Global Generative AI Market Accounted for US$ 5.76 Billion in 2022, Growing at an Estimated CAGR of 35.7% from 2023-2031.

Generative AI is a subset of artificial intelligence that creates data, content, or information rather than just processing or analyzing it. It uses algorithms to generate new, often realistic, text, images, or other media based on patterns and data it has learned from existing examples. Generative AI has applications in various fields, including art, language generation, and content creation.

In the global generative AI market, marketing & sales application is currently dominating. Many businesses were using Generative AI for content generation, personalization, and customer engagement. For instance, chatbots and AI-powered ad content generation witnessed substantial growth.

Global Generative AI Market Revenue & Forecast, (US$ Million), 2022 – 2031

COVID-19 Impact Analysis on Global Generative AI Market

Pre-COVID-19, the generative AI market was steadily growing, with increasing adoption across industries for content generation and automation. However, post-COVID-19, its importance surged as remote work and digitalization accelerated. Companies turned to Generative AI for cost-efficiency and personalized customer interactions, driving higher demand and innovation in the sector.

Report Coverage and Deliverables: 

The rising demand for personalized content is a significant driver of the generative AI market. A survey conducted by found that 91% of consumers prefer brands that offer personalized experiences. Generative AI enables businesses to cater to this demand by creating tailored content, such as product recommendations and marketing messages. For example, Netflix’s recommendation system, powered by Generative AI, is estimated to save the company $1 billion annually by keeping subscribers engaged.

This driver highlights the growing importance of Generative AI in enhancing customer engagement and brand loyalty. A key restraint facing the generative AI market is the concern over data privacy and ethical implications. High-profile data breaches and misuse of AI-generated content have raised alarm. Striking the right balance between data utilization and privacy safeguards is a challenge. The need for responsible AI development and regulation adds complexity to the market’s growth, as companies must navigate ethical considerations and potential regulatory hurdles while deploying Generative AI solutions.

The media & entertainment sector is currently dominating the generative AI market, leveraging it for content creation, recommendation systems, and personalization. The study found that a majority of media executives believed AI and machine learning would have a significant impact on content delivery.

North America recorded highest revenue in the global generative AI market in 2022. It is home to a significant number of AI research and development centers, tech giants, and early adopters across various industries. This study found that the US led in AI adoption, with 30% of U.S. companies deploying AI for content generation and customer engagement.

Competitive Landscape: Global Generative AI Market

• Adobe
• Amazon Web Services, Inc.
• AppNation
• Google
• IBM
• Insilico Medicine
• Lightricks
• Lumen5
• Meta
• Microsoft
• OpenAI
• TLDR Technologies, Inc
• Other Industry Participants

Report Summary of Global Generative AI Market

Global Generative AI Market

By Offering

• Software

• • Rule-Based Models
  • Statistical Models
  • Deep Learning Models
  • Generative Adversarial Networks (GANs)
  • Autoencoders
  • Convolutional Neural Networks (CNNs)
  • Transformer-Based Large Language Models (LLMs)

• Services

• • Professional Services
  • Managed Services

By Application

• Marketing & Sales
• Human Resource
• Operations
• Finance
• Research & Development
• Others

By Industry Vertical

• Media & Entertainment
• BFSI
• Healthcare & Life Sciences
• Manufacturing
• IT & ITES
• Retail & Ecommerce
• Transportation & Logistics
• Construction & Real Estate
• Energy & Utilities
• Government & Defense
• Telecommunications
• Other Verticals

By Region

• North America (U.S., Canada, Mexico, Rest of North America)
• Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
• Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
• Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
• Latin America (Brazil, Argentina, Rest of Latin America)

Table of Contents

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**Exclusive for Multi-User and Enterprise User.

Global Generative AI Market Segmentation

By Offering

By Application

By Industry Vertical

By Region

**Note: The report covers cross-segmentation analysis by region further into countries

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The Niche Research approach encompasses both primary and secondary research methods to provide comprehensive insights. While primary research is the cornerstone of our studies, we also incorporate secondary research sources such as company annual reports, premium industry databases, press releases, industry journals, and white papers.

Within our primary research, we actively engage with various industry stakeholders, conducting paid interviews and surveys. Our meticulous analysis extends to every market participant in major countries, allowing us to thoroughly examine their portfolios, calculate market shares, and segment revenues.

Our data collection primarily focuses on individual countries within our research scope, enabling us to estimate regional market sizes. Typically, we employ a bottom-up approach, meticulously tracking trends in different countries. We analyze growth drivers, constraints, technological innovations, and opportunities for each country, ultimately arriving at regional figures.Our process begins by examining the growth prospects of each country. Building upon these insights, we project growth and trends for the entire region. Finally, we utilize our proprietary model to refine estimations and forecasts.

Our data validation standards are integral to ensuring the reliability and accuracy of our research findings. Here’s a breakdown of our data validation processes and the stakeholders we engage with during our primary research:

• Supply Side Analysis: We initiate a supply side analysis by directly contacting market participants, through telephonic interviews and questionnaires containing both open-ended and close-ended questions. We gather information on their portfolios, segment revenues, developments, and growth strategies.
• Demand Side Analysis: To gain insights into adoption trends and consumer preferences, we reach out to target customers and users (non-vendors). This information forms a vital part of the qualitative analysis section of our reports, covering market dynamics, adoption trends, consumer behavior, spending patterns, and other related aspects.
• Consultant Insights: We tap into the expertise of our partner consultants from around the world to obtain their unique viewpoints and perspectives. Their insights contribute to a well-rounded understanding of the markets under investigation.
• In-House Validation: To ensure data accuracy and reliability, we conduct cross-validation of data points and information through our in-house team of consultants and utilize advanced data modeling tools for thorough verification.

The forecasts we provide are based on a comprehensive assessment of various factors, including:

• Market Trends and Past Performance (Last Five Years): We accurately analyze market trends and performance data from preceding five years to identify historical patterns and understand the market’s evolution.
• Historical Performance and Growth of Market Participants: We assess the historical performance and growth trajectories of key market participants. This analysis provides insights into the competitive landscape and individual company strategies.
• Market Determinants Impact Analysis (Next Eight Years): We conduct a rigorous analysis of the factors that are projected to influence the market over the next eight years. This includes assessing both internal and external determinants that can shape market dynamics.
• Drivers and Challenges for the Forecast Period:Identify the factors expected to drive market growth during the forecast period, as well as the challenges that the industry may face. This analysis aids in deriving an accurate growth rate projection.
• New Acquisitions, Collaborations, or Partnerships: We keep a close watch on any new acquisitions, collaborations, or partnerships within the industry. These developments can have a significant impact on market dynamics and competitiveness.
• Macro and Micro Factors Analysis:A thorough examination of both macro-level factors (e.g., economic trends, regulatory changes) and micro-level factors (e.g., technological advancements, consumer preferences) that may influence the market during the forecast period.
• End-User Sentiment Analysis: To understand the market from the end-user perspective, we conduct sentiment analysis. This involves assessing the sentiment, preferences, and feedback of the end-users, which can provide valuable insights into market trends.
• Perspective of Primary Participants: Insights gathered directly from primary research participants play a crucial role in shaping our forecasts. Their perspectives and experiences provide valuable qualitative data.
• Year-on-Year Growth Trend: We utilize a year-on-year growth trend based on historical market growth and expected future trends. This helps in formulating our growth projections, aligning them with the market’s historical performance.

Research process adopted by TNR involves multiple stages, including data collection, validation, quality checks, and presentation. It’s crucial that the data and information we provide add value to your existing market understanding and expertise. We have also established partnerships with business consulting, research, and survey organizations across regions and globally to collaborate on regional analysis and data validation, ensuring the highest level of accuracy and reliability in our reports.