AI Video Generator Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Application (Marketing, Education), By Organization Size, By Source, By Region, And Segment Forecasts, 2024 - 2030

 AI Video Generator Market Size & Trends

The global AI video generator market size was estimated at USD 554.9 million in 2023 and is expected to grow at a CAGR of 19.9% from 2024 to 2030. The demand for video content is rising, considering the growing acceptance of visual environments across businesses. Approximately 80% of the online traffic is due to video content, as individuals prefer visual media over text and images. The availability of high-speed internet, large audiences accessing social media platforms, and rising consumer preference for video content have propelled the demand for tools and services associated with video generators.

In the age of artificial intelligence (AI), companies have developed AI-enabled tools that enable users to create videos from various sources via software, including text, PowerPoint, or spreadsheets. These easy-to-use tools are widely accepted by users owing to their time-consuming features and less human effort. For instance, in February 2024, Open AI announced the development of its text-to-video generator called Sora. Sora is an AI model developed to create realistic and imaginative video scenes based on text descriptions. It can generate videos that are up to a minute long, keeping visual quality high and adhering to given instructions. Similarly, Syntheisa is an AI video generation platform provider company that allows users to create videos with Avatars in less time. It also includes over 60 languages, a screen recorder, a media library, templates, and other features that make the process interesting and engaging.

AI is disrupting the process chain across each industry. Companies are increasingly becoming data-driven, which enables AI companies to diversify their offerings. To promote their brands and reach the expected audience, businesses are adopting recent tools and services that help to make the process easier and more efficient. Although some organizations still prefer the conventional way of creating content, the assistance of AI video generators is garnering significant attention. In the coming years, such tools are expected to dominate the content creation category globally.

The market is at a nascent stage and is expected to witness significant growth in the coming years. The changing perspective of organizations to engage customers via video media or social media platforms is one of the major growth enablers for AI video generator software. For instance, Coca-Cola has announced its plans to use generative AI to strategize new marketing content, showcasing the growing pressure businesses must endure to harness trending tools. In 2023, the company announced its partnership with startup OpenAI to explore opportunities with media content. Furthermore, BESTSELLER, a global organization in the fashion industry, offers several courses and training sessions for workers globally. With Synthesia’s AI video generator tools, the company created videos in a short period, which were then circulated to its global audience. This not only saved the company time but also cut costs.

Market Concentration & Characteristics

The AI video generator industry is experiencing high levels of innovation. Advancements in machine learning (ML) algorithms, computer vision, and natural language processing (NLP) are driving the development of more sophisticated and capable video generation systems. This includes improvements in generating realistic visuals, enhancing audio synthesis, and refining the overall quality of generated content.

Significant merger and acquisition activity has occurred within the AI video generator industry. Larger companies are acquiring smaller startups to integrate their innovative technologies or to expand their market presence. This consolidation trend is leading to the emergence of dominant players with comprehensive offerings and diversified customer bases.

Regulations are beginning to have a noticeable impact on the industry. As concerns about deepfakes, privacy, and copyright infringement grow, governments and regulatory bodies are introducing guidelines and legislation to govern AI-generated content. Compliance with these regulations is becoming a priority for companies operating in this space, influencing their product development and business strategies.

While AI video generators offer unique capabilities, traditional video production services provide substitutes. However, as AI technology continues to improve and become more accessible, it is increasingly competing with and even surpassing the quality and efficiency of human-driven services. This is driving a shift towards adopting AI-powered solutions across various industries for video content creation.

The end-user concentration in the industry varies depending on the target industry and application. While some industries, such as media and entertainment, exhibit high levels of concentration with a few major players dominating the market, other sectors, such as marketing and education, have a more fragmented landscape with numerous smaller players catering to specific niches. As the market matures, there is a trend toward consolidation as larger players seek to expand their market share and offerings.

Component Insights

The solutions segment accounted for a leading share of nearly 63.31% of the global revenue in 2023. The solution segment comprises software or platforms the key vendors provide for AI video generation. For instance, Synthesia is an AI video generation platform used by multiple organizations, including Reuters, Accenture, BBC, and others, in their marketing & business strategies. The pricing and deployment of the software is the major cost associated with the component category, hence the high market share.

Services is expected to grow at the fastest CAGR during the forecast period. Services associated with AI video generation include installation, maintenance, management, and upgrade services. The segment is projected to grow considerably during the forecast period. In addition, educational institutes and EduTech platforms are adopting AI generators to enhance content quality and student engagement. During the COVID-19 pandemic, video-based education experienced a high demand and became one of the preferred ways of consuming content online for students. Educational institutes use several AI video generator platforms to automate video creation and editing with high quality. For instance, VEED enables the user to record the screen and webcam simultaneously, allowing the creation of instructional or lecture videos to avoid further usage.

Organization Size Insights

Based on organization size, the market is segmented into large enterprises and small & medium enterprises. The large enterprises segment accounted for a leading market revenue share in 2023. Large enterprises leverage AI video generators to create personalized training materials, product demos, and internal communication videos. This enables companies to achieve consistent messaging, cost-effectiveness, and faster content creation at scale. In addition, by integrating AI with marketing automation platforms, large enterprises can automate video creation based on user data, further personalizing the customer experience.

The SMEs segment is expected to grow at the highest rate during the forecast period. AI video generators can be a leveraging tool for SMEs with limited budgets. These generators create professional-looking videos for social media, product explanations, or even customer testimonials. The ease of use and speed of AI video generators allow SMEs to create content quickly, keeping pace with the fast-paced world of online marketing.

Source Insights

The source segment is bifurcated into text-to-video, PowerPoint-to-video, and spreadsheet-to-video. The text-to-video segment is expected to hold a dominant market share throughout the forecast period. The text-to-video (including articles, scripts, blogs, and other forms) AI video generator software is an easy-to-use tool for turning a writer’s content into videos. Increasing applications of this technology across various industry verticals are fostering demand growth. For instance, Make-a-Video made progress in text-to-image generation technology that enables the building of text-to-video generation. The system uses images with descriptions to understand and analyze how the video should be presented. Lumen5 is another platform that offers text-to-video software. Lumen5’s software had a user base of more than 800,000 in 2023 who used the company’s AI video generator tool to produce quality video content. Media and entertainment, especially the film and advertising industry, are among the prime users of these tools, followed by education and the public sectors.

The PowerPoint-to-video segment boasts the highest CAGR due to the rising popularity of video-based presentations across all organization sizes. Businesses heavily rely on PowerPoint for presentations, and AI video generators offer a unique solution: transforming existing PowerPoint content into engaging videos, saving time and resources. In addition, PowerPoint presentations have visuals and a structured format, which AI can leverage to streamline video creation compared to text or spreadsheets.

Application Insights

The marketing segment accounted for a dominating share of the market in 2023. The AI video generator can optimize the content quality marketing teams use for organizations efficiently and cost-effectively. With conventional video making, organizations faced multiple issues, including costs associated with actors, film equipment, studios, big budgets, flexibility, time, and control over the process. With AI video generators, the process became smooth and was done on lower budgets without hampering the intended quality of the content. It also allowed users to control the process, providing needed confidence in sharing the video over their marketing channels.

Social media is expected to experience the highest CAGR due to the constant need for fresh, engaging content on social media platforms. AI video generators empower communities and companies to create high-volume, targeted videos that capture user attention and stand out in the fast-paced social media landscape. In addition, these generators are aiding influencer platforms like Instagram Reels, TikTok, and YouTube Shorts in creating bite-sized and visually appealing videos.

Regional Insights

The AI video generator market in North America is expected to grow with a prominent CAGR of 20.3% during the forecast period. The market is witnessing a booming consumer demand for video content in North America, pushing businesses to create more. Advancements in AI enable high-quality video generation with user-friendly interfaces. The rise of short-form video platforms and the affordability of AI tools make this technology accessible to businesses of all sizes.

U.S. AI Video Generator Market Trends

The AI video generator market in the U.S. is characterized by rapid innovation, widespread adoption across industries, regulatory challenges, a focus on user experience, strategic partnerships, and significant investment activity. These trends are shaping the country's future of video content creation and consumption. Furthermore, the prevalence of leading technology companies in the country also fosters market growth.

Europe AI Video Generator Market Trends

The AI video generator market in Europe is growing significantly due to collaboration between European AI startups, research institutions, and established companies, fostering innovation and driving market growth. Partnerships between AI technology providers and industry-specific players lead to the development of tailored solutions that address specific market needs and challenges.

UK AI video generator market is estimated to account for the leading share in Europe. This is attributable to UK being Europe's largest tech hub and primary AI center with more than 750 AI startups. Further, technology companies are at the forefront of research and development in AI, driving rapid advancements in AI video generation technologies and fueling market growth.

The AI video generator market in Germany is projected to witness the highest CAGR of 20.5% during the forecast period of 2024 to 2030. The growth is fueled by support and funding from the government and institutions for AI research, development, and adoption. The German government has committed to investing 5 billion Euros in AI by 2025. Furthermore, initiatives such as Horizon Europe and national AI strategy promote innovation, competitiveness, and economic growth in the AI sector, including AI video generation.

Asia Pacific AI Video Generator Market Trends

The AI video generator market in Asia Pacific accounted for the largest market revenue share of 31.40% in 2023, owing to a large customer base of AI video generator software in the region. Asia Pacific is the largest region in terms of population and has high internet penetration. With a growing number of SMEs in the region and a growing user base for social media, the demand for quality video content is evident. In addition, the number of AI startups and the adoption of AI tools have been growing considerably in the region in the past few years.

China AI video generator market is poised to emerge as a rapidly expanding market for AI-based video generation solutions, propelled by its extensive user base, pervasive integration of digital technologies, and growing startup ecosystems coupled with AI penetration in the country. According to a recent survey, China’s AI penetration is projected to account for more than 25% of the country’s GDP by 2024.

The AI video generator market in Japan is experiencing increased collaboration between industry, academia, and government to develop innovative technologies. With a growing awareness of the adoption of visual content in marketing and education, concerted efforts are being made to leverage Japan's expertise in AI and computer vision to advance AI-based video generation technologies.

Middle East & Africa AI Video Generator Market Trends

The AI video generator market in the Middle East & Africa is estimated to grow at the highest CAGR of 20.6% during the forecast period. The region is at a very nascent stage of adopting this software and offers considerable growth opportunities for the key vendors to expand. Local startups specializing in AI and video generation are emerging across the MEA region. These startups are leveraging regional talent and market knowledge to develop innovative AI video generator solutions tailored to the needs and preferences of local businesses and consumers. This includes improving speech recognition, text-to-speech synthesis, and NLP capabilities in Arabic to enable more accurate and fluent video content generation.

Key AI Video Generator Company Insights

Key participants prevalent in the market are keen on providing competitive yet highly unique state-of-the-art technology. The major companies in this ecosystem are start-ups or mid-sized enterprises that share an intense rivalry within the ecosystem to gain a scale of economy. The existing market environment is observing intense competition between the key market players for attaining market ascendency via product and quality variation enhancement, thereby supporting the growing market amalgamation through strategic initiatives such as R&D and collaborations. Industry participants are entering into strategic partnerships with suppliers and distributors to strengthen their product portfolio and geographical presence.

Recent Developments

• In February 2024, OpenAI launched Sora, an AI video generator that creates videos from simple text inputs. Powered by generative AI, Sora can instantly generate videos based on text commands. With applications ranging from virtual reality to movie and video production, Sora emerges as a versatile tool for storytelling and content generation.

• In February 2024, Vimeo.com, Inc. launched Vimeo Central, an AI-powered video hub. It features a Video Library, Vimeo AI, Capture, Events, and Analytics. The Vimeo AI feature empowers users to automatically condense hours of video into short highlight reels, and it can also generate video details and text-based summaries.

• In December 2023, Google Research introduced VideoPoet, a large language model for video creation. VideoPoet can understand text descriptions, images, and audio. This allows users to generate videos from scratch, add animation to still images, or modify existing video clips.

• In August 2023, Irreverent Labs, an AI video generator supported by a16z, sealed a significant partnership with Samsung Next through a strategic investment. This collaboration aims to introduce Irreverent Labs' cutting-edge AI video generation technology to millions of Samsung device users globally. The advanced AI video models will empower Samsung to craft 3D animated videos from basic text prompts effortlessly.

• In June 2023, Vimeo, a renowned video hosting and software company, unveiled AI tools to revolutionize professional video production. Among these innovations are a script generator, an on-camera teleprompter, and an automated video editor capable of instantly removing unnecessary filler words and pauses at the click of a button. Vimeo aims to reduce video creation and communication obstacles, enabling a broader audience to engage meaningfully through this medium.

• In February 2023, Google Cloud and Accenture unveiled new initiatives to empower retailers to revamp their operations and harness the potential of cloud technology. This includes enhancements to Accenture's popular AI platform, seamlessly integrating Google Cloud's cutting-edge data analytics and product discovery features using AI-based video generation technology.

AI Video Generator Market Report Scope

Global AI Video Generator Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the AI video generator market based on component, organization size, source, applications, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Solution

  • Services

• Organization Size Outlook (Revenue, USD Million, 2018 - 2030)

  • Large Enterprises

  • SMEs

• Source Outlook (Revenue, USD Million, 2018 - 2030)

  • Text to Video

  • PowerPoint to Video

  • Spreadsheet to Video

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Marketing

  • Education

  • E-commerce

  • Social Media

  • Others (Human Resources, Language Learning, etc.)

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • South Korea

    • India

    • Australia

  • Latin America

    • Brazil

  • MEA

    • KSA

    • UAE

    • South Africa