Generative AI Market Size, Share Report, Analysis, Trends, Growth 2032

Generative AI Industry Prospective:

The global generative AI market size was evaluated at $13.24 billion in 2023 and is slated to hit $112.47 billion by the end of 2032 with a CAGR of nearly 26.83% between 2024 and 2032. 

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Generative AI Market: Overview

Generative AI is likely to unleash a new wave of productivity. Moreover, generative AI is a kind of AI technology producing various kinds of content including audio, text, synthetic data, and imagery. Recently, generative AI involves the large-scale utilization of neural networks for identifying patterns & structures within the current data for producing new content.

Reportedly, generative AI tools make utilization of deep learning algorithms including generative adversarial networks (GANs) and variational auto-encoders (VAEs) for producing content that coincides with input data.

Key Insights

• As per the analysis shared by our research analyst, the global generative AI market is projected to expand annually at the annual growth rate of around 26.83% over the forecast timespan (2024-2032)
• In terms of revenue, the global generative AI market size was evaluated at nearly $13.24 billion in 2023 and is expected to reach $112.47 billion by 2032.
• The global generative AI market is anticipated to grow rapidly over the forecast timeline owing to growing use of technologies such as text-to-image conversion, super-resolution, and text-to-video conversion.
• In terms of component, the software segment is slated to register the highest CAGR over the forecast period.
• Based on technology, the transformers segment is predicted to lead the segmental space in the upcoming years.
• Based on application, the NLP (Natural Language Processing) segment is predicted to contribute majorly towards the global market share in the upcoming years.
• On the basis of end-use, the media & entertainment segment is predicted to dominate the segmental space in the ensuing years.
• Based on model, the large language model segment is predicted to record the highest CAGR in the ensuing years.
• Region-wise, the Asia-Pacific generative AI industry is projected to register the fastest CAGR during the projected timespan.

Request Free SampleGenerative AI Market: Growth Factors

Escalating utilization of new conversion technologies for images & videos to boost the global market trends

Growing use of technologies such as text-to-image conversion, super-resolution, and text-to-video conversion is likely to drive the global generative AI market trends. Need for upgrading workflow across various end-use sectors such as manufacturing, telecom, media & entertainment, IT, and retail will provide impetus to the expansion of the global market.

Humungous demand for creating virtual domains in the metaverse along with need of deploying large language models will steer the global market landscape in the years to come. Demand for generative AI in gaming sector will embellish the scope of market growth globally in the years to come.

Generative AI Market: Restraints

Risks related to data breaches & leaking of data confidentiality to restrict the expansion of the global industry by 2032

Risks associated with data violations along with sensitivity of information can retard the expansion of the generative AI industry across the globe. Surging threat to data security can prove to be a huge deterrence to the progress of the global industry.

Generative AI Market: Opportunities

Rise in the use of unsupervised learning methods in compressing images & data processing activities to boost the global market expansion

Generative AI utilizes unsupervised learning algorithms for spam detection, image compression, and preprocessing data such as removing outliers from data, checking missing values, and improving the image quality. Moreover, supervised learning algorithms find a slew of applications in medical imaging and image classification.

Additionally, it is utilized in various sectors such as IT & telecommunications, BFSI, media & entertainment, healthcare, and automotive & transportation. All these aforementioned aspects will create new growth avenues for the global generative AI market.

Generative AI Market: Challenges

Low optimal quality of results produced by AI models can challenge the global industry surge by 2032

The quality of outcomes produced by generative AI models can prove critical for large language models, thereby posing a big threat to the global generative AI industry surge. Furthermore, generative AI models yield outcomes of sub-optimal quality with marked inaccuracies, thereby posing a huge challenge to the global industry surge.

Generative AI Market: Segmentation

The global generative AI market is divided into component, technology, end-use, application, model, and Region.

In component terms, the generative AI market across the globe is bifurcated into software and services segments. Additionally, the software segment, which acquired nearly 48% of the global market revenue in 2023, is projected to register the fastest annual rate of growth in the forecast timespan. The expansion of the segment in the next eight years can be due to rising demand for generative AI software in transport, fashion, and entertainment sectors. In addition to this, it is utilized for producing unique patterns of fabrics and prints, thereby saving time & effort of designers.

On the basis of technology, the global generative AI industry is segmented into transformers, diffusion networks, generative adversarial networks, and variational auto-encoder segments. Additionally, the transformers segment, which amassed a key share of the global industry in 2023, is forecast to lead the segment space in the next few years. The segmental growth from 2024 to 2032 can be due to escalating use of transformers in text-to-image applications for converting text to an image. For instance, DALL-E, a generative AI tool, is a transformer which understands the text data and transforms it into data accordingly.

Based on the application, the global generative AI market is sectored into NLP (Natural Language Processing) and computer vision segments. Moreover, the NLP (Natural Language Processing) segment, which accumulated about 63% of the global market share in 2023, is predicted to make notable contributions towards the global market share over the analysis period. The growth of the segment in the upcoming years can be attributed to NLP being a powerful generative AI tool having a large number of text & speech generating apps. Reportedly, the NLP models substantially increase the accuracy and efficacy of NLP-driven generative AI apps, thereby impelling the segmental surge.

On basis of model, the global generative AI industry is divided into large language model and multi-modal generative model segments. Furthermore, the large language model segment, which accounted for 61% of the global industry size in 2023, is predicted to record the highest CAGR over the projected timeline. The segmental surge over 2024-2032 can be credited to ability of large language models in reducing time and costs related to developing of NLP apps. Reportedly, large language models including ChatGPT can produce human-like language, thereby making them useful in a slew of applications.

Based on the end-use, the generative AI market across the globe is sectored into media & entertainment, BFSI, automotive & transportation, healthcare, IT & telecommunication, and gaming segments. Additionally, the media & entertainment segment, which accounted for nearly 53% of the global market proceeds in 2023, is expected to lead the segmental surge over the upcoming years.  The expansion of the segment in the upcoming years can be due to rise in the use of generative AI tools in improving the promotional campaigns for various firms.

Generative AI Market: Report Scope

Generative AI Market: Regional Insights

North America is expected to maintain the leadership status in the global generative AI market in the ensuing years

North America, which accounted for nearly two-fifths of the global generative AI market earnings in 2023, is expected to establish dominance in the global market even in the years ahead. In addition to this, the regional market expansion in the next couple of years can be subject to a surge in the pseudo-imagination and medical care along with rise in the banking frauds. Apart from this, presence of key players such as Microsoft Corporation, Meta, and Google LLC will steer the expansion of the regional market.     

Asia-Pacific generative AI industry is anticipated to register the fastest CAGR in the forecast timespan. The progress of the industry in the region can be credited to favorable government initiatives in AI in the countries such as China, Taiwan, Japan, India, and South Korea. Additionally, swift digitization along with large-scale acceptance of AI in firms along with launch of IoT, AR, and VR technologies will proliferate the regional industry size.

Key Developments

• In the first half of 2023, Nvidia launched Metaverse technologies including VR and AR for spectrum of generative AI tools such as Omniversum portal along with 3D and RTX updates.
• In the second quarter of 2023, Microsoft Corporation joined hands with Epic Systems, a U.S. based healthcare software firm, for incorporating large language model tools & AI into electronic health record software of Epic Systems. Such strategic moves will provide impetus to the growth of generative AI market across the globe.

Generative AI Market: Competitive Space

The global generative AI market profiles key players such as:

• Google LLC
• Adobe Inc.
• Amazon Web Services Inc.
• Microsoft Corporation
• Synthesia
• Rephrase.ai
• MOSTLY AI Inc.
• Genie AI Ltd.
• IBM Corporation
• D-ID.

The global generative AI market is segmented as follows:

By Component

• Software
• Services

By Technology

• Transformers
• Diffusion Networks
• Generative Adversarial Networks
• Variational Auto-Encoders

By End-Use

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

By Application

• NLP (Natural Language Processing)
• Computer Vision

By Model

• Large Language Model
• Multi-Modal Generative Model

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa