Generative AI Market Size, Share & Trends Analysis Report By Component (Software and Services), By Technology (Generative Adversarial Networks (GANs), Transformers), By End-use, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The global generative AI market size was exhibited at USD 11.64 billion in 2022 and is projected to hit around USD 269.06 billion by 2032, growing at a CAGR of 36.9% during the forecast period 2023 to 2032.

Key Pointers:

• The market is further bifurcated into software and services. The software segment accounted for the largest revenue share of 66.9% in 2022.
• The service segment is anticipated to witness the fastest growth rate of 36.7% during the forecast period. 
• The software segment accounted for the largest revenue share of 66.4% in 2022
• The transformers segment held the largest revenue share of 42.7% in 20212. 
• The diffusion networks segment is expected to witness the fastest growth rate of 38.2% during the forecast period. 
• The other sub-segment further comprises security, aerospace & defense. The media & entertainment segment accounted for the largest revenue of USD 1,625.6 million in 2022 and is projected to grow at a CAGR of 33.9% over the forecast period.
• The BFSI segment is expected to witness the fastest growth rate of 35.4% during the forecast period. 
• North America dominated the market with a share of 41.2% in 2022 and is projected to grow at a CAGR of 34.9% over the forecast period.
• Asia Pacific is anticipated to grow at the fastest CAGR of 35.9% during the forecast period.

Factors such as the rising applications of technologies such as super-resolution, text-to-image conversion, & text-to-video conversion and growing demand to modernize workflow across industries are driving the demand for generative AI applications among industries. The COVID-19 pandemic had a positive impact on the generative AI market as businesses shifted to the online work model, increasing digitalization across industries. As per IBM’s Global AI Adoption Index 2022 report, over 53% of IT professionals commented that they have accelerated the roll-out of Artificial Intelligence (AI) in the last 24 months as a part of their response to the pandemic Moreover, during the pandemic advance diagnosing tools were developed using Artificial Intelligence (AI) to detect the COVID-19 virus and various other imaging systems.

Generative AI makes use of unsupervised learning algorithms for spam detection, image compression, and preprocessing data stage such as removing noise from visual data to improve picture quality. Moreover, supervised learning algorithms is used for medical imaging and image classification. Furthermore, it has applications in various industries such as BFSI, healthcare, automotive & transportation, IT & telecommunications, media & entertainment, and others.

Generative AI is at a developing stage which will require a skilled workforce and high investment in implementation for development. According to IBM’s global AI adoption index 2022 report, 35% of respondents believed that a lack of Artificial Intelligence (AI) skills, expertise, or knowledge was restricting the adoption of Artificial Intelligence (AI) for industries.  Hence, the unavailability of a skilled workforce and the high implementation costs are expected to slow down the pace of development of the market.

Major market players such as U.S.-based Microsoft and Apple Inc. are progressively investing in Research & Development (R&D) activities. Moreover, these companies are researching technologies such as Artificial Intelligence (AI) and Machine Learning (ML). For instance, in May 2020, World Wide Technology, a technology service provider started an initiative that is focused on artificial intelligence and machine learning and has some of the highest experiments and work programmed on generative AI. As an increasing number of companies continue to develop and experiment in the field and use generative AI in their products, the market is expected to witness promising growth opportunities.

North America dominated the market with a share of 42.2% in 2022 and is projected to grow at a CAGR of 34.9% over the forecast period due to factors such as rising pseudo-imagination & medical care and increasing banking frauds. Also, the presence of prominent market players such as U.S.-based Meta, Microsoft, and Google LLC, developed technology organizations, and the presence of experts are likely to drive the growth generative AI market in the region.

Asia Pacific is anticipated to grow at the fastest CAGR of 35.9% during the forecast period. Increasing government initiatives in Artificial Intelligence (AI) in Asia Pacific and the increasing adoption of AI applications are driving the growth of generative AI in the region. 

Generative AI Market Segmentation

Generative AI Market Key Players And Regions