AI Video Generator Market Size, Share & Trends Analysis Report By Organization Size, By Component (Solution, Services), By End-use (Marketing, Education), By Application, By Source, By Region, And Segment Forecasts, 2023 - 2030

AI Video Generator Market Size & Trends

The global AI video generator market size was estimated at USD 472.9 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 19.7% from 2023 to 2030. The demand for video content is on the rise 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 having access to 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 AI, companies have developed AI-enabled tools that enable users to create videos from various sources including text, PowerPoint, or spreadsheets via software. These easy-to-use tools are being widely accepted by users owing to their time-consuming features and less human effort. For instance, 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. Artificial intelligence 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 make the process easier and more efficient. Although the conventional way of creating content is still preferred by some organizations, 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 global 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. Coca-Cola has announced its plans to use generative AI to strategize new marketing content, which showcases the growing pressure businesses must endure to harness tools that are trending. In 2023, the company announced its partnership with startup OpenAI to explore opportunities with media content. BESTSELLER, a global organization in the fashion industry offering several courses & training sessions for workers globally, created videos with Synthesia’s AI video generator tools in a short period of time.

These videos were then circulated to its global audience. This not only saved the company time but also costs were cut down. The growing internet usage has led to an increased number of social media users. By January 2023, there were more than 4.74 billion people using social medial platforms, which is an increase of 4.2% compared to the previous year. In addition, advertising spending on social media is estimated to reach approx. USD 270 billion by the end of 2023, while social video advertising will reach USD 68 billion by 2023. These statistics show that the demand for video content is growing at a considerable rate, which will further create demand for software and services that would ease the video creation process.

Component Insights

The solutions segment dominated the industry and accounted for the largest share of 63.5% of the global revenue in 2022. The solution segment comprises software or platforms provided by the key vendors for AI video generation. For instance, Synthesia is an AI video generation platform that is 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. The benefits associated with AI video generation tools that make it a better alternative for conventional video creation are:

• Affordable pricing (around USD 25-30 per month)

• Web-based application, accessible over browser

• The interactive interface and easy to use

• Anytime access

• Availability in multiple languages, Avatars, and templates

• Time-efficient and effortless

Services associated with AI video generation include installation, maintenance, management, and upgrade services. The segment is projected to grow at a considerable rate during the forecast period. In addition, educational institutes as well as EduTech platforms are adopting AI generators to enhance content quality and student engagement. During the COVID-19 pandemic, video-based education experienced high demand. There are several AI video generator platforms used by educational institutes to automate video creation and editing with high quality. For instance, VEED enables the user to record the screen and webcam at the same time, allowing to create instructional or lecture videos.

Organization Size Insights

The large enterprises segment accounted for the maximum share of 62.7% of the overall revenue in 2022. Based on organization sizes, the industry is further segmented into large enterprises and Small & Medium Enterprises (SMEs). The SMEs segment is expected to register the fastest growth rate during the forecast period. Video presentations hold great importance in organizations as they are one of the proven methods of communicating information, especially for learning & education purposes. Participants can get the needed flexibility to access the video in their own time and re-watch the presentation to refresh their memory.

Therefore, the demand for efficient video creation tools has been on the rise over the past few years. With AI video generator software, the task of creating a video has become easier and cheaper compared to conventional methods. Several organizations are using AI video generators to create training modules as well as to digitize communication mediums. For instance, Synthesia’s AI video generator software has been adopted by over 40,000 training support & marketing teams by 2023.

Source Insights

The text-to-video segment accounted for a dominant revenue share of 39.2% in 2022. The source segment is further divided into text-to-video, PowerPoint-to-video, and spreadsheet-to-video. The PowerPoint-to-video segment is expected to grow rapidly over the forecast period. The text-to-video (including articles, scripts, blogs, and other forms) AI video generator software is an easy-to-use tool that is used to turn a writer’s content into videos.

For instance, Make-a-Video made progress in text-to-image generation technology that enables 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 has a user base of more than 800,000. Media & entertainment, especially the films & advertising industry, is one of the prime users of these tools followed by education and public sectors.

Application Insights

Based on applications, the industry is segmented into marketing, education, e-commerce, social media, and others. Followed by the education segment,the marketing segment dominated the industry in 2022 and accounted for the largest share of more than 27.7%of the overall revenue. The AI Video Generator can optimize the content quality used by marketing teams for organizations efficiently and cost-effectively. With conventional video-making, organizations faced multiple issues including the cost associated with actors, film equipment, studio, etc. along with a big budget, flexibility, time, and control over the process. With AI video generators, the process became smooth and in lower budgets without hampering the intended quality of the content.

It also allowed users to take control over the process, which provided needed confidence in sharing the video over their marketing channels. Education-relevant applications are also major adopters of AI video generators. The major challenges users faced in this segment include limited accessibility for rendering videos for the lessons and the parameters around producing customized content 24/7. This also led to many iterations of video production in a conventional way, resulting in a longer lead time for delivery. However, due to AI video generators, video production became easier and more cost-effective with many vendors offering access to a media library, which contains a wide range of stock images as well as relevant videos.

Regional Insights

Asia Pacific has a large customer base, which resulted in it accounting for the largest revenue share of around 31.6% in 2022. The Middle East & Africa region is estimated to grow at the highest CAGR during the forecast period as the region is at a very nascent stage of adopting this software and offers considerable growth opportunities for the key vendors to expand. Asia Pacific is the largest region in terms of population and has high internet penetration.

With a growing number of SMEs and a rising user base for social media in the region, the demand for quality video content is also growing. In addition, the number of AI startups, as well as the adoption of AI tools, is growing in the region considerably over the past few years. For instance, Singapore alone has more than 350 AI start-ups, while China’s AI penetration is projected to account for the equivalent of 25% of the country’s GDP by 2023.

Key Companies & Market Share Insights

Key participants are keen on providing state-of-the-art technology that is competitive yet highly unique. The majority of the 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 industry is highly competitiveand companies are focusing on the enhancement of products and offering quality variation, thereby supporting the growing market amalgamation through strategic initiatives, such as R&D and collaborations. Industry participants form strategic partnerships with suppliers and distributors to strengthen their product portfolio and geographical presence. Some of the prominent players in the global AI video generator market include:

• Synthesia

• Lumen5

• Muse.ai

• Rephrase.ai

• Synths video

• Raw shorts

• Pictory

• FlexClip

• Designs.Ai

• InVideo 

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 industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global AI video generator market report based on component, organization size, source, application, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Solution

  • Services

• Organization Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Large Enterprises

  • SMEs

• Source Outlook (Revenue, USD Million, 2017 - 2030)

  • Text to Video

  • PowerPoint to Video

  • Spreadsheet to Video

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Marketing

  • Education

  • E-commerce

  • Social Media

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • South Korea

    • India

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • MEA

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa