Generative AI Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the generative AI market was USD 12.1 billion, and a CAGR of 32.5% is expected during the forecast period. Generative AI finds application across various industries, including content creation, design and creativity, chatbots and virtual assistance, healthcare, finance, and gaming. There is an increasing demand for generative AI in the manufacturing industry to optimize product design and process improvement. The increasing demand for generative artificial intelligence in autonomous vehicles and the finance sector is driving the growth of the market. Increased computing power, an abundant amount of data available, a rise in industry adoption, and innovation in model architecture are driving the growth of the market significantly.

Impact of Covid-19

The impact of COVID-19 on the generative AI market has been mixed. On one hand, the pandemic highlighted the importance of technology, accelerating digital transformation initiatives, and increasing interest in AI solutions. Remote work and the need for automation also fueled demand for generative AI applications. However, economic uncertainties and budget constraints affected some industries, potentially slowing down the growth of the AI industry. Supply chain disruptions and shifting priorities during the pandemic have influenced the pace of adoption in certain sectors. The long-term impact will depend on the recovery trajectory and the extent to which businesses prioritize AI in their strategies.

Growth Drivers

Businesses across various industries are adopting generative AI to automate processes, enhance efficiency, and streamline operations. Ongoing development in deep learning techniques, such as GANs and transformer models, have improved the capabilities of generative AI, making it more versatile and powerful. The abundance of data, coupled with improvements in data storage and processing, capabilities, provides a fertile ground, for training more sophisticated generative AI models.

Generative AI is gaining traction in creative fields like art, design, and content creation, where it  assist or lead in the generation of new and innovative content. Increasing demand from healthcare industry to explore generative AI for tasks like medical image analysis, drug discovery, and personalized medicine, is driving growth in the sector. Businesses across various industries are adopting generative AI to automate processes, enhance efficiency, and streamline operations. Advances in hardware, such as GPUs and TPUs, enable faster training of complex generative models, facilitating their integration into various applications. The rapid expansion of large language models is driving the growth of the market.

As new and diverse applications for generative AI emerge, including natural language processing, virtual assistants, and simulation, the market continues to expand. Generative AI contributes to an improved user experience in applications like gaming, virtual reality, and augmented reality, fostering its adoption in entertainment and immersive technologies.

Segmentation

By Application

Application by Business function

·         Marketing and Sales

·         Human Resource

·         Operations

·         Finance

·         Research and Development

·         Others

Application by Data Modality

·         Text

·         Code

·         Image

·         Video

·         Audio and Speech

By Vertical

Media and Entertainment

·         Digital Marketing

·         Sales Intelligence

·         Data Visualization

·         Customer Experience

·         Application Development and AI integration

·         Media Editing

·         Synthetic Data training

BFSI

·         Digital Marketing

·         Sales Intelligence

·         Data Visualization

·         Customer Experience

·         Media Editing

·         Risk Management

Healthcare and Life Sciences

·         Digital Marketing

·         Sales Intelligence

·         Data Visualization

·         Customer Experience

·         Media Editing

·         Synthetic Data Training

Regional Outlook

·         Asia Pacific

·         North America

·         Europe

·         Latin America

·         Middle East and Africa

Generative AI Market Application Segmentation

On the basis of the application, the generative AI market is segmented into finance, human resources, operations, finance, research and development, and others. Generative AI finds application across various industries. It is used in generating text, images, video, and music for creative industries. AI-driven content creation, procedural generation, and character behavior in gaming environments; applications in medical image synthesis; drug discovery; and personalized medicine. Risk assessment, fraud detection, and algorithmic trading benefit from generative AI. Virtual shopping assistants, personalized product recommendations, and inventory optimization are driving significant growth in the market. Simulation for autonomous vehicle testing, design optimization, and generative design in manufacturing. Generative AI is used in the education industry for personalized learning content, automated touring, and educational game development. AI-generated content for advertisement, customer engagement, and social media is driving the growth of the market. Increasing demand to create optimized building structures and urban planning is driving the growth of the generative AI market. Enhanced translation services with improved content understanding, enhanced robotics behavior, path planning, and task optimization are driving the growth of the market. Generative AI is used significantly in cyber security for anomaly detection, threat analysis, and malware detection using generative models.

Regional Outlook

On the basis of the regions, the generative AI market is segmented into 5 parts: Asia Pacific, North America, Latin America, Europe, and the Middle East and Africa. North America is the leading segment in the generative AI market due to significant investment in research and development, a robust ecosystem of tech companies, access to skilled talent, and supportive government initiatives fostering innovations in artificial intelligence. The strong presence of major technology hubs like Silicon Valley is driving growth in the region.

A growing pool of skilled professionals in countries like China, India, and Japan is driving the growth of the market. The region's large population also provides a diverse market for AI applications. Supportive government policies and initiatives aimed at fostering AI development have played a crucial role in the growth of the generative AI market. The generative AI market in Europe is growing due to the significant contributions of key players like England, Russia, and France. The region benefits from a strong emphasis on research and a well-established infrastructure for technology development. European companies are increasingly adopting generative AI solutions in healthcare, finance, and manufacturing. Increasing demand for generative AI in cyber security is driving the growth of the market.

Artificial intelligence has changed the dynamics of many industries by providing special features. The presence of key market players in the North American region is driving the growth of the market significantly. Artificial intelligence and cryptography have solved the problem of cyber security to some extent. Europe is also a robust market due to increasing technological advancements and increasing investment in research and development. During the forecast period, the Middle East and Latin America will experience moderate growth.

Key Players

·         Microsoft

·         IBM

·         Google

·         Adobe

·         Meta

·         Giphy

·         Dialpad

·         Persado

·         Codacy

·         Midjourney

·         Floworks

·         Inventive

·         Sonet

·         Speechify

·         Zetaalfa

·         Deep Search labs

·         Font joy

·         Magic Studio

·         Other Players