Global Generative AI Market is segmented By Component(Software, Services), By Technology(Generative Adversarial Networks (GANs), Transformers, Variational Auto-encoders, Diffusion Networks), By Model(Large Language Models, Image & Video Generative Models, Multi-modal Generative Models, Others), By Application(Computer Vision, Natural Language Processing (NLP), Robotics and Automation, Content Generation, Chatbots and Intelligent Virtual Assistants, Predictive Analytics, Others), By End-User(Media & Entertainment, BFSI, IT & Telecommunication, Automotive & Transportation, Healthcare, Gaming, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024 - 2031
Market Overview
Global Generative AI Market reached USD 11.1 billion in 2022 and is expected to reach USD 52.6 billion by 2031, growing with a CAGR of 35.7% during the forecast period 2024-2031. The market is being driven primarily by the developing information technology (IT) industry and the increasing use of AI-integrated systems to improve productivity and agility.
Furthermore, the growing popularity of generative AI for supporting chatbots in conducting productive discussions and improving customer happiness is driving market growth.
During the forecast period 2024-2031, Asia-Pacific is expected to have the strongest growth, accounting for almost 1/4th of the global generative AI market. Leading companies in Asia-Pacific are beginning to investigate the generative AI capabilities and identify their goals. In February 2023, Panasonic Connect, for example, introduced an AI virtual assistant for its 12,500 employees in Japan.
Market Scope
| Metrics | Details |
| CAGR | 35.7% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Component, Technology, Model, Application, End-User, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
The Growing Popularity of Generative AI in Healthcare
The growing popularity of generative AI in the healthcare sector to develop items like as prosthetic limbs and organic molecules from scratch via 3D printing, CRISPR and other technologies is anticipated to be the primary driver of market growth. Furthermore, it allows for the early detection of potential cancers, resulting in more successful treatment strategies. Another key growth reason is the need for technology to aid chatbots in increasing customer satisfaction.
For example, in January 2023, Nvidia launched a new generative AI model capable of creating proteins for use in medicine and other industries in partnership with Evozyne, a pharmaceutical business. The novel protein transformer variational auto-encoder (ProT-VAE) is based on Nvidia's BioNeMo framework and employs generative AI to quickly generate synthetic protein designs that fit within the parameters provided. Such tactical considerations are encouraging market growth.
The Rising Government Initiatives
Due to the expanding popularity of machine learning and deep learning, governments in many countries are helping end-users in developing new technologies like generative AI across a variety of sectors. In August 2022, for example, the General Services Administration (GSA) in U.S. used generative AI and machine learning to help improve, manage and develop procurement activities. It provides the critical capability of optimizing procurement processes, offering visibility into key data and forecasting trends.
Furthermore, the Chinese government has an interest in generative AI, since new money has been announced to assist COVID-19-related discoveries. Chinese tech companies started working on their AI universe with the support from government in January 2023. Local Chinese governments are also funding in various projects of their own through IDEA, a Chinese Communist Party-owned and sponsored research institute.
Data Limitations and Legal Concerns
To produce accurate and dependable outcomes, generative AI models require huge amounts of high-quality data. Due to privacy concerns, data ownership issues and the difficulty of gathering comprehensive datasets in specific sectors, obtaining such data might be challenging. Furthermore, if the supplied data has errors or incomplete, the AI output will be biased and unreliable.
The advancement of generative AI raises ethical issues about the possible misuse of AI-generated content, deepfakes and AI-generated misinformation. Legal issues of intellectual property rights, copyright and licensing for AI-generated content complicate the adoption and deployment of generative AI technology.
Segment Analysis
The global generative AI market is segmented based on component, technology, model, application, end-user and region.
The Growing Advancements in NLP
During the forecast period, natural language processing (NLP) is expected to hold around 1/4th of the global generative AI market. NLP is a powerful generative AI technique with wide applications in text and speech generation. The rise in advancements in NLP is related to the segment's expansion. Large language models help in reducing the time and expense associated with developing NLP applications. Large language models, such as ChatGPT, have gained popularity in NLP.
Deep learning developments have led to the development of neural NLP models such as Recurrent Neural Networks (RNNs) and transformer models such as BERT produced by Google AI Language researchers and GPT-3 developed by OpenAI, a U.S.-based AI startup. The models improved the accuracy and efficiency of NLP-based generative AI applications, accelerating the segment's growth.
Geographical Penetration
The Presence of Major Players in North America
North America generative AI market is expected to grow covering more than 1/3rd of the global market share in 2022. The region's growth is attributed to expanding pseudo-imagination and medical treatment, as well as rising banking frauds. Furthermore, the existence of key market players such as Meta, Microsoft and Google LLC, as well as advanced technology companies and the availability of professionals, will drive regional market growth.
Factors driving the market include rising demand for AI-generated content in the media and entertainment, healthcare and other industries, as well as the availability of enormous volumes of data for training generative models. Grammarly, Inc., a U.S.-based AI-based writing helper, announced the debut of GrammarlyGo, a feature of generative AI that allows users to write writing, edit and customize text, in March 2023.
Major Key Players
The major global players include Adobe Inc., Amazon Web Services, Inc., Genie AI Ltd., Google LLC, IBM Corporation, Microsoft Corporation, MOSTLY AI Inc., Rephrase.ai, Synthesia and Speechify.
COVID-19 Impact Analysis
Many organizations faced difficulties in maintaining operations throughout the epidemic, which increased demand for automation technology such as generative AI. COVID-19's impact on the generative AI market is expected to differ among industries. Certain businesses, such as healthcare and pharmaceuticals, may have increased their focus on AI research and applications to resolve health-related concerns, whereas other companies that have been badly impacted by the pandemic may have deprioritized AI expenditures.
AI models like COVID-Twitter-BER have been shown to successfully evaluate and classify public attitude, a technology that can be used to assist policymakers in monitoring the public's response to health policies. Similarly, successful Natural Language Processing (NLP) models built on databases like SciFact or Covid-HeRa are being trained to combat the infodemic, for example, by identifying a claim as true or false, giving supporting or contradicting evidence or anticipating the severity of the false information.
Russia- Ukraine War Impact
AI will have a significant impact on warfare and geopolitics, with potential benefits including less collateral damage, detailed strategic targeting information and logistics assistance. AI might also be employed in psychological and information warfare, back office operations and cyber attacks, making it the most dangerous attribute.
The Pentagon is being asked to fine-tune its AI use in the Ukrainian operation in order to fully understand the impact on warfighting. AI Business describes many AI and autonomous systems utilized in Ukrainian battlefields. The conflict in Ukraine has demonstrated that autonomous and semi-autonomous drones are now a strategic requirement.
Key Developments
- In April 2023, Microsoft, a technology corporation based in U.S., cooperated with Epic Systems, an American healthcare software firm, to integrate massive language model tools and artificial intelligence (AI) into Epic's electronic health record software. The partnership intends to apply generative AI to assist healthcare providers in increasing efficiency while lowering administrative burden.
- In November 2022, Anacaeus, a new AI generative platform for the industry, has been released by Charli AI, an established Decision Intelligence Platform firm. Anacaeus is a cutting-edge AI platform designed to discover, understand and apply facts from millions of pieces of content in order to provide insights, presentations, spreadsheets and natural language reports throughout an organisation.
- In September 2022, Meta, an American international technology firm, debuted Make-A-Video, the most recent and advanced artificial intelligence system that allows users to turn text suggestions into quick and high-quality video clips. It is primarily built on the company's achievements and developments in generative AI technology, which allows it to bring imagination to life and effortlessly generate one-of-a-kind videos in a matter of seconds.
Why Purchase the Report?
- To visualize the global generative AI market segmentation based on component, technology, model, application, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of generative AI market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global generative AI market report would provide approximately 77 tables, 86 figures and 205 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
