U.S. Generative AI Market Size To Reach $33.78 Billion By 2030

U.S. Generative AI Market Growth & Trends

The U.S. generative AI market size is anticipated to reach USD 33.78 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 36.3% from 2024 to 2030. Increasing data across diverse sectors such as finance, healthcare, and entertainment provides excellent resources for generative AI models, empowering them to generate more precise and varied outputs, thus contributing significantly to the expansion of generative AI in the U.S.

COVID 19 had a positive impact on the U.S. generative AI market. The pandemic accelerated digital transformation across industries as organizations aimed at technological solutions to adapt to remote work, virtual collaboration, and shifting consumer behaviors. Increased reliance on digital platforms and automation created a demand for advanced AI technologies, including generative AI, to streamline processes, personalize customer experiences, and optimize operations. As businesses looked for innovative ways to stay competitive in the face of uncertainty, investment in generative AI solutions surged, thus driving the growth of the U.S. generative AI market growth.

The expansion of the AI tool ecosystem is a significant factor fueling the growth of the generative AI market. As the field of artificial intelligence continues to evolve, various specialized tools and platforms are emerging to support the development and deployment of generative AI models. These tools offer developers and researchers a variety of capabilities, ranging from model training and optimization to deployment and monitoring. Many established companies are funding companies providing such tools to accelerate the advancement of generative AI technology. This investment not only signifies the market potential of generative AI but also underscores the strategic importance of having access to advanced tools and platforms in driving innovation and gaining a competitive edge. For instance, in June 2023, Runway, an AI research company developing next-gen creative tools, raised USD 141 million in its series C from Salesforce Ventures, Google, NVIDIA, and other existing shareholders. The company intends to utilize these funds to enhance its in-house research endeavors, enlarge its highly skilled team, and persist in delivering advanced multi-modal AI systems to the market while developing innovative and user-friendly product offerings.

Investment in the machine learning and artificial intelligence sectors to support the generative AI market will drive the U.S. market. As investors recognize the transformative potential of generative AI across industries, they are increasingly allocating capital to startups, research institutions, and established companies developing cutting-edge technologies and solutions.

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U.S. Generative AI Market Report Highlights

• Based on components, the software segment accounted for the highest revenue share of 64.8% in 2023 and is expected to retain its position over the forecast period. The segment's growth is attributed to the rising need for automation, increased investment in artificial intelligence, and favorable regulatory environments in the region

• Based on technology, the transformers segment dominated the market in 2023 and is expected to grow at a significant CAGR of 35.6% over the forecast period. It can be attributed to the increasing application of transformers for various applications, such as text-to-image AI, which transforms textual input into visual output, contributing to this trend 

• Regarding end-use, the media & entertainment segment accounted for the maximum revenue share in 2023. The increased utilization of generative AI to enhance campaign and advertising journalism is expected to drive the segment's growth

• In February 2024, Google LLC launched ImageFX, an AI-powered tool for image creation. This GenAI model that Google’s DeepMind team designed offers a prompt-based UI to edit or create images. It creates images with simple text prompts and modifies them using expressive chips

U.S. Generative AI Market Segmentation

Grand View Research has segmented the U.S. Generative AI market based on component, technology, end-use, application, and model:

U.S. Generative AI Component Outlook (Revenue, USD Million, 2017 - 2030)

• Software

• Service

U.S. Generative AI Technology Outlook (Revenue, USD Million, 2017 - 2030)

• Generative Adversarial Networks (GANs)

• Transformers

• Variational Auto-Encoders

• Diffusion Networks

U.S. Generative AI Application Outlook (Revenue, USD Million, 2017 - 2030)

• Computer Vision

• NLP

• Robotics and Automation

• Content Generation

• Chatbots and Intelligent Virtual Assistants

• Predictive Analytics

• Others

U.S. Generative AI Model Outlook (Revenue, USD Million, 2017 - 2030)

• Large Language Models  

• Image & Video Generative Models

• Multi-Modal Generative Models

• Others

U.S. Generative AI End-use Outlook (Revenue, USD Million, 2017 - 2030)

• Media & Entertainment

• BFSI

• IT & Telecommunication

• Healthcare

• Automotive & Transportation

• Gaming

• Others

List of Key Players in the Generative AI Market

• Google LLC

• Amazon Web Services, Inc.

• IBM

• Microsoft

• Hugging Face

• Cohere

• Tome.App

• AssemblyAI

• Midjourney

• Klaviyo