Dublin, June 27, 2024 (GLOBE NEWSWIRE) -- The "Global Generative AI Market - Outlook & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.
The Global Generative AI Market was valued at USD 14.17 Billion in 2023, and is expected to reach USD 96.36 Billion by 2029, rising at a CAGR of 37.64%
The global generative AI market is highly competitive, with the presence of big corporations and start-up companies. The rapid technological changes adversely impact market vendors as consumers increasingly expect continuous technology-enabled innovations and upgrades to existing products. The present scenario drives vendors to alter and refine their unique value propositions to achieve a strong market presence.
The key players in the global generative AI market are Anthropic PBC, Amazon Web Services, Inc., Cohere, Glean Technologies, Inc., Google LLC (Alphabet), Hugging Face, Jasper AI Inc., Microsoft Corporation, Nvidia Corporation, and OpenAI. Further, the presence of diversified global and regional vendors characterizes the market. Many big corporations collaborate with start-ups to enhance several product features by accuracy, number of use cases, and generating various types of content such as text, image, video, audio, etc. Such initiatives are expected to enable vendors to gain a competitive edge over other vendors in the market.
Technological advancements in the generative AI market drive insightful transformations across industries, revolutionizing how businesses operate and interact with customers. These advancements involve various innovations spanning hardware, software, algorithms, and data analytics, collectively propelling the capabilities and applications of AI.
Gen-AI technological progress is a breakthrough in deep learning algorithms and neural network architectures. Deep learning techniques, inspired by the structure and function of the human brain, have enabled AI systems to achieve remarkable feats in tasks such as image recognition, natural language processing, and decision-making. Moreover, advancements in neural network architectures, such as convolutional neural networks (CNNs) and recurrent neural networks (RNNs), have significantly enhanced the efficiency and accuracy of AI models, paving the way for more sophisticated applications in areas like healthcare, finance, and autonomous vehicles.
Additionally, merging AI with other emerging technologies fuels exponential growth and innovation in the global generative AI market. For instance, integrating AI with big data analytics enables organizations to extract valuable insights from vast and complex datasets, driving informed decision-making and predictive capabilities. Similarly, the combination of AI with the Internet of Things (IoT) facilitates the creation of intelligent and interconnected systems capable of sensing, analyzing, and responding to real-time data streams in diverse environments.
In addition to software advancements, significant progress has been made in AI hardware, particularly in developing specialized processing units optimized for AI workloads. Graphics processing units (GPUs), tensor processing units (TPUs), and field-programmable gate arrays (FPGAs) are among the key hardware technologies powering the acceleration of AI computations, enabling faster training and inference tasks. Moreover, quantum computing advancements promise to exponentially increase AI's computational power, potentially unlocking new machine learning and optimization frontiers.
Moreover, the democratization of AI tools and platforms is democratizing access to AI capabilities, empowering individuals and organizations of all sizes to harness the power of AI for innovation and problem-solving. Open-source frameworks such as TensorFlow, PyTorch, and Scikit-Learn, coupled with cloud-based AI services from major providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform, are lowering the barriers to entry and fostering a vibrant ecosystem of AI development and deployment.
Therefore, technological advancements in the generative AI market drive unprecedented progress and innovation, unlocking new opportunities for businesses, researchers, and society. From breakthroughs in deep learning algorithms to the convergence of AI with other emerging technologies, the trajectory of gen-AI continues to evolve rapidly, shaping the future of industries and reshaping the human experience.
In recent years, the increasing disposable income, the growth in adoption of AI technologies, and the expansion of various industries globally have driven the demand for gen-AI solutions across the globe. Implementing supportive government and private bodies' regulations also fuels the demand for gen-AI solutions.
The global generative AI market is highly developed in North America, Europe, and APAC, owing to the increasing penetration of gen-AI technology. On the other hand, Latin America and the Middle East are highly potential markets with enough opportunity for growth. North America dominated the global generative AI market share, with a revenue share of over 42% in 2023. The North American gen-AI market is experiencing significant growth and evolution, driven by a convergence of technological advancements and increasing demand for AI-driven solutions across various industries.
The key drivers behind the rapid expansion of the North American gen-AI market are the increase in AI algorithms and platforms. Innovations in deep learning, natural language processing, and computer vision have enabled gen-AI systems to create complex and realistic content autonomously.
MARKET TRENDS & DRIVERS
Rising Investments and Fundings
The generative AI market is experiencing a surge in growth due to the significant funding from industry giants. These substantial investments propel the development and adoption of Gen-AI technologies across various sectors. Big players in the IT and tech industry, such as Google, Microsoft, and IBM, are investing substantial funds into Gen-AI infrastructure and research & development.
For instance, according to a news article published in March 2024, Microsoft and OpenAI are expected to allocate between $100 billion and $115 billion investment toward a new supercomputer named Stargate, as the technology-focused business publication The Information reports. This investment is expected to create an infrastructure supporting generative artificial intelligence (AI) applications.
Rapid Adoption of Artificial Intelligence
The rapid adoption of Artificial Intelligence (AI) is transforming industries globally, reshaping business operations, and driving innovation across various sectors. AI technologies, including machine learning, natural language processing, and computer vision, have grown significantly in recent years, offering organizations powerful tools to automate tasks, improve decision-making, and deliver personalized customer experiences. For instance, in 2023, the NSF announced that it would invest $140 million in establishing seven new AI research institutes in the United States.
INDUSTRY RESTRAINTS
Shortage of Skilled Workforce
The shortage of skilled workers poses a significant challenge for the generative AI market. Developing and deploying Gen-AI solutions requires diverse skills, including expertise in machine learning, data science, software engineering, and domain-specific knowledge. For instance, Microsoft's 2023 Work Trend Index highlights that 82% of leaders recognize the pressing need to prepare their workforce for the expanding AI landscape.
Additionally, organizations like Amazon, Ericsson, and PwC are heavily investing in upskilling and reskilling initiatives to build employees' AI capabilities. Furthermore, in a recent survey, 40% of CEOs cite a lack of AI-related knowledge and skills within their HR team as the biggest obstacle to AI integration.
KEY QUESTIONS ANSWERED
- Which region dominates the global generative AI market share?
- How big is the generative AI market?
- What is the growth rate of the global generative AI market?
- Who are the key players in the global generative AI market?
- What are the significant trends in the generative AI industry?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 461 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value (USD) in 2023 | $14.17 Billion |
| Forecasted Market Value (USD) by 2029 | $96.36 Billion |
| Compound Annual Growth Rate | 37.6% |
| Regions Covered | Global |
Market Opportunities & Trends
- Growing Demand for Real-Time Capabilities in Gen-AI
- Adoption of Multi-Modal Capabilities in Gen-AI
- Personalization and Customization on Gen-AI Platforms
- Rising Investments and Fundings
- Expanding Generative AI Through Inter-Company Collaboration
Market Growth Enablers
- Rapid Adoption of AI
- Growing Need for Chatbots and Virtual Assistants Across Industries
- Increased Availability of Consumer Generative AI Programs
- Rapid Growth in Content Generation and Innovative Applications
Market Restraints
- Concerns Regarding Accurate Data
- Data Privacy and Security
- Shortage of Skilled Workforce
Key Company Profiles
- Anthropic PBC
- Amazon Web Services, Inc.
- Cohere
- Glean Technologies, Inc.
- Google LLC (Alphabet)
- Hugging Face
- Jasper AI Inc.
- Microsoft Corporation
- Nvidia Corporation
- OpenAI
Other Prominent Vendors
- Adept AI
- Adobe
- Alphacode
- C3.ai, Inc.
- CopyAI, Inc
- Databricks
- Dataroots BV
- Drafter AI
- GitHub, Inc.
- Grammarly Inc.
- Hour One
- International Business Machines Corporation
- Inflection
- Inworld AI
- Lily AI
- Meta
- MOSTLY AI
- SOUNDRAW
- STABILITY AI LTD
- Synthesia Limited
For more information about this report visit https://www.researchandmarkets.com/r/bllg9o
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