GVR Report cover Generative AI Market Size, Share & Trends Report

Generative AI Market Size, Share & Trends Analysis Report By Component (Software and Services), By Technology (Generative Adversarial Networks (GANs), Transformers), By End-use, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-4-68040-011-4
  • Number of Pages: 110
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global generative AI market size was valued at USD 8.0 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 34.6% from 2022 to 2030. Factors such as the rising applications of technologies such as super-resolution, text-to-image conversion, & text-to-video conversion and growing demand to modernize workflow across industries are driving the demand for generative AI applications among industries. The COVID-19 pandemic had a positive impact on the generative AI market as businesses shifted to the online work model, increasing digitalization across industries. As per IBM’s Global AI Adoption Index 2022 report, over 53% of IT professionals commented that they have accelerated the roll-out of Artificial Intelligence (AI) in the last 24 months as a part of their response to the pandemic Moreover, during the pandemic advance diagnosing tools were developed using Artificial Intelligence (AI) to detect the COVID-19 virus and various other imaging systems.

U.S. generative ai market size, by technology, 2020 - 2030 (USD Billion)

Generative AI makes use of unsupervised learning algorithms for spam detection, image compression, and preprocessing data stage such as removing noise from visual data to improve picture quality. Moreover, supervised learning algorithms is used for medical imaging and image classification. Furthermore, it has applications in various industries such as BFSI, healthcare, automotive & transportation, IT & telecommunications, media & entertainment, and others.

Generative AI is at a developing stage which will require a skilled workforce and high investment in implementation for development. According to IBM’s global AI adoption index 2022 report, 34% of respondents believed that a lack of Artificial Intelligence (AI) skills, expertise, or knowledge was restricting the adoption of Artificial Intelligence (AI) for industries.  Hence, the unavailability of a skilled workforce and the high implementation costs are expected to slow down the pace of development of the market.

Major market players such as U.S.-based Microsoft and Apple Inc. are progressively investing in Research & Development (R&D) activities. Moreover, these companies are researching technologies such as Artificial Intelligence (AI) and Machine Learning (ML). For instance, in May 2020, World Wide Technology, a technology service provider started an initiative that is focused on artificial intelligence and machine learning and has some of the highest experiments and work programmed on generative AI. As an increasing number of companies continue to develop and experiment in the field and use generative AI in their products, the market is expected to witness promising growth opportunities.

Component Insights

Based on components, the market is further bifurcated into software and services. The software segment accounted for the largest revenue share of 65.0% in 2021 and is expected to continue to dominate the market over the forecast period. The growth of the software segment can be attributed to factors such as growing fraudulent activities, overestimation of capabilities, unexpected outcomes; and rising concerns over data privacy.

Furthermore, the service segment is anticipated to witness the fastest growth rate of 35.5% during the forecast period.  The rise in segment growth can be attributed to the increasing concerns over the protection of data, fraud detection, trading prediction, and risk factor modeling.

Technology Insights

Based on technology, the market is segmented into Generative Adversarial Networks (GANs), transformers, variational auto-encoders, and diffusion networks. The transformers segment held the largest revenue share of 41.7% in 2021. This can be attributed to the increasing adoption of transformers applications such as text-to-image AI, which envisages converting text to an image. For instance, DALL-E is a transformer that understands the text data and converts the data accordingly.

On the other hand, the diffusion networks segment is expected to witness the fastest growth rate of 37.2% during the forecast period. To meet the increasing demands of image synthesis, image generation has become essential for various industries such as BFSI, healthcare, media& entertainment, automotive & transportation, defense, and many others as they are equipped to provide high-value to businesses, government, and public.

End-use Insights

Based on end-use, the market is segmented into media & entertainment, BFSI, IT & telecommunications, healthcare, automotive & transportation, and others. The other sub-segment further comprises security, aerospace & defense. The media & entertainment segment accounted for the largest revenue of USD 1,525.6 million in 2021 and is projected to grow at a CAGR of 33.5% over the forecast period. The increasing adoption of generative AI for creating better advertisement campaigns is likely to drive the demand for this technology in the media & entertainment industry. 

Global generative ai market share, by end-use, 2021 (%)

The BFSI segment is expected to witness the fastest growth rate of 36.4% during the forecast period. The market growth in this segment is attributed to the increasing implementation of Artificial Intelligence (AI) & Machine Learning (ML) in the sector to prevent fraudulent activities, secure data, and meet the dynamic needs of various stakeholders in financial services.

Regional Insights

North America dominated the market with a share of 40.2% in 2021 and is projected to grow at a CAGR of 34.7% over the forecast period due to factors such as rising pseudo-imagination & medical care and increasing banking frauds. Also, the presence of prominent market players such as U.S.-based Meta, Microsoft, and Google LLC, developed technology organizations, and the presence of experts are likely to drive the growth generative AI market in the region.

Generative AI Market Trends by Region

Asia Pacific is anticipated to grow at the fastest CAGR of 35.6% during the forecast period. Increasing government initiatives in Artificial Intelligence (AI) in Asia Pacific and the increasing adoption of AI applications are driving the growth of generative AI in the region. 

Key Companies & Market Share Insights

The generative AI market has a fragmented competitive landscape, featuring several global and regional players. The market players are investing in research & development (R&D) to develop advanced solutions and gain a competitive edge in the market. Moreover, they are entering into partnerships and mergers & acquisitions as the market is characterized by innovation, disruption, and rapid change.

In November 2021, IBM announced the acquisition of SXiQ, an Australian digital transformation services company specializing in cloud applications, cloud platforms, and cloud cybersecurity. The acquisition aimed at helping IBM’s AI strategy and hybrid cloud by empowering enterprises to modernize and improve sophisticated mission-critical applications on multiple platforms and clouds. Some prominent players in the generative AI market include:

  • Synthesia

  • MOSTLY AI Inc.

  • Genie AI Ltd.

  • Amazon Web Services, Inc.

  • IBM

  • Google LLC

  • Microsoft

  • Adobe

  • Rephrase.ai

  • D-ID 

Generative AI Market Report Scope

Report Attribute


Market size value in 2022

USD 10,143.2 million

Revenue forecast in 2030

USD 109.37 billion

Growth rate

CAGR of 34.6% from 2022 to 2030

Base year for estimation


Historical data

2017 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million/billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, technology, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; France; Italy; China; India; Japan; Australia; Brazil; Mexico; Chile; Argentina; UAE; Saudi Arabia; South Africa

Key companies profiled

Synthesia; MOSTLY AI Inc.; Genie AI Ltd; Amazon Web Services, Inc.; IBM; Google LLC; Microsoft; Adobe, Rephrase.ai; D-ID

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Global Generative AI Market 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 generative AI market report based on, component, technology, end-use, and region:

Global Generative AI Market Segmentation

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

    • Software

    • Services

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

    • Generative Adversarial Networks (GANs)

    • Transformers

    • Variational Auto-encoders

    • Diffusion Networks

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

    • Media & Entertainment

    • BFSI

    • IT & Telecommunication

    • Healthcare

    • Automotive & Transportation

    • Others

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

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • Italy

      • France

    • Asia Pacific

      • China

      • India

      • Japan

      • Australia

    • Latin America

      • Brazil

      • Mexico

      • Chile

      • Argentina

    • Middle East & Africa

      • UAE

      • Saudi Arabia

      • South Africa

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