Neuromarketing Market Size, Share & Trends Analysis Report By Technology (Functional Magnetic Resonance Imaging (FMRI), Electroencephalography (EEG), Others, Eye tracking, Positron Emission Tomography (PET), Magnetoencephalography (MEG)), By End-Use Industry (Banking, Financial Services, and Insurance, Retail and consumer brands, Market Research, Scientific Institutions, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global neuromarketing market size was valued at USD 1.57 billion in 2023. It is expected to reach USD 3.56 billion in 2032, growing at a CAGR of 8.87% over the forecast period (2024-32). The global neuromarketing market is driven by the need for deeper consumer insights through neuroscience techniques like EEG and fMRI. Businesses leverage neuromarketing to optimize advertising effectiveness and product design based on subconscious consumer responses. Advancements in neurotechnology, coupled with increasing competition in consumer goods and services, propel market growth.

The neuromarketing market uses a cognitive method to understand customers and interact with them more efficiently. The different strategies utilized in the neuroscience-based discipline of neuromarketing simplify the study of consumer behavior, decision making, responses, and other topics associated with this field. In neuromarketing, determining a customer's pattern may be accomplished through monitoring eye movements and coding facial expressions. These approaches determine the appealing aspects of a product that a consumer looks at, the length of time they stare at these aspects, the degree to which the client's pupils dilate and expand, and other aspects of the product.

Another technique known as neuro-imaging includes the same monitoring and knowledge of how the brain reacts to various shades of color. Participating in augmented reality activities and conducting experiments with it may bring the benefit of having a market suitable for technological implementation. The consumer is the primary focal point of the global neuromarketing market, which relies heavily on new product development and innovation to maintain its dominant position. The same is used by some major corporations and well-known companies, including PepsiCo, eBay, Diamler, and Fritolay.

Market Dynamics

Neuromarketing Market Driver

Increasing Need for Advanced Marketing Tools

Following the COVID-19 era, digital marketing has taken on an increasingly important role, which has been beneficial to the global neuromarketing market. The study of neuromarketing has become much more significant due to the increased emphasis placed on the consumer and the predominant digitalization around the globe. Eyeball tracking and facial coding, coupled with technology brought about by the fourth industrial revolution, are primarily responsible for moving the market ahead. This is the case despite manufacturers, corporates, and marketers retaining a consumer-first strategy.

A salesforce specialist conducted a study, and the results showed that seventy-three percent of consumers anticipate that the firm would prioritize meeting their requirements. Positively propelling the global neuromarketing market to help retain, predict, and attract the customers' loyalty and attention is the drive toward innovation and a perfect customer experience, combined with aspects of digital marketing along with video marketing and advertising. This combination of factors is driving the market forward.

Neuromarketing Market Restraints

Data Security and Interference

Eyeball tracking, facial coding, vision, and other comparable functions are among the methods used in the neuromarketing sector to collect and store client data. Following the phase of COVD-19, the global neuromarketing industry looks to be doing rather well for itself. However, the same market is being held back by many restrictions. Data utility and the protection of customers' privacy are the fundamental restraints generating more trouble for the global neuromarketing market.

Consumers and the government are keeping a close eye on the personally identifiable information that is stored in the same way. Although the neuromarketing sector is present worldwide, it is subject to regulations like the General Data Protection Regulation (GDPR) policy in Europe. Similarly, many people in the United States believe that businesses intentionally mislead consumers to gain financial gain from false prejudices. There have also been incidents involving cybersecurity problems, data breaches, and thefts. This continual dread will primarily backfire against the business since the global neuromarketing market retains vast quantities of client data, including physical features.

Data Experimentation

In addition to the issue of persuading and keeping data, the global neuromarketing market has to deal with the extra job of obtaining the data itself. Data gathering is handled by these organizations using a variety of methods and observations, but on the other hand, these businesses need original data. The primary data is often gathered via first-hand tests on human subjects to better understand their behavior and the various variables that play a role. The use of electrode caps and other comparable equipment is a fundamental obstacle for the market to overcome. This is because there are constraints on the physical distance that can be traveled and a negative attitude toward experimenting.

Neuromarketing Market Opportunity

Engage in a collaborative endeavor with esteemed neuroscientists

Establish a strategic partnership with distinguished professionals in the realm of neuroscience, thereby guaranteeing the utmost scientific precision and credibility of the methodologies. Establishing a robust network of industry experts can significantly enhance the credibility and reputation of the services.

Regional Analysis

North America to Own the Maximum Market Share

The global market for neuromarketing may be segmented into four distinct geographic submarkets, which are as follows: North America, Europe, Asia-Pacific, and the Rest of the World.

It is anticipated that by 2032, North America will have the largest market share, growing at a CAGR of 8.9%. The US is recognized as a pioneer in the neuromarketing market all over the globe. The capability of digital marketers, end-user companies, and other market providers to make big expenditures contributes to the assurance that the North American area will be able to support itself successfully. In the same industry, efforts are being undertaken to improve the quality of the data gathered via market research by combining augmentation with collaborative labor. This is being done in an attempt to make the data more useful.

In addition, large businesses, such as Nielsen, IQVIA, Kantar, Ipsos, PepsiCo, and others, are investigating the use of neuromarketing to gain a deeper comprehension of the brain psychology and behavioral characteristics of the people who make up their target market. This is being done to gain a competitive advantage in their respective industries. North America is currently in a position to successfully maintain itself due to ongoing innovation and the support of significant corporations. This pattern is anticipated to continue into the foreseeable future, owing to the involvement of significant corporations.

Following that will be the European region, which is anticipated to have a market share of USD 736.09 million, growing at a CAGR of 8.2% during the forecast period. Europe is able to successfully retain its market ownership within the global market for neuromarketing by innovating within the field, gaining recognition for it, and using it in various contexts. The triple method of creating within the area, earning attention for it, and using it in many diverse situations makes this achievable.

It would seem that Germany and the UK are pulling ahead of the pack at this point in the tournament. Aside from this, firms in Europe are mulling over the possibility of applying neuromarketing since, in comparison to conventional marketing, it has several benefits. The most crucial of these advantages is the requirement to grasp the effect and capacity to alter physiological and other senses, such as taste, smell, flavor, and other characteristics that are analogous to these. It is essential to fulfilling this criterion to reap these benefits.

Growing vendor investments in consumer behavior and marketing provide significant growth prospects in Asia-Pacific. China, India, Japan, Singapore, Australia, and South Korea are developing as significant marketing and advertising regions where neuromarketing demand will grow. The Zhejiang University in China established the notion of "neuro management," Japan-based NTT Data has launched its neuroscience service for advertising.

Latin America and the Middle East and Africa are covered under the Rest of the World. Brazil, Mexico, Saudi Arabia, the UAE, Argentina, Qatar, and South Africa contribute the most to the regional neuromarketing market due to a large number of market research surveys, high advertising expenditure, and comparatively higher regional and localized marketing applications.

Segmental Analysis

The global neuromarketing market share is segmented across end-use industries and regions.

Segmentation based on the technology includes Functional Magnetic Resonance Imaging (FMRI), Electroencephalography (EEG), Eye-tracking, Positron Emission Tomography (PET), Magnetoencephalography (MEG) and Others.

By Technology

Functional Magnetic Resonance Imaging (FMRI) provides high-resolution images of brain activity, allowing for precise measurement of brain regions involved in decision-making, emotions, and responses to marketing stimuli.

Electroencephalography (EEG) provides real-time data on brain activity, allowing for immediate analysis of consumer responses to marketing stimuli. This quick feedback is valuable for optimizing marketing strategies and understanding immediate reactions.

Eye-tracking provides precise data on where consumers look and how long they focus on different elements, helping marketers understand what captures attention and what gets ignored. By analyzing eye-tracking data, companies can optimize web and app interfaces to improve user experience, navigation, and overall engagement.

Positron Emission Tomography (PET) offers high spatial resolution, allowing researchers to pinpoint the exact areas of the brain involved in processing marketing stimuli. PET measures metabolic activity in the brain by detecting the uptake of radiolabeled tracers.

Magnetoencephalography (MEG) offers excellent temporal resolution, allowing researchers to track rapid changes in brain activity in response to marketing stimuli. This capability is essential for understanding dynamic aspects of consumer decision-making and emotional responses.

Segmentation based on the end-use industry includes Banking, Financial Services, and Insurance, Retail and Consumer Brands, Market Research, Scientific Institutions, and Others.

By End-Use Industry

Banking, Financial Services, and Insurance in Neuromarketing helps BFSI companies understand customer emotions and decision-making processes, leading to improved customer experience and satisfaction. Neuromarketing provides deep insights into how consumers process financial information, make decisions, and respond to marketing stimuli. Retail and consumer brands Neuromarketing helps retailers understand how store layouts and designs impact consumer behavior, allowing them to optimize store environments to enhance shopping experiences. Neuromarketing techniques enable retailers to evaluate the effectiveness of advertisements and promotional strategies by analyzing consumer brain responses.

Market Research Neuromarketing provides a more profound understanding of consumer emotions, preferences, and subconscious reactions, which can significantly enhance traditional market research methods. Scientific Institutions Scientific institutions drive innovation in neuroscience techniques and methodologies, which are critical for the development and application of neuromarketing strategies.

Other end-use industries include media & entertainment and healthcare. Many laws and regulations limit pharmaceutical firms' advertising. As new and novel drugs are introduced, competition may be challenging. Pharmaceutical advertising is expensive. Pharmaceutical firms strive to improve sales and promote new products and brands in conventional and online marketplaces. Personalizing tools and services for the target audience is vital. Many social media marketers use human psychology to sell brands. Entertainment develops memories that affect people's perspectives. Neuroscience providers for media and entertainment offer tools to optimize video content using emotion AI. It measures and analyses viewers' behavioral reactions to video material. The user's emotional involvement and efficacy may be assessed.

Impact of covid-19

The COVID-19 pandemic has affected a number of economies in different ways, such as by hurting companies' finances, upsetting markets and supply chains, and changing how much is made and how much is spent. Supply chain problems like not getting raw materials and ingredients from third-party logistics caused a lot of trouble and affected both the market's operational and financial performance. Due to the fact that many countries around the world shut down for long periods of time, both the demand for finished products and the manufacturing plants suffered.

 So, both ends of the supply chain had an effect on the market. As Doctors are putting more effort into treating Covid-19, the demand is not likely to have gone away completely. This is because chondroitin sulfate is used in nutraceuticals and pharmaceuticals to treat and manage conditions like dry eyes, heart disease, osteoarthritis, and urinary tract infections. Since chondroitin sulfate will be used in research and development in the coming years, the market is expected to grow a lot. Also, as the global vaccination campaign moves forward and the virus spreads less, the market is likely to grow because there will be more demand for end-user products.

Recent Developments

• March 2024 - Bitbrain Technologies is developing wearable dry-EEG devices that seamlessly integrate with VR (like HTC Vibe Pro and Oculus). This tech captures natural human behavior to evaluate user experiences in various contexts, such as video games and cinema, enhancing the precision of neuromarketing studies.
• March 2024 - Buyer Brain introduced a new solution that uses neuroscience tools to deliver personalized employee engagement strategies. This system evaluates organizational processes to pinpoint factors impacting employee experiences and engagement, utilizing deep, unbiased insights