedes-Benz introduced the MBUX Hyperscreen, powered by NVIDIA technology. This innovative system represents a major advancement in automotive infotainment, offering an intuitive and personalized interface for both drivers and passengers. The MBUX Hyperscreen uses deep neural networks to understand and anticipate user needs, enhancing the driving experience through emotionally aware interactions.
 

Additionally, North America, particularly the United States, has a well-established and innovative automotive industry. Major automotive manufacturers and technology companies in this region drive advancements in vehicle technologies, including VEI. The region's strong R&D infrastructure supports the development and integration of such cutting-edge technological systems.
 

Europe enforces some of the world's strictest vehicle safety regulations. The European Union (EU) has rolled out multiple regulations to bolster road safety, emphasizing advanced driver assistance systems (ADAS) and monitoring technologies. For instance, the EU's General Safety Regulation mandates specific safety features in new vehicles. This regulatory emphasis propels the adoption of VEI technologies, which enhance driver safety by monitoring emotional states like fatigue and distraction.
 

Asia-Pacific stands at the forefront of global technological innovations, with automotive technology advancements spearheaded by nations such as Japan, South Korea, and China. The region's commitment to tech development accelerates the integration of VEI systems, driven by manufacturers and tech firms pushing automotive boundaries. Furthermore, as purchasing power rises and demand for sophisticated automotive features grows, thus the market is poised for expansion in this region.
 

Vehicle Emotional Intelligence Market Share

Bosch and Kia hold a market share of around 15% in the vehicle emotional intelligence industry in 2023. Bosch and Kia are advancing in the vehicle emotional intelligence industry by leveraging their strengths. Bosch focuses on developing advanced sensors and hardware to monitor driver behavior and emotions, investing in technologies like facial recognition cameras and voice analysis microphones. Kia integrates emotional intelligence features into their vehicles to enhance the driving experience, adapting settings for comfort and safety. They collaborate with tech companies and invest in proprietary innovations to refine their systems.
 

The competitive landscape is dynamic, with established technology companies, automotive manufacturers, specialized tech providers, and startups all contributing to the growth and innovation in the market. Many market players are forming strategic partnerships to combine expertise in AI, automotive systems, and user experience.
 

Vehicle Emotional Intelligence Market Companies

Major players operating in the vehicle emotional intelligence industry are:

• Affectiva
• Antolin
• AVATR Technology
• BMW AG
• Robert Bosch GmbH
• Cerence
• Eyeris AI
• Forvia
• Harman International
• Kia Corporation
   

Vehicle Emotional Intelligence Industry News

• In January 2024, Mercedes-Benz unveiled its innovative "dialogue partner" voice assistant, revolutionizing the in-car experience with generative AI technology. Debuted at CES 2024, this state-of-the-art voice assistant aims to foster natural, context-driven dialogues between drivers and their vehicles, markedly elevating user engagement. Leveraging large language models (LLMs), the assistant crafts dialogues that feel organic and captivating, enabling users to inquire and converse as they would with a close friend. This capability extends to varying tones and emotions in responses, ensuring a tailored interaction.
   
• In April 2023, AVATR Technology, a collaborative venture supported by Changan Automobile, CATL, and Huawei, rolled out its inaugural offering, the AVATR 11, envisioned as an "emotionally intelligent companion" for motorists. Built on the collaboratively developed CHN platform, the AVATR 11 boasts a cutting-edge Smart Electric Vehicle (SEV) architecture, emphasizing robust computing power and high voltage charging capabilities. AVATR's unique strategy weaves emotional intelligence into the vehicle, enabling it to attune to the driver's emotions and requirements, thereby enriching the driving journey.
   

The vehicle emotional intelligence 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 Vehicle

• Passenger vehicle
• Commercial vehicle
  • Trucks
  • Buses
  • Vans
• Autonomous vehicles

Market, By Component

• Hardware
• Software

Market, By Application

• Driver monitoring and safety
• Passenger experience enhancement
• Safety and security
• Autonomous driving support
• Health and wellness monitoring

Market, By Integration

• OEM
• Aftermarket

Market, By Technology

• Facial expression recognition
• Voice recognition and analysis
• Physiological sensors
• Emotional/ Behavioral pattern analysis

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

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