Global Generative AI Market Size, Share & Industry Trends Analysis Report By Component, By Technology, By End Use (Media & Entertainment, BFSI, IT & Telecommunication, Healthcare, Automotive & Transportation), By Regional Outlook and Forecast, 2022 - 2028
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Market Report Description
The Global Generative AI Market size is expected to reach $53.9 billion by 2028, rising at a market growth of 32.2% CAGR during the forecast period.
The term generative AI refers to a new branch of machine learning that builds new things using neural networks, which are models based on the organization of animal brains. Traditional machine learning algorithms can only interpret the data that was provided to them by their human designers; they are not capable of producing new data on their own.
In contrast to conventional machine learning, generative AI may produce creative material, such as songs, artwork, and even complete words. People will be able to be more inventive, creative, and innovative owing to generative AI. It has the capacity to break down the boundaries of human imagination and produce new concepts that were previously unimaginable.
This can be done using a technique called generative design, where one commences with a set of guidelines or restrictions and then give it some time to work. The drawings it generates can then be viewed to help individuals either come up with a solution to the problem or learn fresh perspectives on it. New avenues for how people work, play, and create are emerging thanks to generative AI.
For consumers, companies, governments, and nonprofit groups, this field is very promising. Programs that enable machines to create content using elements like audio recordings, text, and graphics are known as generative artificial intelligence (AI). One of the most exciting developments in the field of AI over the past ten years, according to MIT, is generative AI.
COVID-19 Impact Analysis
The commercial operations and economies of numerous locations were impacted by the COVID-19 outbreak in 2020. Lower IT investment by firms, particularly small businesses, was noted as a result of the closure of commercial activities to stop the disease's spread. The COVID-19 pandemic has, however, been a big win for cloud-based software suppliers since most IT employees now manage various business processes from home. Over the course of the forecast period, these factors are anticipated to support the market for generative AI.
Market Growth Factors
Detecting Fraud Among Drivers
The use of synthetic data has the potential to solve the problems the banking sector is now experiencing, particularly with regard to data protection. In place of client data that cannot be shared owing to privacy issues, shareable data can be created using synthetic data. Additionally, artificial consumer data are perfect for training machine learning (ML) models that help banks assess whether and how much they can offer a client in the way of credit or a mortgage loan.
Management Of Risk
For banks to maintain an appropriate amount of risk exposure, identify potential risk areas, and take action to sustain profitability, a risk management plan must be established. Whenever liquidity, credit, operational, and other risks really aren't properly managed, banks could experience losses. Because of this advantage, generative AI is widely used nowadays, particularly in the BFSI industry.
Market Restraining Factor
Ethics Of Ai-Generated Content
People are frequently the target of propaganda, obscene content, and fraudulent videos produced by AI. Privacy and consent issues are brought up by this. Additionally, there is a real chance that once AI can produce content in a person's manner, with or without that person's consent, individuals will lose their jobs. Due to these generative AI limitations, businesses may be hesitant to use them, which would hinder the market's expansion.
Based on the component, the generative AI market is classified into software and services. With the largest revenue share in 2021, the software sector led the generative AI market. In order to anticipate the following word from past word sequences or the following image from words describing prior images, the software makes use of sophisticated machine learning algorithms. The expansion of the software market can be ascribed to a number of variables, including an increase in fraud, an overestimation of skills, unexpected results, and increased data privacy concerns.
Based on the technology, the generative AI market is categorized into generative adversarial networks (GANs), transformers, variational auto-encoders, and diffusion networks. The generative AI market's diffusion network segment grew significantly in revenue in 2021. Image generation has become crucial for many industries, including BFSI, healthcare, automotive & transportation, media & entertainment, defense, and many others, in order to meet the growing demands of image synthesis because these sectors are equipped to offer high-value to enterprises, the government, and the general public.
On the basis of End-use, generative AI market is categorized into Media & entertainment, BFSI, IT & communications, healthcare, automotive & transportation, and others. The market for generative AI has experienced a promising growth rate in the healthcare sector in 2021. When activated by 3D printing, CRISPR, and other technologies, generative AI can be used to create organic molecules, prosthetic limbs, and other things from nothing. Additionally, early detection of possible malignancy can lead to better treatment strategies. In order to find treatments for COVID-19, IBM is now using this technology to study antimicrobial peptides (AMP).
|Market size value in 2021||USD 7.9 Billion|
|Market size forecast in 2028||USD 54 Billion|
|Historical Period||2018 to 2020|
|Forecast Period||2022 to 2028|
|Revenue Growth Rate||CAGR of 32.2% from 2022 to 2028|
|Number of Pages||232|
|Number of Tables||383|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Component, Technology, End-use, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Based on geography, the generative AI market is classified as North America, Europe, Asia Pacific, and LAMEA. The North American region generated the largest revenue share, thereby dominating the generative AI market in 2021 globally. This is because of things like rising medical care and pseudo-imagination, as well as rising banking frauds. The regional generative AI market is also projected to increase due to the existence of key market participants, including the U.S.-based Microsoft, Meta, and Google LLC, as well as sophisticated technology companies and the availability of specialists.
Free Valuable Insights: Global Generative AI Market size to reach USD 54 Billion by 2028
KBV Cardinal Matrix - Generative AI Market Competition Analysis
The major strategies followed by the market participants are Acquisition. Based on the Analysis presented in the Cardinal matrix; Google LLC and Microsoft Corporation are the forerunners in the Generative AI Market. Companies such as Amazon.com, Inc., Adobe, Inc., and IBM Corporation are some of the key innovators in Generative AI Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Google LLC, Amazon Web Services, Inc. (Amazon.com, Inc.), IBM Corporation, Microsoft Corporation, Adobe, Inc, MOSTLY AI Solutions MP GmbH, Synthesia Limited, Genie AI, Inc, Rephrase.ai, and De-Identification Ltd.
Recent Strategies Deployed in Generative AI Market
- Nov-2022: Microsoft came into collaboration with NVIDIA, an American multinational technology company. This collaboration would aim to create one of the most powerful AI supercomputers, powered by Microsoft Azure's advance. Moreover, this collaboration opens the door to a supercomputer platform that benefits every enterprise on the Microsoft Azure platform.
- Oct-2022: Adobe is introducing Generative AI, an AI-based technology. The product features Photoshop, Adobe Express, and Lightroom. Additionally, the latest technology would enable creators to give their idea to Artificial Intelligence and the machine would process certain images.
- Oct-2022: Google completed the acquisition of Alter, an artificial intelligence (AI) avatar startup engaged in helping brands and creators express themselves. Through this acquisition, Google would improve both the quality and quantity of the content provided to consumers.
- Jun-2022: Google added new features to its previously launched product Vertex. The addition of new features in Vertex AI would boost the deployment of machine learning models in organizations and democratize AI so more people can distribute models in production, driving business impact and continuous monitoring with AI.
- Dec-2021: Amazon Web Services, Inc. collaborated with Meta, an American multinational technology conglomerate to provide cloud services to AWS. Under this collaboration, both companies would work together to enhance the functioning of customers running PyTorch on AWS and boost how developers create, train, deploy and operate machine learning/artificial intelligence models.
- Apr-2021: IBM took over Turbonomic, a company engaged in offering tools to manage application performance. With this move, IBM would enhance its footprint by offering enterprises AI-based services to manage their workloads and networks.
- Apr-2021: Microsoft completed the acquisition of Nuance, an American multinational computer software technology corporation. This acquisition would integrate specializations and expertise to provide new AI and cloud abilities across healthcare and other areas.
- Mar-2021: IBM launched Molecule Generation Experience (MolGX), a cloud-based AI-driven molecular design platform that itself invents new molecular structures. This newly launched product boosts the discovery of new materials by 10 to 100 times as well as finds materials from the property targets of a given product.
- May-2020: Mircosoft took over Softomotive, a leading provider of robotic process automation. Under this acquisition, Microsoft would combine Softomotive’s desktop automation with the present Microsoft Power Automate abilities, at a uniquely low cost. Additionally, Microsoft would balance RPA and allow everyone to build bots to automate manual business processes.
- Sep-2018: Microsoft took over Lobe, a start-up that makes it easier to build an A.I. model with its drag-and-drop interface. With this acquisition, Microsoft would create its own effort to design AI models easier as well for some time Lobe would operate as before.
- Jul-2018: IBM Watson Health, a division of IBM Corporation, partnered with Guerbet, a manufacturer of contrast agents used in medical imaging. Through this partnership, the companies would use AI for the medical imagining of the liver. Additionally, both companies together would develop advanced clinical decision support solutions.
Scope of the Study
Market Segments Covered in the Report:
- Generative Adversarial Networks (GANs)
- Variational Auto-encoders
- Diffusion Networks
- Media & Entertainment
- IT & Telecommunication
- Automotive & Transportation
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Google LLC
- Amazon Web Services, Inc. (Amazon.com, Inc.)
- IBM Corporation
- Microsoft Corporation
- Adobe, Inc
- MOSTLY AI Solutions MP GmbH
- Synthesia Limited
- Genie AI, Inc
- De-Identification Ltd
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What would be the size of the Generative AI Market by 2028?
The global Generative AI Market size is expected to reach $53.9 billion by 2028.
What are the key driving factors and challenges in the Generative AI Market?
Detecting Fraud Among Drivers are driving the market in coming years, however, Ethics Of Ai-Generated Content restraints the growth of the market.
What are the major top companies in the competitive landscape?
Google LLC, Amazon Web Services, Inc. (Amazon.com, Inc.), IBM Corporation, Microsoft Corporation, Adobe, Inc, MOSTLY AI Solutions MP GmbH, Synthesia Limited, Genie AI, Inc, Rephrase.ai, and De-Identification Ltd.
At what CAGR is the Generative AI Market estimate to grow in the forecast period?
The expected CAGR of the Generative AI Market is 32.2% from 2022 to 2028.
Which segment shows a high revenue share of the Generative AI Market in 2021?
The Transformers segment acquired maximum revenue share in the Global Generative AI Market by Technology in 2021 thereby, achieving a market value of $22.4 billion by 2028.
Which region dominated the Generative AI Market in 2021?
The North America market dominated the Global Generative AI Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $21 billion by 2028.