Generative AI Market Is Expected To Reach a Revenue of USD 266.0 Bn By 2032 At a CAGR of 37.8% – Dimension Market Research
The global generative AI market is anticipated for significant growth in the coming years, due to increasing adoption across industries, development in deep learning, and rising demand for personalized content. However, challenges like ethical concerns and data limitations may impact growth. Integration with emerging technologies like blockchain and a focus on responsible AI is expected to shape the market’s growth.
Los Angeles, May 01, 2024 (GLOBE NEWSWIRE) — Overview:
The Global Generative AI Market size was valued USD 14.9 billion by 2023 and is further anticipated to reach USD 266.0 billion by 2032 according to Dimension Market Research. The market is anticipated to register a CAGR of 37.8% from 2024 to 2032.
Generative AI is a versatile tool that allows the rapid creation of diverse content from inputs like text, images, and sounds. Using neural networks to identify patterns, it can learn from unlabeled data, supporting the construction of foundational models for diverse AI tasks.
Categorized by technology, the market contains Generative Adversarial Networks (GANs), transformers, variational auto-encoders, & diffusion networks. Transformers claimed the largest revenue share in 2023, driven by their versatile applications, like text-to-image conversion highlighted by DALL-E, & the human-like text generation capability of GPT-3 from OpenAI, useful for tasks like composing poetry & emails.
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Natural Language Processing (NLP) application leads the market in 2023, holding a substantial share and is expected to grow significantly, as it is a vital tool in generative AI, and is used for tasks like text & speech creation. Advances in deep learning, displayed by models like Recurrent Neural Networks (RNNs), BERT from Google AI Language, & OpenAI’s GPT-3, markedly improved the accuracy & effectiveness of NLP-based generative AI applications, contributing to significant growth in this domain.
Important Insights
- The Generative AI market is expected to grow by USD 251.1 billion by 2032 from 2024 with a CAGR of 37.8%.
- The software sector commands total revenue in 2023 and is set to maintain dominance, driven by concerns about fraud, AI capabilities, unexpected outcomes, & enhanced data privacy focus.
- Transformers dominated revenue in 2023, powered by versatile applications like DALL-E’s text-to-image conversion & GPT-3’s human-like text generation, assisting in tasks like composing poetry & emails.
- Natural Language Processing (NLP) dominated the market in 2023, vital in generative AI for tasks like text & speech creation. Advances in deep learning, seen in models like RNNs, BERT, and GPT-3, significantly enhance NLP-based generative AI, fostering substantial growth.
- North America dominated the generative AI market with a 41.0% revenue share in 2023, driven by the growing adoption of pseudo-imagination techniques & rising banking fraud incidents. Also, the Asia Pacific region anticipates rapid growth due to government initiatives promoting AI & technological innovation, making it an expanding market for generative AI.
Global Generative AI Market: Trends
- Advancements in Transformer Models: Transformer-based architectures like GPT (Generative Pre-trained Transformer) have seen large developments, allowing more powerful and versatile generative capabilities across different modalities like text, images, and music, which is driving innovation in natural language processing, computer vision, and multimodal generation tasks.
- Focus on Responsible AI and Ethical Use: There’s a high focus on developing generative AI solutions that are ethically responsible and aligned with principles of fairness, transparency, and accountability. Researchers and practitioners are constantly exploring techniques to reduce bias, ensure privacy, and promote ethical use of AI-generated content.
- Generative AI for Sustainability and Climate Action: Generative AI is being used to address sustainability challenges and promote climate action. From optimizing energy efficiency in buildings to simulating environmental scenarios for climate research, generative models are playing a role in developing sustainability initiatives and supporting environmental decision-making.
- Integration of Generative AI with Blockchain: There’s higher interest in integrating generative AI with blockchain technology to allow secure and decentralized ownership, attribution, and monetization of AI-generated content, which has the potential to create new opportunities for content creators, foster trust in AI-generated assets, and address issues related to copyright breach and intellectual property rights.
Generative AI Market: Competitive Landscape
In the dynamic generative AI market, strong competition among global leaders occurs, each holding a significant market share, as key industry players look for innovation in product development & forge collaborative partnerships, as they constantly look for introducing advanced solutions to sustain competitiveness & actively looking for collaborations with industry peers to enhance their market presence.
Some of the major players in the market include Adobe, Microsoft, Rephrase.ai, IBM, Google, Amazon Web Services, and more.
Some of the prominent market players:
- Synthesia
- MOSTLY AI Inc.
- Genie AI Ltd.
- IBM
- Google LLC
- Microsoft
- Adobe
- ai
- D-ID
- Amazon Web Services, Inc.
- Other Key Players
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Generative AI Market Scope
| Report Highlights | Details |
| Market Size (2023) | USD 14.9 Bn |
| Forecast Value (2032) | USD 266.0 Bn |
| CAGR (2023-2032) | 37.8 % |
| Leading Region in terms of Revenue Share | North America |
| Percentage of Revenue Share by Leading Region | 41.0% |
| Historical Data | 2017 – 2022 |
| Forecast Data | 2025 – 2032 |
| Base Year | 2023 |
| Estimate Year | 2024 |
| Segments Covered | By Component, By Technology, By Application |
| Regional Coverage | North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA) |
Regional Analysis
North America leads the generative AI market in 2023, contributing 41.0% of total revenue, assisted by increased pseudo-imagination techniques adoption & a rise in banking fraud incidents. Also, major market players like Meta, Google LLC, & Microsoft play a major role.
Further, the Asia Pacific region anticipates rapid growth due to government initiatives promoting AI & technological innovation, as the growing adoption of AI-based applications across different sectors in the region contributes to this growth, positioning Asia Pacific as an expanding market for the generative AI in the forecast period.
By Region
North America
- The U.S.
- Canada
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Segment Analysis:
The Generative AI Market is segmented into software and services, with the software sector leading in total revenue share in 2023 & is expected to maintain dominance. Growth is driven by concerns about fraudulent activities, AI capabilities, unexpected outcomes, & increased focus on data privacy.
Further generative AI software, enhanced by strong machine learning models, is making a major impact in industries like fashion, entertainment, and transportation. Brands like H&M & Adidas use generative AI for creating unique clothing designs, custom sneakers, fabric patterns, & prints, streamlining the work of designers and enhancing efficiency.
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Generative AI Market Segmentation
By Component
- Software
- Service
By Technology
- Generative Adversarial Networks
- Transformers
- Variational Auto-encoders
- Diffusion Networks
By Application
- Computer Vision
- NPL
- Robotics & Automation
- Content Generation
- Chatbots & Intelligent Virtual Assistants
- Predictive Analytics
- Others
Global Generative AI Market: Driver
- Increasing Adoption Across Industries: Generative AI is being adopted across many sectors like gaming, design, healthcare, and finance. As businesses value its potential for automating creative tasks & generating new solutions, the need for generative AI technologies is expected to rise.
- Advancements in Deep Learning and Neural Networks: Ongoing developments in deep learning algorithms and neural network architectures are improving the capabilities of generative AI models, which allow more specialized and realistic outputs, driving further adoption and investment in the market.
- Rising Demand for Personalized Content: With consumers highly looking for personalized experiences, there is an increase in the need for generative AI solutions to create customized content like personalized recommendations, customized designs, and individualized products, which fuels the expansion of the generative AI market.
- Emergence of Generative Adversarial Networks (GANs): Generative Adversarial Networks (GANs) have gained growth for their ability to generate high-quality, realistic outputs across many domains including images, text, and audio. As research in GANs continues and their applications expand, they are expected to drive significant growth in the generative AI market.
Global Generative AI Market: Restraints
- Ethical Concerns and Regulatory Challenges: The utilization of generative AI creates ethical concerns related to issues like data privacy, bias in generated content, and misuse of AI-generated content for vicious purposes. Regulatory bodies are struggling with how to address these concerns, leading to uncertainty and potential limitations on the deployment of generative AI technologies.
- Data Quality and Quantity Limitations: Generative AI models need large volumes of high-quality training data to produce accurate and meaningful outputs. However, attaining and curating such datasets can be challenging and expensive, mainly in domains where labeled data is scarce or difficult to obtain. Limited access to diverse and representative datasets can impact the performance and scalability of generative AI solutions.
- Computational Resources and Infrastructure Requirements: Training and deploying specialized generative AI models often requires substantial computational resources and infrastructure, including high-performance hardware like GPUs and specialized accelerators. The cost and complexity associated with setting up and maintaining such infrastructure can act as a barrier to entry for smaller organizations and startups, constraining the broad adoption of generative AI technologies.
- Intellectual Property and Copyright Issues: The generation of AI-generated content creates complex issues related to intellectual property rights and copyright laws. Determining ownership and attribution of AI-generated works, along with ensuring compliance with existing copyright regulations, can create legal challenges and uncertainty for businesses and creators using generative AI technologies. Concerns about copyright infringement and potential legal liabilities may deter investment and innovation in the generative AI market.
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Global Generative AI Market: Opportunities
- Creative Applications Across Industries: Generative AI allows the automation of creative tasks like content generation, design, and artistic creation, which opens up opportunities for businesses to streamline workflows, improve productivity, and create new and engaging experiences for users across different industries including gaming, advertising, fashion, and entertainment.
- Personalization and Customization: Generative AI empowers businesses to deliver personalized and customized content, products, and services to their customers at scale. By using generative models, companies can customize their offerings to individual preferences, behaviors, and demographics, thereby enhancing customer satisfaction, loyalty, and engagement.
- Innovation in Product Development: Generative AI supports the rapid prototyping and iterative design of new products and solutions. By generating different and creative design concepts, simulations, and prototypes, companies can grow the product development cycle, lower time-to-market, and support innovation in areas like automotive design, architecture, and consumer electronics.
- Enhanced User Experiences: Generative AI allows the creation of attractive and interactive experiences that attract and captivate users. Whether through AI-generated artwork, virtual environments, or conversational agents, businesses can use generative technologies to produce richer, more compelling user experiences across digital platforms, mobile apps, and virtual reality (VR) environments.
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- Generative AI in Healthcare Market size is expected to reach a market value of USD 2.6 billion in 2024 which is further anticipated to grow to USD 47.9 billion in 2033 at a CAGR of 38.0%.
- Generative AI in Retail Market is expected to reach a value of USD 801.3 million by the end of 2024, and it is further anticipated to reach a market value of USD 14,619.7 million by 2033 at a CAGR of 38.1%.
- Generative AI in Oil and Gas Market is expected to reach a value of USD 557.4 million by the end of 2024, and it is further anticipated to reach a market value of USD 1,951.5 million by 2033 at a CAGR of 14.9%.
- Generative AI in Movies Market is expected to reach a value of USD 481.0 million by the end of 2024, and it is further anticipated to reach a market value of USD 4,490.7 million by 2033 at a CAGR of 28.2%.
- Generative AI in Marketing Market is expected to reach a value of USD 3.3 billion by the end of 2024, and it is further anticipated to reach a market value of USD 33.7 billion by 2033 at a CAGR of 29.6%.
- Generative AI in Learning and Development Market is expected to reach a value of USD 1.3 billion by the end of 2024, and it is further anticipated to reach a market value of USD 31.4 billion by 2033 at a CAGR of 42.5%.
- Generative AI in Media and Entertainment Market size is expected to reach USD 1.9 billion in 2024 and is further anticipated to value USD 16.8 billion by 2033, at a CAGR of 26.3%.
- Generative AI in Jobs Market size is estimated to reach USD 352.5 million in 2024 and is further anticipated to value USD 1,764.3 million by 2033, at a CAGR of 19.6%.
- Generative AI in Biotech Market size is estimated to reach USD 90.5 million in 2024 and is further anticipated to reach USD 714.3 million by 2033, at a CAGR of 25.8%.
- Generative AI in Automation Market size is estimated to reach USD 1.5 billion in 2024 and is further anticipated to value USD 5.2 billion by 2033, at a CAGR of 14.8%.
- Generative AI in Sports Market size is estimated to reach USD 319.9 million in 2024 and is further predicted to reach USD 3,737.5 million by 2033, at a CAGR of 31.7%.
Recent Developments in the Generative AI Market
- December 2023: McDonald’s & Google announced plans for a partnership in 2024, integrating generative AI across thousands of global outlets with hardware & software upgrades, signaling a major move into AI.
- October 2023: Visa, the global card payments leader, announced a USD 100 million generative AI initiative, investing in innovative companies developing AI technologies & applications that will shape the future of commerce & payments.
- October 2023: BlackBerry launched a Generative AI-powered assistant for Security Operations Center teams, improving cyberthreat analysis & support for CISO operations, using private large language models for accuracy & data privacy.
- October 2023: Google announced that it will integrate generative AI into its virtual assistant, allowing advanced capabilities like trip planning, email management, & interactive follow-up questions, as shared by a company executive.
- September 2023: SAP SE introduced Joule, a generative AI copilot installed in its cloud enterprise portfolio, revolutionizing business operations by providing proactive, contextualized insights from SAP solutions & third-party sources.
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