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Generative AI Market Trends That Will Shape the Next Decade: Insights from Technological Advancement For Metaverse Development
Generative AI
How Large Will the Generative AI Market Size By 2025?
The market size of generative ai has seen significant expansion in the past few years. An increase from $23.18 billion in 2024 to $34.3 billion in 2025, with a compound annual growth rate (CAGR) of 47.9%, is anticipated. This growth during the historic period is due to the advancement in computing power, the availability of data, research and development, industrial applications, and advancements in deep learning.
How Big Is the Generative AI Market Size Expected to Grow by 2029?
In the coming years, the market size of generative ai is predicted to undergo rapid expansion, reaching a value of $108.05 billion in 2029, with a compound annual growth rate (CAGR) of 33.2%. Factors contributing to this significant growth during the forecasted period include technological advancements in AI hardware, the integration across various industries, considerations towards ethical AI, autonomous systems, and the adoption of edge computing. Noteworthy trends expected within this period are the widespread generation of AI-created content, enhancements in customization and personalization, applications spanning multiple domains, the mitigation of AI bias, and an increase in human-AI cooperation.
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Which Key Market Drivers Powering Generative AI Market Expansion and Growth?
The escalating utilization of artificial intelligence is anticipated to push the advancement of the generative AI market. AI mirrors human cognitive functions using machinery, such as computers and intelligent software tools. Generative AI effortlessly forms impressively realistic and interactive virtual settings, lessening the time and labor needed to produce these surroundings, while enhancing their authenticity. To illustrate, as per the European Commission, an organization based in Europe, the businesses employing AI disciplines were projected to rise from 28.4 in 2021 to 30.4 in 2023. Hence, the growing demand for the creation of virtual universes is propelling the generative AI market's growth.
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Which Fast-Growing Trends Are Poised to Disrupt the Generative AI Market?
The emergence and progression of technology are becoming notable trends in the generative AI market. Big players in the generative AI market are honing their focus on producing innovative technologies. In the spotlight, NVIDIA Corporation, a U.S. tech company, rolled out new metaverse technologies for businesses, equipped with a range of generative AI tools in January 2023. The newly launched technology is enhanced with some unprecedented generative AI tools for 3D artists, such as Audio2Face, Audio2Gesture, and Audio2Emotion, enabling users to animate 3D characters. With the modernized versions of these tools, producers can now use Audio2Face for generating facial expressions from audio clips, Audio2Emotion for creating emotions, and Audio2Gesture for designing gestures.
What Are the Emerging Segments in the Generative AI Market?
The generative aimarket covered in this report is segmented -
1) By Component: Software, Services
2) By Offering Type: Image, Video, Speech, Other Offering Types
3) By Technology: Generative Adversarial Networks (GANs), Transformer, Variational Autoencoder (VAE), Diffusion Networks
4) By End-User: Media And Entertainment, BFSI (Banking, Financial Services And Insurance), IT And Telecom, Healthcare, Automotive And Transportation, Other End-Users
Subsegments:
1) By Software: AI Model Frameworks, Text Generation Tools, Image And Video Generation Software, Code Generation Tools, Design And Creative Tools
2) By Services: Consulting Services For AI Implementation, Managed Services For AI Operations, Training And Support Services, Custom AI Model Development, API Integration Services
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Who Are the Global Leaders in the Generative AI Market?
Major companies operating in the generative ai market include Alphabet Inc., Microsoft Corporation, Meta Platforms Inc., Dell Technologies Inc., Amazon Web Services Inc., Siemens AG, General Electric Company, Intel Corporation, Lenovo Group Ltd., International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, SAP SE, Tata Consultancy Services Limited, NVIDIA Corporation, Salesforce Inc., Adobe Inc., Wipro Limited, VEESUAL, OpenAI LP, Larsen & Toubro Technology Services Limited, iGenie, Paige AI Inc., Synthesia, Inworld AI, Ordaos Bio, Rephrase.ai, D-ID, Mostly AI
Which are the Top Profitable Regional Markets for the Generative AI Industry?
North America was the largest region in the generative AI market in 2024. The regions covered in the generative ai market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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