Global AI Video Generator Market By Component (Solutions and Services), By Enterprise Size (Small & Medium Enterprises and Large enterprises), By Source, By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the Global AI Video Generator Market was valued at USD 415 million. It is predicted to reach USD 2,172 million by 2032. Between 2023 and 2032, this market is estimated to register the highest CAGR of 18.5%.

AI video generator is a tool that allows users to create video from any written copy using artificial intelligence software. For example, Synthesis AI is an AI video generator that allows users to create engaging video content with human-like avatars by simply typing any text. Also, it enables users to create videos from any written document, and due to this, this AI video generator is more prevalent among individuals. Furthermore, AI video generator saves time by editing the video itself, which is the main factor for the high demand for AI video generator tools in the market.

Note: Actual Numbers Might Vary In Final Report

Key Takeaways

• Market Size and Growth: The global AI Video Generator Market is anticipated to reach a significant milestone, with an expected value of USD 2,172 million by 2032, reflecting an impressive CAGR of 18.5% during the forecast period.
• Key Driving Factors: The market is primarily driven by the rising preference for video content among consumers, facilitated by the increasing use of smartphones and technological advancements. Additionally, the demand is further fueled by the need for more engaging audio-visual materials across various sectors.
• Major Restraint: Despite the market’s growth potential, the high subscription charges associated with AI video generator tools pose a significant challenge. Additionally, technical issues, such as AI software’s occasional inability to detect entered data in text form, may hinder market growth.
• Components: The market is segmented into solutions and services, with the solutions segment leading with a 53% global revenue share in 2022.
• Enterprise Size: Large enterprises accounted for the largest market share (64%) in 2022, primarily driven by the need to meet high consumer demands.
• Source: The text/blog/article to video segment dominated the market in 2022, accounting for 36% of the revenue share.
• End-Users: The marketing segment held the largest revenue share (28%) in 2022, followed by e-commerce and educational institutions.
• Regional Analysis: Asia Pacific emerged as the dominant region in the global AI Video Generator Market, with China leading in AI tool usage. North America is projected to grow at the fastest CAGR due to increasing technological advancements and the adoption of AI tools.
• Biggest Market Players: Some of the prominent companies in the AI Video Generator Market include Synthesia LLC, Lumen5 Technologies Ltd, Rephrase Corp, Muse.ai, Raw Shorts, Inc., and leading tech giants like Microsoft Corporation, Google LLC, and IBM Corporation.

Key Driving Factors

Increasing Preference for Video Contents Among Individuals

The increasing adoption of smartphones and technological advancements are the main driving factors for the growth of the global AI video generator market. The growth of the market is propelled by the increasing use of video content and the increasing demand for audio-video materials in various fields.

Over three billion people worldwide are spending more and more time watching video content. This is boosting the demand for AI video generators in the market. Human brain process visuals almost 60,000 times faster than text. Keeping this in mind, key companies are focusing on providing AI video generation tools with advanced technologies. The increasing use of visuals in marketing companies to fulfill consumer demand is also driving the need for AI video generator tools.

Furthermore, written paper copies, articles, and blogs are not easy to handle; therefore, various companies are translating their data from text forms to video forms to overcome issues regarding written content.

Technological advancements such as the introduction of the internet of things (IoT) and cloud-based AI video generation tools are driving the adoption of these tools in educational institutions and e-commerce sectors. The increasing use of comedy memes and gifs in messaging apps is also fueling the AI video generation market’s expansion. Also, the growing number of viewers of educational videos, tutorials, and sports clips is propelling market development.

Major Restraining Factors

High Subscription Charges

The subscription charges for using AI video generator tools are very high, which is a primary restraining factor for the AI video generator market’s growth. Moreover, sometimes AI software is unable to detect entered data in text form. Technical issues like this can have a negative impact on market growth.

Component Analysis

Solution Segment is Dominant in Market with Largest Market Revenue Share

Based on components, the market for AI video generators is segmented into solutions and services. The solutions segment was dominant in the market, with a global revenue share of 53% in 2022. The AI video generator solutions provide companies with distinctive possibilities in the market and help them obtain a strategic edge.

Companies in the AI video generator market focus on providing fast and accurate solutions to consumers and on technical capabilities that help solve more problems in AI video generator tools. This is the primary growth factor of this segment. For Instance, DVDFab Video Enhancer is an AI tool that uses artificial intelligence to improve video quality and helps in providing standard solutions for a better consumer experience.

The Services segment is expected to grow at the fastest CAGR during the forecast period. This is due to an increasing focus on providing better services for AI video generator users. Services in the AI video generator market are the chain between the company and consumers, which helps the company increase business and provide better services to users.

Enterprise Size Analysis

The Large Enterprises Segment is Dominant in the Market

By enterprise size, the market for AI video generators is segmented into small & medium enterprises and large enterprises. The large enterprise segment was dominant in the market, with the largest market revenue share of 64% in 2022. It is expected to remain dominant during the forecast period.

Due to increasing consumer demand and increasing globalization, large enterprises are adopting AI video generator tools to meet high consumer demand. Content in video mode is easy to capture and is able to store in databases or laptops as compared to written copies. Due to this, large enterprises are shifting towards AI video generators to train employees.

AI video generator tools help to make monotonous tasks easy and reduce the time required to complete them. Small & medium enterprises are growing rapidly due to increasing globalization and technological advancements. They are adopting AI video generator tools to increase business and stay competitive in the market.

Source Analysis

The Text/Blog/Article to Video Segment is Dominant in the Market

Based on source, the market is classified into text/blog/article to video, PowerPoint to video, and spreadsheet to video. The text/blog/article to video segment was dominant in the market, with the largest market revenue share of 36% in 2022.

The growth of this segment is propelled by the increasing need for video-based content in the media & entertainment industry. Consumers prefer video content because video contents are easy to adopt and understand as compared to texts, blogs, or articles. The Powerpoint to video segment is anticipated to grow at the fastest CAGR due to increasing demand in several marketing and architecture industries.

Note: Actual Numbers Might Vary In Final Report

End-user Analysis

The Marketing Segment is Dominant in the Market

Based on end-users, the market is classified into marketing, e-commerce, educational institutions, IT & telecommunication, healthcare, and other end-users. The marketing segment was dominant in the market, with the largest market revenue share of 28% in 2022, and is expected to remain dominant during the forecast period.

Demand for AI video generators in the marketing industry is high due to the increasing focus of marketing companies on video-based content. Companies such as Facebook and Apple are using Adobe AI video-generating tools for the effective and attractive advertisement of their products. The demand for AI video generators is expected to increase in educational institutions because educational institutions are rapidly adopting these tools for teaching K-12 students.

AI video generator tools are also used in healthcare industries to convert medical terminologies into video formats. In addition, it has significant applications in making virtual health assistant videos. The IT & telecommunication industry is rapidly adopting AI video generator tools for training employees.

AI video Generator Market Segments

By Component

• Solutions
• Services

By Enterprise Size

• Small & Medium Enterprises
• Large enterprises

By Source

• Text/Blog/Article to Video
• PowerPoint to Video
• Spreadsheet to Video

By End-User

• Marketing
• E-Commerce
• Educational Institutions
• IT & Telecommunication
• Healthcare
• Other End-Users

Opportunities

Technological Advancements in AI Fields

The AI video generator market is driving due to increasing demand in educational organizations and marketing industries. In addition, the rapidly growing adoption of smartphones and the introduction to the internet of things(IoT) is anticipated to create profitable growth opportunities in the market.

With increasing digitalization, consumers are shifting towards video-based content because they are easy to understand. Marketing companies are focusing on providing standard video content to deliver accurate and deep product information. These factors are further expected to drive the market during the forecast period.

Trending Factors

Educational Organizations and IT Companies Adopting AI

AI video generator tools-producing companies are focusing on providing cost-effective and high-quality services to meet high consumer demand. Educational organizations are using AI video generator tools for effective teaching.

IT & telecommunication companies are adopting AI video generator tools for employee training and converting textual data into video forms. Such trends are currently prominent in the market, thereby boosting the growth of the AI video generator market.

Regional Analysis

Asia Pacific Region is Dominant in Global AI Video Generator Market

Asia Pacific is dominant in the global AI video generator market, with the largest market share of 32%.  The growth of the region is attributed to the high use of AI tools in China and Singapore. China is the global leader in the use of AI video generator tools. About 750 million people are using the internet here. This is generating a huge supply of digital data to process. Also, the emergence of 5G services in emerging economies such as India, Japan, and Singapore is positively driving the market.

The presence of top key players such as Cinnamon AI, Kellton Tech, and ADVANCE.AI in the Asia Pacific region is fueling the market growth. Moreover, the increasing use of AI in educational institutions and IT companies is helping the market development in the Asia Pacific region. North America is expected to grow at the fastest CAGR during the forecast period due to increasing technological advancements in the region.  Also growing adoption of AI tools in the US and the UK is expected to fuel the market’s expansion.

The tech companies in the United Kingdom raised private investments in AI technologies. In addition, the increase in AI uses in educational organizations is driving the need for AI video generator tools in North America.

Note: Actual Numbers Might Vary In Final Report

Key Regions and Countries Covered in this Report

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

Several key companies in the AI video generator market are focusing on technological advancements in AI tools for providing better services. Also, companies are adopting marketing strategies such as mergers and acquisitions to stay competitive in the market.

Market Key Players

Listed below are some of the most prominent AI video generator company players.

• Synthesia LLC.
• Lumen5 Technologies Ltd
• Rephrase Corp
• Muse.ai
• Raw Shorts, Inc.
• Pronto
• Designs Ai
• Microsoft Corporation
• Google LLC
• IBM Corporation
• Meta Platforms, Inc.
• Other Key Players

Recent Developments

• In January 2022, Microsoft announced the acquisition of American video game developer and holding company Activision Blizzard.
• On 29 September 2022, Meta announced Make-A-Video, an AI-powered video generator that can create novel video content from text.

Report Scope