Global Generative AI Market - 2023-2030

Market Overview

Global Generative AI Market reached US$ 11.1 billion in 2022 and is expected to reach US$ 52.6 billion by 2030, growing with a CAGR of 35.7% during the forecast period 2023-2030. Systems can become multifunctional due to generative AI, which allows them to interpret multiple forms at the same time, such as images and text, widening their usage areas and enhancing their versatility. Generative AI improves human-computer interaction by allowing humans to speak with computers using natural language instead of programming languages.

During the forecast period, the media and entertainment category is estimated to account for around 1/3rd of the global market. The growing use of generative AI to create better commercial campaigns is expected to drive market demand in the media and entertainment industry. BuzzFeed, Inc., a U.S.-based internet media, news and entertainment company, stated in January 2023 that it will use AI capabilities given by Open AI, a U.S.-based AI company, to enhance and personalize certain content offerings.

Market Dynamics

The Rising Adoption of AI

The rising use of innovative solutions like super-resolution, text-to-image conversion, and text-to-video conversion, along with increased demand for modernized workflow across industries, are increasing demand for generative AI in industries like as entertainment, medicine, engineering, finance and defense. Furthermore, the increased use of AI is due to its improved processing capability and ability to address difficulties in a wide range of industrial sectors.

Similarly, generative AI finds uses in a variety of industries to aid with image processing and film restoration. It also helps in the intelligent upgrading of low-resolution photos to high-resolution ones. It is usually accomplished by scaling old photos and movies up to 4K or greater, which results in 60 frames per second.

For example, in January 2023, Alethea AI and Polygon launched a generative AI collectibles campaign on Polygon, allowing for the quick creation, training and trading of AI characters as NFTs. Polygon provided development funding to Alethea AI for the generative AI characters project. With generative AI, computers demonstrate creativity by producing original material in response to queries, drawing on ingested data and interactions with users. The advancement has contributed to the expansion of the generative AI market.

The Growing Interest for Virtual World

As generative AI enables virtual reality (VR) developers to develop an infinite library of unique and engaging gaming environments, integrating it into relevant use cases like VR games and VR training simulations have the potential to significantly boost their efficiency. As a result, the initial application of generative AI in business is expected to focus on human-AI augmentation with the workforce, which is significantly encouraging the market growth globally.

In the metaverse, generative AI involves a few human-created assets, such as photographs, sounds or 3D models and then adding computer randomness and processing power to create equivalent original products. Nvidia, for example, offered new metaverse technologies like as AR and VR for corporations in January 2023, along with a suite of generative AI tools such as omniverse portals. It debuted Omniverse portals featuring generative AI for 3D and RTX, as well as upgrades to the Omniverse Enterprise platform.

Requirement of Skilled Resources and Regulations

Finding and maintaining capable AI researchers, data scientists and engineers with generative AI knowledge is a constant problem for companies trying to utilize this technology. Training generative AI models, particularly large-scale models like GPT-3, necessitates a significant investment in computer resources. The models contain millions or even billions of parameters, resulting in expensive hardware, energy and maintenance expenses.

The complexity of generative AI models necessitates specialized skills, making it difficult for smaller companies to properly accept and utilize these technologies. As AI technologies become more widely used, many regulatory agencies have begun to assess their impact and hazards. Companies may be unwilling to invest in technology with uncertain legal implications, which can hamper innovation and investment in the generative AI sector.

COVID-19 Impact Analysis

In times of economic uncertainty, businesses sought ways to streamline processes, eliminate manual labor and find cost-effective alternatives. As a result of the pandemic, businesses were forced to take on remote work models, which increased the demand for AI technologies that promote virtual collaboration, content development and communication. The remote work efforts have benefited greatly from generative AI technologies.

Artificial intelligence applications in the pandemic grew as it included the face mask detection system to identify people who were not wearing masks and the human presence system to remotely monitor patients in and maintaining social control. Furthermore, during the pandemic, computer systems or platforms driven by artificial intelligence were used to monitor and forecast coronavirus mutation. As a result, the COVID-19 epidemic has a favorable effect for the generative AI technology sector.

Russia- Ukraine War Impact

The conflict has the potential to have a larger impact on the regional generative AI market. Drones are one of the most significant technological advances fueling the conflict in Ukraine. The conflict in Ukraine has brought drones to the forefront of the public's awareness and awareness of modern warfare. Palantir, a software corporation based in U.S., claims to have provided Ukraine with AI technologies to improve targeting systems.

Palantir's Skykit autonomous intelligence centers are said to have been given to Ukraine. Built-in monitoring and rechargeable power supply enable the house to handle information and data on the ground. Palantir's software powers the Skykit, allowing soldiers to evaluate data anywhere on the battlefield to better decision-making and drone guidance.

Segment Analysis

The global generative AI market is segmented based on component, technology, model, application, end-user and region.

The Rising Penetration of AI Software in Various Industries

Software component is expected to hold more than 1/3rd of the global generative AI market during the forecast period 2023-2030. AI software is utilized in a variety of applications, including smartphone assistants, ATMs, ad-serving software and speech and image recognition. The expansion of the software market can be attributed to increased fraud activities, overestimation of capabilities, unexpected outcomes and increasing concerns about data protection.

As generative AI software becomes more powerful through robust ML models, it is expected to play a key role in a variety of businesses and sectors, including fashion, entertainment and transportation. H&M and Adidas, for example, have employed generative AI to develop clothing designs and custom sneakers. Furthermore, this technology has been used to create one-of-a-kind patterns for fabrics and prints, reducing designers time and effort.

Geographical Analysis

The Growing Adoption of AI in Asia-Pacific

Asia-Pacific is anticipated to have the highest growth holding around 1/4th of the global generative AI market during the forecast period 2023-2030. The growing number of government initiatives in AI in Asia-Pacific, as well as the growing usage of AI applications, are driving market growth in the region. The fast digitizing companies, which strain cloud networks and data centers, are also contributing to regional market growth.

Furthermore, AI adoption helps organizations empower civil society members to be responsible and knowledgeable users of AI equipment. IDC analyzes the generative AI field and its implications for customer experience (CX) in its recent research, Applications of Generative AI in Customer Experience. According to the results of IDC's FERS 2023 Survey Wave 2 APJ, 70% of Asia-Pacific C-suite executives are exploring or have already invested in generative AI use cases.

Competitive Landscape

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.

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 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies