Generative AI Market Size - Global Industry, Share, Analysis, Trends and Forecast 2022 - 2030

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 revenue is projected to reach USD 110.8 Billion by 2030 with a CAGR of 34.3% from 2022 to 2030
• North America generative artificial intelligence market share generated over US$ 3.2 billion in revenue in 2021
• According to recent statistics, there was more than USD 52.9 billion private funding in AI technology in the US last year
• Asia-Pacific generative AI market growth will record noteworthy CAGR from 2022 to 2030
• Based on technology, the transformers sub-segment achieved 42% shares in 2021
• Among end-user, the media & entertainment sub-segment occupied 19% shares in 2021
• Growing adoption of AI-integrated solutions across numerous verticals is a prominent generative AI market trend that drives the industry demand

Global Generative AI Market Dynamics

Market Drivers

• Increasing adoption of AI in various industries
• Rising demand for machine learning and deep learning
• Growing need to optimize workflows across industries

Market Restraints

• High implementation cost
• Lack of skilled workforce

Market Opportunities

• Growing research & development activities in technology firms
• Extensive funding by private and public organization in AI

Generative AI Market Report Coverage

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

• Software
• Services

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

• Transformers
• Generative Adversarial Networks (GANs)
• Diffusion Networks
• Variational Auto-encoders

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

• Media & Entertainment
• BFSI
• IT & Telecommunication
• Healthcare
• Automotive & Transportation
• Others

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

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

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.