According to a new report, published by KBV research, The Global AI Companion Market size is expected to reach $174.39 billion by 2031, rising at a market growth of 29.8% CAGR during the forecast period.
Leading technology companies, including Google, Amazon, Microsoft, and IBM, have heavily invested in AI research and development, contributing to the growth of the market. These companies drive innovation in AI-powered virtual assistants and digital companions, helping businesses and consumers take full advantage of AI capabilities.
The Social Interaction & Companionship segment is experiencing a CAGR of 29 % during the forecast period. This growth is driven by the increasing demand for AI companions to reduce loneliness and provide emotional support, especially among the elderly and individuals living alone. Integrating advanced conversational AI and personalized responses enhances user experience, making AI companions more engaging and lifelike.
The Text-based AI Companions segment led the maximum revenue in the Global AI Companion Market by Type in 2023, thereby, achieving a market value of $93.1 billion by 2031. This can be attributed to their widespread adoption in messaging platforms and mobile applications, offering personalized conversations through text interactions. Text-based AI companions are popular for their ease of use and cost-effectiveness, making them accessible to a broad audience.
The Consumer segment is growing at a CAGR of 28.9 % during the forecast period. This growth is driven by the increasing adoption of AI companions for personal use, such as social interaction, entertainment, and emotional support. AI-powered virtual companions are becoming more popular among tech-savvy users and those seeking companionship, especially in smart home ecosystems.
Full Report: https://www.kbvresearch.com/ai-companion-market/
The North America region dominated the Global AI Companion Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $56.7 billion by 2031. The Asia Pacific region is anticipated to grow at a CAGR of 30.4% during (2024 - 2031). Additionally, The Europe region would witness a CAGR of 29.6% during (2024 - 2031).
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