The Rising Power of Generative AI: Market Expansion, Adoption Trends, and Future Projections
The global generative AI market size is anticipated to reach a value of US$ 15 Billion by 2030, expanding at a robust CAGR of 24% during the forecast period. Generative AI refers to artificial intelligence (AI) technologies that generate new content such as images, videos, text or audio. These solutions are capable of creating and producing original content with minimal human involvement. Generative AI finds widespread adoption across diverse end-use industries such as media & entertainment, healthcare, automotive, and retail among others. The growing demand for personalized and immersive customer experiences along with the need for automated content creation is propelling the demand for generative AI technologies.
The Global Generative AI Market is estimated to be valued at US$ 68.34 Billion in 2024 and is expected to exhibit a CAGR of 32.8% over the forecast period 2024 to 2032.
Key Takeaways
Key players operating in the Generative AI are are Abacus.AI, Accenture, Adobe, Adept, AI21 Labs, Amazon Web Services (AWS), Anthropic, Character.ai, Cohere, Google, Hugging Face, IBM, Insilico Medicine, Microsoft, and NVIDIA. These players are focusing on expanding capabilities of their generative AI tools to generate more human-like text, images and other forms of content.
The Generative AI Market Demand is opening new opportunities due to the growing for customized content and personalization. These technologies are increasingly being used for targeted marketing campaigns, personalized product recommendations, and hyper-customized shopping experiences.
Major companies in the generative AI market are focusing on global expansion by partnering with local players. They are also making strategic investments and acquisitions to consolidate their presence across different geographies and capture untapped growth opportunities.
Market drivers:
The rapid digitization across industries is driving the demand for automated content creation tools to cater to evolving customer needs. Generative AI technologies help businesses generate high-quality, scalable content with minimal human intervention which is fueling their adoption.
Market restraints:
High technical expertise and costs associated with the implementation and management of generative AI solutions pose challenges, especially for smaller organizations. Additionally, data privacy and security concerns regarding the use of these technologies remain major roadblocks to their widespread commercialization.
Segment Analysis
The generative AI market is segmented on the basis of technology, application, and end-use industry. Based on technology, text-to-text segment dominates the market as it refers to generating text from text, which helps generate captions from images, auto-generating responses based on context, question answering etc. Text-to-text technology is dominating as a majority of businesses are aiming to automate natural language conversations.
Global Analysis
North America holds the largest share in the generative AI market owing to early adoption of advanced technologies and presence of major players in countries like US and Canada. Asia-Pacific is expected to witness the highest growth during the forecast period supported by growing internet penetration, increasing investments in AI by Chinese technology companies, and improving regulatory landscape in the region. Countries like China, Japan and South Korea are focusing on propagating AI for social and humanitarian causes which is positively impacting the market growth in Asia-Pacific region.
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Resources
Building Smarter Apps with Generative AI
About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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