Digital Scent Technology Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Digital Scent Technology Market Key Data

The digital scent technology market generated USD 1,094.9 million in 2023, and it is expected to witness a CAGR of 10.4% between 2024 and 2030, reaching USD 2,172.7 million by 2030.

Digital scent technology refers to the ability to detect, send, and receive fragrance-enabled digital material, including audio, video, and web pages. The technique makes use of hardware components, such as gas sensors, fragrance synthesizers, and e-noses, to detect and produce various odors.

Additionally, it makes it possible for the odor to be spread across the internet; thus, this technology is essential to e-nose. This modern equipment uses computerized noses and olfactometers. Scent-based games, movies, music, and other forms of interaction, which include scent-enhanced websites, are among the uses of digital scent technology.

It is also used in e-commerce to enhance the attraction and enjoyment of buying. Up until now, experiential technology has only focused on the visual and auditory senses of humans This is why games with realistic graphics have been available for a while. The advancements in digital scent technology make it possible to detect, send, and receive scents across the internet. This allows users to authenticate the freshness of food orders placed online or to sample a perfume before buying it.

Digital Scent Technology Market Trends & Drivers

Introduction to AI in Digital Scent Technology Is a Key Market Trend

• The sense of smell in humans is enabled by odor molecules released by both organic and inorganic objects. Things with higher energy can be ingested and absorbed through the nasal canal since odor dissipates. Digital smell works similarly, initially using biosensors to collect smell signatures, and then, software solutions are used to evaluate and present related data. The signatures are interpreted by artificial intelligence, which also categorizes them according to a database of previously gathered odors. 

• However, in recent developments, researchers have created a method that uses a molecule’s structure alone to forecast its scent signature. It can distinguish between molecules that have different looks as well as the same scent and molecules that have extremely similar looks but completely different smells.
• The complex interactions that connect the molecular structure to scent were found by researchers through the analysis of databases of 5,000 compounds with known odors, using an artificial intelligence technology, called graph neural networks.

Use of Digital Scent Technology in Fragrance Industry Drives Market

• The rise of online shopping has become a major factor for business expansion, and in order to stay competitive, many companies have made investments to enhance the customer experience. But, offering clients an extensive shopping experience brings specific difficulties for the fragrance sector.
• When purchasing a perfume or shampoo online, a consumer can see the product, its label, and its container, but cannot smell it until they are near it. The digital smell technology helps with product development in addition to enabling businesses to replicate the scent of their items online, so that buyers may digitally feel their aromas.
• Significantly, companies can develop and test new perfumes with the digital smell technology without sample requirements, which lowers expenses and boosts productivity.

Usage of Dangerous Chemicals in Scent Synthesizers Poses Challenge

• The possible negative health effects of the dangerous chemicals utilized in smell synthesizers lead to a major obstacle for digital fragrance technology companies. The widespread adoption of this technology is impeded by public concern and stringent health and safety regulations.
• Products containing fragrances or other chemicals that give off a scent are made utilizing a variety of synthetic and organic raw materials. Many chemicals used in fragrances and scents have serious side effects and risk of several acute or chronic illnesses.
• Additionally, ethical considerations, such as privacy and autonomy concerns, and limitations in market reach hamper the adoption of this technology. To tackle these issues, the digital scent technology industry needs to make research investments, put safety regulations into place, encourage transparency, and concentrate on moral applications. By achieving this, the market for digital fragrance technologies can open the door to a more sustainable future. Moreover, the scents produced this way may be harmful to human health for a variety of reasons, including tampered data and malfunctioning equipment.
• The market may also be impacted by the side effects of common-scented items. As customers’ awareness of their health and safety grows, the market might face hurdles.

In-Depth Segmentation Analysis

Digital Scent Technology Type Insights

E-nose is the larger category as it is more commonly used in a range of industries, including food and beverages, military and defense, and healthcare, than fragrance synthesizers. The principal drivers for the growth in the usage of e-noses are ongoing technological developments in them and their declining cost. The expansion of the healthcare industry, increase in research and development activities, and the emergence of new applications in sectors such as automotive and entertainment further encourage the market growth in this category.

A prototype of a mobile e-nose was unveiled for online breath analysis in April 2023. With a gas sensor array made up of eight materials containing graphene, the gadget is able to distinguish respiratory disorders from 401 breath samples with 80% accuracy, demonstrating its potential for individualized health monitoring. The product focused on the importance of non-invasive diagnostics and emphasized the significance of prompt and appropriate therapy in the management of respiratory health.

During the study, we have analyzed two types of digital scent technologies in the report:

• E-Nose (Larger and Faster-Growing Category)
• Scent Synthesizer

Digital Scent Product Type Insights

The smartphones category held the largest share in 2023, as these consumer electronics are becoming increasingly popular. This is why the usage of digital fragrance technology in marketing, medical, and food and beverage applications are rising. Through the use of a smartphone app, e-noses can identify scents, helping consumers with product options.

The potential for integrating this technology into smartphones is enormous as it can greatly enhance user experiences. It can lead to increased immersion in multimedia applications as users can smell scenes of movies or the scents created by racing games. Personalized notifications can be enhanced by using the scent of coffee, freshly washed clothes, or other pleasant things for a less intrusive and more engaging experience. Outside of entertainment, digital scent smartphone apps can be used as accessibility tools for the blind or for health and wellness purposes.

On the basis of product type, market data has been divided into several categories:

• Smartphones (Largest and Fastest-Growing Category)
• Smelling Screens
• Music and Video Games
• Explosives Detectors
• Quality Control Products
• Medical Diagnostic Products
• Others

Digital Scent Application Analysis

Due to the increasing application of this technology to make patient treatment decisions, medical diagnostics, and nutritional stress assessment for metabolic disorders, the healthcare category holds the biggest market share in the market. Many startups and established medical device and consumer electronics companies are introducing advanced digital scent products for these and many more healthcare applications.

E-noses help patients take better care of their health and give medical professionals detailed data related to their olfactory senses and related conditions. The increasing occurrence of illnesses such as cancer and tuberculosis are encouraging the creation of digital-scent-technology-based medical diagnostic tools.

On the basis of application, the market has been divided into several categories in the report:

• Food and beverages
• Military and Defense
• Healthcare (Largest and Fastest Category)
• Environmental Monitoring
• Entertainment
• Communication
• Others

North America Leads the Global Market

• North America holds the largest share in the market due to the existence of several major competitors offering products with digital scent technology.
• The increasing customer adoption of improved digital services, the use of biosensors for early illness diagnosis, the demanding indoor air quality regulations in the U.S., and significant e-nose innovations in the medical and agriculture sectors are the main factors encouraging the market’s growth. As more people become aware of the potential applications of the associated products, the U.S. will continue to lead the North American market.
• Due to the advancements in electronic nose products, the U.K. is predicted to be the fastest-growing country in the European market.
• With the increasing popularity of digital fragrances in the commercial sector, the U.A.E. dominates the MEA market for this technology.

The regions and countries analyzed for this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa
  • U.A.E. (Largest and Fastest-Growing Country Market)
  • Rest of MEA

The Market is Fragmented

• The leading provider of electronic tongues and noses for sensory analysis is Alpha MOS. The business was established in 1993, and since then, it has grown significantly. Its digital smell technology solutions are widely used in a variety of industries, including cosmetics, automobiles, and food and beverage. With a robust global footprint, Alpha MOS is steadily increasing its market share.
• All things considered, the digital smell technology market is highly competitive, with the leaders being Odotech, Owlstone, and Alpha MOS. These businesses have a strong track record, substantial market expansion potential, and creative solutions that meet the changing demands of global industries. Businesses have several chances to leverage digital fragrance technology as the market grows.

Digital Scent Technology Industry News

• In January 2024, for USD 2,025 billion in cash, Amphenol Corporation purchased Carlisle Interconnect Technologies (CIT) from Carlisle Companies Inc. This move was made to strengthen Amphenol's portfolio of connected solutions for the industrial, defense, and commercial aviation markets.
• In March 2023, Siemens introduced Connect Box, an IoT platform designed to manage small to medium-sized buildings. It links tracks, and manages buildings as part of Siemens Xcelerator. Connect Box also makes device integration simple with its open digital platform and provides cloud access for building management activities.