PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1734982
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1734982
The generative AI market is projected to grow from USD 71.36 billion in 2025 to USD 890.59 billion by 2032, at a CAGR of 43.4% during 2025-2032. The market is growing fast, driven by rising enterprise adoption, growing demand for multimodal AI solutions, and increased use of generative AI for automating content creation and other business tasks. Companies across industries are using generative AI to improve efficiency, reduce costs, and deliver better customer experiences. However, there are also some restraints. High infrastructure and computing costs make it harder for smaller businesses to adopt the technology. In addition, issues like AI models generating biased or incorrect content (known as hallucinations) raise concerns about reliability and trust. While the potential is high, vendors must address these restraints to unlock the full value of generative AI.
Scope of the Report | |
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Years Considered for the Study | 2020-2032 |
Base Year | 2024 |
Forecast Period | 2025-2032 |
Units Considered | USD (Billion) |
Segments | Offering, Data Modality, Application, End User, and Region |
Regions covered | North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
"By end user, healthcare & life sciences segment to register fastest growth rate during forecast period"
The healthcare & life sciences segment within the generative AI market is expected to grow at a high CAGR during the forecast period. This growth is driven by the increasing use of generative AI for drug discovery, medical imaging, patient data analysis, and personalized treatment plans. Generative AI helps accelerate research by creating synthetic data and simulating complex biological processes, reducing time and costs. It also supports healthcare providers by improving diagnostics and automating routine tasks, enhancing patient care. With rising healthcare data and the need for efficient, accurate solutions, generative AI is becoming a vital tool in this industry, creating strong opportunities for vendors and innovators.
"By offering, software segment to account for largest market share by 2032"
The software segment is expected to hold the largest share of the generative AI market by 2032, overtaking gen AI infrastructure. This is because software forms the core of generative AI applications, enabling tasks like text generation, image creation, code generation, and virtual assistance. With the rise of user-friendly platforms, APIs, and pre-trained models, businesses across industries are adopting generative AI software to improve productivity, automate processes, and enhance customer engagement. Cloud-based deployment and easy integration with existing systems are further boosting software adoption. As demand grows for creative and intelligent applications, the software segment will eventually lead the market, offering strong opportunities for vendors and developers.
"By Region, North America to hold largest market share in 2025 and Asia Pacific to register fastest growth rate during forecast period"
North America is estimated to hold the largest share of the generative AI market in 2025. This is mainly due to the strong presence of leading technology companies such as Microsoft, Google, OpenAI, NVIDIA, and AWS, which are continuously advancing generative AI capabilities. The region also benefits from a mature digital infrastructure, high cloud adoption, and strong investments in AI research and innovation. Enterprises across sectors like healthcare, BFSI, retail, and media are increasingly adopting generative AI solutions to automate content creation, enhance customer experiences, and improve operational efficiency. In addition, favorable government support and a large talent pool contribute to early adoption and rapid innovation. In January 2025, the US Government enforced Executive Order 14179, aiming to enhance US leadership in AI by removing certain regulatory barriers and promoting AI development free from ideological bias. Additionally, Microsoft's USD 3.3 billion investment in an AI hub in Wisconsin underscores the region's ongoing commitment to Generative AI advancement.
The generative AI market is expected to register the highest CAGR in the Asia Pacific region during the forecast period. Countries like China, India, Japan, and South Korea are making strong investments in AI development and digital transformation. Growing demand for AI-driven automation in industries such as manufacturing, healthcare, and e-commerce is driving rapid adoption. Governments in the region are also introducing supportive policies and funding initiatives to boost AI research and adoption. Moreover, the rise of local tech startups and increased awareness among enterprises about the benefits of generative AI are creating new business opportunities. As digitalization spreads across both developed and developing countries in Asia Pacific, the region is set to become a key driver of generative AI growth globally.
Breakdown of Primaries
In-depth interviews were conducted with chief executive officers (CEOs), innovation and technology directors, system integrators, and executives from various key organizations operating in the generative AI market.
The report includes a study of key players offering generative AI solutions. It profiles major vendors in the generative AI market. The major players in the generative AI market include IBM (US), NVIDIA (US), OpenAI (US), Anthropic (US), Meta (US), HPE (US), AMD (US), Oracle (US), Innodata (US), iMerit (US), Salesforce (US), Telus Digital (US), Microsoft (US), Google (US), AWS (US), Adobe (US), Accenture (Ireland), Capgemini (France), Centific (US), Fractal Analytics (US), Tiger Analytics (US), Quantiphi (US), Databricks (US), Dialpad (US), Appen (Australia), Insilico Medicine (Hong Kong), Simplified (US), AI21 Labs (Israel), Hugging Face (US), Persado (US), Copy.ai (US), Synthesis AI (US), Hypotenuse AI (US), Together AI (US), Mistral AI (France), Adept (US), Stability AI (UK), Lightricks (Israel), Cohere (Canada), Writesonic (US), Inflection AI (US), Colossyan (UK), Jasper (US), Runway (US), Inworld AI (US), Typeface (US), Upstage (South Korea), H2O.ai (US), Speechify (US), Midjourney (US), Fireflies (US), Synthesia (UK), Mostly AI (Austria), Forethought (US), Character.ai (US), Cursor (US), DeepSeek (China), XAI (US), Abridge (US), Perplexity AI (US), SambaNova (US), Scale AI (US), Labelbox (US), and HQE Systems (US).
Research Coverage
This research report categorizes the generative AI market by Offering (Infrastructure, Software, and Services), Data Modality (Text, Image, Video, Audio & Speech, and Multimodal), Application (Business Intelligence & Visualization, Content Management, Synthetic Data Management, Search & Discovery, Automation & Integration, and Other Applications), End User (Consumers and Enterprises [BFSI, Retail & E-commerce, Transportation & Logistics, Government & Defense, Healthcare & Life Sciences, Telecommunication, Energy & Utilities, Manufacturing, Software & Technology Providers, Media & Entertainment, and Other Enterprises]), and Region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America). The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the generative AI market. A detailed analysis of the key industry players has been done to provide insights into their business overview, solutions, and services; key strategies; contracts, partnerships, agreements, new product & service launches, and mergers & acquisitions; and recent developments associated with the generative AI market. This report covers a competitive analysis of upcoming startups in the generative AI market ecosystem.
Key Benefits of Buying the Report
The report would provide the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall generative AI market and its subsegments. It would help stakeholders understand the competitive landscape and gain more insights to better position their business and plan suitable go-to-market strategies. It also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
Analysis of key drivers (Innovation of cloud storage to enable easy access to data, Evolution of AI and deep learning, Rise in content creation and creative applications), restraints (High costs associated with training data preparation, Issues related to bias and inaccurately generated output, Risks associated with data breaches and sensitive information leakage), opportunities (Increase in deployment of large language models, Growth in interest of enterprises in commercializing synthetic images, Robust improvement in generative ML leading to human baseline performance), and challenges (Concerns regarding misuse of generative AI for illegal activities, Quality of output generated by generative AI models, Computational complexity and technical challenges of generative AI).
Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the generative AI market.
Market Development: Comprehensive information about lucrative markets - the report analyses the generative AI market across varied regions.
Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the generative AI market.
Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like IBM (US), NVIDIA (US), OpenAI (US), Anthropic (US), Meta (US), HPE (US), AMD (US), Oracle (US), Innodata (US), iMerit (US), Salesforce (US), Telus Digital (US), Microsoft (US), Google (US), AWS (US), Adobe (US), Accenture (Ireland), Capgemini (France), Centific (US), Fractal Analytics (US), Tiger Analytics (US), Quantiphi (US), Databricks (US), Dialpad (US), Appen (Australia), Insilico Medicine (Hong Kong), Simplified (US), AI21 Labs (Israel), Hugging Face (US), Persado (US), Copy.ai (US), Synthesis AI (US), Hypotenuse AI (US), Together AI (US), Mistral AI (France), Adept (US), Stability AI (UK), Lightricks (Israel), Cohere (Canada), Writesonic (US), Inflection AI (US), Colossyan (UK), Jasper (US), Runway (US), Inworld AI (US), Typeface (US), Upstage (South Korea), H2O.ai (US), Speechify (US), Midjourney (US), Fireflies (US), Synthesia (UK), Mostly AI (Austria), Forethought (US), Character.ai (US), Cursor (US), DeepSeek (China), XAI (US), Abridge (US), Perplexity AI (US), SambaNova (US), Scale AI (US), Labelbox (US), and HQE Systems (US), among others, in the generative AI market. The report also helps stakeholders understand the pulse of the generative AI market and provides them with information on key market drivers, restraints, challenges, and opportunities.