PUBLISHER: KBV Research | PRODUCT CODE: 1374067
PUBLISHER: KBV Research | PRODUCT CODE: 1374067
The Global Generative AI In Coding Market size is expected to reach $95.5 million by 2030, rising at a market growth of 23.5% CAGR during the forecast period.
Generative AI models have been used to automate the creation of various forms of media content, including articles, scripts, music, and even visual art. For example, AI-driven tools can generate news articles, create plot outlines for movies or TV shows, and even compose music. Consequently, the media and entertainment segment would generate approximately 23.1% share of the market by 2030. AI-powered tools are used for video and audio editing, making the process faster and more efficient. Generative AI can assist in tasks such as video captioning, audio transcription, and automatic subtitle generation, improving accessibility and user experience. Therefore, the media and entertainment segment demand are expected to grow rapidly in the coming years.
The major strategies followed by the market participants are Partnerships, Collaborations & Agreements as the key developmental strategy to keep pace with the changing demands of end users. For instance, In August, 2023, IBM Corporation expanded its collaboration with Microsoft Corporation, an American multinational technology corporation. Through this collaboration, the IBM Consulting Azure OpenAI Service was unveiled. In July, 2023, NVIDIA Corporation collaborated with ServiceNow, a software company that provides a cloud-based platform, and Accenture, an Irish-American professional services company. Through this collaboration, the AI Lighthouse was launched.
Based on the Analysis presented in the KBV Cardinal matrix; Google, Inc. and Microsoft Corporation are the forerunners in the market. In March 2023, Google LLC formed a partnership with Replit, Inc., an online integrated development environment. Through this partnership, the developers of Replit got to access Google Cloud infrastructure, services, and foundation models through. and Companies such as IBM Corporation, NVIDIA Corporation, Adobe, Inc. are some of the key innovators in the Market.
Market Growth Factors
Increasing demand for automation in various sectors
Automation of repetitive coding tasks significantly improves efficiency in software development. Automation diminishes the risk of human errors in coding. Generative AI tools can generate code that adheres to best practices and coding standards, reducing the likelihood of bugs and vulnerabilities. Fewer errors lead to more reliable and secure software. The AI can identify code issues, suggest improvements, and perform code analysis more rapidly and consistently than manual reviews. Furthermore, automation reduces the need for extensive manual coding and testing, resulting in organization cost savings. Fewer resources are required to achieve the same or even higher productivity and code quality levels. These factors are expected to boost the demand for market in the upcoming years.
Shortage of skilled software developers and engineers
Generative AI coding tools can assist less experienced developers by providing code suggestions, auto-completion, and real-time feedback, reducing the learning curve and allowing developers to become more productive. These tools can automatically generate code snippets or complete code sections based on high-level descriptions or requirements. This feature benefits less experienced developers who may need help writing complex or error-prone code from scratch. This helps less experienced developers learn from their mistakes and improve their coding practices. These tools often support multiple programming languages and frameworks, allowing less experienced developers to work in the languages they are most comfortable with or that are most in demand. As a result, these factors pose a lucrative prospect for the market.
Market Restraining Factors
Concerns associated with data quality and quantity
In specialized industries or niche domains, a limited amount of relevant training data may be available. For example, in medical coding or aerospace engineering, the volume of publicly accessible code samples or datasets can be significantly smaller than in general programming domains like web development. This scarcity of data poses a fundamental challenge, as generative AI models require substantial data to learn effectively. Furthermore, creating high-quality training data often involves manual annotation and labeling, which can be labor-intensive and costly, especially for specialized coding tasks. This increases the overall cost and time required to develop generative AI models. These factors are expected to limit the growth of the market in the future.
Based on operation, the market is divided into code generation, code enhancement, language translation, and code reviews. The code generation segment procured the largest revenue share in the market in 2022. As software development continues to be a critical aspect of various industries, there is a growing demand for automation in coding. Generative AI, with its ability to automatically generate code snippets and even entire programs, addresses this demand by speeding up development processes and reducing the need for manual coding. In addition, the technology industry needs more skilled developers, and this gap is expected to widen.
By application, the market is segmented into data science & analytics, game development & design, web & application development, and IoT & smart devices. In 2022, the web and application development segment acquired a considerable revenue share in the market. Web and application development projects often have tight deadlines. Generative AI coding tools help accelerate development by automating repetitive tasks like generating code templates, layouts, and UI components. This speed is crucial in meeting market demands for timely product releases.
On the basis of vertical, the market is divided into BFSI, media & entertainment, IT & telecom, healthcare & life sciences, transport & logistics, and retail & e-commerce. The IT and telecom segment witnessed the maximum revenue share in the market in 2022. In the IT and telecom industry, there is a growing demand for automating network operations, including the configuration of network devices, troubleshooting, and optimization. Generative AI coding tools can help automate repetitive tasks by generating code scripts for network management, which saves time and reduces human errors.
Based on region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific segment garnered a considerable revenue share in the market. Cities like Beijing, Shanghai, Bangalore, Singapore, and Tokyo have emerged as tech hubs and innovation centers in the APAC region. These hubs are home to numerous startups, research institutions, and tech companies actively involved in developing and applying generative AI in coding. APAC countries, particularly India and China, have many highly skilled software developers and engineers. This skilled workforce is a source of demand for generative AI coding solutions and a talent pool for developing these technologies. All these factors will boost the demand in the Asia Pacific segment in the upcoming years.
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include Skillsoft Corporation, CodiumAI, Snyk Limited, Google LLC, IBM Corporation, Microsoft Corporation, NVIDIA Corporation, OpenAI, L.L.C., Tabnine, Adobe, Inc.
Recent Strategies of Generative AI In Coding Market
Partnerships, Collaborations, and Agreements:
Aug-2023: IBM Corporation expanded its collaboration with Microsoft Corporation, an American multinational technology corporation. Through this collaboration, the IBM Consulting Azure OpenAI Service was unveiled. The IBM Consulting Azure OpenAI Service helps developers and data scientists use large language models, GPT, and Codex series.
Jul-2023: Microsoft Corporation teamed up with Capgemini SE, a French multinational information technology services and consulting company. Through this collaboration, the Azure Intelligent App Factory was set up. The Azure Intelligent App Factory helps organizations increase their AI investments, foster new innovations, and advance the business value of existing applications. Additionally, the new product addresses enterprise-wide adoption of generative AI and incorporates use cases across industries.
Jul-2023: NVIDIA Corporation collaborated with ServiceNow, a software company that provides a cloud-based platform, and Accenture, an Irish-American professional services company. Through this collaboration, the AI Lighthouse was launched. The AI Lighthouse combines the ServiceNow enterprise automation platform, NVIDIA AI supercomputing and software, and Accenture AI transformation services, which help customers develop generative AI large language models (LLMs) and applications to upgrade their businesses.
Jun-2023: Microsoft Corporation came into a partnership with Moody's Corporation, a global integrated risk assessment firm. Through this partnership, innovative products were created that upgraded the insights relating to corporate intelligence and risk assessment with the instigation of Microsoft AI in combination with the analytics, data, and research of Moody.
Jun-2023: Microsoft Corporation expanded its partnership with Snowflake Inc., a cloud computing-based data cloud company. Through this partnership, new products were launched in AI, data governance, low code/no code application development and many other fields. Additionally, the companies upgraded their joint market strategies thus leading to field collaborations and introduction of joint products to the customers.
Jun-2023: Microsoft Corporation expanded its partnership with HCL Technologies Limited, an Indian multinational information technology services and consulting company. Through this extended partnership, enterprises incorporated generative artificial intelligence (AI) and jointly created solutions to help businesses achieve improved outcomes and bring about business transformation.
Jun-2023: Adobe, Inc., came into a partnership with Omnicom Group, Inc., an American global media, marketing, and corporate communications holding company. Through this partnership, the companies incorporated Adobe Firefly for generating content using the increased automation of the API.
Jun-2023: Adobe, Inc., extended its partnership with IBM Corporation, an American global media, marketing, and corporate communications holding company. Through this extended partnership, content supply chains were upgraded through the incorporation of next-generation AI, namely, Adobe Sensei GenAI services and Adobe Firefly. Additionally, the companies help the clients create a unified content supply chain ecosystem for increasing creativity and automating tasks.
Jun-2023: Skillsoft Corporation came into an agreement with Infosys Limited, an Indian multinational information technology company. Under this agreement, the companies provided learners with the educational contents of Skillsoft through Infosys Springboard. Additionally, this collaboration would give the young learners quality content to build their critical leadership and technology skills.
Mar-2023: Google LLC formed a partnership with Replit, Inc., an online integrated development environment. Through this partnership, the developers of Replit got to access Google Cloud infrastructure, services, and foundation models through Ghostwriter, while the collaborative code editing platform of Replit was accessed by Google Cloud and Workplace developers. Additionally, the collaboration advanced the creation of generative AI applications and created an open ecosystem for generative AI.
Mar-2023: NVIDIA Corporation joined hand with Amazon Web Services, Inc., which provides cloud computing platforms and APIs to the customers. Through this collaboration, the companies developed on-demand artificial intelligence (AI) infrastructure that can be used for creating large language models (LLMs) and generative AI applications.
Product Launches and Product Expansions:
Aug-2023: IBM Corporation introduced the Watsonx Code Assistant for Z, a generic AI-assisted tool used to translate COBOL to Java on IBM Z. Watsonx Code Assistant for Z increases the productivity of developers on the platform and assists businesses to support generative AI and upgrade the modernization of their mainframe applications. Additionally, Watsonx Code Assistant for Z helps enhance the security, performance, and flexibility of IBM Z.
Aug-2023: NVIDIA Corporation launched the NVIDIA AI Workbench, a simplified toolkit assisting developers to create models from NVIDIA NGC, Hugging Face, and GitHub using customized data. The NVIDIA AI Workbench helps cross-organizational teams develop AI-based applications, which are necessary for all businesses.
Aug-2023: NVIDIA Corporation introduced the NVIDIA RTX workstations, assisting development and content creation in the fields of generative AI and digitization. The NVIDIA RTX workstations includes NVIDIA RTX 6000 Ada Generation GPUs and comprise the NVIDIA AI Enterprise and NVIDIA Omniverse Enterprise software, which help developers in building vast and digitized worlds involving generative AI.
Jun-2023: Skillsoft Corporation launched the ChatGPT Learning Journey, a series of generative AI courses for equipping organizations and the workforce with skills to use technology productively. The ChatGPT Learning Journey considers the challenges and provides solutions to the customers to avail the opportunity of using generative AI in a safe and ethical manner.
Acquisition and Mergers:
Jun-2023: Snyk Limited came into an agreement to acquire Enso Security, an information security startup. Through this acquisition, Snyk upgraded its DevSecOps and build upon the market leadership through addition of new capabilities that allow growth of the security leaders as well as manage the global developer security programs.
Apr-2022: Skillsoft Corporation took over Codecademy, an American online interactive platform that offers free coding classes. Through this acquisition, Skillsoft increased its product base through the additions from Codecademy's learning platform. Additionally, the acquisition provided cross-selling opportunities, revenue growth and gross margins.
Market Segments covered in the Report:
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