USD 16.81 Billion
Generative AI Market Size, Share, Growth Analysis, By Component(Hardware, Services, and Software (On Premises, & Cloud)), By End-Use(Technology and Communication, Automotive & Assembly, Financial Services, Healthcare), By Application(Business Intelligence and Visualization, Content Management, Synthetic Data Management, Search and Discovery), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45E2176 |
Region:
Global |
Published Date: August, 2024
Pages:
165
|Tables:
98
|Figures:
76
Generative AI Market Insights
Generative AI Market size was valued at USD 16.81 Billion in 2022 and is expected to grow from USD 24.62 Billion in 2023 to reach USD 521.51 Billion by 2031, at a CAGR of 46.45% during the forecast period (2024-2031).
The Generative AI market is steadily growing globally and can be defined as a market of innovative technologies capable of generating new content in any formats such as texts, images, or music. Generative AI, through technologies such as GANs & Transformers, creates outputs that have not been seen or calculated before, mimicking human-generated outputs rather closely. This market mainly serves to advance and/or provide techniques that can improve creativity throughout different fields as well as to decrease human interference in creative tasks that may take a lot of time to accomplish or need an accomplished amount of focus. This technology is especially important in entertainment, design, content creation, and marketing that targets consumers based on one’s preference. Smaller factors that contribute to the generative AI market include the increasing availability of information, the progress made in computation, and people’s need for individualized content.
However, there are significant opportunities in the generative AI market as a result of these crucial challenges. The enhancement in the implementation of new AI algorithms and raise the complexity of the existing models yield new application areas in different underexplored sectors like healthcare wherein an AI can develop treatment plans for patients or even design new drugs. These possibilities present themselves by offering organizations the ability to adapt the user experience in e-commerce and digital marketing to unique individuals. Collaboration between human creativity and AI promises unprecedented innovations in arts and design, pushing the boundaries of what is possible and paving the way for a more automated and creative future.
US Generative AI Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Software
Fastest Growth
Software
Growth Rate
46.45% CAGR
Global Generative AI Market ($ Bn)
Country Share for North America Region (%)
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Generative AI Market Segmental Analysis
The Global Generative AI market is segmented on the basis of Component, Application, End User, and region. Based on Component, the market is segmented as Hardware, Services, and Software. Based on Application, the market is segmented as Business Intelligence and Visualization, Web Content Management, Synthetic Data Management, Search and Discovery, and Others. Based on End User, the market is segmented as Technology and Communication, Automotive & Assembly, Financial Services, Healthcare, Business, Legal & Professional Services, Consumer Goods/ Retail, and Others. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle East & Africa.
Generative AI Market Analysis by Component
The software segment currently dominates the market, driven by continuous advancements in sophisticated algorithms and neural network architectures. Leveraging neural architecture search (NAS) automates the discovery of optimal models, enhancing the efficiency and effectiveness of neural networks. For instance, Intel's launch of Articul8 AI in January 2023 aims to provide a comprehensive generative AI software platform, tailored for enterprise customers and emphasizing security and performance. Additionally, the rising need for expert consulting in AI strategy and implementation, along with increasing demand for AI training programs, further propels the growth of the AI software market.
The Services segment emerges as the fastest-growing segment within the Global Generative AI market. This paper will define services as a loosely descriptive term for various activities that consulting, implementation, training and support offer that enable organizations to fully exploit generative AI technologies. Companies grasp the need for AI and the opportunities it opens to gain a competitive edge and stimulate innovation while the need for proper expertise in generative AI’s development, integration, and optimization services to supply this demand soar significantly. Also, as more General AI Definitions With ever-improving capabilities across numerous fields and scopes, the Services segment is expected to have even more significant growth than at the moment, especially due to the constant demand for customized solutions and continuous support in the implementation of artificial intelligence systems.
Generative AI Market Analysis by End User
The technology and communication sector stand out as the largest growing segment. This domination may be due to the rising demand for AI solutions in every aspect of clients’ processes in addition to strengthening cybersecurity measures within this area. By integrating AI, workers have increased productivity and creativity, but applying AI specialties has a significant impact on various cyber risks. For example, over the period of the year 2023, the bot attacks have raised in weekly frequency by a marginal 18% in a single quarter and further rose by 48% in the subsequent quarter and are targeting more than the majority of the websites. In as much as there has been efforts towards extreme software quality testing solutions, there are still malicious people out there taking advantage of such vulnerabilities like those identified in Metasploit. However, there has been an emphasis on cybersecurity measures implemented, as many as 947 million cyber-attacks were prevented in India alone in the second quarter of 2023 out of the global total of 1. 1 billion. Nevertheless, future events and large-scale complex AI-driven cyber attacks such as ransomware increased by 40% in 2023 than in 2022 show that there is a need to act in advance.
The Generative AI market finds its growth in the healthcare sector as this particular segment is the fastest-growing one. The advancement of technology in general and developments in the AI system especially in areas of image and diagnostics have opened up many windows and doors in the health sector. As applied in medical imaging, it enhances operation efficiency and increases the likelihood of accurate diagnoses by eliminating the probability of a biopsy. As AI continues to evolve, its integration into clinical practice holds the potential to further revolutionize healthcare delivery, providing healthcare providers with valuable insights and tools for effective patient care implementation.
Global Generative AI Market By Component
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Generative AI Market Regional Insights
North America emerging as the dominating region. Factors such as technological development, investments in research and development, and the high levels of technology adoption in the region have made it rank high as the region of emergence of new technologies. It is evident that these companies in North America especially in US continue to pioneer the use of AI solutions with a generative element across sectors ranging from the healthcare, financial, automobile industries and more. In the same way, major players and technology companies continue to develop their interest and funding in AI developing the region, hence also boosted the North America region as a strong market for generative AI solutions.
Asia Pacific region stands out as the fastest-growing market for generative AI. The recent advances and ongoing efforts in AI technologies have created sustained interest toward generative AI systems; spearheaded by developing nations such as China, India, and Japan among others. Some of the driving forces are a growing population, enhanced internet usage, and higher per capita income, making them seek Artificial Intelligence-based solutions or services in their daily lives. Similarly, bodies such as the Asia Pacific Artificial Intelligence Association are driving government interest in establishing programs that foster AI research and development while global and startup enterprises are seeking to leverage AI as a competitive advantage that in turn contributes to the generative growth of the Asia Pacific generative AI market.
Global Generative AI Market By Geography
- Largest
- Fastest
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Generative AI Market Dynamics
Generative AI Market Driver
Advancements in Deep Learning Techniques:
- The active constant development of deep learning algorithms as well as major subcategories such as GANs, VAEs, and reinforcement learning is influencing the Generative AI market’s growth. These advancements result in enhanced capabilities, realistically looking and complicated generative models with extensive use in different fields related to the generation of arts, contents, and synthetic data.
Growing Demand for Personalized Content and Experiences:
- Due to advanced technologies, users aspire to get unique content and experiences in various fields including marketing, entertainment and eCommerce. Generative AI works to produce dynamic digital content that aligns with the user’s preferences and behavior of users in terms of images, videos, text, etc. This is putting pressure on generative models to be implemented by companies who are looking to improve on the way they handle customers.
Generative AI Market Restraints
Ethical and Privacy Concerns:
- With the help of Generative AI, new unethical aspects are connected with the generation of fake images, text, and videos, deepfakes, misinformation, and fake products advertisement. Thus, the issues of privacy arise with regard to the production and modification of personal data using generative models. Such concerns might attract legislation controls, consumer dissent and corresponding organizations’ refusal from using generative technology, especially in applications that imply individual identification and biometrics.
Data Quality and Bias Issues:
- Generative AI heavily relies on training data to learn and generate new content. However, ensuring the quality, diversity, and representativeness of training data remains a significant challenge. Biases present in the training data can lead to biased or skewed outputs generated by the models, perpetuating existing societal biases and inequalities. Addressing data quality and bias issues requires careful curation and preprocessing of training data, as well as the development of algorithms that are robust to biased inputs.
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Generative AI Market Competitive Landscape
Global generative AI market is relatively fragmented, with a high level of competition. A few large players, like Amazon Web Services, Inc, Google LLC, and Adobe, now control the market in terms of market share. These industry leaders are extending their customer base across several areas, and many corporations are creating strategic and collaborative initiatives with other start-up enterprises to enhance their market share and profitability.
Generative AI Market Top Player’s Company Profiles
- OpenAI (US)
- NVIDIA Corporation (US)
- Google LLC (US)
- Adobe Inc. (US)
- IBM Corporation (US)
- Microsoft Corporation (US)
- Autodesk Inc. (US)
- Unity Technologies (US)
- Altair Engineering Inc. (US)
- Meta (US)
- Salesforce Inc. (US)
- Hugging Face (US)
- Synthesia (UK)
- DATAROBOT INC (US)
- Dynatrace (US)
- UiPath (US)
- SentinelOne (US)
- C3 AI (US)
- Darktrace (UK)
- Presight AI (US)
Generative AI Market Recent Developments
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In March 2024, Amazon launched generative AI to help sellers write product descriptions. Amazon is continuing to innovate by giving the option to provide a URL to their own website and leverage a new generative AI capability to easily create high-quality product detail pages in Amazon’s store.
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In January 2024, Google launched several new tools for retailers using generative artificial intelligence to improve online shopping experiences and other retail operations.
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In October 2023, Adobe announced several new generative AI enhancements across its core product lines, as Big Tech races to make the most of the buzzy artificial intelligence capable of creating its content, such as text or images.
Generative AI Key Market Trends
- Cross-Domain Applications: Generative AI is increasingly being applied across diverse domains beyond traditional areas like image and text generation. This includes applications in healthcare (e.g., generating synthetic medical images for training diagnostic algorithms), finance (e.g., generating synthetic financial data for risk assessment and forecasting), and robotics (e.g., generating simulated environments for training autonomous agents). The trend towards cross-domain applications reflects the versatility and potential impact of generative models in solving real-world problems across various industries.
- Interpretability and Explainability: As generative AI systems become more sophisticated and ubiquitous, there is a growing need for interpretability and explainability in model outputs. Understanding how and why a generative model generates a particular output is crucial for building trust, identifying potential biases or errors, and ensuring accountability in decision-making processes. As a result, there is increasing research and development efforts focused on improving the interpretability and explainability of generative models, including techniques such as attention mechanisms, saliency maps, and counterfactual explanations.
Generative AI Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global Generative AI Market analysis, the generative AI market is probably growing in the forecast years, with the Asia Pacific region becoming a major force in this growth. The digital infrastructure transformation initiatives that are being implemented with the help of the increasing investments in artificial intelligence in different industries are a major driver of the acceptance of generative AI solutions. As enterprises come to understand the tremendous power of Generative AI in improving creativity, efficiency, and innovation, the market is set to keep the pace of development not only in the Asia Pacific but also in the rest of the world. The trend ahead, however, is the integration of generative AI even deeper in sectors as the AI algorithms will be made more complex, data availabilities will increase and the number of digital platforms proliferating. This will open a path for a new era of AI driven innovations and higher productivity for the Asia Pacific region and beyond.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 16.81 Billion |
| Market size value in 2031 | USD 521.51 Billion |
| Growth Rate | 46.45% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Generative AI Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Generative AI Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Generative AI Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Generative AI Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Generative AI Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Generative AI Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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