USD 12.9 Billion
Report ID:
SQMIG45E2176 |
Region:
Global |
Published Date: February, 2024
Pages:
165
|
Tables:
100 |
Figures:
76
Generative AI Market size was valued at USD 12.9 Billion in 2019 and is poised to grow from USD 17.1 Billion in 2023 to USD 165.49 Billion by 2031, at a CAGR of 32.8% during the forecast period (2024-2031).
The generative AI market is expected to experience a remarkable growth accompanied by the deep learning and neural networks revolutions as well as implementation in diverse sectors like healthcare, automotive, gaming, media and so on. And as the volumes of big data are increasing and the need for new approaches to derive meaningful insights from it grows, more and more companies are adopting generative AI technologies for their capability to create new words, images and layouts automatically.
Additionally, the growing need for personalized interfaces and the use of generative AI in VR and AR applications have been aided by these factors in the market expansion. Companies are rapidly investing in research and development sectors towards making the generative AI algorithms more effective and sophisticated, thus leading to the evolution of more advanced and real-like outputs. Moreover, the role of generative AI in drug discovery, financial planning, and autonomous cars would enable the creation of fresh opportunities for market participants.
On the positive side, AI-powered content generation may overcome some of the obstacles of traditional content creation such as cost, speed, and volume. On the other hand, there are ethical issues regarding AI-generated content misuse, and the complexity of training and optimizing generative models may act as a barrier to market growth. On the other hand, although there is no doubt that the market for generative AI will experience strong growth in the close future thanks to continuous technological progress and rising expenditures in AI research and development, the field is already a source of considerable innovation and is changing various industries around the globe.
US Generative AI Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 12.9 Billion
Largest Segment
Software
Fastest Growth
Services
Growth Rate
32.8% CAGR
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Global Generative AI Market is segmented on the basis of components, end-use, industry verticals, and region. Based on components, the market is segmented into software and services. Based on end use, the market is segmented into Marketing/SEO Tools, General Writing, AI Assistance, Personalized Video Editing/ generation, Image Generation, Voice Synthesis, Code generation/Documentation, Web App Building, Security, and others. Based on industry verticals, the market is segmented into Media & Entertainment, BFSI, IT & Telecommunication, Healthcare, Automotive & Transportation, Manufacturing, Others. Based on region, the market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
Generative AI Market Analysis by Components
In 2023, the software segment accounted for more than 65% of the global generative AI market. Growing fraudulent activities, overestimation of capabilities, unexpected outcomes, and rising concerns about data privacy can all be attributed to the growth of the software segment. Key players in the software segment utilize intelligent algorithms and machine learning solutions to come up with original products that fit the ever-changing needs of different sectors. Such software programs give organizations a chance to automate processes, break through creative barriers, and explore new possibilities for the company’s growth and positioning in the market. Due to the growing penetration of generative AI in almost all industries, software in general is anticipated to keep its leadership position, fueled by the on-going technological progress and expanding need for AI-driven tools and systems.
Furthermore, the service sector is expected to grow at the fastest rate of more than 35% during the forecast period. The segment growth can be attributed to growing concerns about data security, fraud detection, trading prediction, and risk factor modeling are some of the major factors that will propel the market growth during the analysis period. Along with this, service providers also help organizations overcome the ethical and regulatory problems caused by using generative AI. AI technologies are currently evolving at a fast pace and the growing expertise is also leaving service segment to experience an exponential growth coupled with rising investments in AI adoption and the growing importance of strategic partnerships between enterprises and service providers.
Generative AI Market Analysis by End-Use
Within the global generative AI market, image creation has emerged as the most prominent segment by end use, driven by the escalating demand for AI solutions among creative industries like advertising, entertainment, and gaming. Through image generation technology, users can create realistic images without human intervention, thus the process of visual content production and consumption itself is changed. Image generation is becoming an essential tool for businesses aimed at improving visual content and enriching customers' experience. This is done through the applications of virtual product prototyping and digital art production among many others. Still, the accuracy and effectiveness of deep learning algorithms and computer vision techniques are a factor that is fueling innovation in this segment, which ensures that it will remain to be the biggest contributor to the growth of the market.
On the other hand, personalized video editing/generation continues to dominate the generative AI market and emerged as the fastest growing segment. It is increasing in popularity as the use of videos on digital platforms is on the rise and more users are demanding personal experiences. Personalized video editing/generation utilizes generation AI algorithms to auto video creation processes, which allows users to match audiences and preferences accurately and quickly. Whether it is personalized marketing campaigns or immersive experience, these tools enable business to interact with the audiences in a more profound way but make resources allocation and production planning efficient. Over time, as companies understand and value the power of highly personalized video content for customer engagement and conversions, the demand for advanced generative AI technologies in this segment is expected to spike and bring about rapid market growth and development.
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In 2023, North America dominated the global generative AI market with more than 41% of the market share and is expected to do so throughout the analysis period because of raising bank fraudulent activities and pseudo imagination in health care. Also, the presence of large players such as Meta, Google, Microsoft, and other companies in the field of generative AI is predicted to propel the market growth in the region during the analysis period.
However, Asia Pacific is expected to grow at the fastest CAGR of more than 35% during the projection period. Increasing government initiatives for incorporation of AI in Asia Pacific, as well as increased adoption of AI-based applications, is driving the market growth during the analysis period in the region. Also, the governments in this region have a proactive approach on AI development that includes favorable policies, funding initiatives, and strategic partnerships, which creates a platform where the market can grow. Further, the increasing internet connectivity, smartphone usage, and the adoption of various digital platforms have been a contributing factor to the growing popularity of AI-based applications, making the market space a very attractive field for market players.
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Generative AI Market Driver
Rising applications of AI-based tools are driving market growth
Digitalization using Generative AI
Generative AI Market Restraint
Lack of experienced labor and high implementation cost are some of the major restraints for the market
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Global generative AI market is relatively fragmented, with a high level of competition. A few large players, like Amazon Web Services, Inc, Google LLC, and Adobe, now control the market in terms of market share. These industry leaders are extending their customer base across several areas, and many corporations are creating strategic and collaborative initiatives with other start-up enterprises to enhance their market share and profitability.
Generative AI Market Top Player’s Company Profiles
Generative AI Market Recent Developments
Rise Of Multimodal Artificial Intelligence Models
R&D Investment
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our global Generative AI Market analysis, in 2023, the generative AI market is probably growing in the forecast years, with the Asia Pacific region becoming a major force in this growth. The digital infrastructure transformation initiatives that are being implemented with the help of the increasing investments in artificial intelligence in different industries are a major driver of the acceptance of generative AI solutions. As enterprises come to understand the tremendous power of Generative AI in improving creativity, efficiency, and innovation, the market is set to keep the pace of development not only in the Asia Pacific but also in the rest of the world. The trend ahead, however, is the integration of generative AI even deeper in sectors as the AI algorithms will be made more complex, data availabilities will increase and the number of digital platforms proliferating. This will open a path for a new era of AI driven innovations and higher productivity for the Asia Pacific region and beyond.32
Report Metric | Details |
---|---|
Market size value in 2023 | USD 12.9 Billion |
Market size value in 2031 | USD 165.49 Billion |
Growth Rate | 32.8% |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Historical Year | 2019 |
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Global Generative AI Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Generative AI Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Generative AI Market:
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REQUEST FREE CUSTOMIZATIONGenerative AI Market size was valued at USD 12.9 Billion in 2019 and is poised to grow from USD 17.1 Billion in 2023 to USD 165.49 Billion by 2031, at a CAGR of 32.8% during the forecast period (2024-2031).
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