A three-pronged approach was followed for deducing the generative AI market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:
Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for generative AI market to gather the most reliable and current information possible.
Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of generative AI market data depending on the type of information we’re trying to uncover in our research.
Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.
Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.
Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.
Qualitative Functional Deployment (QFD) Modelling for market share assessment.
Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.
Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.
Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.
This step also entails the finalization of the report scope and data representation pattern.
Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.
The generative AI market was categorized into six segments, namely component (Software, Service), technology (Generative Adversarial Networks, Transformers, Variational Auto-encoders, Diffusion Networks), end-use (Media & Entertainment, BFSI, IT & Telecommunication, Healthcare, Automotive & Transportation, Gaming), application (Computer Vision, NLP, Robotics And Automation, Content Generation, Chatbots & Intelligent Virtual Assistants, Predictive Analytics), model (Large Language Models, Image & Video Generative Models, Multi-modal Generative Models), and regions (North America, Europe, Asia Pacific, Latin America, Middle East & Africa).
The generative AI market was segmented into component, technology, end-use, application, model, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:
Demand estimation of each product across countries/regions summed up to from the total market.
Variable analysis for demand forecast.
Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.
Primary interviews for data revalidation and insight collection.
Used extensively for new product forecasting or analyzing penetration levels.
Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.
Primary interviews and vendor-based primary research for variable impact analysis.
The generative AI market was analyzed at a regional level. The global was divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into seventeen countries, namely, the U.S.; Canada; the UK; Germany; France; Italy; China; India; Japan; Australia; Brazil; Mexico; Chile; Argentina; UAE; Saudi Arabia; South Africa.
All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.
The generative AI market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:
Adobe Inc. - Adobe is a software company that develops media and digital marketing solutions. The company operates through three segments, namely Digital Media, Digital Experience, and Publishing and Advertising. It offers marketing, creative, and documentation tools that empower its customers to create digital content, deploy it across media and devices, and optimize it over time.
Amazon Web Services, Inc. - Amazon Web Services, Inc. is a U.S.-based company that provides cloud computing services across the globe. It is a subsidiary of Amazon.com, Inc. It provides cloud infrastructure services such as data storage, computing, database management, content delivery, application delivery, and networking.
D-ID - D-ID is an information technology company that develops AI-based image-creating software. The company’s generative AI technology helps the user elevate sales, learning and development, and advertising video content.
Genie AI Ltd. - Genie AI Ltd. is a provider of business/productivity software to organizations across a range of industries. It offers a platform that leverages artificial intelligence to develop legal contracts based on the client’s business segments and requirements.
Google LLC - Google LLC, a subsidiary of Alphabet, is a multinational technology company that focuses on search engines, online advertising, computer software, cloud computing, and Artificial Intelligence (AI). The company is actively investing in R&D activities focused on areas such as Artificial Intelligence (AI) and quantum computing.
International Business Machines Corporation - IBM is a multinational technology company providing hardware, software, IT services, and consulting. The company operates through five reportable business segments, namely Software, Consulting, Infrastructure, Financing, and Other.
Microsoft Corporation - Microsoft is an American multinational technology corporation that provides computer software, personal computers, consumer electronics, and other services. It is known for the Microsoft Office suite of products and the Microsoft Windows operating systems.
MOSTLY AI Inc. - MOSTLY AI Inc. is a technology company providing AI-based software, IT, and IT consulting services. The company’s Synthetic Data Platform leverages deep neural networks to simulate representative and realistic data at scale and retains valuable information from it while making it impossible to re-identify any individual, thanks to the inbuilt privacy mechanism.
Rephrase.ai - Rephrase.ai is a video creation technology company providing generative AI-based software, IT, and IT consulting services. Its generative AI software takes text or audio to create personalized sales videos that feature human-like actors. It has more than 50 enterprise clients that are using the company’s technology for their development purposes.
Synthesia - Synthesia is a technology company that uses AI algorithms to create videos, translate them into different languages, change existing footage, and generate video content based on input such as images and text, empowering content creators to scale their video creation with localized and personalized videos.
Supply Side Estimates
Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.
Segment revenue determination via variable analysis and penetration modeling.
Competitive benchmarking to identify market leaders and their collective revenue shares.
Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.
Demand side estimates
Identifying parent markets and ancillary markets
Segment penetration analysis to obtain pertinent
Heuristic forecasting with the help of subject matter experts
Forecasting via variable analysis
Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.
Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.
Understanding market estimates and forecasts (with the base year as 2023, historic information from 2017 to 2022, and forecast from 2024 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.
The report provides market value for the base year 2023 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.
The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.
We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.
All market estimates and forecasts have been validated through primary interviews with the key industry participants.
Inflation has not been accounted for to estimate and forecast the market.
Numbers may not add up due to rounding off.
Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).
Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).
Latin America includes Central American countries and the South American continent
Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.
GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.
We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:
Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.
Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.
The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.
GET A FREE SAMPLE
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
ESOMAR certified & member