The Global Generative AI Market Size accounted for USD 7.9 Billion in 2021 and is projected to occupy a market size of USD 110.8 Billion by 2030 growing at a CAGR of 34.3% from 2022 to 2030.
Generative AI is a powerful new technology that can create new things rather than analyze existing ones. Generative artificial intelligence is a term that refers to the creation of artifacts that previously relied on humans. As a result, generative algorithms can now generate data using models to generate increasingly realistic images, videos, and sounds. In addition, generative AI is being tested in manufacturing as a tool for fast prototyping and in business to enhance data enhancement for robotics process automation (RPA).
Generative AI Market Report Statistics
Global Generative AI Market Dynamics
Market Drivers
Market Restraints
Market Opportunities
Generative AI Market Report Coverage
Market | Generative AI Market |
Generative AI Market Size 2021 | USD 7.9 Billion |
Generative AI Market Forecast 2030 | USD 110.8 Billion |
Generative AI Market CAGR During 2022 - 2030 | 34.3% |
Generative AI Market Analysis Period | 2018 - 2030 |
Generative AI Market Base Year | 2021 |
Generative AI Market Forecast Data | 2022 - 2030 |
Segments Covered | By Component, By Technology, By End-User, And By Geography |
Regional Scope | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
Key Companies Profiled | Amazon Web Services, Inc., Adobe, D-ID, Genie AI Ltd., Google LLC, IBM, Microsoft, MOSTLY AI Inc., Rephrase.ai, and Synthesia. |
Report Coverage |
Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis |
Generative AI Market Growth Factors
Rising complexities in information technology and other technologically advanced industries are the leading generative AI market trend that is fueling the industry demand. In addition, the increasing implementation of AI in healthcare is a very popular industry trend that will further boost the market demand. For instance, the COVID-19 pandemic boosted the generative AI market by shifting businesses to an online work model, raising digitalization across industries. Similarly to that, the growing trend of working from home and the increasing number of smartphone users have also supported the generative AI market growth.
The growing number of online frauds is also creating demand for generative AI as this tool can help in spam detection and phishing. Owing to this aspect, industries such as BFSI, healthcare, media and entertainment, and IT & telecom among others have been using generative AI solutions.
However, this technology is at the nascent stage, and to implement fully the technology will need highly qualified professionals, currently where there is a shortage. This factor may slow down the growth of generative artificial intelligence. Besides that, the high implementation cost of AI will also restrict the market from growing. Conversely, in the coming years, generative artificial intelligence will be easy to access in all industries and thus the cost of the technology will reduce significantly. Many companies have released their generative AI tools. For instance, OpenAI featured their 'ChatGPT' model, which is an intelligent chat tool that interacts in a conversational manner. This tool can understand questions like a human mind, answer follow-up questions, challenge incorrect premises, admit mistakes, and reject inappropriate requests.
Generative AI Market Segmentation
The global generative AI market is segmented based on component, technology, end-user, and geography.
Generative AI Market By Component
As per the generative AI industry analysis, the software sub-segment gathered the maximum percentage of share in 2021 and is expected to do so in the coming years. The utmost share of the segment is credited to factors such as growing fraudulent activities, overestimation of capabilities, unexpected outcomes; and rising concerns over data privacy. On the other hand, the service sub-segment is anticipated to reach a significant growth rate in the coming years.
Generative AI Market By Technology
According to the generative AI market forecast, the transformer sub-segment generated maximum revenue from 2022 to 2030 and is likely to gain significant impetus in the coming future. Transformers such as LaMDA, GPT-3, and Wu-Dao mimic cognitive attention and measure the significance of input data parts differentially. They are taught to understand the language or image, to learn classification tasks, and to generate texts or images from large datasets.
Generative AI Market By End-User
Based on the end-user category, the media & entertainment segment gathered the utmost shares and will continue to do so in the coming years. The growing use of generative AI to create better advertisement campaigns is expected to drive demand for this technological means in the media and entertainment industries. On the other hand, BFSI sub-segment achieved substantial growth rate during the forthcoming years from 2022 to 2030.
Generative Artificial Intelligence Market Regional Outlook
North America
Europe
Asia-Pacific
Latin America
The Middle East & Africa
Generative AI Market Regional Analysis
In 2021, North America generated the largest revenue in the overall generative AI market. The rising number of fraudulent activities, increased adoption of digitally advanced healthcare devices, and presence of technologically advanced players such as Google, Meta, Microsoft, and IBM among others. In terms of growth, the Asia-Pacific region will obtain the highest growth rate from 2022 to 2030. The rising digitization across sectors, rising investments in AI platforms, and growing AI startups in countries such as China, India, Japan, and South Korea are some of the factors that are favoring the Asia-Pacific generative AI market.
Generative AI Market Players
Some of the leading generative AI companies include Amazon Web Services, Inc., Adobe, D-ID, Genie AI Ltd., Google LLC, IBM, Microsoft, MOSTLY AI Inc., Rephrase.ai, and Synthesia.
The market size of generative AI market in 2021 was accounted to be USD 7.9 Billion.
The projected CAGR of generative AI market during the analysis period of 2022 to 2030 is 34.3%.
The prominent players of the global generative AI market include Amazon Web Services, Inc., Adobe, D-ID, Genie AI Ltd., Google LLC, IBM, Microsoft, MOSTLY AI Inc., Rephrase.ai, and Synthesia.
North America held the dominating generative AI during the analysis period of 2022 to 2030.
Asia-Pacific region exhibited fastest growing CAGR for generative AI during the analysis period of 2022 to 2030.
Increasing adoption of AI in various industries, rising demand for machine learning and deep learning, and growing need to optimize workflows across industries drives the growth of global generative AI market.
Based on component, software segment is expected to hold the maximum share of the generative AI market.