Enterprise Generative AI Market Size, Share & Trends Analysis Report By Component, By Model Type, By Application, By End-use, By Region, And Segment Forecasts, 2024 - 2030

Enterprise Generative AI Market Trends

The global enterprise generative AI market size was estimated at USD 2.25 billion in 2023 and is expected to grow at a CAGR of 37.4% from 2024 to 2030. The enterprise generative AI landscape is growing, marked by a rise in new startups entering the field. These companies are concentrating on different facets of quantum technology, spanning hardware, software, and various applications. In addition, there's a notable uptick in investments within the enterprise generative AI market, coming from both private sectors and governments. Governments are dedicating significant funds to advance quantum research and development, aiming to stay competitive in the realm of emerging technologies.

The utilization of enterprise generative AI has surged due to its ability to produce realistic images, engaging animations, and immersive audio, particularly benefiting graphic design and video marketing efforts. This technology has become invaluable in simplifying administrative tasks such as claims processing, appointment scheduling, and overall operational management. Its adaptability and effectiveness make it an indispensable tool across various industries. The emergence and utilization of enterprise-ready generative AI models are increasing, integrated into platforms such as Google Cloud’s Vertex AI. As these advancements progress, business leaders are discovering that generative AI solutions can propel their organizations to unprecedented levels of speed and scalability in execution.

Businesses are progressively embracing industry-tailored generative AI solutions. In healthcare, AI models support the analysis of medical images, facilitating the diagnosis and treatment strategies. Likewise, financial sectors benefit from AI algorithms aiding in assessing risks and detecting fraudulent activities. Retail industries rely on AI for tailored product suggestions and managing inventory effectively. This trend encompasses the customization of AI models to tackle sector-specific hurdles, enhancing operational efficiencies, and outcomes while complying with industry regulations.

Components Insights

The software segment dominated the market with a share of over 72.8% in 2023. In the software sector of enterprise generative AI market, there's a clear trend towards an expanding range of specialized tools and platforms designed for specific business needs. These offerings cover various functions, including generating text, creating images, and specialized creative design applications. Both new startups and established companies are dedicated to developing adaptable software solutions to meet the distinct requirements of enterprises in different industries. This expansion of options enables businesses to select tools that precisely fit their needs, encouraging more effective and focused utilization of generative AI technology.

The increase in the demand for enterprise generative AI within the service sector revolves around the rising presence of consulting firms and service providers offering specialized skills in implementing generative AI solutions tailored for enterprises. These services encompass guiding strategies, evaluating potential applications, and actively assisting during the implementation phase. Businesses are increasingly seeking this support to navigate the intricate process of effectively integrating generative AI into their day-to-day operations, aiming to achieve peak efficiency and gain a competitive edge. Consulting firms play a pivotal role by sharing valuable insights and best practices, ensuring that businesses harness the full potential of generative AI while staying aligned with their specific business goals.

Model Type Insights

The text segment dominated the market with a revenue share in 2023. The movement towards multimodal text generation represents a transition to merging text with diverse media types such as images, audio, or video. Generative AI models are undergoing training to produce text-based descriptions derived from visual or auditory inputs, contributing to advancements in functions such as describing images, transcribing audio content into text, or summarizing video content. This trend intends to facilitate the creation of more thorough and intricate content by integrating various information modes into textual outputs.

The audio segment is expected to grow with the fastest growth rate from 2024 to 2030. There's an increasing focus on AI technologies that prioritize safeguarding user privacy during audio processing. Methods such as federated learning and differential privacy allow AI models to learn from decentralized data sources or handle sensitive information without jeopardizing individual privacy. Businesses are investing in these privacy-centered strategies to establish confidence and adhere to regulations when managing audio data.

Application Insights

The marketing and sales segment dominated the market with a revenue share in 2023. The emergence of voice assistants has led to the incorporation of generative AI into conversational commerce. AI-powered chatbots and voice assistants interact with users using natural language, providing tailored product suggestions, responding to inquiries, and enabling smooth transactions. These AI-driven conversational tools elevate the shopping journey by allowing customers to complete purchases using voice prompts, thereby enhancing convenience and potentially boosting sales.

The advancement of generative AI is transforming customer service by improving the analysis of sentiments and recognition of emotions in customer interactions. Using intricate natural language processing and machine learning methodologies, these AI systems decipher the intricacies of customer sentiments and emotions communicated through text or speech. By precisely interpreting customer emotions, companies can customize their responses and assistance to cater to individual requirements, offering more empathetic and personalized customer experiences. This ultimately results in increased satisfaction and loyalty among customers.

End-use Insights

The IT & Telecom segment dominated the market with a revenue share in 2023. Generative AI is transforming edge computing by empowering intelligent local processing on edge devices. AI algorithms with the ability to manage intricate tasks at the edge enable efficient data processing, leading to decreased latency and reduced bandwidth needs. This streamlined approach supports instantaneous decision-making crucial for applications such as autonomous vehicles, smart factories, and IoT devices. Telecom firms are harnessing Generative AI to create edge solutions that not just boost performance, but also trim expenses linked to centralized data processing. This advancement fosters agile and adaptable systems capable of swift responses.

Enterprise Generative AI is transforming manufacturing through its capacity to facilitate generative design procedures. This innovation empowers the development of meticulously tailored and efficiently optimized product designs by simulating a multitude of design options. Manufacturers utilize Generative AI to create and refine designs considering distinct factors such as materials, performance criteria, and limitations in production. This development drives the production of inventive, lighter, and economical products designed to suit a wide range of customer demands.

Regional Insights

North America dominated the enterprise generative AI market with a share of 40.2 % in 2023. The market is primarily driven by the presence of major technology companies and a strong ecosystem of startups focused on AI innovations. The region benefits from substantial investments in research and development, particularly in the U.S., where companies such as OpenAI and Microsoft are pioneering generative AI applications. The adoption of generative AI in sectors such as healthcare for drug discovery, in finance for fraud detection, and in media for content creation is accelerating growth.

U.S. Enterprise Generative AI Market Trends

The U.S. market is characterized by widespread adoption of generative AI across various industries, including technology, finance, healthcare, and entertainment. Major tech hubs such as Silicon Valley and Seattle are home to leading AI companies and startups that drive innovation. The integration of generative AI with cloud computing services provided by giants such as Amazon Web Services (AWS) and Microsoft Azure facilitates scalable and efficient deployment of AI solutions. In addition, strong collaboration between academia and industry fosters continuous advancements in generative AI research and applications.

Europe Enterprise Generative AI Market Trends

Europe's Enterprise Generative AI market is experiencing steady growth, supported by stringent data privacy regulations and a focus on ethical AI development. Countries such as Germany, the UK, and France are at the forefront of adopting generative AI technologies in manufacturing, automotive, and creative industries. The European Union's initiatives to create a unified AI strategy and promote AI research funding are significant drivers for market growth. In addition, the emphasis on sustainable and responsible AI practices encourages enterprises to adopt generative AI solutions that align with regulatory standards and societal expectations.

Asia Pacific Enterprise Generative AI Market Trends

The Asia Pacific region is witnessing the fastest growth in the Enterprise Generative AI market, driven by rapid digital transformation, increasing investments in AI technologies, and the expanding presence of technology giants in countries such as China, Japan, South Korea, and India. In addition, the widespread adoption of mobile technologies and the growing e-commerce sector in Asia Pacific create substantial opportunities for generative AI applications in personalized marketing, customer service, and content generation. Government initiatives supporting AI research and development, along with a burgeoning startup ecosystem, further bolster market growth in this region.

Key Enterprise Generative AI Company Insights

The industry is characterized by fierce competition, dominated by a few major global players who possess significant market control. The focus revolves around developing groundbreaking products and promoting cooperation among key players within the industry. For instance, in April 2024, Microsoft and Cognizant extended their partnership to deploy Microsoft's generative AI and Copilots, enhancing business operations and accelerating innovation in various industries. This initiative includes significant investments in AI training and technology for sectors such as healthcare, retail, and financial services.

Similarly, in September 2023, Cloudera collaborated with Amazon Web Services (AWS) to advance reliable enterprise generative AI. This collaboration enables Cloudera to utilize AWS offerings, aiming to provide ongoing advancements and cost reductions for customers utilizing Cloudera's open data lake house on AWS, specifically designed for trusted enterprise generative AI. Cloudera has opted for AWS to operate essential elements of the Cloudera Data Platform (CDP), encompassing aspects such as the data lake, data warehouse, operational database, artificial intelligence/machine learning capabilities, master data management, and comprehensive security measures.

Recent Development

• In June 2024, Amazon Web Services, Inc., Inc. announced a USD 230 million commitment aimed at accelerating the development of generative AI applications by startups across the globe. This initiative will offer startups, particularly those in their early stages, with mentorship, AWS credits, and educational resources to advance their use of AI and ML technologies.

• In April 2024, AWS has announced the general availability of Amazon Q. This advanced generative artificial intelligence (AI)-powered assistant is designed to accelerate software development and utilize companies' internal data. Amazon Q excels at generating precise code, testing and debugging it, and offers multi-step planning and reasoning capabilities. It can transform existing code, such as performing Java version upgrades, and implement new code based on developer requests.

• In March 2024, Adobe Inc. partnered with NVIDIA Corporation to harness the potential of generative AI to enhance creative workflows. The collaboration aimed to develop advanced generative AI models deeply integrated into applications utilized by top creators and marketers worldwide. The partnership is built on the longstanding relationship between the two companies in R&D, emphasizing the importance of generative AI in transforming creative processes and enabling more innovative outputs in the marketing domain.

• In January 2024, Essential AI and Google Cloud announced a strategic partnership to streamline and drive the development of full-stack generative AI products and empower enterprise users to make more informed, data-driven decisions. As a preferred cloud provider, Google Cloud would enable Essential AI to deliver LLMs customized for enterprises, enhancing business productivity by automating repetitive and time-consuming tasks.

Enterprise Generative AI Report Scope

Global Enterprise Generative AI Market Report Segmentation

This report forecasts revenue growth on 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 enterprise generative AI report based on component, model type, application, end-use, and region:

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

  • Software

  • Services

• Model Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Text

  • Image/Video

  • Audio

  • Code

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

  • Marketing and Sales

  • Customer Service

  • Product Development

  • Supply Chain Management

  • Others (Research and Development, Risk Management, etc.)

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • IT & Telecom

  • BFSI

  • Retail & E-commerce

  • Healthcare

  • Manufacturing

  • Media and Entertainment

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • KSA

    • UAE

    • South Africa