Generative AI market projected to reach $126.5 billion by 2031

Generative AI market projected to reach $126.5 billion by 2031

According to Allied Market Research, the global generative AI market, valued at $8.15 billion in 2021, is predicted to reach $126.5 billion by 2031, with a CAGR of 32% from 2022 to 2031. The study thoroughly analyzes the market’s changing trends, leading market segments, important investment areas, value chains, regional landscape, and competitive environment.

The demand for creating virtual worlds in the metaverse and modernizing the workforce across various sectors, as well as the increasing use of generative AI in the healthcare sector to provide a variety of goods and services, are fueling the growth of the generative AI market.

However, generative AI has security concerns because some models can be exploited illegally, increasing identity theft and raising implementation costs. This aspect will likely slow the market’s growth during the anticipated timeframe. On the other hand, the rising demand for deep learning and machine learning will open up fresh development prospects for the global industry in the years to come.

The software sector will dominate the generative AI market

Based on component, the software segment accounted for more than two-thirds of the worldwide generative AI market in 2021. It may continue to hold a dominant position during the forecast period. This is due to the incorporation of machine learning techniques like deep learning and neural networks to learn the patterns and properties of the training data and then generate new and similar data.

However, the fastest CAGR of 33.3% is anticipated for the services segment from 2022 to 2031. This is because generative AI service models, which can produce a wide range of outputs, including text, graphics, and audio, are in high demand.

Media and entertainment expected to rule the market share

According to the report, the media and entertainment sector captured the largest share of the global generative AI market in 2021, accounting for one-third, and will likely rule the market throughout the forecast period. This is because generative AI is used more frequently to produce realism in virtual and augmented reality experiences.

The BFSI segment will experience the quickest CAGR of 35.7% from 2022 to 2031. This is because generative AI is increasingly used to give customers tailored financial advice.

Leading Market Players

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

WRITTEN BY

Team Eela

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