Summary

The generative AI market is projected to grow from USD 20.9 billion in 2024 to USD 136.7 billion by 2030, at a compound annual growth rate (CAGR) of 36.7% during the forecast period. Market is anticipated to grow due to the emergence of cloud storage solutions that make data easily accessible, evolution of AI and deep learning and rapid rise in content generation and innovative applications.
“By software type, transformer models segment is expected to register the fastest market growth rate during the forecast period.”
The transformer models software type of the generative AI market is expected to experience the fastest growth rate during the forecast period due to its unmatched capabilities in natural language processing (NLP) and text generation tasks. Transformer models, such as GPT-3, have demonstrated remarkable success in understanding and generating human-like text, making them invaluable for applications like chatbots, language translation, content creation, and more. As businesses increasingly rely on AI-powered language solutions for customer engagement and data analysis, the demand for transformer-based generative AI software is set to soar, driving the rapid growth of this segment.
“by data modality, text modality segment is expected to account for the largest market share during the forecast period.”
The text data modality segment of the generative AI market is poised to capture the largest market share during the forecast period due to several compelling factors. Text-based generative AI applications, such as natural language processing (NLP) and language generation models, are widely adopted across various industries for tasks like content generation, chatbots, sentiment analysis, and language translation. The growing demand for AI-powered customer service solutions, personalized content creation, and efficient data analysis in sectors like retail, healthcare, and finance is driving the significant growth of this segment. Additionally, the maturity and availability of sophisticated text-based generative AI models have further accelerated adoption, making it the dominant modality in the generative AI market.
“By Region, Asia Pacific is slated to grow at the fastest rate and North America to have the largest market share during the forecast period.”
The Asia Pacific generative AI market is expected to witness the fastest growth rate during the forecast period due to the region's rapid digital transformation, burgeoning adoption of AI technologies across various industries, and government initiatives promoting AI development. Countries like China, Japan, and India are investing heavily in AI research and development, driving the demand for generative AI solutions. On the other hand, North America is poised to hold the largest market share, primarily attributed to the strong presence of key market players, robust technological infrastructure, and early adoption of AI across industries such as healthcare, retail, and automotive. The region's advanced AI ecosystem, including research institutions and tech giants, further solidifies North America's position as a frontrunner in the generative AI market.
Breakdown of primaries
In-depth interviews were conducted with Chief Executive Officers (CEOs), innovation and technology directors, system integrators, and executives from various key organizations operating in the generative AI market.
 By Company: Tier I – 30%, Tier II – 45%, and Tier III – 25%
 By Designation: C-Level Executives – 40%, D-Level Executives – 32%, and others – 28%
 By Region: North America – 38%, Europe – 26%, Asia Pacific – 23%, Middle East & Africa – 8%, and Latin America – 5%
The report includes the study of key players offering generative AI solutions. It profiles major vendors in the generative AI market. The major players in the generative AI market include Microsoft (US), IBM (US), Google (US), AWS (US), META (US), Adobe (US), OpenAI (US), NVIDIA (US), Accenture (Ireland), Capgemini (France), Insilico Medicine (Hong Kong), Simplified (US), Anthropic (US), AI21 Labs (Israel), Lumen5 (Canada), Hugging Face (US), Dialpad (US), Persado (US), Copy.ai (US), Synthesis AI (US), Together AI (US), PlayHT (US), Speechify (US), Mistral AI (France), Midjourney (US), Fireflies (US), Adept (US), Stability AI (UK), Lightricks (Israel), Synthesia (UK), Mostly AI (Austria), Cohere (Canada), Colossyan (UK), Mosaic ML (US), Inflection AI (US), Glean (US), Charater.ai (US), Hypotenuse AI (US), Viable (US), Defog.ai (US), Jasper (US), DeepSearch Labs (UK), Writesonic (US), amberSearch (Germany), Runway (US), Inworld AI (US), Typeface (US), Paige (US), Upstage (South Korea), InstaDeep (UK), Forethought (US), GFP-GAN (US), Fontjoy (Italy), EleutherAI (US), StarryAI (US), Magic Studio (US), Baichuan Intelligence (China), Salesforce (US), Technology Innovation Institute (UAE), Abacus.AI (US), and OpenLM (US).
Research coverage
This research report categorizes the generative AI market by Offering (Software and Services), Software By Type (Rule Based Models, Statistical Models, Deep Learning, Generative Adversarial Networks (GANs), Autoencoders, Convolutional Neural Networks (CNNs), and Transformer Models), Software By Deployment Mode (Cloud and On-premises), By Services (Professional Services (Training & Consulting, System Integration & Implementation, and Support & Maintenance) and Managed Services), By Data Modality (Text, Image, Video, Audio & Speech, and Code), By Application (Business Intelligence & Visualization, Content Management, Synthetic Data Management, Search & Discovery, Automation & Integration, Generative Design AI, Other Applications (Predictive Maintenance, File Conversion, and Mathematical Problem Solving)), By Vertical (Media & Entertainment, Transportation & Logistics, Manufacturing, Healthcare & Life Sciences, IT & ITeS, BFSI, Energy & Utilities, Retail & Ecommerce, Government & Defense, Construction & Real Estate, Telecommunications, Others (Travel & Hospitality And Education), and By Region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America). The scope of the report covers detailed information regarding the major factors, such as drivers, restraints, challenges, and opportunities, influencing the growth of the generative AI market. A detailed analysis of the key industry players has been done to provide insights into their business overview, solutions, and services; key strategies; contracts, partnerships, agreements, new product & service launches, mergers and acquisitions, and recent developments associated with the generative AI market. Competitive analysis of upcoming startups in the generative AI market ecosystem is covered in this report.
Key Benefits of Buying the Report
The report would provide the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall generative AI market and its subsegments. It would help stakeholders understand the competitive landscape and gain more insights better to position their business and plan suitable go-to-market strategies. It also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
• Analysis of key drivers (innovation of cloud storage enabling easy access to data, Evolution of AI and deep learning, Rise in content creation and creative applications), restraints (high cost associated with training data preparation, issues related to bias and inaccurately generated output, risks associated with data breaches and sensitive information leakage), opportunities (increasing deployment of large language models, growing interest of enterprises in commercializing synthetic images, robust improvement in generative ML leading to human baseline performance), and challenges (concerns regarding misuse of generative AI for illegal activities, quality of the output generated by generative AI models, computational complexity and technical challenges of generative AI ).
• Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the generative AI market.
• Market Development: Comprehensive information about lucrative markets – the report analyses the generative AI market across varied regions.
• Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the generative AI market.
• Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like Microsoft (US), IBM (US), Google (US), AWS (US), META (US), Adobe (US), OpenAI (US), NVIDIA (US), Accenture (Ireland), Capgemini (France), Insilico Medicine (Hong Kong), Simplified (US), Anthropic (US), AI21 Labs (Israel), Lumen5 (Canada), Hugging Face (US), Dialpad (US), and Persado (US), among others in the generative AI market. The report also helps stakeholders understand the pulse of the generative AI market and provides them with information on key market drivers, restraints, challenges, and opportunities.