Global AI-Powered Website Builder Market Size, Share, Statistics Analysis Report By Deployment (Cloud-based, On-premises), By Application (Large Enterprises, SMEs), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global AI-Powered Website Builder Market size is expected to be worth around USD 31.5 Billion By 2033, from USD 3.17 Billion in 2023, growing at a CAGR of 25.80% during the forecast period from 2024 to 2033. In 2023, North America dominated the AI-powered website builder market, holding over 40.5% of the share and generating approximately USD 1.3 billion in revenue.

An AI-powered website builder is a tool that leverages artificial intelligence to simplify the process of creating and designing websites. It uses machine learning algorithms to understand user preferences and automate various design elements, content suggestions, and SEO optimization, thus enabling users with minimal technical expertise to build aesthetically pleasing and functional websites.

The AI-powered website builder market is growing as businesses and individuals seek cost-effective ways to create their online presence without coding or design skills. These builders integrate AI technologies like natural language processing and image recognition to provide personalized design suggestions and real-time editing assistance.

The market growth is driven by the rising demand for website automation tools that save time and cost in development. As more businesses go digital, the need for fast and easy website deployment grows. Additionally, the digital economy has pushed small businesses to establish an online presence, boosting demand for user-friendly website creation tools.

Additionally, the growing inclination towards mobile-first approaches and ecommerce platforms encourages the adoption of AI-powered website builders that automatically optimize websites for mobile devices and integrate ecommerce functionalities seamlessly.

The demand for AI-powered website builders is fueled by the need for simplified web development. Small businesses and startups seek affordable solutions to establish an online presence without coding expertise or hiring developers. This demand is also driven by the increasing trend of digital transformation across industries, encouraging more businesses to go online.

AI-powered website builders have gained popularity due to their user-friendly interfaces and the autonomy they provide users. By allowing individuals to create websites quickly, these tools cater to the increasing DIY trend in technology. Their ability to offer real-time design suggestions and adjustments has made them particularly popular among users with limited design experience.

Wix, with its global user base exceeding 200 million, exemplifies widespread trust in its functionality and user-friendly design. In comparison, other AI website builders like Hostinger and Jimdo offer competitive and accessible pricing, with plans starting at just $2.99 per month, and even free options that provide basic services without any initial investment.

Based on data from My Codeless Website, In the United States, the AI website builder sector is poised for rapid growth, with projections suggesting a compound annual growth rate (CAGR) of 32.9% over the next decade, potentially reaching a market valuation of around $5.09 billion by 2033. Specifically, AI-powered landing page builders are expected to see a substantial increase, with the market forecasted to hit $1.9 billion by 2032, growing at a CAGR of 14.3%.

In the first quarter of 2023 alone, Wix reported that 74.34% of its total revenue was derived from its website builder subscriptions, underlining the critical role that AI technologies play in their financial strategies. Moreover, a notable 67.39% of business owners express a preference for AI-driven website builders over traditional ones, primarily due to their ability to enhance customer experiences and simplify operations.

Key Takeaways

• The global AI-powered website builder market is projected to reach USD 31.5 billion by 2033, up from USD 3.17 billion in 2023, growing at a CAGR of 25.80% from 2024 to 2033.
• In 2023, the cloud-based segment dominated the market, holding over 75% of the share.
• In 2023, the SMEs segment captured a dominant 63% share of the AI-powered website builder market. This strong foothold is driven by the scalability and cost-effectiveness of these tools, which perfectly align with the ever-evolving demands of small to medium-sized enterprises.
• North America led the AI-powered website builder market in 2023, accounting for more than 40.5% of the market, with revenues reaching approximately USD 1.3 billion.

Deployment Analysis

In 2023, the Cloud-based segment of the AI-powered website builder market held a dominant market position, capturing more than a 75% share. This significant lead can be attributed to several compelling factors that favor cloud-based solutions over on-premises options.

Cloud-based AI-powered website builders offer superior accessibility. Users can access these tools from any device with an internet connection, allowing for flexible and remote website management. This ease of access is particularly appealing to small businesses and individual entrepreneurs.

They allow users to easily adjust their usage based on their current needs without the upfront costs associated with physical servers. This scalability is crucial for growing businesses that anticipate changes in website traffic and content volume, ensuring they can expand their capabilities without interruption.

Cloud deployments are generally more cost-effective. They typically operate on a subscription model that does away with substantial initial investments and reduces the need for dedicated IT staff to maintain and update the infrastructure. This cost efficiency makes cloud-based AI website builders particularly attractive to cost-conscious users looking to minimize overhead while still benefiting from advanced website design.

Application Analysis

In 2023, the SMEs segment held a dominant market position in the AI-powered website builder market, capturing more than a 63% share. This notable predominance is primarily due to the scalability and cost-effectiveness that AI-powered website builders offer, which aligns perfectly with the dynamic needs of small to medium-sized enterprises.

AI-driven website builders are especially appealing to SMEs because they incorporate advanced technologies like machine learning and artificial intelligence to offer intuitive design interfaces and user experiences. This technology simplifies the process of website creation, allowing business owners to focus more on their core activities rather than on complex web development tasks.

Moreover, the rapid digitalization of business operations across sectors has compelled SMEs to establish robust online platforms. AI-powered website builders cater to this need by offering quick deployment and easy maintenance of websites, which is crucial for businesses that must adapt swiftly to market changes.

The ongoing innovation in AI technology that powers these website builders is set to increase their attractiveness among SMEs. Future enhancements are expected to bring even more sophisticated analytical tools, better SEO capabilities, and enhanced customization options, ensuring that the SME segment will continue to dominate this market space.

Key Market Segments

By Deployment

• Cloud-based
• On-premises

By Application

• Large Enterprises
• SMEs

Driver

Enhanced Accessibility for Non-Technical Users

AI-powered website builders have revolutionized web development by making it accessible to individuals without technical expertise. Traditionally, creating a website required knowledge of coding languages and design principles, often necessitating professional assistance. AI-driven platforms simplify this process by offering intuitive interfaces and automated design suggestions.

This democratization of web development empowers small business owners, freelancers, and hobbyists to establish an online presence without incurring significant costs or time investments. By lowering the barrier to entry, AI website builders foster a more inclusive digital landscape, allowing a diverse range of users to participate in the online economy.

Restraint

Limited Customization and Flexibility

While AI website builders offer convenience, they often come with constraints in customization and flexibility. These platforms typically provide a set of templates and design options that, while varied, may not cater to specific or unique branding requirements.

Users seeking highly customized features or complex functionalities might find these tools inadequate, as they are designed to cater to general needs rather than specialized demands. This limitation can be a significant drawback for businesses aiming to differentiate themselves through unique website designs or functionalities, potentially leading them to opt for traditional web development methods despite the higher costs and time commitments involved.

Opportunity

Integration of Advanced AI Features

The integration of advanced AI features presents a significant opportunity for the evolution of AI-powered website builders. Incorporating machine learning algorithms can enable these platforms to offer personalized design suggestions, predictive content generation, and enhanced user experience optimization.

For instance, AI can analyze user behavior to recommend layouts that improve engagement or suggest content that resonates with the target audience. Additionally, AI-driven SEO tools can optimize websites for search engines more effectively, increasing visibility and traffic.

By continuously learning and adapting, AI-powered website builders can provide more tailored and efficient solutions, meeting the evolving needs of users and staying competitive in the dynamic digital landscape.

Challenge

Ensuring Data Privacy and Security

As AI-powered website builders handle significant amounts of user data, ensuring data privacy and security becomes a critical challenge. These platforms must comply with various data protection regulations and safeguard against potential breaches. The integration of AI introduces complexities in data handling, as algorithms require access to user information to function effectively.

Balancing the need for data to enhance AI functionalities with stringent privacy requirements necessitates robust security measures and transparent data policies. Failure to adequately address these concerns can lead to user distrust and legal repercussions, undermining the credibility and adoption of AI-powered website builders.

Emerging Trends

AI-powered website builders now offer intuitive interfaces, enabling users to craft professional websites without extensive technical knowledge. These platforms utilize AI algorithms to automate design elements, suggest layouts, and even generate content, making website creation more accessible and efficient.

Personalization is another significant trend. AI analyzes user behavior to tailor website content and design, enhancing engagement and satisfaction. This dynamic customization ensures that visitors receive relevant information, improving their overall experience.

Additionally, AI-driven analytics provide insights into user interactions, allowing businesses to refine their websites continually. Coframe, an AI startup, employs generative AI to optimize websites by testing and improving text, visuals, and code, leading to personalized user experiences and increased sales.

The integration of AI in website builders also addresses the growing demand for mobile-responsive designs. AI tools automatically adjust website layouts to fit various screen sizes, ensuring a consistent and user-friendly experience across devices. This adaptability is crucial as mobile internet usage continues to rise.

Business Benefits

For businesses, AI-powered website builders offer numerous benefits. They significantly reduce the time and cost associated with website development. Automated design and content generation allow businesses to establish an online presence swiftly, which is essential in today’s fast-paced digital landscape.

The efficiency of AI tools enables companies to allocate resources to other critical areas, fostering growth and innovation. A survey by The U.S. Chamber of Commerce and Teneo revealed that almost all small businesses (98%) are utilizing AI-enabled tools, with 40% using generative AI for tasks such as content creation, highlighting the widespread adoption of AI in business operations.

The integration of AI in website development also ensures scalability, allowing businesses to adapt their online presence as they grow. With AI handling routine tasks, companies can focus on strategic initiatives, driving long-term success.

Regional Analysis

In 2023, North America held a dominant market position in the AI-powered website builder sector, capturing more than a 40.5% share, with revenues reaching approximately USD 1.3 billion. This commanding lead can be attributed to several region-specific factors that have favored the adoption of AI technologies in website development.

North America benefits from a highly developed digital infrastructure, which supports the seamless operation of cloud-based services, including AI-powered website builders. The widespread availability of high-speed internet and the presence of robust cloud infrastructure facilities have made it easier for businesses and individuals in this region to adopt and rely on cloud-based website solutions.

The region is home to a significant number of technology companies, including major players in the AI and cloud computing markets. This proximity to innovators and industry leaders has facilitated early access to advanced AI tools and integration capabilities, driving the adoption of AI-powered website builders.

North America has a strong entrepreneurial culture with a substantial small and medium-sized enterprise (SME) sector that actively seeks cost-effective and efficient solutions to establish and manage online presence. AI-powered website builders cater precisely to this need by offering scalable, user-friendly, and affordable web design solutions that do not require extensive technical expertise.

AI-powered website builders in North America have been quick to incorporate features like SEO optimization, social media integration, and e-commerce capabilities, making them highly attractive to businesses looking to enhance their online visibility and sales. North America’s high digital adoption rates and integration capabilities make it the leader in the global AI-powered website builder market.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Player Analysis

In the competitive landscape of the AI-powered website builder market, several key players stand out due to their innovative solutions and substantial market influence.

Wix.com Inc. is a prominent figure in the AI-powered website builder sector. Known for its user-friendly interface and extensive customization options, Wix leverages AI through its Wix ADI (Artificial Design Intelligence) feature.Wix’s continual updates and integration of cutting-edge features have helped it maintain a leading position in the market.

Durable Technologies Inc. focuses on providing robust AI-powered website solutions that cater to more complex business needs. Durable Technologies distinguishes itself by offering tools that not only simplify website design but also enhance functionalities such as online booking systems, customer relationship management (CRM), and e-commerce integrations.

Renderforest offers a unique blend of AI-powered website building and multimedia content creation tools. This integration allows users to design websites that are not only visually appealing but also rich in custom video content and animated graphics. Renderforest is celebrated for its simplicity in enabling users with no prior design or coding experience to craft websites and digital media that stand out.

Top Key Players in the Market

• Wix.com Inc.
• Durable Technologies Inc.
• Renderforest
• Hostinger
• TeleportHQ
• Appy Pie
• TenWeb
• CodeDesign Inc.
• Jimdo
• Framer
• Other Key Players

Recent Developments

• In March 2024, Wix introduced its AI Website Builder, enabling users to create personalized websites with AI-generated text, images, and layouts.
• In April 2024, Webflow acquired Intellimize, a startup specializing in AI-driven webpage personalization, to enhance its web development platform.
• In May 2024, Private equity firm Permira agreed to acquire Squarespace in a $6.9 billion deal, aiming to take the website building software company private.

Report Scope