Generative AI in the US is driven by growing demand for personalized and scalable content, advancements in AI technologies like transformers and GANs, and increased investment in AI research & development.
The emergence of generative models in creative industries like art, music, and writing, and their integration into business processes for tasks like content creation and customer service, are some of the key trends in the US market.
Key Takeaways
- Market Growth: The global generative AI market is expected to grow by USD 457.7 billion between 2025 and 2033.
- Market Definition: Generative AI is a type of artificial intelligence designed to create new content by learning from existing data.
- Component Analysis: Based on the component, software is expected to lead the market with the largest revenue share of 69.1 % in 2024.
- Analysis According to Data Modality: Text is predicted to dominate the market with a large revenue share according to data modality in 2024.
- Application Analysis: Synthetic data management is expected to maintain a leading position in the global market based on application, capturing the highest sales share of 31.5% in 2024.
- Vertical Analysis: Media & Entertainment are expected to dominate the market in terms of vertical in 2024 with a large share revenue share in 2024.
- Regional Analysis: North America is expected to dominate the global generative AI market with a revenue share of 51.3% in 2024.
Use Cases
- Content Creation: Generative AI is used in creating articles, blog posts, and social media content based on prompts or keywords. It is also helpful in crafting stories, poetry, and scripts, providing inspiration and structure to authors and screenwriters.
- Image and Video Generation: AI creates realistic visual effects, including special effects and animated characters, enhancing the viewer's experience in films and gaming. It can perform complex image edits, such as changing backgrounds, enhancing details, or creating entirely new visuals from descriptions.
- Product Design: AI algorithms generate many design variations based on input criteria, helping designers explore different aesthetics & functionalities in products. It allows for mass customization by generating unique product designs tailored to individual preferences.
- Customer Service: AI chatbots are capable of handling a wide range of customer queries, providing instant responses, and resolving common issues without human intervention. It analyzes customer interactions to gauge sentiment, allowing businesses to respond more effectively to customer feedback and improve service quality.
Market Dynamic
Drivers
Manufacturing and Automotive Innovations
The global generative AI market is set to grow, driven by increased demands for complex manufacturing designs & the pursuit of improvement of automotive performance. This compels automotive manufacturers to expand research & development investments & incorporate generative design, thereby fueling market expansion. Leading players like Apple & Microsoft are increasing their R&D endeavors, researching AI &
machine learning. Companies like Worldwide Technology are even launching dedicated initiatives centered around AI & ML, with a significant focus on generative AI advancements.
Opportunities
The Rising Demand for LLM-Powered Generative AI Solutions
Large Language Models offer a significant growth opportunity for the Generative AI market as models like OpenAI's GPT series are transforming natural language processing by allowing machines to generate human-like text with unprecedented scale & complexity. These advanced models have shown exceptional abilities in tasks like text generation, translation, summarization, and question-answering. Organizations across various industries recognize the potential of LLMs to boost productivity, automate processes, and provide personalized experiences, which boosts the demand for Generative AI solutions.
Trends
Cloud Infrastructure
Cloud-based storage solutions are driven by providing a robust foundation for technology development and deployment. It offers scalable computing power, allowing businesses to access resource-intensive generative AI model training without substantial capital investment. It ensures high efficiency in data accessibility and collaboration, facilitating the storage and sharing of diverse datasets across global teams.
Restraints
Security Risks and privacy concern of Generative AI
There is a growing concern in terms of security, as generative AI's capacity to produce replicated images might contribute to identity theft, fraud, & counterfeiting. The ability of AI to create highly realistic fake images, videos, and even
deepfakes makes it increasingly difficult to distinguish between genuine and fabricated content, posing significant risks to personal and corporate security, thus obstructing the growth of the market. Moreover, privacy concerns also emerge in fields like healthcare, where the collection of personal data raises data privacy issues.
Research Scope and Analysis
By Component
In terms of components, the generative AI market is segmented into software & services. The software segment is predicted to lead the market with a revenue
share of 63.1% in 2024 & is anticipated to maintain its dominant position in the industry for the same during the forecasted period. This dominance is due to several factors, including the growth in fraudulent activities, concerns about exaggerating AI capabilities, unexpected outcomes, & increased look on data privacy.
Generative AI software is ready to play a major role across several industries like fashion, entertainment, & transportation, due to its increasing strength through strong machine learning models. For instance, brands like H&M & Adidas have integrated generative AI to create clothing designs & custom sneakers. Additionally, this technology has been used to generate unique fabric patterns & prints, streamlining the work of designers and saving them time and effort, leading to the expansion of the generative ai.
The service sector is predicted to show notable growth due to rising concerns over data protection, fraud detection, trading prediction, and risk factor modeling. Cloud-based generative AI services offer robust security measures that ensure data integrity and privacy, making them highly attractive to businesses across many industries.
By Data Modality
Text is predicted to dominate the generative AI market with the largest revenue share in 2024, due to its broad appeal and extensive applicability across different industries. This textual data is readily available across digital platforms & communication channels, which provides a rich source for training & deploying generative AI models.
The global presence fulfills the requirement of growing demand for text-based applications like
natural language understanding, text generation, summarization, & sentiment analysis in areas like customer service, marketing, and finance.
The increasing need for personalized content, conversational interfaces, and automated text creation further boosts the adoption of text-based generative AI solutions in many sectors.
The image sector is expected to show notable growth due to its vast applications and high demand across multiple industries. The ability of generative AI to create, enhance, and manipulate images finds significant use in entertainment, marketing, healthcare, and design, which drives the growth of this market. Also, the advancements in deep learning & neural networks significantly improved the quality and realism of generated images, further driving the adoption and dominance of image-focused generative AI.
By Application
Synthetic data management is expected to dominate the generative AI market with the highest market share of 31.5% in 2024, due to its ability to address data privacy and scarcity issues. It involves generating synthetic datasets that copy real-world data, which helps in training AI models when real data is limited or sensitive. These datasets are used to improve the accuracy & robustness of AI models without compromising privacy or ethical concerns. Business Intelligence and Visualization are showing notable growth as they address the core need for actionable insights and enhanced decision-making across many business functions.
The sales intelligence sector uses generative AI to analyze sales data, identify trends, and forecast future performance, thereby optimizing sales strategies. Marketing Intelligence uses generative AI tools to understand consumer behavior, tailor marketing campaigns, and measure their effectiveness. Meanwhile, the human resource department uses AI to streamline recruitment, manage employee performance, and enhance HR decision-making.
Operations Intelligence helps businesses optimize their operations by analyzing data from many sources, leading to increased efficiency and reduced operational costs. Content management like generation, curation, tagging & categorization of content uses AI to create written content, images, and multimedia, automating the production process to organize and categorize content, making it more accessible and relevant for users.
By Vertical
Media & Entertainment is expected to dominate the generative AI in 2024 with the largest revenue share in 2024, due to its extensive need for advanced technologies to enhance content creation and personalization. AI tools are capable of creating high-quality visual effects, interactive experiences, and tailored content for the entertainment sector. Content creation has evolved with AI algorithms generating scripts, music, and visual elements, significantly speeding up production processes. Personalization is getting important in these sectors as AI tools can provide users with customized recommendations and content based on their preferences and viewing history.
It allows the creation of realistic and engaging graphics for films, TV shows, and games as it plays an important role in visual effects. After the Media & entertainment sector, BFSI is expected to experience notable growth due to its adoption of generative AI to improve fraud detection, personalized services, and efficient operations.
AI algorithms are useful to analyze vast amounts of transaction data to identify unusual patterns and prevent fraudulent activities in real-time. Personal financial services use generative AI to offer financial advice, product recommendations, and investment strategies based on individual customer profiles and behaviors, which drives the growth of the market.
The Generative AI Market Report is segmented based on the following:
By Component
- Software
- By Type
- Rule-Based Models
- Knowledge-Based Models
- Script-Based Models
- Expert Systems
- Statistical Models
- Markov Models
- Hidden Markov Models
- Gaussian Mixture Models
- Conditional Random Fields
- Deep Learning
- Feedforward Neural Networks
- Recurrent Neural Networks
- Long Short-Term Memory (LSTM) Networks
- Gated Recurrent Units (GRUs)
- Generative Adversarial Networks (GANs)
- Conditional GANs
- Style GANs
- Cycle GANs
- Autoencoders
- Denoising Autoencoders
- Variational Autoencoders
- Convolutional Neural Networks (CNNs)
- Image Generating CNNs
- Video Generating CNN
- Transformer Model
- Bidirectional Encoder Representations from Transformers (BERT)
- Generative Pre-trained Transformer 1 (GPT-1)
- Generative Pre-trained Transformer 2 (GPT-2)
- Generative Pre-trained Transformer 3 (GPT-3)
- Generative Pre-trained Transformer 4 (GPT-4)
- Language Model for Dialogue Applications (LaMDA)
- Others
- By Deployment
- Service
- Professional Services
- Training and Consulting
- System Integration and Implementation
- Support and Maintenance
- Managed Services
By Data Modality
-
- Text
- Text Generation
- Text-Based Chatbots
- Text Summarization
- Text Translation
- Others
- Image
- Image Generation
- Image Captioning
- Image Editing and Enhancement
- Others
- Video
- Video Generation
- Video Editing & Enhancement
- Video Annotation
- Others
- Audio and Speech
- Text-to-speech
- Speech Recognition and Transcription
- Music Generation
- Others
- Code
- Code Generation
- Code Documentation
- Code Translation & Transpilation
- Others
By Application
- Business Intelligence and Visualization
- Sales Intelligence
- Marketing Intelligence
- Finance Intelligence
- Human Resource Intelligence
- Operations Intelligence
- Content Management
- Content Generation
- Content Curation, Tagging & Categorization
- Digital Marketing
- Media Editing
- Synthetic Data Management
- Synthetic Data Augmentation
- Synthetic Data Training
- Search and Discovery
- General Search
- Insight Generation
- Automation and Integration
- Personalization & Recommendation Systems
- Customer Experience Management
- Application Development & API Integration
- Cybersecurity Intelligence
- Generative Design AI
- Others
By Vertical
- Media & Entertainment
- Content Creation
- Personalization
- Visual Effects
- Interactive Entertainment
- BFSI
- Fraud Detection
- Customer Service
- Risk Management
- Personalized Financial Services
- Document Automation
- Healthcare & Life Sciences
- Medical Imaging
- Drug Discovery
- Personalized Medicine
- Patient Care
- Administrative Automation
- Manufacturing
- Design Automation
- Predictive Maintenance
- Quality Control
- Supply Chain Optimization
- Retail & E-commerce
- Product Recommendations
- Inventory Management
- Customer Service
- Marketing Automation
- Visual Search
- Transportation & Logistics
- Route Optimization
- Fleet Management
- Supply Chain Logistics
- Autonomous Vehicles
- Construction & Real Estate
- Design & Planning
- Project Management
- Building Information Modeling
- Property Valuation
- Smart Building
- Energy & Utilities
- Demand Forecasting
- Grid Management
- Renewable Energy
- Energy Efficiency.
- Smart Metering
- Government & Defense
- Surveillance
- Cybersecurity
- Resource Allocation
- Public Services
- Military Applications
- IT & ITeS
- Software Development
- IT Operations
- Customer Support
- Business Intelligence
- Cloud Services
- Telecommunications
- Network Optimization
- Customer Experience
- Fraud Detection
- Service Automation
- Content Delivery
- Others
Regional Analysis
Regional Analysis
North America is expected to dominate the generative AI market, by contributing to about
51.3 % of the total revenue share in 2024. This dominance is anticipated to be sustained throughout the forecast period, mainly due to two key factors, that is the increasing adoption of pseudo-imagination techniques and the increase in incidents of banking fraud drive the need for advanced AI technologies, including generative AI, to strengthen security measures. Primarily, the involvement of key players like Meta, Google LLC, &
Microsoft is set to play a pivotal role in propelling the development of the generative AI market in North America.
Moreover, the Asia Pacific region is anticipated to experience fast growth in the generative AI market.
This growth can be said owing to multiple factors. Firstly, the growing initiatives by governments in the region to strengthen AI & technological innovation provide a conducive environment for the development & deployment of generative AI solutions. In addition, the growing adoption of AI-based applications across diverse sectors in the Asia Pacific contributes to the market's growth. As industries combine AI-driven tools to improve efficiency & productivity, the need for generative AI is expected to grow significantly. Overall, the integration of proactive government initiatives & the broader integration of AI technologies positions Asia Pacific as an expanding hub for the growth of the generative AI market in the forecast period.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The generative AI market is experiencing intense competition, with a few global leaders commanding a significant market share. Key players in the industry are mainly focusing on two strategies that are innovation in product development & fostering collaborative partnerships.
These companies are constantly looking to introduce advanced solutions to maintain their competitive edge, while at the same time seeking opportunities to collaborate with other industry leaders to expand their market reach. Market players are using advanced technologies and forming strategic partnerships to drive innovation, enhance their offerings, and expand their influence within the industry.
Some of the prominent players in the Global Generative AI market are:
- Synthesia
- MOSTLY AI Inc.
- Genie AI Ltd.
- IBM
- Google LLC
- Microsoft
- Adobe
- Rephrase.ai
- D-ID
- Amazon Web Services, Inc.
- Other Key Players
Recent Development
- In March 2024, Microsoft and Adobe revealed plans to integrate Adobe Experience Cloud workflows and insights with Microsoft Copilot. This partnership seeks to leverage Microsoft 365 to help marketers navigate application and data silos and more efficiently handle their daily tasks.
- In March 2024, Adobe and NVIDIA, long-time research and development partners, announced a new alliance to harness generative AI to enhance creative workflows. The two companies will co-create a new generation of advanced generative AI models, focusing on deep integration into the tools used by leading creators and marketers.
- In February 2024, the GSMA and IBM unveiled a joint effort to promote the adoption and expertise of generative AI in the telecom sector through the launch of GSMA Advance's AI Training program and the GSMA Foundry Generative AI program.
- In February 2024, OpenAI introduced Sora, a text-to-video generative AI model capable of producing videos up to one minute long with high visual quality and precise adherence to user prompts. Currently, Sora is not publicly available, with limited access granted to a select group of red teamers, visual artists, designers, and filmmakers.
In October 2023, the global card payments leader Visa announced a new USD 100 million in generative AI initiative to invest in next-gen companies aiming to develop AI technologies & applications that will impact the future of commerce & payments.
- In April 2023, Microsoft Corp. teamed up with Epic Systems, an American healthcare software company, to integrate large language model tools and AI into Epic’s electronic health record software. This collaboration aims to utilize generative AI to boost healthcare providers' productivity and reduce administrative workloads.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 22.2 Bn |
| Forecast Value (2033) |
USD 488.1 Bn |
| CAGR (2023-2032) |
41.1% |
| The US Market Size (2024) |
USD 9.7 Bn |
| Historical Data |
2018 - 2023 |
| Forecast Data |
2025 - 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Component (Solutions and Services), By Data
Modality (Text, Image, Video, Audio & Speech, and
Code), By Application(Business Intelligence and
Visualization, Content Management, Synthetic Data
Management, Search and Discovery, Automation and
Integration), By Vertical (Media & Entertainment,
BFSI, Healthcare & Life Sciences, Manufacturing,
Retail & E-commerce, Transportation & Logistics,
Construction & Real Estate, Energy & Utilities,
Government & Defense, IT & ITeS,
Telecommunications, Others) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Synthesia, MOSTLY AI Inc, Genie AI Ltd, IBM, Google
LLC, Microsoft, Adobe, Rephrase.ai, D-ID, Amazon
Web Services, and Other Key Players |
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