With a CAGR of 36,5%, the global generative AI (GenAI) market size is anticipated to reach $109,37-billion by 2030, according to a new report by Grand View Research, which says that growing demand to modernise workflow across industries is expected to drive the demand for GenAI applications among industries.
Other factors that will propel the market growth include the evolution of AI and deep learning, a rise of creative applications and content creation, and innovation of cloud storage allowing easy data access.
Moreover, the introduction of AI-powered gaming that provides more high-level visuals and graphics, interactivity, and a more realistic feel is projected to boost market growth in the coming years.
The Covid-19 pandemic had a positive impact on the market. Many organisations adopted AI and machine learning (ML) as a response to the pandemic. Many key players, such as Microsoft, IBM, Google, and Amazon Web Services witnessed a growth in sales of AI-based technology during the pandemic. Moreover, the accelerated advancement of digital platforms empowered the adoption of generative AI applications.
For instance, in June 2020, Amazon Web Services announced the addition of a new generative AI algorithm, Autoregressive Convolutional Neural Network (AR-CNN), to its AWS DeepComposer suite of products, allowing developers to create excellent music digitally. AWS DeepComposer also provides learning capsules to developers to learn the basics of algorithms.
Many generative AI market players offer solutions for numerous applications such as text-to-image, image-to-image, and super-resolution. For instance, in March 2023, Microsoft launched Microsoft 365 Copilot, an AI assistant feature for Microsoft 365 services and applications. Microsoft 365 Copilot can benefit businesses by saving time, streamlining and automating their IT processes, and increasing productivity.
Moreover, these industry players are researching generative AI technology for advanced image resolution, face aging, and video resolution technologies. For example, Tesla is developing autonomous algorithms using data from car sensors. Also, the neural networks are further trained to perform object detection and semantic segmentation.
Investment in the AI and ML sectors to support the market will drive the North America regional market. The presence of tech players in the US and Canada provides lucrative growth opportunities for the regional market. For instance, big tech companies like Microsoft, Google, and Amazon Web Service are investing in generative AI startups and technology.
Asia Pacific is expected to grow at a considerable CAGR from 2024 to 2030 owing to the expansion of end user industries in countries such as China and Japan.
Additional highlights from the GenAI market report include:
* The software segment accounted for the highest revenue share of 64,5% in 2023 and is expected to retain its position over the forecast period. Rising use of generative AI-based software owing to its benefits such as better image resolution, reduced conversion time, enhanced performance, and quick availability of output is attributed to market growth.
* The transformers technology segment dominated the market with a share of 41,3% in 2023 and is expected to grow at a significant CAGR from 2024 to 2030. This can be attributed to the rising adoption of transformer applications worldwide that focus on predicting text and analysing words. The diffusion networks segment is expected to grow at the fastest CAGR of 39,1% from 2024 to 2030 due to the variety and penetration of diffusion network applications to deliver generative models that generate realistic output.
* The media and entertainment segment accounted for the maximum revenue share of 22,6% in 2023 due to the increasing adoption of GenAI for creating better advertisement campaigns and GenAI-based digital platforms for shopping. The BFSI segment is likely to grow at the fastest CAGR from 2024 to 2030.
* North America held the largest share of 40,2% in 2023 and is expected to grow at a significant CAGR from 2024 to 2030. This can be attributed to the presence of a large number of key players as well as technology organisations. Asia Pacific is anticipated to register a CAGR of over 37,5% from 2024 to 2030 owing to developing technology infrastructure and government initiatives.
* In March 2022, Google announced the acquisition of Mandiant, a cybersecurity firm, for $5,4-billion. This acquisition would help Google provide better advisory services and security operations suites which will help customers resolve their most critical security challenges.