Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Digital Scent Technology Market size was valued at USD 450.7 million in 2024 and is projected to reach USD 2.5 billion by the end of 2037, rising at a compound annual growth rate (CAGR) of 17.8% during the forecast period, i.e., 2025-2037. In 2025, the industry size of digital scent technology is evaluated at USD 560.3 million.
The market’s expansion is supported by the rising adoption across various sectors such as entertainment, healthcare, and marketing, converging the advancements in scent generation technologies. The adoption curve of technology along with R&D spending ratios are key indicators of the market. In terms of global R&D spending on sensory technology, the figure crossed USD 100 billion in 2023, highlighting the surging evolution of technology. Additionally, the adoption rates of VR and MR is exhibiting an upward movement, highlighting the heightened scope of market penetration.
The market is characterized by imbalances in supply and demand. The heightened demand is from the entertainment and healthcare sectors. Moreover, uses cases such as the growing integration with AI systems have allowed digital scent technology to be more cost-effective and is being examined for anxiety reduction within the broader healthcare sector. The supply-demand imbalances are translating to shifts in pricing power, as companies are focusing on mass-market adoption which pushes down costs and impacts near term margins. A vital indicator of the sector’s growth is the capex allocation and the table below highlights the capex analysis of five major players in the market:
|
Company |
2024 CapEx ($B) |
CapEx/Revenue (%) |
YoY Change (%) |
Primary Investment Focus |
|
SensoryTech Corp. |
0.6 |
12% |
+8% |
AI & Digital Scent Generators |
|
Scentsory Inc. |
0.5 |
15% |
+10% |
Healthcare & Scent Sensors |
|
AromaVision Ltd. |
0.3 |
10% |
+5% |
Immersive Entertainment |
|
SmellX Technologies |
0.4 |
18% |
+12% |
R&D in New Scent Generation |
|
AirScents Global |
0.7 |
20% |
+6% |
Marketing & Consumer Scent Tech |
The capex analysis highlights strong capital efficiency along with high capital expenditure focused on improving the use cases of AI-powered scent technologies. The rise in R&D spending indicates strategic positioning to expand revenue shares as multiple economies are expected to capitalize on the diversified sector applications. The favorable trends are expected to ensure the sustained growth of the market.
