Brain Computer Interface Market Size, Share & Trends Analysis Report By Product (Invasive, Non-invasive), By Application (Healthcare, Communication & Control), By End Use, By Region, And Segment Forecasts, 2024 - 2030

Brain Computer Interface Market Trends

The global brain computer interface market size was estimated at USD 2.0 billion in 2023 and is projected to grow at a CAGR of 17.8% from 2024 to 2030. Key market drivers include the increasing prevalence of conditions requiring neuroprosthetics devices, the rising global geriatric population base, and technological developments facilitating communication and movement in paralytic patients.

Furthermore, the use of this technology in home control systems, virtual gaming, and military communication enhances the market's applicability, fueling its growth.

The increasing prevalence of neurodegenerative disorders is a significant driver of growth in the brain computer interface (BCI) market. Neurodegenerative disorders, such as Alzheimer's disease, Parkinson's disease, Amyotrophic Lateral Sclerosis (ALS), and Multiple Sclerosis (MS), are characterized by the progressive degeneration of neurons, leading to a gradual loss of function in the affected areas of the brain and nervous system.

According to the WHO report, around 82 million people will be affected by dementia by 2030 and this number will reach 152 million by 2050. This shows the potential demand for BCI in the coming years. These conditions can severely impact an individual's motor functions, communication abilities, and overall quality of life. As the global population ages, the incidence of these disorders is expected to rise, creating a pressing need for innovative solutions that can help manage symptoms, restore lost functions, and improve the lives of affected individuals.

BCI technology offers a promising avenue for addressing the challenges posed by neurodegenerative disorders. By establishing a direct communication pathway between the brain and external devices, BCIs can bypass damaged neural pathways, enabling individuals to control devices, communicate, and interact with their environment in ways that would otherwise be impossible. For example, in cases of severe motor impairment, such as those caused by ALS, BCIs can provide a means for patients to communicate through text-to-speech systems or control assistive devices, such as wheelchairs or robotic arms. This capability not only enhances the autonomy and quality of life for individuals with neurodegenerative disorders but also reduces the burden on caregivers and healthcare systems.

Furthermore, growing awareness of the potential benefits of BCIs is also contributing to market growth. Advances in neuroscience and technology have led to a better understanding of how BCIs can be used to address specific challenges faced by individuals with neurodegenerative disorders. The launch of consumer-grade BCI devices, such as Neuralink's brain implant demonstration in August 2020, has further heightened public awareness and interest, creating a fertile ground for market growth.

The COVID-19 pandemic has significantly influenced the growth of the BCI market. The pandemic accelerated the adoption of telemedicine and remote monitoring technologies, increasing interest in BCIs for healthcare applications, particularly in aiding patients with neurological conditions. In addition, the focus on advancing medical technology for better patient outcomes during the pandemic has spurred investment in innovative BCI solutions.

However, supply chain disruptions and economic uncertainties have posed challenges, potentially delaying development and deployment. Overall, COVID-19 has highlighted the importance of BCI technologies in modern healthcare, fostering both opportunities and challenges for market growth.

Case Study & Insights

Case Study: Brain-Computer Interface Enables amyotrophic lateral sclerosis (ALS) Patient to Control Home Devices

• The study involved implanting a Brain-Computer Interface (BCI), named CortiCom, on brain areas associated with speech and upper limb function in a patient with ALS, a progressive neurodegenerative disease affecting muscle and speech functions.

• A patient, aged 62, diagnosed with ALS in 2014, faced severe swallowing and speech difficulties, making communication challenging.

• In 2023, using the BCI and a specialized computer algorithm, the patient could translate brain signals into commands, enabling him to operate a communication board with six basic commands (left, right, up, down, enter, and back) to control smart devices such as room lights and streaming TV applications.

Market Concentration & Characteristics

The degree of innovation in the brain computer interface industry is high. Technological innovation is driven by use of various sensors, integration with AI and ML advancements to enhance the performance and accuracy. For instance, in July 2024, Synchron, a company specializing in brain-computer interfaces (BCIs) to restore functionality in individuals with motor impairments, announced the integration of OpenAI-powered generative AI into its BCI platform. This integration introduced a new chat feature designed to enhance the technology's functionality.

The M&A activities, such as mergers, acquisitions, and partnerships, enable companies to expand geographically, financially, and technologically. For instance, in May 2022, Blackrock Neurotech acquired MindX, a spatial computing software firm, to enhance the development of its advanced brain-computer interface products.

“By fusing our hardware DNA with their software DNA, we enhance our neural data analysis and enable flexibility and customization for a variety of BCI applications. Furthermore, the opportunity to broaden applications through spatial software and [augmented reality] exponentially advances our commercialization aims.”

- Blackrock co-founder and CEO

The BCI industry is regulated by various regulatory bodies, such as the FDA. For instance, in May 2021, the FDA issued a guidance document offering recommendations for Investigational Device Exemptions (IDEs) and Q-Submissions related to implanted BCI devices for patients with amputation or paralysis. The document outlines recommendations for non-clinical testing and clinical study design for these devices. As a "leapfrog" guidance, it provides early insights into emerging technologies that are anticipated to be important for public health, with the understanding that recommendations may evolve as further information emerges.

The brain-computer interface industry is experiencing significant geographical expansion, driven by advancements in technology and increasing investment across regions. North America remains a dominant region, leveraging its robust research infrastructure and strong presence of key market players. On the other hand, significant growth is also being observed in Europe and Asia-Pacific.

European countries, particularly Germany, France, and the UK, are investing heavily in BCI research and development, driven by the increasing focus on neurological and psychological applications. Moreover, Asia-Pacific is emerging as a lucrative market, with countries like China, Japan, and South Korea actively developing BCI technologies, supported by government initiatives and a growing number of tech startups.

For instance, Nexstem, an India based startup founded in 2020, is developing a non-invasive mind-controlled solution using advanced EEG technology. The startup is exploring the wide applications of brain-computer interfaces, opening new frontiers in neurotechnology. Such geographical diversification is fostering innovation and competition, accelerating the overall growth and adoption of BCI technologies worldwide.

Product Insights

The non-invasive BCI segment dominated the market with the largest revenue share of 85.94% in 2023, owing to the high applicability of this technology to products, such as headsets, amplifiers, and gaming sticks, contributing to the massive revenue generation. This system is considered to be the safest as the approach is less intrusive, which is further fueling the segment growth. In addition, numerous research projects are going on in this field. For instance, in June 2019 Carnegie Mellon University in collaboration with the University of Minnesota developed the first-ever mind-controlled robotic arm using BCI technology, which can track and follow a computer cursor.

The invasive segment is expected to witness lucrative growth over the forecast period. The growth in this area is driven by BCI technology's ability to provide functionality to paralyzed individuals through brain-controlled robotic limbs and restore vision by connecting the brain to an external camera. However, the invasive nature of these devices, implanted in the grey matter, can lead to scar tissue buildup. To address these challenges, market players are collaborating to develop advanced implantable BCIs. For example, in March 2024, Mass General Brigham Incorporated announced the formation of the Implantable Brain-Computer Interface Collaborative Community (iBCI-CC), the first collaborative community in clinical neurosciences to involve the U.S. FDA.

Application Insights

The healthcare segment held the highest market share in 2023, owing to the high applicability of this technology in the treatment of sleep disorders, neurological diseases, paralytic patients, and in studying neuroscience. Moreover, technological advancement & increasing initiatives by the key industry players are further fueling the market growth. For instance, in May 2024, CorTec received FDA approval for an investigational device exemption (IDE) application for its closed-loop brain-computer interface. This IDE permits the University of Washington School of Medicine to assess CorTec’s Brain Interchange implant system in a clinical study, focusing on a novel stroke rehabilitation treatment that utilizes cortical stimulation to promote brain plasticity.

The smart home control segment is projected to witness lucrative growth due to increased demand for a better lifestyle. With smart home controls, people are experiencing better convenience and comfort, from security monitoring to operating entertainment systems and appliances to maintaining connectivity. For instance, in March 2024, AAVAA introduced its new technology for integration with smart glasses. The BCI System for Smart Glasses aims to enhance device control across smart home applications, augmented reality (AR), virtual reality (VR), gaming, and assistive technologies, representing a significant advancement in accessibility and immersive experiences.

End Use Insights

The medical segment dominated the market with the largest revenue share in 2023. The growth is attributed to the application of BCIs in assisting disabled patients, including those with paralysis, epilepsy, Parkinson's, and Alzheimer's, to perform activities independently. BCIs enable the operation of wheelchairs, prosthetics, and other devices. Consequently, market players and universities are developing BCIs to meet these needs. For example, in August 2023, researchers from UC Berkeley and UC San Francisco developed a BCI that allows a woman with severe paralysis from a brainstem stroke to communicate using a digital avatar. This marks the first instance of synthesizing speech or facial expressions directly from brain signals. In addition, the system can decode these signals into text at nearly 80 words per minute, a significant improvement over existing technologies

The military segment is projected to experience significant growth over the forecast period, driven by its increased use in war activities. This includes the development of mobile robots equipped as weaponized drones and advanced communication systems, such as DARPA's "Silent Talk," which aims to enable telepathic command communication among soldiers. In addition, in 2018, DARPA launched a program to design a portable neural interface system capable of simultaneously interacting with multiple brain regions. The objective is to create a non-invasive brain-computer interface (BCI) for able-bodied service members by 2050, enhancing national security applications. This BCI could allow real-time thought communication between special forces soldiers and commanders, enabling immediate updates and quicker responses to threats.

Regional Insights

North America brain computer interface market dominated the global market with the largest revenue share of 39.4% in 2023, primarily due to high R&D investments and a large number of clinical trials being conducted on brain devices in this region. In addition, the rising incidence of neurodegenerative conditions such as Parkinson's, Alzheimer's, and Huntington's disease in this region is expected to propel market growth. For instance, in 2022, the Alzheimer's Association reported a rise in the number of cases, highlighting the need for innovative solutions like BCIs to assist affected individuals. Moreover, the rising demand for immersive gaming is expected to lead to the development of technologies such as augmented brain-computer interfaces that further boost the adoption of BCI technology in this region.

U.S. Brain Computer Interface Market Trends

The brain computer interface market in the U.S. accounted for the largest share in 2023. One of the key factors driving the market growth is initiatives undertaken by market players and medical schools to advance BCIs and their applications. For instance, in March 2024, a team of neurosurgeons and neuroscientists from Mount Sinai's Icahn School of Medicine became the first in New York to investigate a new BCI designed to map extensive areas of the brain's surface in real-time, with a resolution hundreds of times greater than conventional arrays used in neurosurgical procedures.

Europe Brain Computer Interface Market Trends

The brain computer interface market in Europe is expected to grow significantly during the forecast period. This growth is driven by increasing strategic initiatives that promote adoption through various events. For example, in June 2024, ONWARD Medical N.V. will be featured in a keynote presentation at HLTH Europe, a leading event for digital health leaders. The company's CEO, along with a trial participant, will discuss the investigational ARC-BCI Therapy, which uses artificial intelligence to enable thought-driven movement after paralysis. The group will also explore the future of therapies for spinal cord injuries (SCI) and share the experience of Gert-Jan, the first person implanted with a brain-computer interface to restore walking.

The brain-computer interface market in the UK had a substantial share in 2023. The growth is attributed to the increasing participation by market players in various competitions that promote designing and developing BCI solutions. For instance, in December 2021, an Imperialstartup from London won the global BEETL AI Challenge for EEG Transfer Learning competition, sponsored by Facebook Reality Labs, for its brain-computer interface technology.

The France brain computer interface market is positively influenced by the increasing efforts to develop and adopt AI-based healthcare solutions. For instance, in May 2024, Allianz Trade and Inclusive Brains, a French startup specializing in generative AI-powered neural interfaces, partnered to develop Prometheus. This brain-machine interface converts neurophysiological data, including heart activity, brainwaves, eye movements, and facial expressions, into mental commands.

Asia Pacific Brain Computer Interface Market Trends

The brain computer interface market in the Asia Pacific region is expected to exhibit the highest growth over the forecast period. Significant untapped opportunities, increasing healthcare expenditure, and growing awareness amongst patients are expected to drive the demand for brain-computer interfaces in this region.

The brain-Computer Interface market in China is witnessing substantial growth, driven by advancements in neuroscience, artificial intelligence, and neurotechnology. The market is benefiting from the increasing adoption of BCI technologies in various sectors, including healthcare, gaming, and military applications. In healthcare, BCIs are being explored for their potential in treating neurological disorders, enhancing rehabilitation, and enabling communication for individuals with disabilities. For instance, in April 2024, China introduced its novel self-developed NeuCyber Array BMI System, a self-developed brain-machine interface from China, at the opening ceremony of the 2024 Zhongguancun Forum in Beijing.

“The NeuCyber Array BMI System fills the gap in high-performance invasive brain-machine interface technology in China.”

“The BMI serves as the "information highway" for the brain, facilitating communication with external devices and providing cutting-edge technologies in human-machine interaction and hybrid intelligence.”

-said director of the Chinese Institute for Brain Research in Beijing

The growing interest in integrating BCIs with other emerging technologies, such as artificial intelligence and virtual reality, is expected to further fuel market growth, making China a pivotal player in the global BCI landscape.

The Japan brain computer interface market held a significant market share in the region in 2023. The increasing development, research and adoption of AI-based healthcare solutions is one of the key factors contributing to market growth. For instance, in March 2024, researchers at Kobe University developed a method to identify relevant input data, providing insights into AI algorithms and potentially advancing brain-machine interface technology. They demonstrated that an AI image recognition algorithm could predict a mouse's movement status based on brain functional imaging data.

The brain computer interface market in India is driven by the increasing initiatives by the government. For instance, the "Advancing MEG-based Brain-Computer Interface Supported Upper Limb Post-Stroke Rehabilitation" project was funded by the Department of Science and Technology (DST) of the Government of India and the UK India Education and Research Initiative (UKIERI) phase-II under the DST-UKIERI Thematic Partnership program till 2020. This international collaboration focuses on three key components: exoskeleton, brain-computer interface (BCI), and rehabilitation.

Key Brain Computer Interface Company Insights

Some major players catering to the market are Natus Medical Incorporated, Brain Products GmbH, Compumedics Neuroscan, EMOTIV, and Neurosky, among others. There are various small and large manufacturers offering products, resulting in intense competition among the manufacturers.

The industry players are increasing their focus on strategic partnerships such as mergers and acquisitions, new product launches & partnerships & collaborations to get maximum revenue share in this sector. In June 2020, Ripple Neuro partnered up with Brain Electrophysiology Laboratory Company, LLC. The partnership was anticipated to offer seamless integration of Ripple Neuromed’s Quest & Nomad neurophysiology research platform with BEL’s Geodesic Head Web HD-EEG sensor technology. Similarly, in May 2020, the company partnered up with CGX, to provide CGX Quick System that is a dry electrode, high-grade, and wearable headsets. Thus enhancing the product portfolio.

Recent Developments

• In April 2023, Blackrock Neurotech and the American Association for the Advancement of Science (AAAS) announced the first BCI art exhibit to be showcased at AAAS headquarters in Washington, D.C. This exhibit will display works created by patients with paralysis using Blackrock's thought-to-cursor implantable BCI technology.

• In January 2023, Synchron announced that JAMA Neurology published long-term, peer-reviewed safety results from a clinical study involving 4 patients with extreme paralysis who were implanted with Synchron's first-generation Stentrode neuroprosthesis device. Developed in collaboration with Ripple LLC, this system utilized Ripple's neural sensing technology for signal acquisition, data telemetry, and signal processing.

Brain Computer Interface Market Report Scope

Global Brain Computer Interface Market Report Segmentation

This report forecasts revenue growth and provides global, regional, and country levels analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this report, Grand View Research has segmented the global brain computer interface market report based on product, application, end use, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Invasive BCI

  • Partially Invasive BCI

  • Non Invasive BCI

• Application (Revenue, USD Million, 2018 - 2030)

  • Healthcare

  • Smart Home Control

  • Communication and control

  • Entertainment & Gaming

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Medical

  • Military

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Argentina

    • Mexico

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait