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Generative AI Market Size, Share, and Analysis, By Component (Software and Services), By Application (Computer Vision, NLP, and Others), By Technology (Generative Adversarial Network (GANs), Transformers, Diffusion Networks and Others), By End User (Media and Entertainment, BFSI, and Others), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2023-2032
Generative AI Market is anticipated to grow at a CAGR of 39.8% in the forecast period (2023-2032), with the market size valued at USD 16.2 billion in 2022 and projected to reach USD 463.6 billion by 2032.
Generative AI is a subset of artificial intelligence that specializes in creating original content such as images, text, or music without replicating the input data. It operates through algorithms and models that acquire knowledge from existing data and use this information to create new and unique content. These systems generate output autonomously which highlights the creativity and ability of generative AI technology to produce original content. Generative AI finds applications across multiple industries such as art, content creation, data synthesis, and beyond. It constantly expands its capabilities and applications as machine learning and AI technologies advances.
Generative AI Market is expected to reach USD 463.6 billion, growing at a CAGR of 39.8% during the forecast period, owing to multiple variables such as the advancement of AI algorithms, greater processing power, easy availability of information, and the diverse application of generative AI across different sectors. The recent developments in natural language processing (NLP), such as GPT-3, played an essential role in driving growth in the industry. NLP enables the creation of chatbots, content generation, and various digital applications, which holds immense potential for the expansion of market. Therefore, generative AI has become increasingly popular owing to its low cost of implementation and its growing potential to provide competitive advantages to various industries.
Source: Fatpos Global
Based on the Component, the market is divided into Software and Services. Software segment is expected to maintain its dominance due to factors such as rising frauds, unexpected outputs, and data privacy concerns. Based on strong machine learning models, generative AI software plays a crucial role across various industries including fashion, entertainment, and transportation. Renowned fashion brands utilize generative AI to design clothing and create unique fabric patterns, highlighting the essential role of generative AI software. Conversely, increasing concerns about risk assessment and data security will drive significant growth in the service segment.
By Technology, the Generative AI Market is typically segmented into Generative Adversarial Network (GANs), Transformers, Diffusion Networks, and Others. Transformers are expected to have a considerable market share due to their increasing adoption across a wide range of applications, particularly in the field of text-to-image AI. For example, DALL-E is a modern transformer that can interpret text input and produce images based on the data. Similarly, the OpenAI-built transformer GPT-3 can produce text, including poetry and messages, that closely resembles human writing. These technologies are in high demand as they carry the potential to transform a range of industries, including healthcare, media, and entertainment, automotive and transportation, defense, and others.
Source: Fatpos Global
Al's Evolution and Deep Learning to Boost the Market
Artificial intelligence has caused a major disruption across multiple corporate sectors, including marketing, sales, finance, and human resources. Artificial intelligence is advancing at an unprecedented rate in comparison to previous technological advancements such as cloud computing, 5G connectivity, and the Internet of Things (IoT). Deep learning, a branch of machine learning that focuses on teaching multi-layered neural networks to understand and manage data, is responsible for this development. These neural networks mimic the functioning of the human brain and can be taught to produce generalized learning models. Artificial neural networks are replacing traditional machine learning techniques. In conjunction with artificial intelligence, deep learning is crucial and will continue to expand the market.
Rapid Growth of Large Language Models (LLMs) will Hasten Market Expansion
Large language models (LLMs) and other generative ML technologies are improving the process of content creation. LLMs are powerful neural networks that can generate text and serve as the foundation for multiple generative systems, including GPT-3, GPT-4, Meta's LLAMA, and more. They have also used in text-to-image generating programs such as DALL-E and Midjourney. LLMs are becoming increasingly complex and introducing new prospects in the language model industry. LLM-driven generative AI applications are being deployed across range of industries, with sectors already making significant progress and helping in the expansion of market.
Problems with Bias and Incorrectly Generated Output is Hurting the Market
The absence of high-quality data is impeding the development of generative AI. The performance of AI depends on the availability of high-quality data. Inadequate data leads to errors, poor results, and might cause financial impacts. The problem of bias mitigation can originate from a variety of sources, including incorrect information or model design. This can result in incorrect output and can hinder the growth of Generative AI market.
Generative AI Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. North America is expected to dominate the generative AI market due to the presence of major players such as Meta, Microsoft, and Google LLC, and a large pool of generative AI specialists. The market is expected to rise owing to the demand for AI-generated content across various industries including media & entertainment and healthcare as well as the availability of high-quality data for generative model training.
Asia Pacific is projected to grow significantly due to an increase in government-led AI projects and the fast pace of commercial digitization in the region. Additionally, organizations are promoting ethical and productive usage of AI devices among members of civil society, which is further helping the market to expand.
Source: Fatpos Global
The market expanded during the COVID-19 pandemic due to an increase in the application of artificial intelligence by IT specialists. Companies switched to remote work models which accelerated the digital transformation activities due to pandemic. Artificial intelligence (AI) solutions have been progressively used by businesses and IT professionals to increase productivity and simplify work operations. The enormous COVID-19 datasets were analyzed and patterns were studied more promptly with the help of generative AI. This improved our understanding of the pandemic and facilitated in important decision making.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2032 |
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Base Year |
2022 |
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Forecast Period |
2022-2032 |
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Historical Period |
2019-2021 |
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Growth Rate |
CAGR of 39.8% from 2022-2032 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Component |
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By Technology |
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By Application |
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By End Users |
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By Region |
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Generative AI Market size was values at USD 16.2 billion in 2022 and is projected to reach the value of USD 463.6 billion in 2032, exhibiting a CAGR of 39.8% during the forecast period.
The sector dedicated to the development, commercialization, and use of artificial intelligence systems that may produce content, data, or other creative outputs automatically is known as the "generative AI market".
The Software segment and the Transformers segment accounted for the largest Generative AI Market share.
Key players in the Generative AI Market include OpenAI, Google, Microsoft, Facebook (Meta), IBM, NVIDIA, Adobe, Intel, Salesforce, Oracle, Baidu, Tencent, Samsung, Amazon Web Services (AWS), DeepMind (a subsidiary of Alphabet), and Other Prominent Players.
Evolution of AI and rapid growth of large language models (LLMs) efforts are the factors driving the Generative AI Market.
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