Generative AI Market Size: Shares & Trends in 2024

The Generative AI market size is projected to reach $43.87 billion in 2023. 

According to further projections in the industry, the Generative AI market size is expected to reach $667.96 billion by 2030, growing with a CAGR of 47.5%.

These numbers are just from one research, and multiple researches have been done on the Generative AI market size that have different projections.

Let us discuss all the studies and see where the industry is heading.

Current State of the Generative AI Market

According to Fortune Business Insights, the global generative AI market size is forecasted to reach $43.87 billion in 2023. According to the same report, the generative AI market was valued at 29 billion in 2022.

Statista projects that the market value of Generative AI will reach $44.89 billion by the end of 2023.

On the other hand, according to Grand View Research, the Generative AI market size was valued at $10.14 billion in 2022. 

Bonus: For detailed insights into the Generative AI industry, check out our detailed generative ai statistics. 

Change in Market Size of Generative AI (The Future)

Various researchers have used different techniques and methodologies to predict the Generative AI market size after 2030. Let us see some of them below.

1. Fortune Business Insights predicts the market size of Generative AI will grow from $43.87 billion in 2023 to $667.96 billion in 2030. Hence, the market is expected to have a CAGR of 47.5% in the forecast period. 
2. Statista predicts the Generative AI market size will reach $207 billion by the end of 2030. The market is expected to have a compound annual growth rate of 24.40% between the forecast period of 2023 to 2023. 
3. A report issued by Grand View Research highlights that the compound annual growth rate of the Generative AI market is expected to be 35.6% in the forecast period between 2023 and 2030. 
4. Allied Market Research stated that the Generative AI market is expected to reach $191.8 billion by the end of year 2032. The report further adds that the CAGR of the market is expected to be  34.1% between the forecasted time. 
5. Bloomberg’s reports predicted that the Generative AI market size will be valued at $1.3 trillion in 2032, growing at a CAGR of 42% between 2023 and 2032. 
6. According to precedence research, the Generative AI market will reach $118.06 billion by the end of 2032, having a CAGR of 27.02% between 2023 and 2032. 27.02%

Here are further forecasts provided by precedence research in their comprehensive report:

Generative AI Market Size by Region 

According to Fortune Business Insights, the North American Market is the biggest regional market for Generative AI.  The market size in the region is $14.49 billion. 

Another report by Grand View Research states that the Generative AI market in the Asia Pacific region is expected to grow at a rate of 36.5% between the year 2023 and 2030. 

On the other hand, Precedent research highlights the fact that North America owns 41% of the generative AI market share. It is home to multiple key players of generative AI like Google, IBM, etc.; hence, most of the market revenue is generated from the region. 

The report further stats that Europe is the second-largest market, followed by Asia Pacific. 

Here are further details about the Generative Market Share owned by different regions:

Generative AI Market Size By Country

Statista predicts that the largest Market size of Generative AI will be in the United States. The market in the country is expected to reach $16.14 billion in 2023. 

China is the second largest Generative AI market, and Germany is the third. They are followed by the United Kingdom and Japan, having the fourth and fifth largest Generative AI market share. 

Generative AI Market Share by Industry

Precedence research brings into the limelight that the media and entertainment industry holds 34% of the Generative AI market share. 

The Automotive and transportation segment holds the second-largest market share and is followed by Business and financial services. 

Here are further details about the Generative AI market share owned by different industries. 

Boston Consulting Group stated that the Generative AI market value is predicted to increase rapidly in the healthcare industry compared to any other industry. 

It is expected to grow at a CAGR of  85% in the forecasted period of 2022 to 2027, reaching a market value of $22 billion. 

The BFSI industry, which includes banking, financial services, and insurance, is the industry that has the second-highest growth rate. It is expected to reach a market size of $32 billion by the end of 2027, growing with a CAGR of 75%. 

Here are further details about the predicted Generative AI market size in different industries as of 2027. 

Global Generative AI Market by Language model

Grand View research concluded that the large language model segment dominated the Generative AI market with a share of 33.6% in the year 2022. The model segment is projected to grow at a CAGR of 35.0%  during the forecast period of 2023 to 2030. 

This model segment is used by various applications like Chatbots, content generation tools, AI image generators, etc. It is also used by ChatGPT, one of the emerging chatbots of the era. It has used the NLP model and is capable of generating human-like language. 

The report adds that the multi-modal generative model is forecasted to grow at a CAGR of 41.6% between 2022 and 2030. The model can achieve high accuracy by combining data from multiple models, fueling the segment’s growth. 

What are the driving factors of the Generative AI Market? 

One of the major drivers of the Generative AI industry is the rapid evolution of AI and deep learning. Creating game environments and virtual worlds also drives the generative AI market. 

One major example is NVIDIA’s investments. In January 2023, it invested in new enterprise metaverse technologies like VR and AR for various generative AI tools, including the Omniversum portal. 

Such investments made by the top players in the industry have fueled the market, and other companies in the market are also striving to increase their investments in the market. 

At the same time, technologies like cloud computing, the Internet of Things, and 5G connectivity bring evolution to the market. 

Techniques like generative adversarial networks (GANs)  and variational autoencoders (VAEs) also contribute to the industry growth.

Above all, most industries have started adopting generative AI due to the potential of AI to help enhance creativity. Which leads to revolutionizing industries like entertainment, arts, and content creation. 

Source: Fortune Business Insights, Market and Markets.  

What are the restraining factors of the Generative AI Market?

One of the biggest restraints of the Generative AI market is biased and inaccurate generated outputs. The attempts to train the AI models with large data lead to errors in the expected outcomes. This poses financial risks, especially if errors occur in the ground truths and AI predictions. 

Here, you can consider the example of Google Bard. Before its launch, everyone anticipated it to be better than ChatGPT and beat all the other chatbots. However, during its demonstration event, it generated erroneous responses, resulting in Google losing almost $120 billion due to Google Bard.

Besides,  biases are one of the major concerns witnessed in the AI models. ChatGPT still generates biased responses at times, and the OpenAI team is working on resolving the issue. If this issue is not resolved, AI models could cause inequalities, leading to discrimination and offending specific demographic groups. 

On the other hand, data and cyber security are also the main restraining factors in the Generative AI market. Unstructured data includes sensitive information, which has led to the tightening of data privacy regulations worldwide for the general AI market. 

Trust Wave, a data security company, stated that 63% of data thefts occur due to a lack of due diligence when third-party outsourced data. 

Other restraints observed in the Generative AI industry are unreliable data and difficulty evaluating model performance.

Source: Fortune Business Insights, Analytics Insight, Markets and Markets.

Generative AI Latest Market Trends

1. 29% of GenZ have adopted generative AI in workplaces in the United States.

At the same time,  28% and 27% of Gen X and Millennials have also adopted Generative AI in their workplaces in the United States.

Source: Statista. 

2. 35% of the technology industry has adopted Generative AI in their workplace.

In contrast, only 15% of the workplaces in the healthcare industry have adopted generative AI in their workplaces. 

Here are further details about the workplaces in different industries that have adopted Generative AI in their workspace. 

Source: Statista.

Effect of COVID-19 on  Generative AI Market 

The COVID-19 pandemic had a positive influence on the Generative AI market as most of the companies moved their work models online. Numberable companies have adopted artificial intelligence in their online workspaces. It increased work productivity and eased the manual work of the employees.

IBM’s AI Adoption Index 2022 report stated that around 53% of the professionals have accelerated their AI adoption rate over the past two years in response to the pandemic. 

In addition, AI helped in analyzing the large data sets related to COVID-19 and helped in making predictions related to the virus. It helped the users to better understand the virus its spread, and find effective treatments.

AI technologies like NLP and image processing also play a vital role in drug discovery, medical research, data analysis, and vaccine development. 

As a result, there was a rise in demand and adoption of Generative AI applications, which resulted in Market expansion and increased investments in AI research and development. 

BONUS: Get more insights on AI with article on artificial intelligence statistics.

Source: Fortune Business Insights, Evolve BI. 

Key Companies of Generative AI

Microsoft Corporation has the biggest share in the Generative AI market. It has invested the majority of the funding to Open AI (the parent company of ChatGPT) and Inflection. The company has a market cap of $2.442 trillion.

The second key player is Alphabet Inc. Most generative AI companies use Google Cloud to develop and deliver generative AI content. Its chatbot, Google Bard, also emerged as a prominent player in the industry. 

The other top Generative AI companies are Amazon.com, Inc., NVIDIA Corporation, and Meta platforms. 

Here are further details about the key players of Generative AI.

FAQs

How big is the generative AI in the marketing sector?

According to Grand View Research, the global Generative AI in the marketing sector is valued at $1.98 billion. It is expected to have a CAGR of 36.1% between 2023 and 2030. 

What is the business value of generative AI?

McKinsey research highlighted that the business value of generative AI is $4.4 trillion.

How big is the generative AI market in healthcare?

According to Yahoo Finance, the Generative AI in the healthcare market had a value of $1.07 billion in 2022. It is forecasted to reach nearly $21.74 billion by the end of 2032.

How popular is generative AI?

60% of the organizations reported that they have used Generative AI. At the same time, 37% of marketing and advertising workplaces have adopted the technology. 

Soure : https://www.demandsage.com/generative-ai-market-size/