Newark, Aug. 26, 2024 (GLOBE NEWSWIRE) -- The global generative AI market is projected to grow significantly, expanding from USD 11.77 billion in 2023 to USD 256.72 billion by 2033, with a CAGR of 36.10% from 2024 to 2033, according to The Brainy Insights. The North American region emerged as the most significant global generative AI market, with a revenue share of 43.3% in 2023, driven by substantial investments in AI and machine learning, as well as the presence of key tech companies in the U.S. and Canada. The Asia-Pacific region is also expected to experience substantial growth, fueled by the expansion of industries in Japan and China and increased investments in AI technologies.
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The market is segmented by technology (including transformers, diffusion networks, generative adversarial networks, and variational auto-encoders), component (service and software), and vertical (such as BFSI, media and entertainment, healthcare, IT and telecommunications, automotive, and transportation). The transformers segment dominated the market with a revenue share of 35.8% in 2023, primarily due to their use in text-to-image applications across various industries. The software segment dominated the market with a revenue share of 65.2% in 2023, reflecting its importance in advancing generative AI capabilities and integrating AI with IoT.
Market Advancements
In November 2021, IBM, a major player in the technology sector, acquired SXiQ, an Australian digital service provider specializing in cloud cybersecurity and cloud platform transformations. This acquisition was aimed at enhancing IBM’s AI capabilities and advancing its hybrid cloud offerings.
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Report Metrics Details
| Report Metrics | Details |
| Market size available for years | 2024–2033 |
| Base year considered | 2023 |
| Forecast period | 2024-2033 |
| Market Size in 2023 | $11.77 billion |
| Projected Market Value in 2033 | $256.72 billion |
| CAGR | 36.10% From 2024 to 2033 |
| Segments covered | Technology, Component, Regions |
| Geographies covered | North America, Asia Pacific, Europe, Middle East and Africa, and Latin America |
| Companies covered | Synthesia, Genie AI Ltd, MOSTLY AI Inc., IBM, Amazon Web Services, Google LLC, Adobe, Microsoft, D-ID, and Rephrase.ai. |
Market Dynamics
Driver: Increasing Applications in End-User Industries
The deployment of artificial intelligence is rapidly evolving, driven by generative AI and other foundational models. These technologies are accelerating application development and enabling non-technical users to access advanced capabilities. Generative AI has the potential to fundamentally change the business landscape by creating new content from existing data, disrupting traditional business operations. It enhances efficiency, reduces costs, and opens up new growth opportunities by automating many tasks previously performed by humans. Companies that effectively leverage generative AI are likely to gain a significant competitive advantage.
Restraint: Data Privacy Concerns
Despite its advantages, the deployment of generative AI raises concerns about data privacy. Organizations often need to share their datasets with generative AI software, which can be a barrier to adoption, especially in industries that handle sensitive information. These privacy concerns can limit the installation and use of generative AI in commercial sectors where data protection is critical.
Opportunity: Increasing Investments in Artificial Intelligence
The competitive landscape across various industries is intensifying, with a growing number of suppliers offering similar quality products, thereby reducing supplier power. In response, many companies are focusing on strengthening their R&D capabilities to achieve product differentiation. The demand for cloud solutions has risen, prompting significant research and development efforts to generate innovative ideas that boost profitability. Machine learning experts are in high demand as companies seek to develop algorithms to enhance growth and efficiency. Businesses are heavily investing in cutting-edge technology and automation, utilizing business intelligence to improve services and gain deeper operational insights. Surveys indicate that AI and machine learning activities have become top priorities for IT departments over the past year.
Challenge: Lack of Awareness in Developing Regions
In developing regions such as Asia-Pacific, the Middle East, and Latin America, there is often a lack of awareness regarding the deployment of generative AI. Many small and mid-sized companies in these areas are not familiar with the benefits and applications of generative AI, leading to its underutilization. This lack of awareness limits the return on investment for companies that adopt generative AI, hindering market growth in these regions.
Leading companies in the market include Synthesia, Genie AI Ltd, MOSTLY AI Inc., IBM, Amazon Web Services, Google LLC, Adobe, Microsoft, D-ID, and Rephrase.ai. These companies are focusing on developing new products and securing venture capital investments to enhance their market positions.
Generative AI is set to revolutionize business operations by automating tasks previously performed by humans, increasing efficiency and productivity, reducing costs, and opening up new growth opportunities. This technology's ability to generate new content from existing data could significantly impact various industries and give a competitive advantage to businesses that leverage it effectively.
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