[188 Pages Report] The Generative AI Market size was estimated at USD 14.58 billion in 2023 and expected to reach USD 19.21 billion in 2024, at a CAGR 33.24% to reach USD 108.72 billion by 2030.
Generative AI, a part of artificial intelligence technologies, focuses on generating new content, data, and information similar to original inputs. It incorporates machine learning algorithms to produce outputs that can include text, images, music, voice, and other forms of media. These technologies have found applications across various sectors, including entertainment, automotive, and healthcare, for tasks such as content creation, drug discovery, and personalized customer experiences. The availability of more powerful and cost-effective computing resources, both in terms of hardware, including GPUs and cloud services, has made it feasible to train complex generative AI models on large datasets, fostering market growth. The exponential growth of data generated online provides ample training material for generative AI models, enabling them to learn and mimic various patterns, creating a platform for market growth. Increased interest and investment from both public and private sectors, coupled with collaborations between academia and industry, are accelerating the development and application of generative AI technologies. Data privacy and security issues with the usage of generative AI hamper the market growth. Continuous research and improvements in deep learning architectures, particularly in neural networks that enhance the capabilities of generative AI, are expected to create opportunities for market growth.
Offering: Rising usage of software associated with generative AI for the creation, customization, and deployment of AI models
Managed services in the context of generative AI involve the outsourcing of certain operational aspects, such as infrastructure management, performance monitoring, and security of AI models. These services aim to offload complex, day-to-day management responsibilities, enabling organizations to focus on strategic objectives and core competencies. Professional services include specialized services that are typically consultative or project-based. Professional services leverage experts in the field to provide custom solutions, from the development of tailored AI models to integration and optimization advice. The focus is on delivering unique value based on specific client goals and challenges. Support & maintenance services ensure the continuous, efficient, and secure operation of AI systems. This includes technical support, software updates, and routine maintenance aimed at minimizing downtime and preserving the integrity and performance of AI implementations. System integration & implementation services address the challenges of integrating Generative AI technology within existing IT environments. Professionals assist in the seamless incorporation of AI solutions, ensuring compatibility, functionality, and optimal performance. The goal is to create a unified system that leverages AI capabilities without disrupting current processes. Training & consulting services play a crucial role in educating and guiding organizations. This encompasses training teams to utilize AI tools effectively, consulting on strategy and implementation, and fostering an understanding of ethical considerations and potential implications of AI technology. The software component of Generative AI offerings includes platforms and tools that enable the creation, customization, and deployment of AI models. These range from text and image generation engines to more specialized applications designed for specific industries or functions. Key characteristics include user-friendly interfaces, scalability, and integration capabilities, ensuring that even those without deep technical expertise leverage the power of Generative AI.
End-use: Increasing use of generative AI in the government & defense for cybersecurity and simulation of scenarios for strategic planning
Generative AI is making strides in fraud detection, personalized banking services, and risk management in the BFSI sector. By generating realistic financial scenarios, it aids in stress testing and decision-making processes. It also enhances customer experience through personalized financial advice and product recommendations. The building & construction industry benefits from Generative AI through the optimization of construction processes and designs. It assists in creating more efficient and sustainable building structures by exploring countless configurations, thus reducing costs and environmental impact. Generative AI plays a crucial role in predicting demand and optimizing energy distribution. It assists in generating scenarios for energy production, including renewable energy sources, to enhance grid management and reduce carbon footprints. In government & defense, generative AI is instrumental for cybersecurity, surveillance, and simulation of various scenarios for strategic planning. It also aids in public service delivery by automating and personalizing citizen services. Healthcare & life sciences see transformative applications of generative AI in drug discovery, personalized medicine, and diagnostic procedures. Generating molecular structures and simulating their interactions accelerates the development of new therapeutics. In diagnostics, it helps in the detection and interpretation of diseases from medical imagery. Generative AI advances programming assistance, network optimization, and cybersecurity in the IT & telecommunication industry. It automates code generation and testing while also optimizing network traffic and predicting infrastructure failures. The manufacturing industry utilizes Generative AI to streamline production lines, improve product design, and manage supply chains. It enables predictive maintenance, reducing downtime and operational costs. In media & entertainment, generative AI is revolutionizing content creation, including music, literature, and video games. It provides tools for creators to generate novel content, enhancing creativity and reducing production times. Generative AI enhances personalized shopping experiences, inventory management, and demand forecasting in the retail and e-commerce sectors. It generates personalized recommendations and promotional content, improving customer engagement and sales. In transportation, generative AI optimizes route planning and logistics, improving fuel efficiency and reducing delivery times. Generative AI improves efficiency in logistics by optimizing route planning, warehouse operations, and freight management. It reduces operating costs and enhances delivery times, offering significant advantages in a highly competitive market.
Regional Insights
In the Americas, the United States stands out as a pivotal hub for generative AI development with the rising presence of technology companies and a dynamic startup ecosystem. Canada also plays a crucial role, particularly in academic and research contributions, with its institutions being renowned for breakthroughs in AI and machine learning. South American countries are progressively embracing generative AI, with Brazil and Mexico expanding adoption across sectors such as finance, media, and retail. The APAC region exhibits a vibrant and diverse landscape for generative AI, characterized by rapid adoption and innovation. China, with its government’s strategic focus on AI as a core technology for future development. The country is home to numerous AI giants and startups pioneering generative AI applications across various sectors, including entertainment, manufacturing, and healthcare. South Korea and Japan are notable for their technological prowess, with extensive research and development in robotics and AI, integrating generative models in various industrial and consumer applications. The EMEA region presents a complex picture due to its cultural, economic, and regulatory diversity. Europe is at the forefront, with several countries exhibiting strong commitments to AI research and development. The European Union’s investment in AI, along with a focus on ethical standards and regulations such as the AI Act, underscores the region’s balanced approach towards fostering innovation while ensuring responsible AI deployment. The UK, Germany, and France are notable for their vibrant ecosystems comprising academia, startups, and established companies focusing on generative AI applications in finance, healthcare, and automotive sectors. In the Middle East, countries such as the UAE and Israel are investing in AI technologies, including generative AI, to drive economic diversification and innovation. The UAE, in particular, has launched several initiatives to become a global AI hub, integrating generative AI in public services, healthcare, and education. South Africa’s engagement with generative AI is in growing stages, with South Africa, Egypt, and Nigeria focusing primarily on applying AI in healthcare, agricultural, and financial inclusion projects.
FPNV Positioning Matrix
The FPNV Positioning Matrix is pivotal in evaluating the Generative AI Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
Market Share Analysis
The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Generative AI Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
Key Company Profiles
The report delves into recent significant developments in the Generative AI Market, highlighting leading vendors and their innovative profiles. These include Accenture PLC, AI21 Labs Ltd., Amazon Web Services, Inc., Anthropic PBC, AssemblyAI, Inc., Clarifai, Inc., Databricks, Inc., DeepL SE, Dialpad, Inc., Genie AI Ltd., Google LLC by Alphabet Inc., Infosys Limited, International Business Machines Corporation, Lighttricks, Markovate, Inc., Meta Platforms, Inc., Microsoft Corporation, Midjourney, Inc., Mostly AI Solutions MP GmbH, OpenAI OpCo, LLC, Paige AI, Inc., Persado, Inc., Revery AI Inc., and Theai, Inc..
Market Segmentation & Coverage
This research report categorizes the Generative AI Market to forecast the revenues and analyze trends in each of the following sub-markets:
- Offering
- Services
- Managed Services
- Professional Services
- Support & Maintenance Services
- System Integration & Implementation Services
- Training & Consulting Services
- Software
- Services
- Generative Model Type
- Autoencoders
- Denoising Autoencoders
- Variational Autoencoders
- Convolutional Neural Networks
- Deep Learning Models
- Feedforward Neural Networks
- Gated Recurrent Units
- Long Short-Term Memory Neural Networks
- Recurrent Neural Networks
- Generative Adversarial Networks
- Conditional GANs
- Cycle GANs
- Style GANs
- Rule-based Models
- Expert Systems
- Knowledge-based Models
- Script-based Models
- Statistical Models
- Conditional Random Fields
- Gaussian Mixture Models
- Hidden Markov Models
- Markov Models
- Transformer-based Large Language Models
- Autoencoders
- Function
- Creative AI
- Interactive AI
- Predictive Models
- Application
- Application Development & API Integration
- Customer Experience
- Data Visualization
- Digital Marketing
- Fraud Detection/Risk Management
- General Search & Insight Generation
- Media Editing
- Predictive Maintenance
- Sales Intelligence
- Synthetic Data Training
- End-use
- Banking, Financial Services & Insurance
- Building & Construction
- Energy & Utilities
- Government & Defense
- Healthcare & Life Sciences
- IT & Telecommunication
- Manufacturing
- Media & Entertainment
- Retail & eCommerce
- Transportation & Logistics
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
The report offers valuable insights on the following aspects:
- Market Penetration: It presents comprehensive information on the market provided by key players.
- Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
- Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
- Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
- Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.
The report addresses key questions such as:
- What is the market size and forecast of the Generative AI Market?
- Which products, segments, applications, and areas should one consider investing in over the forecast period in the Generative AI Market?
- What are the technology trends and regulatory frameworks in the Generative AI Market?
- What is the market share of the leading vendors in the Generative AI Market?
- Which modes and strategic moves are suitable for entering the Generative AI Market?
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