AI Image Generator Market Size - By Component (Software, Services), By End-User (Media & Entertainment, Healthcare, Fashion, E-commerce & Retail) & Global Forecast, 2023 - 2032

AI Image Generator Market Size - By Component (Software, Services), By End-User (Media & Entertainment, Healthcare, Fashion, E-commerce & Retail) & Global Forecast, 2023 - 2032

AI Image Generator Market Size

AI Image Generator Market size was valued at USD 213.8 million in 2022 and is projected to grow at a CAGR of 16.5% from 2023 to 2032, driven by the rise of Non-Fungible Tokens (NFTs).  The increasing popularity of Non-Fungible Tokens (NFTs) has created a demand for unique digital art and collectibles, driving the use of AI image generators to produce novel and exclusive visual content. For instance, in February 2022, an AI-generated art piece called" The First 5000 Days" was sold for $69.3 million at Christie's auction house. This was a watershed moment for the NFT art market, and it helped legitimate AI-generated art as a legitimate form of artistic expression.

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Likewise, in April 2022, the AI art collective Larva Labs launched a new collection of NFTs called "CryptoPunks", which sold out in minutes. The average price of a CryptoPunk was over $100,000. These instances point toward a strong demand for AI-generated art that is both unique and aesthetically appealing, which, in consequence, will create a favorable growth outlook for the AI image generator market.

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AI image creation tools empower non-designers and individuals without specialized skills to generate visually appealing content, enabling them to participate in creative endeavors. These can produce images at a fraction of the time and cost compared to traditional manual methods, making them an attractive option for businesses looking to optimize their resources. The increasing demand for high-quality visual content across industries, such as advertising, marketing, entertainment, and gaming, has spurred the need for efficient and scalable AI image creation solutions, augmenting market gains. 

Quoting an instance, in 2022, the fashion brand Gucci used AI-generated images to create a campaign for its new fragrance, Flora Gorgeous Gardenia. The images were created using DALL-E 2, and they featured a variety of fantastical and surreal scenes inspired by the fragrance's scent. However, users might face constraints in controlling the output of AI image generators, leading to limited customization options and reduced flexibility. Besides, integrating AI image generators into existing workflows and applications can be complex and time-consuming, potentially deterring businesses from adopting these technologies.

COVID-19 Impact

The COVID-19 pandemic significantly impacted the AI image generator market. With the rise of remote work and the need for virtual events, the demand for high-quality digital imagery witnessed an upward trend. However, many businesses have had to cut back on their marketing budgets, leading to a decline in demand for AI image generators. Additionally, the pandemic has caused supply chain disruptions, delaying the production and delivery of AI image-generator software. Despite these challenges, the industry has adapted by offering more affordable and accessible AI image-generator options for businesses and individuals alike.

AI Image Generator Market Trends

AI image generators can be integrated with other emerging technologies like virtual assistants, chatbots, and natural language processing systems, expanding their potential use cases. For instance, Microsoft Bing Image Generator, powered by OpenAI's DALL-E 2 model, allows users to create images by simply describing what they want to see to the Bing chatbot. The images are generated in real-time, and users can then share or download them. Similarly, ChatGPT, powered by OpenAI's GPT-3 model, can now generate images based on user prompts. As companies compete to stay ahead in the digital age, adopting AI image generators can provide a competitive edge, enabling them to produce cutting-edge visual content faster and more efficiently.

AI Image Generator Market Analysis

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The AI image generator market from software segment dominated around USD 140 million revenue in 2022 and is set to cross USD 650 million by 2032, due to the increasing need for high-quality images for various purposes. Businesses, especially those in the e-commerce sector, require high-definition images to showcase their products and attract customers. AI-powered image generators are also used in the film and gaming industries to create realistic special effects and backgrounds. Additionally, an escalating requirement for visually appealing images across social media platforms and websites to increase user engagement will contribute to the growing demand for AI image generator software.

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The media & entertainment held a AI image generator market share of 26.6% in 2022 and will reach USD 250 million by 2032, driven by their ability to efficiently produce high-quality visual content, streamline creative processes, and offer innovative solutions for visual storytelling. These AI-powered tools empower generators with time and cost-effective options to generate diverse and engaging visuals, enhance visual effects, and explore new creative possibilities, making them valuable assets in the competitive landscape of content creation and digital media.

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The North America AI image generator market size accounted for USD 70 million in 2022 and will surpass USD 300 million by 2032, attributed to their potential to revolutionize various industries, including media, advertising, and e-commerce. With companies like Adobe, NVIDIA, and OpenAI actively developing and promoting AI-powered image creation tools, North American businesses are increasingly adopting these solutions to stay ahead in the competitive landscape. Moreover, the region's strong research institutions and tech-driven culture foster a conducive environment for the development and adoption of cutting-edge AI technologies, further boosting their popularity.

AI Image Generator Market Share

Major companies operating in the AI image generator market are

• AISEO
• Box 20 LLC
• CodeSandbox
• Craiyon LLC
• DeepAI
• Jasper.ai
• Lightricks
• neuroflash
• NightCafe Studio
• Panabee, LLC
• Runway AI, Inc.
• Starryai
• Dreamstudio

These companies are prioritizing strategic partnerships, launching new products, and commercialization efforts to expand their market reach.

AI Image Generator Industry News

• In February 2023, Runway AI released its new generation image creation model, Gen-2, which is significantly more powerful than the previous version. It can generate more realistic and detailed images in a variety of styles.

The AI image generator market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments

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Market, By Component

• Software
• Services

Market, By End-User

• Media & Entertainment
• Healthcare
• Fashion
• E-commerce & Retail
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • UAE
  • Saudi Arabia

Frequently Asked Questions (FAQ)

How big is the AI image generator market?

The market size of AI image generator reached USD 213.8 million in 2022 and is set to record over 16.5% CAGR from 2023 to 2032.

Why is AI image generator software witness high demand?

AI image generator market share from the software segment recorded USD 140 million in 2022 and is poised to cross USD 650 million by 2032, due to the increasing need for high-quality images for various purposes.

Why is North America AI image generator industry growing?

North America market was valued at over USD 70 million in 2022 and is projected to surpass USD 300 million by 2032, owing to the product’s potential to revolutionize various industries, including media, advertising, and e-commerce.

Who are the leading players in the global AI image generator landscape?

AISEO, Box 20 LLC, CodeSandbox, Craiyon LLC., DeepAI, Jasper.ai, Lightricks, neuroflash, NightCafe Studio, Panabee, LLC., Runway AI, Inc., Starryai., and Dreamstudio.