Sep 23, 2024

The emotional AI market is projected to grow at a CAGR of 13.34% over the forecast period, from US$3.745 billion in 2024 to US$7.003 billion by 2029. According to the World Health Organization, there are about 1 case of autism in every 100 children in the globe. The organization also stated that the characteristics of the disease can be detected in early childhood, but it is not generally diagnosed in the later age of the children. Similarly, the cases of depression are also significantly increasing in other parts of the world. For instance, in Canada, about 6.5% of the population between the ages of 15 and 24 suffer from major depression annually, and about 7% of the adults have symptoms of depression. Further, the Mental Disorders in Canada report by Statistics Canada stated that in the nation, the 12-month prevalence of anxiety, mood, or substance disorder reached 18% in 2022. As stated by the report, the social phobia was recorded at about 7.1%, whereas the major depression episodes were at about 7.6% in 2022. General anxiety and bipolar disorder were observed at about 5.2% and 2.1%, respectively, having a 12-month prevalence in the year. The increased use of chatbots is expected to boost the demand for emotional AI globally Chatbots with emotional intelligence are essential in helping people who are struggling with mental health problems. These AIs can recognize signs of stress and provide sympathetic responses to reduce anxiety. Their ability to offer coping mechanisms is by far their most valuable feature. Further, emotion recognition from text is a more complex task than facial recognition. It is an essential component for many applications, particularly chatbots. Emotional AI has greatly improved chatbots' ability to accurately identify emotions from text. For instance, the EVI platform from Hume AI released an iOS app version that includes the sophisticated AI chatbot Kora and the Claude 3.5 Sonnet large language model (LLM) for powerful chat capabilities. The introduction of Hume's emotive AI chatbot app highlights the growing competition to create customized AI assistants. Moreover, emotional AI provides businesses with strong solutions, such as brand perception analysis, employee engagement tracking, and customer feedback. It also achieves more client satisfaction and better response rates, which increases the adoption of chatbots in different industries. For instance, as per Statistics Canada, 66.8% of industries reported using chatbots, increasing market demand. Rising utilization in different industrial sectors will bolster the emotion AI market expansion Artificial intelligence is transforming the creation of content by immediately detecting emotions, analyzing them, and responding the way a human does. The entertainment sector understands that targeting the right group matters more than the content itself. At the same time, corporations would also like to know their client's tastes and emotions better- this is where emotional AI in movies comes in handy. For instance, MorphCast Emotion AI allows for the creation and delivery of interactive emotional content. However, it can also be used to analyze the emotional response to particular content, test content to determine whether or not it will be commercially successful, and recommend to users what to watch or listen to based on their demographics or emotions. Further, people can use AI for emotional purposes. It can read body language, tone of voice, and facial expressions to understand what other individuals feel about some content. OTT and the broadcasting sector benefit from this by increasing user satisfaction and making more accurate decisions. The technology will enable analysts to get better at narrating stories for their audiences by offering them a peek at what goes through an athlete's mind, such as when he/she makes a throw-in during a basketball game or scores a goal during a soccer match. Further, studio cameras could also capture and record the display of emotion analyses on monitors by companies like MorphCast. This will add another dimension to the watching experience besides enhancing the audience's understanding of sportspersons' emotional stress and intensity. Canada is anticipated to significantly propel market growth The Canadian market for emotional AI is expected to grow significantly in the projected period owing to the strong adoption of artificial intelligence (AI) among various end-users, such as healthcare, media, retail, and finance. Moreover, this technology can be used for content personalization, employee well-being, and customer engagement. The increasing investment in the Canadian AI market by the country's government is expected to positively impact Canada's emotional AI market in the projected period. For instance, in April 2024, an investment of US$2.4 billion was implemented in the upcoming Budget 2024 for Canada's AI advantage. This investment aims to boost Canada's AI sector and increase productivity by helping researchers and businesses adopt AI and ensure smooth usage. Of this investment, US$200 million will be invested in deploying AI in various sectors such as healthcare, agriculture, clean technology, and manufacturing. Hence, such increased investment in the AI market in Canada is anticipated to propel the market growth in the coming years. The broadcasting and television industry is increasing in the country. In the projected period, with the use of artificial intelligence in this industry, the broadcasting and entertainment industry is anticipated to propel. For instance, according to the Canada Radio-television and Telecommunications Commission, the conventional television sector revenue in 2022 was US$1.49 billion, which was a 5% increase over the previous year, when the revenue was US$1.42 billion. According to the Government of Canada Consultation on Artificial Intelligence (AI) Compute, Canada is one of the renowned countries in the AI ecosystem. Over 1,500 companies are developing AI solutions, and 10% of the world's top-tier researchers are second globally. The increasing viewership data in the country is one of the major factors propelling the AI sector in the projected period. Emotional AI Market Key Players: Woebot is a company that provides a therapeutic chatbot using Emotional AI to help people improve their mental health. To assist people in controlling their emotions and overcoming obstacles, Woebot offers cognitive-behavioral therapy (CBT) along with other psychological approaches. Hopelab is an impact investor and transformative social innovation lab that supports youth mental health, specifically for BIPOC and LGBTQ+ youth aged 10 to 25. To create systems change, it works with entrepreneurs, funders, researchers, and young change-makers at tech and mental health intersections. They also create a thriving future for underserved youth through philanthropic investment, collaborations, and intergenerational partnerships. Key Attributes: