Generative AI Market Size
Picture thisthe Generative AI market is soaring, with a massive value of over $12 billion in 2023. And get this, it's predicted to skyrocket by more than 30% each year until 2032! What's fueling this boom? It's the incredible demand for generative AI in all sorts of industries. Think workflow makeovers, where businesses use AI to streamline their processes. And let's not forget the financial world, where AI is making data a breeze to access. Gaming is getting a major upgrade too, with AI creating jaw-dropping graphics, immersive environments, and realistic experiences that'll blow your mind. This is like the next level of gaming, and it's gonna keep the market on fire. Oh, and North America is leading the charge in all things AI and ML, thanks to heavy investments in these cutting-edge technologies. Buckle up, because the future of Generative AI is looking brighter than ever!
To get key market trends
Download Free Sample
Imagine a creative machine that can invent new images, stories, songs, or movies. That's what Generative AI is all about. These clever machines are like students who study real-world data, like photos or books. They learn the styles, patterns, and tricks that make these things unique and interesting. Then, they use this knowledge to invent their own creations – completely from scratch. To do this, Generative AI often relies on special techniques called deep learning. It's like having two teams of artists – one that creates new content, and one that critiques it. By working together, they can create realistic and creative results that look like they could have come from a human mind.
Generative AI Market Report Attributes
| Report Attribute |
Details |
| Base Year |
2023 |
| Generative AI Market Size in 2023 |
USD 12.1 Billion |
| Forecast Period |
2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR |
30.3% |
| 2032 Value Projection |
USD 119.7 Billion |
| Historical Data for |
2018 - 2023 |
| No. of Pages |
300 |
| Tables, Charts & Figures |
318 |
| Segments covered |
Component, Deployment Model, Technology, End-user |
| Growth Drivers |
- The increasing use of AI-integrated systems across multiple industries
- The rise of creative applications & content creation
- Increasing use of generative AI in media & entertainment industry
- Growing demand for personalized and customized solutions
- Advancements in deep learning and neural networks
|
| Pitfalls & Challenges |
- Ethical and legal concerns
- Data quality and bias
|
What are the growth opportunities in this market?
Download Free Sample
Imagine generative AI as a student. The student's performance depends heavily on what they're taught. If they're taught biased or incomplete information, they'll make biased or inaccurate predictions. Getting the right teaching material is tough. It's like putting together a balanced and varied school curriculum. And just like teaching a child takes time and effort, training generative AI models requires a lot of computing power. The models are complex, and they need tons of data to learn from. This can be a challenge for smaller organizations or individuals who don't have access to powerful computers or enough data. It's like having a large classroom but not enough teachers to teach all the students effectively.
COVID-19 Impact
The COVID-19 pandemic had positive impacts on the generative AI market. In response to the pandemic, many organizations implemented Artificial Intelligence (AI) and Machine Learning (ML). During the pandemic, many major market players including Microsoft, IBM, Google LLC, and Amazon Web Services, Inc. witnessed an increase in AI-based technology sales. Furthermore, the rapid advancements in digital platforms facilitated the adoption of generative AI applications.
According to IBM's Global AI Adoption Index 2022 report, over 53% of IT professionals confirmed the accelerated roll-out of Artificial Intelligence (AI) in the last 24 months to respond to the pandemic. During the pandemic, advanced diagnostic tools based on Artificial Intelligence (AI) and various other imaging systems were also developed to detect the COVID-19 virus.
Generative AI Market Trends
Generative AI uses unsupervised learning algorithms for spam detection, image compression, and in the pre-processing data stages such as the removal of noise from visual data to improve picture quality. Image classification and medical imaging both use supervised learning algorithms.
Generative AI has uses in several sectors including BFSI, healthcare, automotive & transportation, IT & telecommunications, as well as media & entertainment. It is a potent tool that can be used to generate new concepts, find solutions to issues, and produce new goods. Generative AI can improve efficiency, save time & money, and improve the quality of content produced by organizations. A few well-known generative AI tools are ChatGPT, GPT-3.5, DALL-E, MidJourney, and Stable Diffusion.
Generative AI Market Analysis
Learn more about the key segments shaping this market
Download Free Sample
Based on component, the solution segment dominated around USD 6.8 billion revenue in 2023. Growing fraudulent activities, the overestimation of capabilities, unexpected outcomes, and rising concerns about data privacy will propel the solution segment growth. Through robust natural language processing models, generative AI is expected to play a significant role in various industries and sectors including fashion, entertainment, and transportation.
Learn more about the key segments shaping this market
Download Free Sample
Based on technology, the generative AI market size from Generative Adversarial Networks (GANs) segment held over USD 3 billion in 2023. GANs enable the generation of realistic & high-quality data samples and are particularly useful in domains where data scarcity or privacy concerns limit the availability of large training datasets. GANs can generate synthetic data that closely resembles real data, thereby allowing for more diverse & extensive training.
Looking for region specific data?
Download Free Sample
In 2023, North America was a global powerhouse in the Generative AI market, claiming a whopping 30% of all revenue. This dominance is set to continue in the coming years, driven by several key factors. One major trend driving North America's success is the increasing prevalence of fake medical advice and imaginary content. This has created a demand for AI systems that can detect and flag such misinformation. Another factor fueling growth is the rise in banking fraud. Generative AI can help banks identify and prevent fraudulent transactions, protecting consumers and financial institutions alike. The presence of tech giants like Meta, Microsoft, and Google in the United States is also a major boost to the North American market. These companies invest heavily in generative AI, employing top talent and advancing the technology's capabilities. Furthermore, industries such as media, entertainment, and healthcare are increasingly using AI-generated content. This demand, coupled with the abundant data available for training generative models, is also contributing to the region's market growth.
Generative AI Market Share
Some of the major companies operating in the generative AI industry are
- Adobe Inc.
- Amazon Web Services (AWS)
- Google LLC (Alphabet Inc.)
- IBM Corporation
- Microsoft Corporation
- NVIDIA Corporation
- Autodesk, Inc
These companies are focused on strategic partnerships, new service launches, and commercialization efforts for market expansion. They are heavily investing in research to introduce innovative services and garner the maximum market revenue.
Generative AI Industry News
- In April 2023, Amazon Web Service (AWS), a company that manages IT services in the U.S., launched Amazon Bedrock and several generative AI services. This service aims to offer AWS customers with a suite of generative AI tools for creating chatbots, generating & summarizing text, and classifying images based on a prompt.
- In March 2023, Microsoft Corp. introduced Microsoft 365 Copilot, an Artificial Intelligence (AI) assistant feature for Microsoft 365 services & applications. Businesses can benefit from the Microsoft 365 Copilot by saving time, streamlining, & automating IT processes, and increasing productivity.
The generative AI 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
Click here to Buy Section of this Report
Market, By Component
Market, By Deployment Model
Market, By Technology
- Generative Adversarial Networks (GANs)
- Transformers model
- Variational auto-encoders
- Diffusion models
- Others
Market, By End-user
- Healthcare
- Retail & e-commerce
- Manufacturing
- BFSI
- Media & entertainment
- Others
The above information has been provided for the following regions and countries
- North America
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Asia Pacific
- China
- India
- Japan
- Australia & New Zealand
- South Korea
- Latin America
- MEA
- UAE
- Saudi Arabia
- South Africa
Frequently Asked Questions (FAQ)
How big is the global generative AI market?
The market size of generative AI reached USD 12.1 billion in 2023 and is poised to witness 30% CAGR through 2032, as the technology drive workflow modernization in various industries.
How will solution component segment contribute to generative AI industry value?
The solution segment held around USD 6.8 billion revenue in 2023, backed by the growing fraudulent activities, the overestimation of capabilities, unexpected outcomes, and rising concerns about data privacy.
What is the size of North America generative AI market?
North America market was over 30% of the revenue share in 2023, owing to the rise in fake medical care claims and pseudo-imagination as well as increasing banking frauds.
Who are the major contenders in generative AI landscape?
Adobe Inc., Amazon Web Services (AWS), Google LLC (Alphabet Inc.), IBM Corporation, Microsoft Corporation, NVIDIA Corporation, and Autodesk, Inc.
