Artificial Intelligence (AI) for Video Production Market - Forecasts from 2023 to 2028

AI for video production market is expected to grow at a CAGR of 22.37% from a market size of US$362.500 million in 2021 to reach US$1,489.486 million by 2028. AI for video production is the integration of artificial technology software in the processes of generating video including scriptwriting, voice-over, animation, and other video editing processes. The incorporation of AI in animation and motion graphics production assists in improving the minute realistic details of an animation inspired by real-life actions and situations. In addition to this, AI helps in automating repetitive tasks which speeds up the operations involved in video production processes. The assimilation of deep neural computer networks and artificial intelligence software can process natural languages using machine learning models to generate video content from text strings. Employing AI in video production helps customers achieve a realistic video experience while reducing the time and labor consumed by companies for different processes involved in video creation. Hence, it can be anticipated that the AI for video production market will significantly grow over the forecast period.

Market Drivers

Growing adoption of video content as a marketing strategy

The increasing adoption of video as one of the primary mediums to execute the marketing strategies used by advertising agencies and brands across the world is resulting in the need for AI-powered video tools to enrich the videos generated for marketing purposes. Social media advertising has gained importance over the last five years owing to its increased consumption among customers. According to a report published by Sprout Social Company, approximately 93% of companies have expanded their customer base by gaining new customers through social media video advertisements. In addition to this, it was established that approximately 66% of customers prefer to engage with short-video content on social media. This is evident in the increase in video advertisements across the most used online platforms such as Youtube, Spotify, Instagram, Facebook, and LinkedIn. The use of video content as a major marketing tool encourages the use of AI technology in video-producing applications to reach their target customers and improve the persuasive effect of their ad content.

Rising consumption of video content and video streaming services

Due to rapid technological advancements, the number of video streaming services and applications has increased over the span of the last few years which has further resulted in the increased consumption of video content by customers across various social and video platforms. According to InVideo Company, the average time spent by a person viewing online videos was estimated to be 100 minutes in 2022. The emergence of new OTT media streaming sites and the expansion of the video content operations of the existing OTT platforms have the potential to generate higher demand for AI-powered video-generating applications. According to Amazon, the number of customers subscribing to Amazon Prime Video increased to 200 million people in 2022 from approximately 150 million users in 2019. This demonstrates the current increase in consumption of video and media streaming platforms which results in the need for more video and film generation further generating the demand for AI-powered tools to boost video production undertakings. Therefore, the increased consumption of video content on media streaming platforms and the use of videos as a marketing strategy are key factors propelling the advancement of AI for the video production market.

The video content created by AI must be properly supervised to avoid the generation of offensive and unethical content which could weaken the rapid adoption of AI tools in the video production field.

The videos generated and edited using AI must be regulated regularly to ensure that the video generated using various AI tools and software is not culturally or ethically inappropriate. In certain circumstances, an AI-generated video is intended to capture the attention of customers belonging to a particular ethnic background or a regional group. Therefore, in such cases, human supervision is important to ensure that the video has the right cultural and ethical context to avoid complications and controversies surrounding the video. Since the AI used in video production processes is in its beginning phase, it must be exercised with proper supervision and guidance to prevent causing hindrances to the growth of AI in the video production market.

Market Developments

• In February 2023, Wochit Company launched its AI-powered new video-generating tool, Wochit Wizard which integrates ChatGPT technology to create sophisticated video content using basic text narratives.
• In February 2023, Krikey.ai and Stability AI, two companies specializing in the manufacture of AI-based solutions and applications partnered to allow their users to create animated avatar videos through text descriptions that can be downloaded and posted on social media, video editing software, or 3D video games.
• In February 2023, Genius Brands declared that it will be broadcasting a new children's animated series, Kidaverse Fast Facts by integrating ChatGPT technology for scriptwriting with other AI technology to generate the animation, voice-over, and images.

North America holds a sizeable share in the AI for video production market and is expected to witness significant growth during the forecast period.

North American countries are simultaneously experiencing significant growth in their IT and technology industries as well as their media and entertainment industry, driven by the rapid advancements in AI technology and increasing consumption of high-quality social media content and other video streaming platforms. In addition, the prevalence of leading AI-based video-generating software companies in the US such as Pictory, Elai.io, InVideo AI, Synths Video, and Wisecut offers more opportunities for generating more video content based on AI in North America. Further, the existence of top IT and software companies driving innovations in the AI market such as Amazon Web Services, Google, IBM, and Microsoft are investing to create higher quality AI solutions across many applications including video generation. For instance, the newly appointed CEO of Youtube, a subsidiary of Google announced that they will be launching AI-sponsored video tools for their content creators to enable them to elevate the environment, quality, and content of their videos. Therefore, the available AI video-generating services and the escalating innovations and investments to generate better AI tools are predicted to expand the market size of AI for video production in North America over the upcoming years.

Market Segmentation

By Process

• Script Writing
• Animation
• Video Editing
• Voice-Overs

By Geography

• North America
  • USA
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Others
• Europe
  • United Kingdom
  • Germany
  • France
  • Italy
  • Spain
  • Others
• Middle East and Africa
  • Saudi Arabia
  • UAE
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Singapore
  • Indonesia
  • Others