Bringing emotion recognition (ER) out of the controlled laboratory setup into everyday life can enable applications targeted at a broader population, e.g., helping people with psychological disorders, assisting kids with autism, monitoring the elderly, and general improvement of well-being. This work reviews progress in sensors and machine learning methods and techniques that have made it possible to move ER from the lab to the field in recent years. In particular, the commercially available sensors collecting physiological data, signal processing techniques, and deep learning architectures used to predict emotions are discussed. A survey on existing systems for recognizing emotions in real-life scenarios—their possibilities, limitations, and identified problems—is also provided. The review is concluded with a debate on what challenges need to be overcome in the domain in the near future.