Global Generative AI in Video Creation Market Size, Share, Trends Analysis Report By Deployment Type (On-premise, Cloud), By Application (Marketing, Education, Entertainment, Social Media, Others ), By End-Users (Large Enterprises, SMEs, Individual Content Creators), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Generative AI in Video Creation Market size is expected to be worth around USD 2,298.8 Million By 2033, from USD 336.1 Million in 2023, growing at a CAGR of 21.2% during the forecast period from 2024 to 2033. In 2023, North America held a dominant market position, capturing more than a 42% share, holding USD 141 Million revenue.

Generative AI in content creation refers to the application of artificial intelligence technologies that can automatically generate content across various forms, such as text, images, videos, and audio. This technology leverages deep learning algorithms and neural networks to analyze and learn from vast amounts of existing content, thereby gaining the ability to produce new content that is coherent, contextually relevant, and creatively inspired.

The market for generative AI in content creation is witnessing rapid growth, driven by increasing demand across media, advertising, and entertainment industries. The integration of AI tools in content generation not only streamlines production processes but also offers enhanced personalization in content marketing strategies, which is critical in capturing audience engagement in a crowded digital landscape.

Several factors are propelling the expansion of this market. Primarily, the surge in online content consumption necessitates the continuous creation of fresh and engaging material. Additionally, the ongoing advancements in AI and machine learning technologies have made these tools more accessible and effective, enabling even small to medium-sized enterprises to adopt such solutions.

The growing emphasis on personalized content for marketing and customer engagement further fuels the adoption of generative AI systems. Current trends in the generative AI content creation market include the increasing use of AI-driven platforms for automated content curation and the development of more sophisticated AI models that can create emotionally resonant and contextually appropriate content.

There is also a notable shift towards using generative AI for generating educational and training materials, which opens new avenues for applications in academic and corporate settings. The opportunities in this market are vast, with potential for significant impact on various sectors including journalism, where AI can assist in drafting reports and news summaries, and in e-commerce, where it can be used to create product descriptions and advertising copy that are optimized for search engines and conversion rates.

According to the findings of Market.us, The Global Generative AI Market is projected to grow significantly, reaching an estimated USD 255.8 billion by 2033, up from USD 13.5 billion in 2023, at a compound annual growth rate (CAGR) of 34.2%. This growth is driven by expanding applications across industries, from content creation to customer service. Generative AI’s role in creating content, designing products, and aiding in decision-making continues to increase as businesses leverage its capabilities to enhance productivity and improve user experiences.

Similarly, the DeepFake AI Market is poised for substantial growth, with a market size expected to reach USD 18.99 billion by 2033, rising from USD 550 million in 2023. This represents a robust CAGR of 42.5% over the forecast period. Such growth indicates the expanding use cases of synthetic media, including entertainment, advertising, and personalized content creation, while also pointing to the need for regulations to manage ethical concerns.

According to recent vidjet insights, companies traditionally spent an average of 45 hours per month producing training videos. However, with the advent of AI-based platforms like Synthesia, this time has been reduced by 34%, showcasing how AI-driven tools streamline workflows and save valuable resources. This efficiency reflects AI’s growing impact on video production and corporate training, enabling teams to focus on more strategic tasks.

Further, consumer sentiment towards AI is increasingly positive, with 52% of users expressing comfort in interacting with AI on digital platforms, while 43% believe that AI-generated videos meet quality expectations similar to traditional methods. This shift in attitude reflects a broader acceptance of AI’s role in enhancing digital experiences, with consumers appreciating the seamlessness and quality AI tools can deliver in content creation

Key Takeaways

• The Generative AI in Video Creation Market size is expected to be worth around USD 2,298.8 Million By 2033, growing at a CAGR of 21.2% during the forecast period from 2024 to 2033.
• In 2023, the cloud segment held a dominant market position, capturing more than a 55% share.
• In 2023, the marketing segment held a dominant market position, capturing more than a 34% share.
• In 2023, the large enterprises segment held a dominant market position, capturing more than a 60% share.
• In 2023, North America held a dominant market position in the Generative AI in Video Creation market, capturing more than a 42% share with a revenue of USD 141 million.

Deployment Type Analysis

In 2023, the cloud segment held a dominant market position, capturing more than a 55% share. The cloud-based deployment of generative AI in video creation has gained significant traction due to its scalability, flexibility, and cost-effectiveness.

Enterprises and individual users are increasingly adopting cloud solutions because they eliminate the need for substantial upfront investments in hardware and infrastructure. This allows for more accessible entry points for small and medium-sized businesses (SMBs) and independent creators, facilitating widespread adoption.

Cloud solutions provide seamless updates and integration capabilities, which are crucial for leveraging the latest advancements in AI technology. The ability to access powerful computational resources on demand ensures that users can handle complex video rendering tasks without the limitations of local hardware.

Additionally, the cloud offers robust collaboration features, enabling teams to work together in real-time from different locations, thus enhancing productivity and innovation. The global shift towards remote work and online collaboration has further bolstered the preference for cloud-based generative AI solutions.

The on-premise segment, while still relevant, caters primarily to large enterprises with specific security and compliance requirements. On-premise deployments offer greater control over data and infrastructure, making them suitable for organizations with stringent data privacy policies.

However, the high initial costs and maintenance requirements associated with on-premise solutions limit their appeal compared to the cloud. As a result, the cloud segment is expected to continue its growth trajectory, driven by the increasing demand for flexible, scalable, and cost-efficient video creation solutions.

Application Analysis

In 2023, the marketing segment held a dominant market position, capturing more than a 34% share. The marketing sector’s leading position can be attributed to the increasing adoption of generative AI for creating personalized and engaging video content.

Companies are leveraging AI-driven video creation tools to produce tailored advertisements, product demonstrations, and promotional videos that resonate with specific target audiences. This personalization is critical in today’s competitive market landscape, where consumers expect more relevant and compelling content.

The effectiveness of AI-generated videos in driving consumer engagement and conversion rates is a significant factor behind the marketing segment’s dominance. AI can analyze vast amounts of consumer data to generate videos that match viewer preferences and behaviors, resulting in higher engagement rates and improved return on investment (ROI) for marketing campaigns.

Furthermore, generative AI enables marketers to produce high-quality videos at a fraction of the time and cost associated with traditional video production methods, making it an attractive solution for businesses of all sizes. Additionally, the ability of generative AI to create content at scale has transformed the way brands approach their marketing strategies.

Companies can now produce a diverse range of videos for different platforms and demographics, ensuring a broader reach and more effective communication of their brand messages. As the demand for dynamic and interactive content continues to grow, the marketing segment is expected to maintain its leading position, driven by the ongoing advancements in AI technology and the increasing importance of video content in digital marketing strategies.

End-Users Analysis

In 2023, the large enterprises segment held a dominant market position, capturing more than a 60% share. This dominance is primarily due to the significant resources and budgets that large enterprises can allocate to advanced technology solutions. Generative AI tools for video creation are often complex and require substantial investment in both software and integration.

Large enterprises, with their robust financial capabilities, are better positioned to adopt these cutting-edge technologies and leverage them effectively for their extensive marketing and communication needs. The large enterprises segment benefits from the ability to create high-quality, customized video content at scale. These companies often have diverse and expansive marketing requirements, needing to produce a variety of video content for different markets, products, and services.

Generative AI enables them to meet these needs efficiently, producing engaging videos quickly and consistently. This capability is especially crucial for multinational corporations that require localized content for different regions and languages, ensuring that their messaging remains relevant and impactful across various markets. Moreover, large enterprises often have more complex and multifaceted data sets, which generative AI can utilize to create highly personalized and targeted video content.

By analyzing customer data, purchase history, and behavioral patterns, AI can generate videos that resonate with specific audience segments, thereby enhancing engagement and conversion rates. The ability to produce such tailored content provides large enterprises with a competitive edge in their marketing efforts. As the technology continues to evolve and offer even more sophisticated features, the adoption of generative AI in video creation by large enterprises is expected to increase, further solidifying their leading position in this market.

10 AI Content Creation Tools

• OwlyWriter: Developed by Hootsuite, OwlyWriter aims to alleviate common content creation challenges faced by social media managers, such as coming up with fresh content ideas regularly. This AI-powered tool simplifies the writing process by offering step-by-step guidance to generate tailored post ideas and captions for social media. It leverages Generative Pre-trained Transformer (GPT) technology, enabling users to automate content creation, thus saving time and enhancing workflow efficiency.
• ChatGPT: As an interactive AI developed by OpenAI, ChatGPT specializes in generating human-like text responses based on the prompts it receives. It’s trained on a diverse range of internet text but designed to follow strict ethical guidelines. Users primarily employ ChatGPT for various tasks such as composing emails, generating creative content, coding assistance, and more. Its ability to generate contextually relevant and coherent text makes it a valuable tool for content creators looking to streamline their writing processes or overcome creative blocks.
• Claude: Created by Anthropic, Claude is an AI conversational model that emphasizes safety and steerability, aiming to provide responses that align closely with user intentions. It’s designed to assist with a wide range of tasks, from answering questions to helping with content creation, making it a versatile tool for users seeking reliable AI interactions.
• Midjourney: Midjourney is an independent research lab’s AI program that focuses on creating images from textual descriptions, providing a powerful tool for visual content creation. It is particularly useful for artists, designers, and content creators looking to bring their visions to life through detailed and high-quality images.
• Jasper: Jasper AI focuses on content creation by helping users generate high-quality copy for websites, blogs, and social media platforms. It provides various templates and writing styles, making it easier for marketers and content creators to produce engaging and relevant content efficiently.
• Copy.ai: This tool utilizes AI to help users create marketing copy instantly. Copy.ai is designed to generate high-quality content, from blog posts to product descriptions, helping businesses and individuals streamline their content creation process.
• Beautiful.ai: Aimed at revolutionizing slide deck creation, Beautiful.ai offers users the ability to automatically design visually appealing presentations based on the content they input. This tool adjusts layouts and design elements dynamically as new content is added, ensuring professional-quality presentations with minimal effort.
• Descript: Descript provides video editing and podcasting solutions that integrate advanced AI. It offers features like automatic transcription, text-based editing of audio and video, and the generation of filler word removal, which simplifies the production process for creators.
• Invideo: This online video editor combines AI to assist users in creating high-quality video content efficiently. Invideo caters to businesses and content creators with features like pre-made templates, easy resizing for different platforms, and a user-friendly interface.
• Canva: Widely recognized for its user-friendly design platform, Canva enables easy creation of social media graphics, presentations, posters, documents, and other visual content. With a drag-and-drop interface and an extensive library of templates, Canva also incorporates AI elements like design suggestion and photo editing, making it accessible for users of all skill levels.

Key Market Segments

By Deployment Type

• On-premise
• Cloud

By Application

• Marketing
• Education
• Entertainment
• Social Media
• Others

By End-Users

• Large Enterprises
• SMEs
• Individual Content Creators

Driver

Advancements in AI Technology

The primary driver of the generative AI in video creation market is the rapid advancement in AI technology, particularly in machine learning and neural networks. These technologies have revolutionized the way videos are created, enabling the generation of high-quality content with minimal human intervention. The advent of Generative Adversarial Networks (GANs) and transformer models has significantly improved the capability to create realistic videos.

For instance, NVIDIA’s introduction of tools like Audio2Face and Audio2Gesture allows creators to animate characters based on audio inputs, enhancing the realism of video content​​​​. This technological progress has enabled businesses to produce personalized, engaging videos at a fraction of the cost and time compared to traditional methods, driving the widespread adoption of generative AI solutions across various industries.

Restraint

High Initial Costs and Complexity

Despite its benefits, the high initial costs and complexity associated with implementing generative AI solutions act as significant restraints. The need for substantial investment in high-performance computing infrastructure and advanced software can be prohibitive for small and medium-sized enterprises (SMEs). Additionally, the complexity of integrating these AI systems into existing workflows requires specialized skills and knowledge, which can be a barrier for companies without the necessary technical expertise.

According to a report by Cprime, many enterprises struggle with developing a robust machine learning operations lifecycle and embedding it in a broader governance framework, which is essential for mitigating risks and ensuring the ethical use of AI​​. These challenges can slow down the adoption rate and limit the market growth, particularly among smaller organizations.

Opportunity

Growing Demand for Personalized Content

The growing demand for personalized and engaging content presents a significant opportunity for the generative AI in video creation market. With consumers increasingly seeking content that resonates with their preferences and interests, businesses are leveraging generative AI to produce customized videos at scale.

This capability is particularly valuable in marketing, where personalized video ads can significantly enhance customer engagement and conversion rates. For instance, companies like Synthesia and Rephrase.ai offer AI-driven video creation tools that allow marketers to generate tailored content quickly and efficiently​​.

Additionally, the integration of AI in social media platforms, such as Instagram Reels and TikTok, supports the creation of dynamic and interactive videos, further driving the demand for generative AI solutions​​. As businesses continue to prioritize personalized content strategies, the market for AI-driven video creation tools is expected to expand significantly.

Challenge

Ethical and Regulatory Concerns

One of the major challenges facing the generative AI in video creation market is addressing ethical and regulatory concerns. The potential for AI-generated content to be misused for creating deepfakes or spreading misinformation has raised significant ethical questions. Ensuring compliance with copyright laws and managing biases in AI algorithms are critical issues that need to be addressed to build trust and acceptance of generative AI technologies.

According to a strategic guide by Cprime, developing a governance framework that includes regular policy reviews and ethical guidelines is essential for mitigating these risks​​. Furthermore, the regulatory landscape for AI is still evolving, with governments worldwide formulating policies to oversee the deployment of AI technologies. Navigating these regulations can be challenging for companies, especially those operating in multiple jurisdictions, and may require significant investment in compliance measures.

Growth Factors

• Advancements in AI and Deep Learning Technologies: The continuous evolution of AI algorithms, particularly in deep learning and neural networks, is a significant growth driver. These advancements enhance the capabilities of generative AI, enabling the creation of more realistic and high-quality video content. Innovations like Generative Adversarial Networks (GANs) and transformer models have revolutionized video generation, providing tools for producing intricate and lifelike videos efficiently​​​​.
• Increasing Demand for Personalized Content: Businesses are increasingly leveraging generative AI to create personalized video content that resonates with specific target audiences. This demand is particularly high in marketing, where personalized video ads have proven to drive higher engagement and conversion rates. The ability of AI to analyze consumer data and generate tailored content quickly is a significant advantage​​​​.
• Scalability and Cost-Effectiveness of Cloud Solutions: Cloud-based generative AI solutions offer scalability and cost-efficiency, making advanced video creation tools accessible to a broader range of businesses, including SMEs. Cloud platforms enable users to utilize high-performance computing resources without significant upfront investment, supporting the widespread adoption of AI technologies​​​​.
• Proliferation of Social Media and Digital Platforms: The rising popularity of social media and other digital platforms has fueled the need for dynamic and engaging video content. Generative AI tools empower content creators and marketers to produce large volumes of high-quality videos rapidly, catering to the constant demand for fresh content on platforms like Instagram, TikTok, and YouTube​​​​.
• Supportive Government Initiatives and Funding: Governments worldwide are recognizing the potential of AI and providing support through funding programs, policy frameworks, and research grants. These initiatives are fostering innovation and accelerating the adoption of generative AI technologies, particularly in regions like Europe and Asia Pacific​​​​.

Emerging Trends

• Integration of Multimodal AI Models: The development and integration of multimodal AI models, which combine different data types such as text, audio, and video, are becoming increasingly prevalent. These models enhance the accuracy and robustness of AI-generated content, enabling more sophisticated and versatile video creation capabilities​​​​
• Adoption of AI in Gaming: The gaming industry is leveraging generative AI to create dynamic and adaptive game content, including characters, environments, and narratives. This trend is enhancing player experiences by offering personalized and evolving gameplay elements, driving further adoption of AI in the gaming sector​​​​.
• Focus on Ethical AI and Bias Mitigation: As generative AI technologies become more widespread, there is a growing emphasis on ethical AI practices and bias mitigation. Ensuring that AI-generated content is fair, unbiased, and ethically sound is crucial for building trust and acceptance among users and regulators​​​​.
• Rise of AI-Generated Synthetic Data: The use of generative AI for creating synthetic data is gaining traction. This synthetic data is valuable for training AI models, especially in scenarios where real data is scarce, expensive, or subject to privacy regulations. The ability to generate high-quality synthetic data supports advancements in various AI applications​​​​.
• Expansion of AI-Driven Content Creation Tools: The market is seeing a surge in AI-driven tools designed for content creation, including video, text, and image generation. Companies are investing in developing and enhancing these tools to cater to diverse industry needs, from marketing and entertainment to education and healthcare​​​​.

Regional Analysis

In 2023, North America held a dominant market position in the Generative AI in Video Creation market, capturing more than a 42% share with a revenue of USD 141 million. This leadership can be attributed to several key factors that distinguish the region in the technology landscape. Primarily, North America benefits from the presence of leading AI technology companies and a robust startup ecosystem that is deeply integrated with the latest advancements in AI and machine learning.

The concentration of tech giants such as Google, IBM, and Microsoft, along with numerous innovative startups in Silicon Valley and beyond, drives significant investment and development in AI applications, including video creation. The region’s advanced IT infrastructure and widespread adoption of cloud technologies provide an ideal environment for the deployment of generative AI solutions.

Moreover, the presence of a highly skilled tech workforce and world-class research institutions contributes to ongoing innovation and refinement of AI technologies. These factors collectively facilitate the rapid adoption of generative AI tools among content creators, marketers, and media companies in North America, looking to leverage AI for enhanced video production quality and efficiency.

Furthermore, supportive government policies promoting AI research and development also play a crucial role. Initiatives aimed at boosting AI capabilities through funding, partnerships, and educational programs help maintain North America’s leading position in the global market. Additionally, the increasing demand for personalized and engaging video content across industries such as entertainment, marketing, and education fuels the growth of the generative AI in video creation sector in this region.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • 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

The Generative AI in Video Creation market is distinguished by the presence of several influential key players, each contributing to the evolving landscape of AI-driven video production. Synthesia and Runway ML are at the forefront, offering robust platforms that utilize AI to automate video generation and editing, thus significantly reducing the time and expertise required to produce professional-quality videos. Pictory and Lumen5 cater to content creators by providing tools that convert text into engaging video content, emphasizing ease of use and efficiency.

Rephrase AI and DeepBrain stand out by focusing on the synthesis of human-like videos, which are particularly useful in personalized marketing and customer service. Elai.io offers a unique approach by allowing the creation of videos from simple text inputs, targeting users who seek straightforward solutions without complex editing tools. Magisto, a part of Vimeo, integrates AI to offer smart editing capabilities that enhance user-generated content into polished videos, making it ideal for social media marketers and small businesses.

Top Key Players in the Market

• Synthesia
• Runway ML
• Pictory
• Lumen5
• Rephrase AI
• DeepBrain
• Elai.io
• Magisto (a Vimeo company)
• Animoto
• Wibbitz
• Other key players

Recent Developments

• In February 2024, Rephrase AI partnered with Microsoft to integrate their AI video creation tools into Microsoft Teams, allowing users to generate personalized video messages seamlessly.
• In November 2023, Runway ML launched “Gen-2,” an advanced generative AI video editing tool that allows users to create and modify videos with more sophisticated AI-driven features.
• Pictory introduced new features in September 2023, including AI-driven scene detection and automatic voiceover generation, enhancing the user experience for creating marketing and instructional videos.
• In December 2023, Lumen5 was acquired by Adobe for $250 million. This acquisition aims to integrate Lumen5’s AI video creation capabilities with Adobe’s suite of creative tools.
• Elai.io secured $15 million in a Series A funding round in April 2023 to expand its AI video generation platform and enhance its multilingual capabilities.

Report Scope