Generative AI Market Size To Reach $109.37 Billion By 2030

Generative AI Market Growth & Trends

The global generative AI market size is anticipated to reach USD 109.37 billion by 2030, according to a new report by Grand View Research, Inc., registering a CAGR of 37.6% from 2025 to 2030. Growing demand to modernize workflow across industries is expected to drive the demand for generative AI applications among industries. Other factors that propel the market growth include the evolution of AI and deep learning, a rise of creative applications & content creation, and innovation of cloud storage, allowing easy data access. Moreover, the introduction of AI-powered gaming that provides more high-level visuals and graphics, interactivity, and a more realistic feel is projected to boost market growth in the coming years.

The COVID-19 pandemic had a positive impact on the market. Many organizations adopted AI & Machine Learning (ML) as a response to the pandemic. Many key players, such as Microsoft, IBM, Google LLC, and Amazon Web Services, Inc., witnessed a growth in sales of AI-based technology during the pandemic. Moreover, the accelerated advancement of digital platforms empowered the adoption of generative AI applications. For instance, in June 2020, Amazon Web Services, Inc. announced the addition of a new generative AI algorithm, Autoregressive Convolutional Neural Network (AR-CNN), to its AWS DeepComposer suite of products, allowing developers to create excellent music digitally.

AWS DeepComposer also provides learning capsules to developers to learn the basics of algorithms. Many generative AI market players offer solutions for numerous applications, such as text-to-image, image-to-image, and super-resolution. For instance, in March 2023, Microsoft Corporation, a software company in the U.S., launched Microsoft 365 Copilot, an AI assistant feature for Microsoft 365 services and applications. Microsoft 365 Copilot can benefit businesses by saving time, streamlining and automating their IT processes, and increasing productivity. Moreover, these industry players are researching generative AI technology for advanced image resolution, face aging, and video resolution technologies.

For instance, U.S.-based Tesla is developing autonomous algorithms using data from car sensors. Also, the neural networks are further trained to perform object detection and semantic segmentation. Investment in the AI and ML sectors to support the market will drive the North America regional market. The presence of tech players in the U.S. and Canada provides lucrative growth opportunities for the regional market. For instance, big tech companies like Microsoft Corporation, Google LLC, and Amazon Web Service are investing in generative AI startups and technology. Asia Pacific is expected to grow at a considerable CAGR from 2024 to 2030 owing to the expansion of end-user industries in countries, such as China and Japan.

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Generative AI Market Report Highlights

• The software segment accounted for the dominant share of 64.2% in 2024. The growth of the software segment in generative AI is driven by factors such as the rise in fraudulent activities, overestimation of capabilities, unexpected outcomes, and increasing concerns about data privacy.

• The transformers segment accounted for the dominant share in 2024, largely due to its capacity to handle vast amounts of data efficiently.

• The media and entertainment industry accounted for the dominant share in 2024. The media and entertainment industry remains dominant in the generative AI market, as this sector extensively integrates AI for content creation, personalized recommendations, and audience engagement

• Natural language processing (NLP) holds a dominant position in the generative AI market, driven by its widespread applications in chatbots, virtual assistants, and content creation.

• Large language models (LLMs) continue to dominate the market, primarily due to their impressive capabilities in text-based tasks such as content generation, customer service automation, and data analysis.

• App builders stand as the dominant customer segment within the market, driven by their need to integrate AI capabilities into applications across industries.

Generative AI Market Segmentation

Grand View Research has segmented the global generative AI market on the basis of component, technology, end-use, application, model, customers and region:

Generative AI Component Outlook (Revenue, USD Million, 2018 - 2030)

• Software

• Service

Generative AI Technology Outlook (Revenue, USD Million, 2018 - 2030)

• Generative Adversarial Networks (GANs)

• Transformers

• Variational Auto-encoders

• Diffusion Networks

Generative AI End-use Outlook (Revenue, USD Million, 2018 - 2030)

• Media & Entertainment

• BFSI

• IT & Telecommunication

• Healthcare

• Automotive & Transportation

• Gaming

• Others

Generative AI Application (Revenue, USD Million, 2018 - 2030)

• Computer Vision

• NLP

• Robotics & Automation

• Content Generation

• Chatbots & Intelligent Virtual Assistants

• Predictive Analytics

• Others

Generative AI Model (Revenue, USD Million, 2018 - 2030)

• Large Language Models

• Image & Video Generative Models

• Multi-modal Generative Models

• Others

Generative AI Customers (Revenue, USD Million, 2018 - 2030)

• Model Builders

• App Builders

Generative AI Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • U.K.

  • Germany

  • France

• Asia Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

• Latin America

  • Brazil

• Middle East & Africa (MEA)

  • KSA

  • UAE

  • South Africa

List of Key Players of Generative AI Market

• Adobe

• Amazon Web Services, Inc.

• D-ID

• Genie AI Ltd.

• Google LLC

• IBM

• Microsoft

• MOSTLY AI Inc.

• Rephrase.ai

• Synthesia