Artificial Intelligence (AI) Companionship Solution Market Report 2025

The artificial intelligence (AI) companionship solution market size has grown exponentially in recent years. It will grow from $0.11 billion in 2024 to $0.15 billion in 2025 at a compound annual growth rate (CAGR) of 37.4%. During the historic period, growth was driven by rising smartphone penetration. Other contributing factors included increased awareness of mental health and emotional wellness, higher levels of loneliness and social isolation, expansion into emerging markets, and growing consumer preference for personalized interaction.

The artificial intelligence (AI) companionship solution market size is expected to see exponential growth in the next few years. It will grow to $0.51 billion in 2029 at a compound annual growth rate (CAGR) of 37.1%. During the forecast period, growth is expected to be driven by increasing enterprise adoption of AI companions for employee wellbeing. Other contributing factors include the expansion of AI companions into healthcare systems, rising demand in emerging markets, greater regulatory support and trust safeguards, and growing integration with the metaverse and immersive environments. Key trends in this period include advancements in natural language processing, integration of multimodal interfaces, proliferation of smart devices and IoT connectivity, deployment for mental health support, and incorporation into education systems.

The rising prevalence of loneliness is expected to drive growth in the artificial intelligence (AI) companionship solution market. Loneliness is the distressing experience of feeling socially isolated, emotionally disconnected, and lacking meaningful interactions or companionship. Increasing loneliness is influenced by digital technology and social media, which, despite enabling virtual connections, can reduce face-to-face interactions and emotional bonds. AI companionship solutions help alleviate loneliness by providing interactive, empathetic, and personalized social engagement, offering conversation, emotional support, and companionship. For example, in October 2023, Intergenerational England reported that in 2022, 49.63% of UK adults (25.99 million people) experienced loneliness at least occasionally.

Companies in the AI companionship solution market are developing technologies such as AI-powered tools to deliver personalized emotional support, simulate human-like interactions, and enhance user engagement using adaptive learning algorithms. AI-powered tools use artificial intelligence to analyze data, mimic human behavior, and provide intelligent automated interactions or solutions. In March 2025, Mitsubishi Motors Corp., a Japan-based automotive manufacturer, launched The Intelligent Companion, an AI-powered interactive 3D guide designed to improve the 2025 Outlander buying experience. The tool provides personalized, natural-language responses to customer questions, allowing users to explore vehicle features in a bilingual, engaging environment, thereby enhancing customer satisfaction and delivering an immersive digital car-buying experience.

In April 2023, Zoom Communications Inc., a US-based software company, acquired Workvivo for an undisclosed amount. The acquisition allows Zoom to expand its platform to improve employee engagement, communication, and connection in hybrid work environments. Workvivo, based in Ireland, is an employee communications platform that offers AI companionship solutions.

Major players in the artificial intelligence (ai) companionship solution market are Zoom Video Communications Inc., Anima AI Ltd, Reflection AI Inc., Candy AI Inc., Kuki AI, Wysa Ltd., Elion Health Inc., Soul Machines Limited, Woebot Health Inc., Luka Inc., Blue Frog Robotics SAS, Earkick Inc., EVA AI Technologies Ltd., Intuition Robotics Ltd, Nomi.ai Inc., Portola AI, ZOSA Inc., Chai Research Corp., DreamGF Inc., and FriendNPal Inc.

North America was the largest region in the artificial intelligence (AI) companionship solution market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in artificial intelligence (AI) companionship solution report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the artificial intelligence (AI) companionship solution market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

An artificial intelligence (AI) companionship solution is a software or system powered by AI that delivers social interaction, emotional support, and engagement to users. These solutions utilize natural language processing, machine learning, and sometimes voice or visual interfaces to simulate human-like conversation, provide personalized responses, and support emotional well-being, entertainment, or cognitive engagement.

The main types of AI companionship solutions include hardware and software. Hardware refers to the physical components that enable AI companionship, such as robots, sensors, or wearable devices. Core technologies include natural language processing, machine learning, and emotional AI. These solutions are distributed through online platforms, retail outlets, and direct sales. Applications include elder care, mental health support, and personal companionship, serving end users such as healthcare providers, individuals, and assisted living facilities.

The artificial intelligence (AI) companionship solution market research report is one of a series of new reports that provides artificial intelligence (AI) companionship solution market statistics, including artificial intelligence (AI) companionship solution industry global market size, regional shares, competitors with an artificial intelligence (AI) companionship solution market share, detailed artificial intelligence (AI) companionship solution market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) companionship solution industry. This artificial intelligence (AI) companionship solution market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The artificial intelligence (AI) companionship solution market consists of revenues earned by entities by providing services such as virtual therapy sessions, mood tracking and feedback, conversational coaching, personalized wellness guidance, and daily reminder assistance. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) companionship solution market also includes sales of wearable AI devices, interactive robotic pets, voice-enabled smart assistants, AI-integrated mobile apps, and companion robot accessories. Values in this market are ‘factory gate’ values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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