Global Generative AI Market Research, 2023-2024 & 2033: Start-ups Accounted for Just 12% Market Share in 2022 but More Companies are Expected to Enter the $230+ Billion Market Every Year - ResearchAndMarkets.com

The "Generative AI Market - A Global and Regional Analysis, 2023-2033: Focus on Business Process, Type, Technology, Offering, and Country-Wise Analysis" report has been added to ResearchAndMarkets.com's offering.

The global generative AI market was valued at USD 13.64 billion in 2023, and is forecast to reach USD 233.61 billion by 2033, registering a CAGR of 32.9%.

The generative AI market comprises key players who have established themselves thoroughly and have the proper understanding of the market, accompanied by start-ups who are looking forward to establishing themselves in this highly competitive market. In 2022, the generative AI market was dominated by established players, accounting for 88% of the market share, whereas start-ups managed to capture 12% of the market. With the increasing adoption of generative AI solutions across various industries, more players will enter the global generative AI market with each passing year.

The present-day scenario of the generative AI market has experienced a remarkable transformation, driven by exponential developments in deep learning and neural network architectures. AI systems have reached unmatched levels of intelligence and competence in generating extremely realistic and contextually relevant material with the introduction of transformer models such as the renowned GPT series.

Furthermore, the growth of generative AI applications has expanded beyond text generation to include a wide range of creative activities such as image synthesis, audio generation, and even video production. As a result, the current landscape of the generative AI industry is distinguished by a diverse range of products and solutions that are not only pushing the boundaries of creativity and invention but also altering the dynamics of human-machine collaboration in the digital age.

Asia-Pacific was the highest-growing market among all the regions, registering a CAGR of 33.24%. Europe is anticipated to gain traction in terms of generative AI adoption owing to the strong legislative framework and targeted investments in AI innovation and research. The European Union has been at the forefront of developing comprehensive laws, such as the proposed AI Act, with the goal of increasing confidence and safety in AI applications while simultaneously encouraging innovation and investment in the AI field to support the growth of the generative AI market in Europe during the forecast period.

Industrial Impacts

Generative AI, a modern technology capable of independently generating information, has led to a fundamental shift in a variety of industries around the world. In marketing and advertising, companies are increasingly using generative AI to create interesting and tailored content on a massive scale, improving consumer interactions and driving sales. Similarly, in the entertainment industry, generative AI is transforming content creation processes by enabling the creation of lifelike virtual characters, immersive gaming experiences, and personalized narratives. Its applications include design and creativity, where it helps create artwork, architectural designs, and fashion concepts, streamlining creative activities and triggering innovation.

In the healthcare industry, generative AI is transforming patient care and medical research by enabling the development of individualized treatment plans, predictive analytics, and medication discovery. Generative AI systems can find patterns and trends in large amounts of medical data, allowing healthcare workers to make better decisions and improve patient outcomes. Furthermore, generative AI enables the automation of clinical documentation, which reduces the burden on healthcare professionals, allowing them to focus more on patient care and less on paperwork.

In the finance industry, generative AI is reshaping investment strategies, risk assessment, and fraud detection by analyzing market trends, predicting financial risks, and identifying irregularities in transactions. Generative AI is transforming investment strategies, risk assessment, and fraud detection in the finance industry by assessing market patterns, forecasting financial risks, and detecting transaction anomalies. In the education industry, generative AI is changing the way students learn and teachers educate.

Generative AI systems are transforming traditional teaching techniques by providing individualized learning experiences modified to individual requirements and learning styles, driving student engagement and achievement. These platforms can generate personalized lesson plans, interactive learning materials, and virtual instructors that respond to students' progress and understanding levels in real-time. Moreover, generative AI is enabling the development of immersive educational experiences, such as virtual classrooms and simulations, which improve learning outcomes and prepare students for real-world difficulties.

Market Segmentation:

Content Creation and Marketing Segment to Dominate the Global Generative AI Market (by Business Process)

The generative AI market is led by the content creation and marketing segment, with a 44.95% share in 2022. This is because generative AI automates content generation and marketing by creating text, photos, and videos, saving time and resources. Generative AI personalizes marketing efforts by tailoring information to individual interests, demographics, and behaviors, leading to increased engagement and conversion rates.

Text-Based Segment to Witness the Highest Growth between 2023 and 2033

The text-based segment dominated the global generative AI market (by type) in 2022, with a 41.83% share due to the ability of text-based generative AI to develop textual information autonomously and mirror human-like writing which makes it the perfect option for content creators, writers, among others.

Transformer Segment to Witness the Highest Growth between 2023 and 2033

The transformer segment dominated the global generative AI market (by technology) in 2022, with a 48.16% share. This is because of the ability of the transformer to capture relationships between various words in a sentence regardless of their position, making them ideal for tasks that require awareness of long-term dependencies and context.

Natural Language Processing (NLP) Segment to Witness the Highest Growth between 2023 and 2033

The natural language processing (NLP) segment dominated the global generative AI market (by offering) in 2022 with a 38.89% share. This was due to its ability to automate two-way communication strategies, which transforms user interactions with digital interfaces. NLP algorithms, using techniques such as sentiment analysis, named entity identification, and part-of-speech tagging, can extract important insights from textual information such as social media posts and customer reviews, among others.

How can this report add value to an organization?

Growth/Marketing Strategy: The generative AI market has seen major development by key players operating in the market, such as business expansion, partnership, collaboration, and joint venture. The favored strategy for the companies has been partnerships and contracts to strengthen their position in the generative AI market.

For instance, In September 2023, Amazon signed a collaboration with Anthropic PBC to advance generative AI and made an investment of up to $4 billion in Anthropic PBC, securing a minority ownership stake in the company. The collaboration enabled Anthropic PBC to select AWS as its primary cloud provider and train and deploy its future foundation models on AWS Trainium and Inferentia chips. Also, Anthropic PBC made a long-term commitment to provide AWS customers around the world with access to future generations of its foundation models via Amazon Bedrock.

Competitive Strategy: Key players in the generative AI market analyzed and profiled in the study involve major companies offering generative AI solutions designed for various applications. Moreover, a detailed competitive benchmarking of the players operating in the generative AI market has been done to help the reader understand how players stack against each other, presenting a clear market landscape.

Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.

Key Attributes:

Market Dynamics Overview

Business Drivers

• Advancements in Machine Learning and AI Technologies
• Availability of Big Data
• Public and Media Interest

Ongoing Generative AI Trends

• Shadow AI
• Edge Computing for Generative AI
• Multimodal AI

Business Challenges

• Ethical and Regulatory Challenges
• Public Perception and Trust
• Data Inaccuracy

Business Opportunities

• Ethical AI Development and Bias Mitigation Services
• Platform-as-a-Service (PaaS) Offerings

Ecosystem/Ongoing Programs

• Regulatory Implications
• Global Generative AI Market: Stakeholders
• Cloud Platform Providers
• Hardware Providers
• API/API-as-a-Service Providers
• End Users
• Artificial Intelligence Industry: Current and Future Outlook
• Generative AI Innovation Timeline: By Type
• Start-Up and Investment Landscape

Companies Featured

• OpenAI
• Google DeepMind
• Amazon.com, Inc.
• Adobe
• IBM
• Microsoft
• Meta
• Salesforce, Inc.
• Intel Corporation
• Synthesia Limited.
• SAMSUNG
• NVIDIA Corporation
• Cohere
• Anthropic PBC
• Inflection

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