As per Intent Market Research, the Generative AI Market was valued at USD 10.71 billion in 2023-e and will surpass USD 40.28 billion by 2030; growing at a CAGR of 20.8% during 2024 - 2030. The surge in demand for integrating Generative AI associated with every industry is driving the growth of the market.

The computational power and the AI platform infrastructure layer started to catch up with the processing demands of generative AI tools. Increasing number of businesses are now able to create generative AI solutions.  Major market players such as AWS, Meta, Apple, IBM are into the integration of Gen AI irrespective of the product or business that aims to deliver personalized experiences based on a variety of inputs to their customers and employees. Inputs and outputs to these models can include text, images, sounds, animation, 3D models, or other types of data. Generative AI models use neural networks to identify the patterns and structures within existing data to generate new and original content. One of the breakthroughs with generative AI models is the ability to leverage different learning approaches, including unsupervised or semi-supervised learning for training. This has given organizations the ability to more easily and quickly leverage a large amount of unlabeled data to create foundation models. As the name suggests, foundation models can be used as a base for AI systems that can perform multiple tasks.

Generative AI Market Dynamics

Rising Adoption of Generative AI for Business & Product Development is Fostering the Market Growth

Artificial intelligence is revolutionizing a number of sectors, and it's widely used for tasks like process automation and fraud detection. However, due to the developments in natural language processing and the building of extensive language models, the emphasis has turned to generative AI. In less than a year, generative AI has grown remarkably, quickly transitioning from a consumer phenomenon to being popular in the business space.

The market is expected to grow rapidly over the forecast period due to the increasing use of generative AI in healthcare, defense, gaming, information technology (IT), and agriculture industries.

Generative AI Market Segment Insights

Software Integrating Generative AI is Fostering Market Growth

Based on offering, the software segment is expected to witness significant growth during the forecast period. Generative AI is being integrated into software to provide the best solution for complex problems and improve the user experience. Software efficiency is significantly enhanced with the use of generative AI algorithms. These algorithms can analyze large amounts of data and generate accurate predictions or solutions. By leveraging generative AI, the software can automate tasks, reduce human error, and streamline processes, ultimately leading to improved productivity and overall user satisfaction.

Source: Intent Market Research Analysis

Increasing Collaboration and Acquisition to Provide Cloud-Based Service is Driving the Growth of Generative AI Market

Gen AI has been increasingly deployed cloud-based during the forecast period. The rapid growth of this segment is mainly attributed to high investment in cloud-based services than on-premises solutions. Most of the companies are involved in providing generative AI solutions via cloud-based services. The benefit of cloud-based services is the ability to access and utilize AI capabilities without the need for extensive hardware or software investments. This allows companies to save costs and resources while still benefiting from advanced AI technologies. Additionally, cloud-based services offer scalability, allowing businesses to easily adjust their AI capabilities based on their needs and growth.

Leading IT Companies Are Using Gen AI to Generate Code for the Programmer Thereby Strengthening the Market Growth

Based on modality, the code segment is expected to grow at the highest CAGR during the forecast period. The big giants and leading companies are working on generative AI, which can provide and solve code for the programmer without the need for manual coding. This technology has the potential to revolutionize the way software is developed and significantly speed up the coding process. By leveraging machine learning algorithms, generative AI can analyze vast amounts of code and generate accurate solutions, reducing human effort and increasing productivity in the programming industry.

Regional Insights

Integration of Generative AI in Europe for Banking Service is Driving the Demand for Generative AI

The emergence of artificial intelligence (AI) and generative AI (GenAI) technologies is changing opportunity, value generation, and the future of work throughout the banking sector, after more than three decades of significant digital reforms throughout European institutions. AI is a major topic on everyone's agenda, including those related to opportunities, risks, customers, laws, regulations, and compliance. Banking executives are actively looking for ways to increase efficiency because they understand how GenAI's large language models (LLMs) can change everything from internal operations to customer service and support.

Competitive Landscape

Rising Investment by the Key Players for Business expansion is driving the Generative AI Market

Increasing advancement and adoption of generative AI by industries is expected to drive demand for new skilled people with knowledge, and also the hardware to run the programs. Furthermore, top businesses are spending more on R&D in order to create specialized solutions and improve their position in the market. Some of the companies operating in this market include Adobe, Amazon Web Services, Anthropic, Baidu, Cisco Systems, D-ID, Genie AI, Alphabet, IBM, Inflection AI, Insilico Medicine, Meta, Micron Technology, Microsoft, NVIDIA, OpenAI, Salesforce, and SAP.

Generative AI Market Coverage

The report provides key insights into the generative AI market, and it focuses on technological developments, trends, and initiatives taken by the government. In this sector, the analysis delves into market drivers, restraints, opportunities, and other pertinent factors. The report also scrutinizes key players and the competitive landscape in the generative AI market.

Report Scope