Generative AI Market by Offering (Services, Software), Generative Model Type (Autoencoders, Convolutional Neural Networks, Deep Learning Models), Function, Application, End-use - Global Forecast 2024-2030

[187 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.

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.

The market dynamics represent an ever-changing landscape of the Generative AI Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

• Market Drivers
  • Focus on optimizing and modernizing workflow across businesses
  • Applications of text-to-image conversion and text-to-video conversion
  • Broadening use of generative AI in visual applications
• Market Restraints
  • Output accuracy concerns associated with generative AI
• Market Opportunities
  • Emergence of fully automated generative AI
  • Favorable ecosystem for generative AI startups
• Market Challenges
  • Cybersecurity & data privacy risk

• 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.

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Generative AI Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Generative AI Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. 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 these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Generative AI Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment 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, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

• Strategic Acquisition of Clipdrop by Jasper Amplifies Multimodal Marketing Capabilities for Enterprises

  Jasper acquired Clipdrop from Stability AI, marking a monumental leap in Jasper's journey towards delivering an all-encompassing, multimodal support system specifically tailored for enterprise marketing teams. The fusion of Clipdrop's technology with Jasper's AI-driven marketing solutions is anticipated to revolutionize personalized marketing strategies, offering unparalleled automation and optimization capabilities. The acquisition underscores Jasper's expansion into the European market and its commitment to nurturing the AI ecosystem in Paris. [Published On: February 22, 2024]

• Visa Ventures into Generative Artificial Intelligence with a USD 100 Million Investment Fund

  Visa announced the initiation of a substantial USD 100 million venture fund dedicated to nurturing startups in the generative artificial intelligence (AI) domain, marking a significant endorsement of the field alongside technology giants. This move underscores the burgeoning interest in AI technologies, particularly following the widespread acclaim of the chatbot ChatGPT. Visa aims to explore and understand the transformative potential of generative AI beyond its current applications in tasks and content creation, particularly its impact on commerce. [Published On: October 03, 2023]

• Infosys and Microsoft Embark on a Pioneering AI-Driven Collaboration

  Infosys announced its strategic collaboration with Microsoft to craft solutions by harnessing the power of Infosys Topaz, together with Azure OpenAI Service and Azure Cognitive Services. Uniting their AI expertise, both corporations aspire to revolutionize enterprise operations by offering AI-enhanced solutions across various sectors. The synergy with Microsoft enhances Infosys Topaz's capabilities, propelling businesses towards adopting AI-centric solutions, thereby strengthening operational efficiency, reducing processing times, safeguarding investments, and paving the way for innovative business models. [Published On: September 26, 2023]

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Generative AI Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

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..

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
• 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
• 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

1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

1. What is the current market size and projected growth?
2. Which products, segments, applications, and regions offer promising investment opportunities?
3. What are the prevailing technology trends and regulatory frameworks?
4. What is the market share and positioning of the leading vendors?
5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?