Eye Tracking Market

Market Overview

The global eye tracking market size was valued at USD 631 million in 2021 and is expected to reach USD 8407.63 million in 2030 expanding at a compound annual growth rate (CAGR) of 33.34% from 2022 to 2030.

Measuring eye movement in relation to the head or the point of gaze (the direction in which an individual is looking) are both important aspects of the eye-tracking business. A device used to measure the location of the eye as well as the movement of the eye is called an eye tracker. The many actions take place, including determining where to gaze, what to ignore, when to blink, and how the pupil responds to a variety of stimuli.

The expansion of eye tracking technology's application in the aerospace and defense industries is a primary factor driving the expansion of the worldwide eye tracking market share. In addition, the rise in spending on smart and wearable technologies across all industry verticals, as well as the rise in demand for assistive communication devices, are all factors that contribute to the expansion of the eye tracking market share.

The rapid growth of eye tracking in new applications such as lie-detecting systems, the video gaming industry, and cognitive testing, as well as in aviation industries and research and development in the field of augmented reality, virtual reality, and other related fields are projected to drive the market soon.

Market Dynamics

Market Drivers

Increasing use of eye tracking technology in advertising and market research

The use of eye-tracking technology in market research operations has gained significant traction in recent years. Eye-tracking technology is becoming more in demand in the retail industry, particularly in the fast-moving consumer goods (FMCG) sector, in order to boost overall sales income. In order to get insights into the behavior of customers shopping in a retail establishment, eye-tracking sensors and the associated algorithms are being deployed. These devices and algorithms assist in determining the amount of time a customer spends exploring a product, the optimal product arrangement in a shop to encourage a client to make a purchase, and the type of packaging that offers the most beneficial product information to the customer. Eye tracking is used more and more in market research, and it is now being used for web marketing operations as well as the evaluation of advertising in print, signs, and digital media.

The market for eye tracking systems is predicted to develop as a result of falling prices and technological advancements

Eye tracking systems are also used to analyze the performance of players by measuring the linkages between a player's gaze, focus, hand-eye coordination, visual search techniques, and calculations of their trajectory while they are playing a game. Because it helps to improve training and maximize player performance, an eye tracking system is a great tool for coaches and trainers.

The expansion of this element would also enhance the growth of the eye tracking solutions market. Additionally, the eye tracking solutions are simple to set up since the user only has to join the tracker with the system by utilizing cables, then change the angle of the tracker, and then begin calibrating the system. Therefore, characteristics like user-friendliness and ease of installation are also contributing factors to the expansion of the eye tracking systems market.

The market is getting bigger because of more industrial verticals using eye tracking systems

Eye tracking software may be combined with a variety of input devices like the keyboard, touchpad, and others. This allows the user to manage the computer system with their eyes rather than having to physically utilize the keyboard, mouse, or other input devices. As a result, individuals with physical or cognitive limitations are able to benefit from an improved user-machine interface thanks to the eye tracking system.

So, one of the important elements will drive expansion in the market for eye tracking solutions over the course of the forthcoming time. In addition to this, the solutions for eye tracking are also being included in the systems of automobiles. The use of eye tracking technology in vehicles is becoming increasingly common among automakers as they seek to enhance the driving experience while also enhancing safety.

It is therefore projected that the rising utilization of eye tracking technologies in the automobile industry would also boost the growth of the market.

Market Restraints

Market expansion for gesture recognition

In order to control a gadget without physically touching it, technologies that recognize gestures are deployed. The rising adoption of gesture control features in automobiles, the rising rate of digitalization across industries, the favorable programs deployed by the government, and the reduction of hygiene concerns brought on by the presence of touchless sanitary solutions are the primary factors propelling the global market for gesture recognition. The technique of gesture recognition may be used in a variety of contexts, as well as in consumer electronics. The technology may also be leveraged for running computing devices through the use of gesture control, allowing users to communicate with other people or the environment. As a result, technology that recognizes gestures is another significant challenge that has the potential to serve the needs of assistive communication applications. Nevertheless, only specific categories of users or patients are able to make use of gadgets that are based on gesture recognition. There is now a moderate to medium influence that this restrictive factor has on the eye-tracking market, and it is anticipated that this impact will remain the same during the projected period.

Market Opportunity

Eye-tracking technology's use in AR/VR devices

The increasing demand for augmented reality (AR) and virtual reality (VR) devices may be attributed to a number of causes, including the capacity to provide consumers with a better experience, increase picture quality, and assist in reducing eye strain and improving focus. Eye-tracking technology may be incorporated into augmented reality (AR) and virtual reality (VR) devices, such as headgears and personal computers. This presents prospects for the expansion of eye-tracking technology. A significant number of industry executives have become aware of this possibility and have begun doing research in these areas.

Regional Analysis

With a revenue of more than 48% in 2021, the North American region has led the market and is supposed to continue to do so throughout the projected period. The growing use of cutting-edge technology in the healthcare industry and research activities to better understand human behavior are two of the main causes of North America's rapid development. Thanks to the widespread use of smart sensors and contactless biometric systems, the U.S. has the greatest revenue share in the regional market. Most industry advances take place in the U.S., Germany, Japan, and China since these countries are home to the major industry participants.

For instance, Apple, Inc. purchased SensoMotoric Instruments, a German business that specializes in augmented reality and eye tracking, in June 2017. Through these purchases, Apple, Inc. plans to create AR and VR platforms like ARKit, an AR framework that combines digital objects and information with the user's surroundings and incorporates it into iOS 11. Over the projection period, the regional market in Asia-Pacific is anticipated to see the quickest CAGR. The markets for consumer electronics in India, China, and Japan are expected to experience considerable growth because of rising vision tracing adoption.

Segmental Analysis

The global eye tracking market is segmented by type, application, component, location and region. 

By Type Analysis

On type basis the market is divided into Optical, Eye Attached Tracking and Electrooculography. With more than 52 market share percent in terms of revenue in 2021, the optical tracking category held the top spot. Because optical tracking systems can record both active and passive motion of the entire body, they are increasingly in demand in VR and AR. This allows VR to learn more about the participant's position. Furthermore, no cables or other devices need to be attached to the item being tracked in order to use the optical tracking method. A direct physical link between the monitored object and the actual surroundings is not necessary. Additionally, several creatures may be monitored simultaneously thanks to optical tracking.

From 2022 to 2030, the eye-attached tracking sub-segment is anticipated to see the fastest CAGR growth. Similar to contact lenses with incorporated magnetic or mirror sensors that can continue tracking the visual despite head movement are eye-attached capturing devices. It can follow the horizontal, torsional, and vertical movement of the eye. The healthcare, research, retail, and consumer electronics industries would benefit most from an eye-attached vision recording device since vision capture continues even if the user lifts his head slightly or gets up and moves.

On the other hand, Electrooculography (EOG) technology uses electric impulses collected from contact electrodes positioned on the skin surrounding the eyes to detect and monitor the movement of the vision. The EOG method enables tracking vision even when the eyes are closed or in complete darkness. The approach is useful for studying how people behave when they are sleeping. However, compared to the optical tracking system, which plans to use infrared technology to detect gazing, the EOG system's power to identify sight looks is less precise.

By Application Analysis

On application basis the market is divided into Healthcare, Consumer Electronics, Retail, Research and Automotive. In 2021, the healthcare sector controlled a revenue share of more than 25.00% of the market. The use of gaze capture in healthcare was formerly restricted to computer interfaces for individuals with physical limitations and other communication difficulties. However, consumer electronics and gaming gadgets are rapidly using technology as an input method. The market has been segmented into healthcare, retail, research, automotive, consumer electronics, and other segments based on application. The usage of vision tracking systems by the government and the military industry is included in the others sub-segment.

The automobile industry is developing significantly as a result of eye-tracking technology. The need for eye tracking is rising along with the demand for automotive cars and AI applications in the automotive industry. Because it enables the measurement of eyelid movement and gazes direction, eye-tracking has evolved into a crucial DMS technology that has gradually supplanted conventional methods. For instance, Toyota used eye-tracking technology in its Lexus brand, giving it an advantage over other rivals. Volvo intends to use its driver state estimate technology to compete in the market.

The retail FMCG industry is seeing a rise in demand for eye-tracking technology. Retail establishments utilize eye-tracking technology and its algorithms to analyze customer behavior. The algorithms assist in determining which product packaging provides the most product information for the consumer's advantage, how long a customer spends exploring a product, and what product layout is most likely to induce a purchase at a shop. In the projected period, the consumer electronics subsegment is anticipated to expand at a sizable CAGR.

By Component Analysis

On a component basis, the market is segmented into Hardware and Software. With a market share of 60.01% in terms of sales in 2021, the hardware sector led. Over the projection period, it is predicted that the software segment would expand at the quickest CAGR. Depending on the tracker's characteristics, the vision-capturing system's hardware and software components change. A head-mounted system for collecting vision that includes cameras and sensors, eye-tracking goggles or lenses, and an external or internal storage medium for data recording and archiving acquired by the vision trackers are the hardware components in the case of eye-attached tracking. The software, on the other hand, is incorporated into a remote desktop that gets the information from the head-mounted device.

Hardware elements for optical or video-based trackers are comparable to those for an eye-attached tracing system. The Eye Tracking Device (ETD) is made up of a desktop, an internal or external storage device, a camera to record eye movement and gaze points, and optical sensors to detect and monitor visible movement. To understand and examine the data collected by the cameras and sensors, however, the software is built into the ETD. For instance, SR research introduced EyeLink 1000 plus in August 2020. This device features a high-speed camera and can capture eye movements at up to 2000 frames per second.

This makes it possible for researchers to collect accurate eye-tracking data across a range of settings. Results obtained from analytical equipment are utilized for a variety of reasons after data filtration and processing. For instance, the examined data is utilized in medical research to examine a wide range of mental and neurological disorders, including Parkinson's, Alzheimer's, Schizophrenia, Attention Deficit Hyperactivity Disorder (ADHD), obsessive-compulsive disorder (OCD), and autism spectrum disorder (ASD). In the automobile industry, the studied data is utilized for several purposes, including notifying the driver for being inattentive while driving and improving the Human Machine Interface (HMI) system.

By Location Analysis

On location basis the market is segmented into Remote and Mobile. In 2021, with a revenue of more than 62%, the remote segment held the market's top position. Respondents must stand still in front of the ETD in order to participate in remote or screen-based vision tracking. Although the respondents' heads may move or they may be moving, mobile vision trackers are put on their heads to continually record the respondents' eye movement. When conducting 3-dimensional research, a sophisticated setup may be needed in addition to deploying a remote sight capture device to monitor an item or evaluate respondents' behavior from a 2-dimensional angle.

On the other hand, mobile trackers are utilised when the respondents must be free to roam, such as when researching consumer behaviour or when the item must be studied from all angles. In 2021, the remote tracker system sub-segment had a greater revenue share, and it is anticipated that it would continue to rule the market during the forecast period. On the other hand, it is expected that the mobile tracking system sub-segment would expand at the quickest CAGR between 2022 and 2030, in large part because of the expanding use of vision tracing technology in commercial applications.

Recent Developments

• Tobii Pro, a division of Tobii (Sweden), announced the release of Tobii Pro Glasses 3 in June 2020. This wearable eye tracker is the company's third version and is designed to measure attentiveness in any real-world situation.
• Tobii Dynavox, a division of Tobii (Sweden), announced the release of the I-Series, a next-generation communication device with integrated eye tracking, in May 2020. People with impairments including cerebral palsy and amyotrophic lateral sclerosis are the target audience for the new I-Series (ALS). It gives kids a voice so they may speak out for themselves and become more autonomous.
• In order to provide the airlines with cutting-edge eye and gaze monitoring capabilities utilizing its Crew Training System, Seeing Machines (Australia) teamed up with Alaska Airlines (US), the fifth-largest airline in North America, in October 2019.