Sentiment Analytics Market Size, Share, Growth, and Industry Analysis, By Type (Cloud, & On-Premise), By Application (Retail, BFSI, Healthcare & Life sciences, Education, Media & Entertainment, Transportation & Logistics, & Others) and Regional Insights and Forecast to 2031

Updated On: 29 April 2024

SENTIMENT ANALYTICS MARKET REPORT OVERVIEW

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The global sentiment analytics market size was USD 3702.3 million in 2019 and will touch USD 6357.3 million by 2026, exhibiting a CAGR of 7.9% during the forecast period.

Sentiment analytics has been gaining a lot of popularity recently because building up customers' sentiments is a key priority for businesses that want to improve decision making. The essence is to code and decode these emotions and sentiments that are manifested through the digital platforms. Service providers in the sentiment analytics niche are making the most of this great demand through provision of custom solutions which are designed to suit businesses' differing needs including sentiment analysis tools and sentiment monitoring platforms.

Besides, the movement of sentiment analysis tools onto the cloud platform matches with a migration that takes place in responsive workspaces, where remote working is becoming more and more popular. The companies look for scalable and adaptable sentiment analysis solutions that will assist the integration of the dissociated teams across different cities and make it easier to get the vital information even when you are far away. Rather than being conducted as on-site services, they are available as cloud-based platforms bundled in with monitoring, and analytics features, which can help businesses remain operational and keep making data-driven decisions in time of remote working.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Lockdown Restrictions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Economic uncertainties and budget limitations compelled certain enterprises to postpone investment in sentiment analytics solutions which in turn negatively affected the pace of acceptability. Moreover, the human emotion swinging during the pandemic made it difficult for sentiment analysis algorithms which affected the precision and dependability of insights obtained. Overall, despite some local growth improvement, the net impact of COVID-19 on the sentiment analytics market is negative due to the uncertain economic environment and the retort of investment in analytics solutions.

LATEST TRENDS

"AI-Powered Sentiment Analysis to Reshape the Market"

One of the key trends is amalgamating AI and ML technologies to increase prediction accuracy in sentiment analytics. AI powered sentiment analysis tools utilize NLP techniques for natural language processing (NLP) to analyze text and discover more sophisticated expressions with enhanced accuracy and proficiency. Advanced algorithms, that are enabled through training by large amounts of data, can detect context, tone, and emotion and thus make it possible for businesses to get deep information about customers’ feelings and trends. However, this AI-driven sentiment analytics trend goes beyond speed and accuracy in sentiment analysis as it also allows businesses to unveil deep value from the unstructured data like social media, customer reviews, and surveys, and therefore, allows them to make better company decisions and improve the overall business.

SENTIMENT ANALYTICS MARKET SEGMENTATION

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By Type

Based on type the global market can be categorised into Cloud, & On-Premise.

• Cloud-based: This type of sentiment analytics solutions are hosted on remote servers and accessed via the internet. They offer scalability, flexibility, and ease of deployment, making them popular among businesses looking for cost-effective and hassle-free options. On the other hand.

• On-Premise: This type of sentiment analytics solutions are installed and run on the company's own servers and infrastructure. While providing greater control and customization options, On-Premise solutions often require higher upfront investments in hardware and IT resources.

By Application

Based on application the global market can be categorised into Retail, BFSI, Healthcare & Life sciences, Education, Media & Entertainment, Transportation & Logistics, & Others.

• Retail: Sentiment analytics enables businesses to gauge customer satisfaction, track trends, and tailor marketing strategies based on consumer sentiment, driving sales and loyalty.

• BFSI: In this sector, sentiment analytics aids in understanding market sentiment, detecting fraud, and enhancing customer service, contributing to better risk management and financial decision-making.

• Healthcare & Life Sciences: They utilize sentiment analytics to analyze patient feedback, monitor public health trends, and personalize patient care, improving overall healthcare outcomes.

• Education: These institutions leverage sentiment analytics to gauge student satisfaction, identify areas for improvement, and enhance the learning experience.

• Media & Entertainment: These companies utilize sentiment analytics to analyze audience reactions, optimize content delivery, and tailor marketing campaigns, enhancing audience engagement and retention.

• Transportation & Logistics: Sentiment analytics helps optimize operations, improve customer service, and enhance safety and efficiency in supply chain management.

• Others: This category encompasses a range of industries such as manufacturing, government, and hospitality, where sentiment analytics is applied to various aspects of operations, customer feedback, and decision-making processes, driving overall business performance and competitiveness.

DRIVING FACTORS

"Rising Demand for Customer Insights to Fuel the Market Growth"

The main driving feature for sentiment analytics market growth along with the growing popularity of the companies is the significant number of decision makers who require real data from their client base to improve. Due to digital messaging channels and social media platforms, companies are drowning in tons of data which provide useful information on feelings, opinions, and desires of consumers. Sentiment analysis tools enable firms to pull out, analyze, and interprete this information, and give the most accurate portrayal of the customer satisfaction, and public perception of a market trend. By using sentiment analytics, managers can base their decisions on facts; widen the range of positive experience for consumers; and win the battle for buyers in an environment where everything is changing so quickly.

"Emphasis on Brand Reputation Management to Drive Demand in the Market"

Another important factor that is molding the nature of the sentiment analytics market is “the growing trend towards the brand image management”. In the modern days there are many businesses whose success or failure is influenced largely by brand perception. Therefore, organizations are paying more attention to their online presence and the overall brand sentiment towards their brand. Real-time sentiment analytics software helps companies to look into social media dialogues, feedback questions, and reviews that people post online in order to identify and solve problems, before they become too miserable for the business. A business should be proactive when it comes to their brand name so as not to lose customers, first by boosting the customers experiences and also by guarding its brand in an ever-digitally connected world.

RESTRAINING FACTORS

"Data Privacy Concerns to Impede the Market Expansion"

The growing attention and concerns over privacy of data and regulation compliance are the limiting factors for the market. Moreover, with the business using big data to analyze customers’ sentiments using data points, there is a gradually emerging realization among consumers with regard to possibilities involving the inappropriate utilization of data. The GDPR and CCPA are considerably stricter when they come to data management i.e. the collection, processing, and storage of personal data, which leads to organizations being obligated to put up with a complex sentiment analytics system. As a result, data protection and regulations prohibiting the use of sentiment analysis already limit market growth and expansion.

SENTIMENT ANALYTICS MARKET REGIONAL INSIGHTS

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"North America Leads the Market with Robust Technological Infrastructure"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

In North America where the infrastructure is the most desirable, technologically sophisticated, and digital platforms have been heavily adopted alongside it being a mature market. This plays an important role in it being the most dominant region of the sentiment analytics market share. The region's superior IT infrastructure and the huge internet penetration speeds up the process, in the sense that integrated systems from different digital sources such as social media platforms, forums and customer reviews are able to yield a huge amount of data. On top of all that, an array of large sentiment analytics vendors and technology providers in North America make the region continue taking up the largest market share thanks to the fact that these organizations continue to innovate and adapt to the ever changing demand for business solutions.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The players in the sentiment analysis market dictate the trend in the industry and exert tremendous effect on the competitors that in turn spurs innovation in the industry and sets industry standards. These pre-existing businesses will put forward their all-inclusive sentiment analytics tools which are provided with very powerful functions of machine learning, natural language processing, visualization and other features. These powerful platforms of theirs are capable of taking out the knowledge out of huge masses of unstructured data. Collectively, these industry players are well positioned to continue leading the change in sentiment analytics, unveiling capabilities, and imposing the usage of these analytics in other sectors on a global scale.

List of Market Players Profiled

• Angoss Sentiment Corporation (Canada)
• Clarabridge (U.S.)
• IBM (U.S.)
• SAS Institute (U.S.)
• Aylien (Ireland)
• Bottlenose.Com (U.S.)
• Crowdflower (U.S.)
• Brandwatch (U.K.)
• Twizoo (U.K.)

INDUSTRIAL DEVELOPMENT

March 2023: One recent innovation in the sentiment analysis market is the emergence of fine-grained sentiment analysis techniques. Fine-grained sentiment analysis goes beyond simply classifying sentiment as positive, negative, or neutral. It delves deeper, identifying specific emotions & intensity of emotions, and other aspects & entities.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated time frame. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.