Enterprise Generative AI Market Size, Share & Trends Analysis Report By Components (Software, Services), By Model Type (Text, Audio), By Application (Marketing & Sales, Customer Service), By End-use, By Region, And Segment Forecasts, 2023 - 2030

Enterprise Generative AI Market Trends

The global enterprise generative AI market size was estimated at USD 1.74 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 36.4% from 2023 to 2030. The market 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. Additionally, there's a notable uptick in investments within the 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 like 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 73.34% in 2022. In the software sector, there's a clear trend toward 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 the 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 in 2022. The movement toward multimodal text generation represents a transition to merging text with diverse media types like 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 like 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 2023 to 2030. There's an increasing focus on AI technologies that prioritize safeguarding user privacy during audio processing. Methods like 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 the highest revenue share in 2022. 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 the highest revenue share in 2022. 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 like 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 industry with a share of over 40.0% in 2022. The demand for personalized customer experiences was a driving force behind the adoption of generative AI. In e-commerce, retail, and marketing, businesses used AI-generated content and recommendations to tailor offerings based on individual preferences. This hyper-personalization strategy aimed to boost customer engagement, increase conversions, and foster brand loyalty by delivering precisely targeted content and services.

Asia Pacific is expected to grow at the fastest growth rate from 2023 to 2030. Manufacturing sectors in nations such as Japan and South Korea have been actively integrating generative AI into their operations in line with Industry 4.0 principles. This adoption involves leveraging AI for predictive maintenance, quality control, and advanced robotics to streamline production processes. By employing AI-driven systems, these industries aim to boost efficiency, minimize operational downtimes, and make data-based decisions, ultimately improving the overall productivity within manufacturing.

Key Companies & Market Share 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. 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 like the data lake, data warehouse, operational database, artificial intelligence/machine learning capabilities, master data management, and comprehensive security measures.

Enterprise Generative AI Market Report Scope

Global Enterprise Generative AI 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 this study, Grand View Research has segmented the global enterprise generative AI report based on components, 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

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • KSA

    • UAE

    • South Africa