Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Sentiment Analytics Market size was valued at USD 3.7 billion in 2024 and is projected to account for USD 6.5 billion in 2037, expanding at over 4.4% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of sentiment analytics is evaluated at USD 3.9 billion.
The global market is primarily driven by the rising demand to decode consumer emotions to improve sales and marketing strategies. Advancements in Natural Language Processing (NLP have surged the growth of sentiment analytics tools to understand the vast amounts of unstructured data from the internet. Moreover, the highly competitive nature of marketing strategies, with brands competing fiercely with each other to bolster brand loyalty, has created rife opportunities for the adoption of sentiment analytics tools. For instance, eduME, a mobile-based training platform for workforce success, reported that brands that invest in outstanding consumer experience reported more than a 5% increase in ROI and customer retention. The analysis highlights the significance of investing in sentiment analysis solutions.
The advent of cloud-based deployment of sentiment analytics tools has improved the scope of application, bringing small and medium-sized enterprises into the fold. Moreover, managed service providers (MSP) are driving demand for sentiment analytics creating the opportunity to provide customized solutions. For instance, in November 2024, Syncro launched the ticket sentiment analysis for MSP and IT professionals. The Smart Ticket Management suite allows MSPs to leverage NLP and assist in the analysis of the tone and sentiment of customer communication.
Sentiment Analytics Sector: Growth Drivers and Challenges
Growth Drivers
- Increasing user-generated content across digital platforms: The increase in UGC has driven the need for sentiment analytics for businesses and government institutions alike. The proliferation of social media has ensured that customers are actively sharing feedback with actionable insights for brands, which needs to be converted to analytics from unstructured data. Real-time sentiment tracking has emerged as a priority across multiple sectors ensuring a sustained demand for sentiment analytics tools.
Another factor supporting the market’s growth is the changing demographics with millennials and Generation Z creating more user-generated content on the web in comparison to the preceding generation. In March 2024, the American Marketing Association released a report stating that 92% of users preferred the authenticity of user-created moments over traditional ads while campaigns with UGC witnessed a 29% boost in web conversions. The rising demand for personalization in user experiences is expected to ensure continuous demand for sentiment analytics tools. - Rapid advancements in AI and NLP: The advent of AI-based analytics and continuous advancements in NLP have bolstered sentiment analytics tools. The current generation of tools can interpret complex human emotions including humor, sarcasm, etc., to formulate insights. Furthermore, vendors that can provide tools that can compile culture-specific sentiment analysis are set to experience greater rates of adoption. The advancements in AI models allow businesses to extract actionable insights from text and voice data. In August 2023, the Bureau of the Fiscal Service announced a sentiment analysis on e-mails to an inbox for FiscalData.Treasury.gov to analyze why customers were contacting them to analyze the body language of bulk e-mails.
The positive finding from the sentiment analysis led to the Bureau implementing NLP-based sentiment analysis to optimize call centers to develop a robust plan and prioritize future investments. An emerging demand is from research institutions to apply sentiment analysis for newspapers to formulate data-driven public studies while market research and PR firms are driving the bulk demand for sentiment analysis tools. - Increasing focus on brand reputation management: The growth of brand reputation management bolsters the demand for sentiment analytics tools. Negative feedback and cancel culture can have far-reaching consequences for a brand’s reputation which makes sentiment analysis crucial for proactive crisis management. The advent of social media crisis management services offering sentiment analysis has created a competitive sentiment analytics market. The table below highlights use cases of sentiment analysis by social media management companies.
Challenges
- Ethical concerns related to data privacy: Sentiment analytics tools rely on UGC which has led to privacy and ethical concerns. The web scraping of consumer data without explicit consent can cause intrusions into privacy and lead to regulatory screenings. Furthermore, the strict imposition of data privacy laws in developed economies such as North America and Europe creates challenges for vendors to navigate the regulatory frameworks and perform actionable sentiment analysis of user-generated data.
- Challenges in understanding cultural nuances: The rising number of users on social media platforms creates a unique challenge for vendors to provide sentiment analytics tools that can understand cultural nuances. The use of idioms, sarcasm, and slang complicates the scope of analysis which can lead to biased insights, thereby affecting the overall user analysis of a brand. Moreover, vendors that can provide analytics tools that can do thorough region-specific sentiment analysis are expected to retain an advantage.
Sentiment Analytics Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
4.4% |
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Base Year Market Size (2024) |
USD 3.7 billion |
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Forecast Year Market Size (2037) |
USD 6.5 billion |
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Regional Scope |
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Sentiment Analytics Segmentation
Vertical (Retail, BFSI, Transportation, Education, Media & Entertainment, Healthcare & Lifesciences, Others)
By vertical, the retail segment is predicted to account for sentiment analytics market share of around 55.6% by 2037, owing to rising demand to decode consumer behavior in the competitive retail market. The adoption rate of sentiment analytics is expected to increase due to the advent of highly targeted campaigns. Moreover, a major factor for the retail segment driving demand is the rapid expansion of e-commerce globally. Major e-commerce giants such as Amazon, Alibaba, and eBay have extensively used sentiment analytics to boost targeted marketing. In September 2022, Amazon Comprehend, a machine learning-based NLP service launched the Targeted Sentiment feature to identify groups of mentions corresponding to a single real-world entity and provide the sentiment associated with each mention.
The BFSI segment of the sentiment analytics market is predicted to expand its revenue share. The growing focus on improving customer satisfaction in a highly competitive sector remains the major driver for the increasing adoption of sentiment analytics. Financial institutions adopt sentiment analytics to monitor customer behavior on digital banking platforms to identify pain points and formulate strategies on how to address them. Moreover, the rising security concerns are a factor in the adoption of sentiment analysis by detecting early signs of fraud through customer behavioral patterns. During the forecast period, insurance companies are expected to increase the rate of utilization to create more personalized policies for customers. In October 2024, Capgemini published a report stating that 56% of best-in-class insurers provide sentiment analysis to improve intelligent claims highlighting the rising usage.
Component (Service, Professional Services, Sentiment, Support and Maintenance Services)
By component, the service segment of the sentiment analytics market is projected to exhibit growth. The increasing requirement for businesses to understand and respond to customer sentiment across diverse channels boosts the segment’s growth. By leveraging the service segment, businesses can go beyond the simple likes or dislikes of customer emotions to the why behind the customer behavior. This allows businesses to identify the pain points and solve them. Moreover, opportunities arise for collaborations with the marketing teams to analyze social media data around new product launches and assist in curating tailored marketing campaigns to bolster positive feedback.
Our in-depth analysis of the global market includes the following segments:
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Vertical |
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Component |
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Organization Size |
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Customize this ReportSentiment Analytics Industry - Regional Scope
North America Market Forecast
North America in sentiment analytics market is anticipated to capture around 44% revenue share by the end of 2037. A major driver of the North America market is a large section of digitally savvy consumers based along with a highly competitive business landscape which drives the demand for sentiment analysis solutions. Companies across industries are hyper-focused on understanding customer sentiments to maintain an advantage within their sectors. Additionally, businesses in North America have been early adopters of AI and ML solutions which assist in accurate analysis of social media discourses. The U.S. and Canada are poised to register the largest revenue shares in North America.
The U.S. sentiment analytics market is projected to exhibit a major revenue share in North America. The market is characterized by a strong focus on practical applications, with companies seeking solutions that go beyond basic sentiment analysis. Sophisticated models that can decipher nuanced emotions are expected to register greater adoption rates in the U.S. Furthermore, opportunities have arisen in PR firms aggressively pushing for sentiment analytics to be used in the management of political figures, political parties, celebrities, brands, and others. The U.S. has a budding celebrity culture, which has led to large investments in PR firms leading to the rising demand for sentiment analytics tools to understand user trends related to any topic. For instance, in December 2024, Purdue University leveraged sentiment analysis to highlight farmer optimism levels to have climbed in November 2024 in comparison to May 2021.
The Canada sentiment analytics market is predicted to thrive during the forecast period. The lucrative digital economy of the country and a strong focus on improving customer experience bolsters the adoption of sentiment analytics. Furthermore, vendors in Canada can leverage the widespread adoption of digital tools in the country. Moreover, Canada has a bilingual landscape, with English and French, which presents opportunities for localized sentiment analysis. In the past, the Government of Canada has leveraged sentiment analysis tool by OpenText to understand media and social opinion during its G7 Presidency.
Europe Market Forecast
The Europe sentiment analytics market is expected to register robust growth during the forecast period. Two major factors of the growth in Europe are the investments in digital transformation and consumer privacy. Businesses with a strong foothold in Europe are leveraging sentiment analysis tools to decode consumer preferences. Furthermore, Europe has diverse set of economies, and businesses operating in multiple countries require advanced sentiment analytics that can understand the cultural nuances of the countries while formulating actionable data-driven insights. In November 2024, the European Union (EU) announced plans to invest USD 196.2 million in digital technologies and research as part of the Horizon Europe program. The investment bodes well for the future of the sentiment analytics sector.
The Germany market is forecasted to exhibit growth by the conclusion of 2037. The country has a well-established automotive industry which is driving the application of sentiment analytics to improve customer engagement. Moreover, the market is expected to experience a rise in the application of sentiment analytics in B2B scenarios to provide insights to improve supplier relationships and corporate communications. Furthermore, the market analysis forecasts increasing application of sentiment analytics solutions to predict economic upheavals based on consumer behavior.
The France sentiment analytics market is predicted to gain traction during the forecast period. Companies in France are increasingly leveraging sentiment analysis to understand the consumer attitudes toward luxury goods, gastronomy, and fashion. Furthermore, the demand for sentiment analytics tools that can understand the cultural nuances of France while navigating the French language interactions in various platforms. Additionally, the scope of applications has widened with public institutions demanding sentiment analytics to gauge the public feedback on government policies. In May 2024, Microsoft announced a major investment worth USD 4.3 billion to accelerate the tech ecosystem in France, with the investment set to benefit the proliferation of sentiment analytics tools.
Companies Dominating the Sentiment Analytics Landscape
- Google
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Microsoft
- IBM
- SAS Institute
- Clarabridge
- Reputstate
- Dandelion
- Arkreach
- Amazon Comprehend API
- TextRazor
The sentiment analytics market is positioned to expand during the forecast period. Key players in the market are investing to expand the scope of analytics with advanced tools that can understand cultural nuances. Moreover, companies are investing heavily in AI-powered NLP and machine learning technologies to improve the depth of sentiment analysis. CrowdFlower Inc., a major player in the market, reported a revenue of over USD 40 million in 2024 highlighting the profitable opportunities in the sector.
Here are some key players in the market:
In the News
- In May 2024, Arkreach launched the world’s first contextual media sentiment analysis. The new AI-powered feature is built on a LLM trained on a staggering number of 60 million articles.
- In July 2024, TalentNeuron introduced EVP Sentiment Analysis that improved how companies optimize their employee value proposition (EVP). The new EVP Sentiment Analysis capability combines two data streams and is updated monthly.
Author Credits: Abhishek Verma
- Report ID: 7054
- Published Date: Jan 28, 2025
- Report Format: PDF, PPT
