Market Overview
The Global Generative AI Market is expected to reach a value of
USD 14.9 billion in 2023, and it is further anticipated to reach a market value of
USD 266.0 billion by 2032 at a
CAGR of 37.8%. The market has seen a significant increase in the recent past and is predicted to grow significantly during the forecasted period as well.
Generative AI is a tool that allows users to quickly create new content from various inputs like text, images, sounds, & more. These AI models use neural networks to find patterns in existing data & generate fresh content. Further, it can also learn from unlabeled data, making it easier to build foundation models. These foundation models serve as the basis for AI systems that can do many different tasks.
Market Dynamic
The global generative AI market is set to grow, driven by an increase in demands for complex manufacturing designs & the pursuit of improvement of automotive performance. This compels automotive manufacturers to expand research & development investments & incorporate generative design, thereby fueling market expansion. Leading players like Apple & Microsoft are increasing their R&D endeavors, researching AI & machine learning. Companies like Worldwide Technology are even launching dedicated initiatives centered around AI & ML, with a significant focus on generative AI advancements.
However, there are a few limitations of generative AI that must also be considered. While it can execute tasks with large data, it lacks the capability to truly generate entirely new images, often integrating information in novel ways. Additionally, concerns grow in terms of security, as generative AI's capacity to produce replicated images might contribute to identity theft, fraud, & counterfeiting. Moreover, privacy concerns also emerge in fields like healthcare, where the collection of personal data raises data privacy issues.
Research Scope and Analysis
By Component
In terms of components, the market is divided into two segments, which are software & services. In 2023, the software segment leads in total revenue share of the market & is anticipated to maintain its dominant position in the industry for the same during the forecasted period. The growth of the software sector can be said due to several factors, including the growth in fraudulent activities, concerns about exaggerating AI capabilities, unexpected outcomes, & increased look on data privacy. Generative AI software is set to play a major role across several industries like fashion, entertainment, & transportation, due to its increasing strength through strong machine learning models. For instance, brands like H&M & Adidas have integrated generative AI to create clothing designs & custom sneakers. Additionally, this technology has been used to generate unique fabric patterns & prints, streamlining the work of designers and saving them time and effort.
By Technology
In terms of technology, the market is divided into Generative Adversarial Networks (GANs), transformers, variational auto-encoders, & diffusion networks. Among these, the transformers category accounted for the largest share of the market's total revenue in 2023. This is due to transformers being increasingly used in many applications, like turning text into images, as demonstrated by DALL-E, a transformer model that can recognize text & create corresponding images. For instance, GPT-3, created by OpenAI, is a transformer model that can create text that reads like it was written by a human, making it useful for tasks like composing poetry & emails.
By Application
In 2023, the Natural Language Processing (NLP) application is leading the market, holding a significant market share, & is anticipated to grow significantly throughout the forecasted period. NLP is a powerful tool in generative AI, used for numerous tasks such as creating text & speech. Moreover, with advancements in deep learning, there have been advancements in NLP models like Recurrent Neural Networks (RNNs), BERT from Google AI Language, & GPT-3 from OpenAI. These models have significantly enhanced the accuracy & effectiveness of NLP-based generative AI applications, driving growth in this area.
The Generative AI Market Report is segmented on the basis of the following:
By Component
• Software
• Service
By Technology
• Generative Adversarial Networks
• Transformers
• Variational Auto-encoders
• Diffusion Networks
By Application
• Computer Vision
• NPL
• Robotics & Automation
• Content Generation
• Chatbots & Intelligent Virtual Assistants
• Predictive Analytics
• Others
Regional Analysis
In 2023, North America dominates the generative AI market, by contributing to about 41.0% of the total revenue share. This dominance is anticipated to be sustained throughout the forecast period, mainly due to two key factors, that is the increasing adoption of pseudo-imagination techniques and the increase in incidents of banking fraud drive the need for advanced AI technologies, including generative AI, to strengthen security measures. Primarily, the involvement of key players like Meta, Google LLC, & Microsoft is set to play a pivotal role in propelling the development of the generative AI market in North America.
Moreover, the Asia Pacific region is anticipated to experience fast growth in the generative AI market. This growth can be said owing to multiple factors. Firstly, the growing initiatives by governments in the region to strengthen AI & technological innovation provide a conducive environment for the development & deployment of generative AI solutions. In addition, the growing adoption of AI-based applications across diverse sectors in the Asia Pacific contributes to the market's growth. As industries combine AI-driven tools to improve efficiency & productivity, the need for generative AI is expected to grow significantly. Overall, the integration of proactive government initiatives & the broader integration of AI technologies positions Asia Pacific as an expanding hub for the growth of the generative AI market in the forecast period.
By Region
North America
• The U.S.
• Canada
Europe
• Germany
• The U.K.
• France
• Italy
• Russia
• Spain
• Benelux
• Nordic
• Rest of Europe
Asia-Pacific
• China
• Japan
• South Korea
• India
• ANZ
• ASEAN
• Rest of Asia-Pacific
Latin America
• Brazil
• Mexico
• Argentina
• Colombia
• Rest of Latin America
Middle East & Africa
• Saudi Arabia
• UAE
• South Africa
• Israel
• Egypt
• Rest of MEA
Competitive Landscape
The generative AI market is experiencing intense competition, with a few global leaders commanding a significant market share. Key players in the industry are mainly focusing on two strategies that are innovation in product development & fostering collaborative partnerships. These companies are constantly looking to introduce advanced solutions to maintain their competitive edge, while at the same time seeking opportunities to collaborate with other industry leaders to expand their market reach.
For instance, in October 2023, the global card payments leader Visa announced a new USD 100 million in generative AI initiative to invest in next-gen companies aiming to develop AI technologies & applications that will impact the future of commerce & payments.
Some of the prominent players in the Global Generative AI market are:
• Synthesia
• MOSTLY AI Inc.
• Genie AI Ltd.
• IBM
• Google LLC
• Microsoft
• Adobe
• Rephrase.ai
• D-ID
• Amazon Web Services, Inc.
• Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Generative AI Market:
The COVID-19 pandemic & following recession had a dual impact on the global generative AI market. While at the start, the economic downturn led to limited budgets & cautious spending in many industries, the pandemic also increased the adoption of automation & AI-driven solutions to get along with remote work & changing consumer behaviors. As a result, the generative AI market saw a short-term slowdown followed by a renewal as businesses continuously recognized the value of AI technologies in streamlining operations, improving customer experiences, & gaining a competitive edge in the post-pandemic landscape.
Report Characteristics |
Market Size (2023) |
USD 14.9 Bn |
Forecast Value (2032) |
USD 266.0 Bn |
CAGR (2023-2032) |
37.8% |
Historical Data |
2017 - 2022 |
Forecast Data |
2023 - 2032 |
Base Year |
2022 |
Estimate Year |
2023 |
Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
Segments Covered |
By Component (Software and Services), By
Technology (Generative Adversarial Networks,
Transformers, Variational Auto-encoders, and
Diffusion Networks), By Application (Computer
Vision, NPL, Robotics & Automation, Content
Generation, Chatbots & Intelligent Virtual Assistants,
Predictive Analytics, and others.) |
Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
Prominent Players |
Synthesia, MOSTLY AI Inc, Genie AI Ltd, IBM, Google
LLC, Microsoft, Adobe, Rephrase.ai, D-ID, Amazon
Web Services, and Other Key Players. |
Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Generative AI Market is estimated to reach USD 14.9 billion in 2023, which is further
expected to reach USD 266.0 billion by 2032.
North America dominates the Global Generative AI Market with a share of 41.0% in 2023.
Some of the major key players in the Global Generative AI Market are Google, IBM, Adobe, and many
others.
The market is growing at a CAGR of 37.8 % over the forecasted period.