Neuromarketing Market

Market Overview

The global neuromarketing market size was valued at USD 3,324.98 million in 2023. It is expected to reach USD 6,576.76 million by 2032, growing at a CAGR of 8.9% during the forecast period (2024–2032). 

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

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.

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.

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), and Others.

Electroencephalography (EEG) is accouned to hold largest share in neuromarketing market. EEG measures electrical activity in the brain and is widely used in marketing research for its cost-effectiveness and relatively non-invasive nature.

However, Functional Magnetic Resonance Imaging (fMRI) is likely the fastest-growing segment over the forecast period. FMRI provides insights into brain activity and emotional responses, making it a valuable tool for understanding consumer behavior and preferences.

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

It is anticipated that the Retail and Consumer Brands sector will have the largest market share in 2031, growing at a CAGR of 8.9%. This is because the consumers of these brands are at the forefront of the market. Since the requirements of consumers are constantly shifting, the innovativeness of the business and the way it interacts with customers need to change. The neuromarketing business is a massive help for Retail and Consumer Brands. It assists the brands in monitoring and evaluating the behavior of their customers. Neuromarketing determines the eyeball movement and the overall appeal of the client, the arrangement of items, and even the look of the shop or outlet from the outside. Consequently, there is an ever-increasing demand for neuromarketing among the various Retail and Consumer Brands.

It is anticipated that the Market Research sector will account for the second-highest market share during the forecast period, growing at a CAGR of 10.3%. Researching and gaining knowledge of consumers is at the heart of the market research business, just as it is in neuromarketing. On the other hand, market research organizations often focus on understanding customer behavior on the surface level via the emotions and responses they see. The global neuromarketing market would be very beneficial to market researchers and businesses. The market researchers would have a greater chance of understanding their subjects’ conscious and subconscious thought processes and tendencies, similar to the use of this data, which would also benefit from the introduction of digital marketing and client retention.

The Banking, Financial Services, and Insurance (BFSI) business is internationally significant, notably given the banking industry's huge percentage of consumers. The providers' websites must be user-friendly, simple to comprehend, and easy to follow. Many banks' online and smartphone apps aren't user-friendly. Besides inadequate interaction with the bank's other services, glitchy applications, or apps that shut down for no reason, even a functionally well-performing app might overlook its consumers' demands. Neuro marketers examine online user journeys and comprehend consumers’ emotional experiences when visiting a website or app.

Most neuroimaging investigations are undertaken in specialized scientific institutions. These institutions do neuromarketing and consumer neuroscience research. These institutions provide counseling on how to enhance a brand, product, ad, design, or pricing. Neuromarketing, neuroscience, marketing, economics, psychology, and bioengineering professionals are onboarded for these services. They also provide neuromarketing, pricing, advertising, and design online.

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.

Recent Developments

• May 2022- Mindspeller collaboration with Antwerp city extended.
• April 2022- NVISO SA partners with Brain-Chip aiming to understand human behavioral analytics.
• March 2022- Nielsen Enters into Agreement to be Acquired by Evergreen- and Brookfield-Led Consortium for USD 16 billion.