Global Generative AI Market By Component (Services and Software), By Technology (Generative Adversarial Networks, Transformer, Variational Auto-encoder, and Diffusion Networks), By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Oct. 2023
- Report ID: 98888
- Number of Pages: 394
The Generative AI Market size is projected to surpass USD 13.9 Billion in 2023 and is likely to attain a valuation of USD 151.9 Billion by 2032. The Generative AI industry share is expected to rise at an astounding CAGR of 31.4% from 2023 to 2033.
The global generative AI market refers to the industry that includes the development, deployment, and use of artificial intelligence systems that are capable of generating creative and original outputs, like music, art, literature, and other forms of media. Generative AI, also known as creative AI or art AI, uses machine learning algorithms to analyze and learn patterns from large amounts of data and then generates new content that is similar or related to the learned patterns.
This technology has been used in different fields, including entertainment, advertising, education, and gaming, among others. The generative ai market size is expected to grow rapidly in the coming years as more companies and organizations recognize the potential of this technology to automate and enhance creative processes.
Note: Actual Numbers Might Vary In The Final Report
- Market Growth: In 2022, the Generative AI market was valued at USD 10.6 billion and is projected to experience compound annual growth rate of 31.4% over 2023-2032.
- Market Trends: Generative AI’s integration with blockchain technology is a notable trend, enabling secure and verifiable digital assets to be created. Additionally, its application in healthcare, gaming, and creative industries is on the rise, leading to innovative advancements and unique works of art.
- Driving Factors: Increased productivity, efficiency and reduced manual errors are some of the primary forces propelling its expansion. Furthermore, advanced deep learning models as well as increasing data availability bolster this growth of Generative AI Market.
- Applications Across Industries: Generative AI’s applications span multiple industries, including entertainment, advertising, education and gaming. Furthermore, Generative AI’s use in creating virtual and augmented reality environments has proven pivotal.
- Challenges: One of the major barriers to Generative AI market is a shortage of experts in this field, which inhibits its development and implementation. Furthermore, legal requirements as well as limited awareness among businesses regarding its benefits present further barriers.
- Regional Analysis: North America led the global market in 2022 with 41% share and an expected compound annual compound annual growth rate of 33%. Asia-Pacific (APAC) region is projected to experience the fastest expansion due to investments made into AI research and development by countries such as China, Japan and South Korea.
- Technology Landscape: The market can be divided into various technologies, with Transformer dominating in terms of revenue share. At the same time, diffusion networks are projected to experience the fastest compound annual growth over the forecast period.
- Industry Leaders: Companies such as IBM Corporation, Google LLC, Microsoft Corporation, and Amazon Web Services Inc. are some of the key players in the Generative AI market, contributing to its competitive landscape and innovative solutions.
Increased Productivity, Efficiency, and Reduced Manual Errors
Generative AI allows companies to make highly personalized products and services by generating unique designs, recommendations, and solutions based on individual user preferences and behavior. Generative AI is helping companies automate and optimize their processes, decreasing the need for manual intervention and human error, and increasing efficiency and productivity.
The development of more advanced and sophisticated deep learning and neural network models, like GANs and VAEs, has enabled generative AI to generate highly realistic and complex data, like images, video, and audio. With the explosion of data across different industries, there is now an abundance of large, high-quality datasets available for generative AI models to learn from, improving their accuracy and performance.
Generative AI plays a key role in creating virtual and augmented reality environments, which are increasingly being used in applications like gaming, training, and education. Cloud-based generative AI services enable companies to access and use powerful AI tools and resources without investing in expensive hardware and infrastructure. Overall, these drivers are contributing to the growth and expansion of the generative ai market size, with more and more companies across different industries exploring the potential of this technology to drive innovation and improve their operations.
The generative AI market is experiencing significant growth, driven by the increasing demand for AI-generated content across various industries. Businesses are exploring new business models that leverage generative AI tools and foundation models to create original content at scale. Language models are a key component of this market, as they enable the development of sophisticated AI models that can generate high-quality content. Model developers are at the forefront of this trend, creating cutting-edge generative AI tools that enable businesses to create unique and engaging content for their audiences.
Not Enough Skillful Experts in the Field of Generative AI
Generative AI is a complex and highly technical field requiring significant expertise in areas like machine learning, statistics, and computer science. This can create it challenging for a few companies to develop and implement their own generative AI solutions, which can slow down the adoption of generative AI. The use of generative AI may be subject to legal and regulatory requirements like data protection laws or restrictions on the use of AI in certain industries or applications.
This can limit the adoption of generative AI and increase costs associated with compliance. More businesses may not be aware of the potential benefits of generative AI or how it can be applied or used in their industry or operations. Moreover, the requirement for skillful persons in the field of generative AI is high, but the supply is limited. This can make it difficult for the company to find the talent they require to develop and implement generative AI solutions.
The Software Segment is the Most Lucrative
Based on components, the market for generative AI market is divided into services and software. Among these types, the software segment is the most lucrative in the global generative AI market. The total revenue share of the software type is 65.50% in 2022 for the generative AI market. Owing to the improvement & demand for generative AI models.
The generative AI software market is highly competitive, with many companies competing to develop the most advanced and effective generative AI solutions. Service type, which is the fastest-growing segment in the generative AI market, can include consulting services, custom model development, and deploying & managing generative AI applications.
The Transformer Segment Accounted for the Largest Revenue Share in Generative AI Market
Based on technology, the market is segmented into generative adversarial networks, transformers, variational auto-encoder, and diffusion networks. Among these, the transformer segment is estimated to be the most lucrative segment in the global generative AI market, with the largest revenue share of 43.7% and a projected CAGR of 32.2% during the forecast period.
GANs are a type of deep learning model that is used for generative tasks, such as image and video generation. The diffusion networks Segment is Expected to be the fastest-growing technology segment in the generative AI market. Diffusion networks are a type of probabilistic generative model used in the field of generative AI. They operate by iteratively updating a set of latent variables that represent the properties of a given data distribution.
Note: Actual Numbers Might Vary In The Final Report
Media & Entertainment Holds the Largest Share in End-User Segment in Generative AI Market
Based on end-user, the generative ai market size is divided into media & entertainment, BFSI, IT & telecommunication, healthcare, automotive & transportation, and other end-users. The media & entertainment segment is dominant among end-users in the generative AI market, with a market share of 22% and a CAGR of 36.4%. This is owing to media & entertainment being one of the primary industries using generative AI for applications like image and video generation, special effects, and virtual environments.
BFSI is another major sector with applications in fraud detection, risk assessment, and investment analysis. IT & telecommunications has also been significant end-user segment for generative AI, with applications in natural language processing, chatbots, and recommendation systems. Healthcare is a rapidly growing segment, with applications in medical imaging analysis, drug discovery, and personalized medicine.
Key Market Segments
Based on Component
Based on Technology
- Generative Adversarial Networks (GANs)
- Variational Auto-encoder (VAE)
- Diffusion Networks
Based on End-User
- Media & Entertainment
- IT & Telecommunication
- Automotive & Transportation
- Other End-Users
Development of New Products & Services and Enhanced Customer Experience
Generative AI can enable companies to create new products and services that were earlier impossible or too costly to develop. For example, generative AI can be used to make personalized products, designs, and suggestions for customers. Companies can start up new revenue streams and business opportunities by using generative AI to create new products and services or improve existing ones.
Generative AI can enable companies to produce highly personalized and tailored experiences for customers, which can lead to a rise in customer satisfaction and loyalty. Generative AI can automate and optimize various processes, reducing the need for manual intervention and human error, and increasing efficiency and productivity. This is rising generative ai market size.
Better Decision-Making & Competitive Advantage
Generative AI can help businesses create better and more informed decisions by producing accurate and real-time insights. This is of particular relevance in industries like healthcare and finance, where decisions can have significant consequences. Companies that adopt generative AI early can earn a competitive edge over their market players by being able to offer unique & innovative solutions to customers.
Generative AI in Blockchain Technology
Generative AI can be used to create unique digital assets, and there is an increasing trend toward integrating generative AI with blockchain technology to make secure and verifiable digital assets. Generative AI has the potential to revolutionize the creative industries, enabling artists, musicians, and designers to make unique and innovative works.
There is a trend going toward the adoption of generative AI in these industries, with a few examples of AI-generated artworks and music already present in the market. Generative models like GANs are increasingly being used in the gaming industry to make realistic environments and animations. Generative AI is starting to be increasingly adopted in healthcare to aid in drug discovery, medical imaging analysis, and disease diagnosis.
North America Accounted for the Largest Revenue Share in Generative AI Market in 2022
North America is estimated to be the most lucrative market in the global generative AI market, with the largest market share of 41%, and is expected to register a CAGR of 33% during the forecast period. Owing to, This region has some of the world’s largest technology companies, which are driving innovation and growth in the generative AI market. The United States is a high contributor to the market in this region, owing to the growing demand for AI-based solutions in various industries, such as healthcare, finance, and retail.
APAC is Expected to be the Fastest Growing Region in Projected Period in Generative AI Market
APAC is expected to be the fastest growing region in the projected period in the generative AI market owing to the world’s largest economies presenting significant growth opportunities for the market. Countries such as China, Japan, and South Korea are investing heavily in AI research and development, and this is driving the growth of the generative ai market size in the region.
Note: Actual Numbers Might Vary In The Final Report
Key Regions and Countries Covered in this Report:
- North America
- The US
- Western Europe
- The UK
- Rest of Western Europe
- Eastern Europe
- The Czech Republic
- Rest of Eastern Europe
- South Korea
- Australia & New Zealand
- Rest of APAC
- Latin America
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- United Arab Emirates
- Rest of MEA
The generative AI market is highly competitive, with few players offering innovative solutions to cater to the increasing orders for AI-based solutions across industries. Microsoft is a great player in the generative AI market, offering various AI-based solutions and services, including Azure AI, Cognitive Services, and Bot Framework.
Market Key Players:
Listed below are some of the most prominent generative AI market industry players.
- IBM Corporation
- Genie AI Ltd.
- MOSTLY AI Inc.
- Google LLC
- Amazon Web Services Inc.
- Microsoft Corporation
- Adobe Inc.
- Other Key Players
- January 2023: In January, OpenAI released DALL-E 3, a top version of its image-generating AI model. DALL-E 3 can generate the highest resolution images with more complex shapes and textures than the old version.
- March 2023: In March, Google introduced LaMDA, a new conversational AI model that can carry on more natural and informative conversations with users.
Report Features Description Market Value (2022) USD 10.6 Bn Forecast Revenue (2032) USD 151.9 Bn CAGR (2023-2032) 31.4% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component-Service, and Software; By Technology-Generative Adversarial Networks, Transformer, Variational Auto-encoder, and Diffusion Networks; By End-User-Media & Entertainment, BFSI, IT & Telecommunication, Healthcare, Automotive & Transportation, and Other End-Users Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape IBM Corporation, Genie AI Ltd., MOSTLY AI Inc., Google LLC, D-ID, Rephrase.ai, Amazon Web Services Inc., Microsoft Corporation, Adobe Inc., Synthesia, Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Frequently Asked Questions (FAQ)What is Generative AI?
Generative AI refers to a subcategory of Artificial Intelligence (AI) that employs algorithms to produce new content such as images, videos, texts and audios that simulate human creativity and decision-making processes.How big is Generative AI Market?
The Generative AI Market size is projected to surpass USD 13.9 Billion in 2023 and is likely to attain a valuation of USD 151.9 Billion by 2032. The Generative AI industry share is expected to rise at an astounding CAGR of 31.4% from 2023 to 2033.What are the key applications of Generative AI?
Generative AI finds numerous applications across a range of fields, from creative arts and content generation, image synthesis, text-to-image conversion, video creation and design optimization to data augmentation, simulation and generative modeling for research and development purposes.What are the benefits of using Generative AI?
Generative AI offers numerous advantages that can enhance productivity and creativity, including automating content creation, rapid prototyping, design iteration, personalized content generation and data augmentation for machine learning models, thus increasing overall productivity and creativity.Who are the biggest players in Generative AI Market?
Top Key Players: IBM Corporation, Genie AI Ltd., MOSTLY AI Inc., Google LLC, D-ID, Rephrase.ai, Amazon Web Services Inc., Microsoft Corporation, Adobe Inc., Synthesia, Other Key Players
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