Eye Tracking Market Size, Share and Growth Analysis

Eye Tracking Market Size and Growth

The global eye tracking market is projected to grow from USD 368 million in 2020 to USD 1,098 million by 2025, at a compound annual growth rate (CAGR) of 24.5%. This growth is driven by increasing adoption in sectors such as healthcare, gaming, and marketing research, where understanding user behavior is crucial. Advancements in technology have enhanced the accuracy and expanded applications of eye tracking, including integration with virtual reality (VR) and augmented reality (AR) platforms. The Asia-Pacific region is expected to witness significant growth during this period, attributed to rising investments in research and development activities and the proliferation of smart sensors. Key players in the market include Tobii (Sweden), SR Research (Canada), Seeing Machines (Australia), and Smart Eye (Sweden).

The Eye Tracking Market is experiencing substantial growth driven by increasing demand in sectors such as healthcare, gaming, and marketing research. Key trends include advancements in technology that enhance accuracy and expand applications, such as virtual reality and user experience analysis. The integration of eye-tracking features in smartphones and other consumer devices is also contributing to market expansion. As industries recognize the value of understanding user behavior, the eye tracking market is poised for continued innovation and growth in the coming years.

The growing need for eye tracking technology across a range of industries, including research, healthcare, and gaming, is driving the eye tracking market. With the help of eye tracking technology, eye movements may be precisely measured and analysed to reveal information about human cognition and behaviour. The growth of the market is driven by the high demand for eye trackers in the healthcare industry for assistive communication applications. Moreover, the increasing adoption of eye tracking technology in the consumer electronics sector and the rising demand for personalized advertisements and consumer research are also key factors propelling eye tracking market growth.

Eye Tracking Market Trends and Dynamics:

Driver: Rising adoption of eye-tracking technology in advertisement and consumer research

Eye-tracking technology has been extensively adopted for market research activities. There is an increasing demand from retail, specifically from the FMCG sector, to utilize eye-tracking technology to increase sales revenue. Eye-tracking devices and related algorithms are being used to gain insights into consumer behavior at a retail store. These devices and algorithms help ascertain how much time a consumer spends browsing a product, what the best product layout to prompt a buy at a store is, and what packaging provides the best product information for the customer’s benefit. Market research using eye tracking is also extended to web marketing activities and evaluating advertisements in print, signage, and digital media.

Restraint: Growth in gesture recognition market

Gesture recognition technologies are utilized to operate a device without touching them. The major drivers for the gesture recognition market include the surging application of gesture control features in automobiles, increasing digitalization across industries, favorable programs deployed by government, and reduction of hygiene concerns due to the presence of touchless sanitary solutions. Gesture recognition technology has various applications in automotive, aerospace, consumer devices, and many other fields.

The technology can also be utilized for operating computing devices to communicate with other person or environment by gesture control. Therefore, gesture recognition technology is also an important contender that can cater to assistive communication applications. However, the devices-based on gesture recognition can be utilized by limited types of patents or users. The impact of this restraining factor is currently moderate/medium on the eye tracking market research and is expected to remain the same during the forecast period.

Opportunity: Penetration of eye tracking technology in AR/VR devices

The demand for augmented reality (AR) and virtual reality (VR) devices is on the rise owing to various factors, such as the ability to offer an enhanced experience to the users, improve image quality, helping eyes to reduce strain and improve focus. Eye-tracking technology can be integrated into AR/VR devices, such as headgears and PCs; this provides growth opportunities for eye-tracking technology. Many industry leaders have identified this opportunity and undertaken research into these fields.

Challenge: Hindrance in eye tracking market supply chain due to COVID-19

Many countries had imposed or are continuing to impose lockdowns to contain the spread of COVID-19. This has disrupted the supply chain of various markets, including the eye tracking market research. This hindrance in the supply chain is creating challenges for eye-tracking-based device manufacturers in manufacturing and supplying their products.

Market for mobile eye tracking to grow at highest CAGR during forecast period

The eye tracking market for mobile eye tracking is expected to grow at a higher CAGR during the forecast period. Mobile eye tracking provides more degree of freedom for the subject, which entails more natural head and eye movement to be recorded. This approach is gaining traction in market research applications, especially in the retail and advertisement sector. The setup generally includes lightweight glasses and high-resolution cameras, which trace the eye movement via reflection of light onto the headgear.

Assistive communication application to account for largest market share during forecast period

The eye tracking market, by application, is segmented into assistive communication, human behavior & market research, and others. Assistive communication application is expected to dominate the eye tracking market, in terms of size, during the forecast period. The need for effective assistive communication devices for physically impaired people and improvements in eye tracking technology has led to the growth in the demand for eye trackers in the healthcare vertical, this is the primary reason behind the largest share of this segment in the eye tracking market research.

North America to account for largest market share during forecast period

North America is expected to account for the largest share of the eye tracking market during the forecast period. The dominance of this sector can be attributed to the comparative economic superiority of the region. The increasing use of advanced technology in the healthcare sector and growing research activities to understand the human behavior are a few of the key factors driving the growth in North America.

Top Key Plyers in Eye Tracking Market

• Tobii (Sweden),
• SR Research (Canada),
• Seeing Machine (Australia),
• Smart Eye (Sweden),
• EyeTech Digital Systems (US),
• EyeTracking (US), and

Eyegaze (US), PRS IN VIVO (US), Ergoneers (Germany), iMotions (Denmark), and EyeSee (Belgium) are among the key players operating in the eye-tracking market.

Eye Tracking Market Size and Scope

This research report categorizes the eye tracking market based on offering, tracking type, application, vertical, and region.

Eye Tracking Market, by Offering

• Hardware
• Software
• Research & Consulting Services

Eye Tracking Market, by Tracking Type

• Remote Tracking
• Mobile Tracking

Eye Tracking Market, by Application

• Assistive Communication
• Human Behavior & Market Research
• Others

Eye Tracking Market, by Vertical

• Retail & Advertisement
• Consumer Electronics
• Healthcare & Research Labs
• Government, Defense, and Aerospace
• Automotive & Transportation
• Others

Eye Tracking Market, by Geography

• North America (US, Canada, and Mexico)
• Europe (UK, Germany, France, and Rest of Europe)
• APAC (China, Japan, South Korea, and Rest of APAC)
• RoW (South America, Middle East, and Africa)

Recent Developments in Eye Tracking Industry

• In June 2020, Tobii Pro, a business unit of Tobii (Sweden), announced the launch of Tobii Pro Glasses 3—its next-generation of wearable eye tracker built for measuring attention in any real-world scenario.
• In May 2020, Tobii Dynavox, a business unit of Tobii (Sweden), announced the launch of I-Series, its next-generation communication device, with built-in eye tracking. The new I-Series is developed for people with disabilities such as cerebral palsy and amyotrophic lateral sclerosis (ALS). It provides them with a voice to communicate and become more independent.
• In October 2019, Seeing Machines (Australia) partnered with North America’s 5th largest airline, Alaska Airlines (US), to deliver advanced eye and gaze tracking capabilities to the airlines using its Crew Training System.

Critical questions answered by this report:

• What are the key strategies adopted by key companies in the eye tracking market and how will all these developments take the industry in the mid to long term?
• What are the emerging applications of eye tracking technology?
• How are advancements in consumer electronics, automotive, and other verticals influencing the eye tracking market?
• Which type of eye tracking product is expected to penetrate significantly in the eye tracking market?
• Which countries are expected to witness significant growth in the eye tracking market?

Frequently Asked Questions (FAQ):

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