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Generative AI Market Size, Share & Industry Analysis, By Model (Generative Adversarial Networks or GANs and Transformer-based Models), By Industry vs Application, and Regional Forecast, 2024 – 2032

Last Updated: May 06, 2024 | Format: PDF | Report ID: FBI107837



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The global generative AI market size was valued at USD 43.87 billion in 2023 and is projected to grow from USD 67.18 billion in 2024 to USD 967.65 billion by 2032, exhibiting a CAGR of 39.6% during the forecast period (2024-2032). In the scope, we have considered tools and services provided by key players in the market, including IBM Corporation, Microsoft Corporation, (Alphabet) Google LLC, Adobe, Amazon Web Services, Inc., SAP SE, Rephrase AI, Nvidia, and Synthesis AI, and others.

Generative Artificial Intelligence is a form of machine learning that can create new content, including code, audio, images, simulations, text, and videos. It is a subset of artificial intelligence that practices neural networks to recognize the patterns and structures within existing data to generate new content. The growth of this market can be attributed to the rising need for creating virtual worlds in the metaverse, conversational Gen AI ability, and the deployment of large language models (LLM).

The COVID-19 pandemic positively impacted the market as companies moved to online work models and industries became more digital. IT professionals and other companies gradually adopted artificial intelligence (AI) tools during COVID-19 to increase productivity and ease work models. For instance,

  • According to IBM's Global AI Adoption Index 2022 report, about 53% of IT professionals stated that they had accelerated their adoption of artificial intelligence (AI) over the past two years as part of their response to the pandemic.

Generative AI Market Trends

Rising Awareness about Conversational AI to Transform the Market Outlook

Analytical and traditional AI-based conversational interfaces are restricted to predefined commands and fail to understand the intent of queries, resulting in substandard responses. Conversational AI resolves this challenge by learning, understanding, and planning chat responses based on context and purpose. These generative model-driven virtual assistants include NLP, chatbots, deep learning, natural language generation (NLG), and LLM. It allows chatbots, intelligent virtual assistants, and other conversational interfaces that interact with users in human-like ways.

In addition, various startups are developing applications that are based on OpenAI's ChatGPT or related conversational chatbots that take images or text as input and generate text. Such solutions resolve common issues, automate routine customer inquiries, and offer personalized support to develop customer satisfaction. Gen AI conversational bots accelerate the analysis of customer data and provide insight to enhance business processes. According to an industry expert in 2023, 87% users believe that conversational AI/chatbots help increase the overall productivity.

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Generative AI Market Growth Factors

Growing Necessity to Create a Virtual World in the Metaverse to Drive the Market

AI developers frequently use generative AI to create game environments and new virtual worlds. It enables virtual reality (VR) developers to create a boundless library of exclusive and immersive game environments. Thus, implementing use cases such as VR games and VR training simulations has significant efficiencies. Therefore, the first deployments of AI in business will likely focus on augmenting human AI with a workforce (human employees working with intelligent virtual assistants or cobots). This will significantly drive the growth of the market around the world. 

Further, in the Metaverse, generative AI also requires human-created assets such as images, sounds, and 3D models and leverages processing power and computers' predictability to create original parallel assets. For instance,

  • In January 2023, Nvidia introduced new enterprise Metaverse technologies, such as VR and Augmented Reality (AR) for various generative AI tools, including the Omniversum portal. The company introduced its Omniverse portal with RTX and 3D updates and an early access program for developers looking to create avatars and virtual assistants. 

Such strategic developments and advancements started by key players are expected to fuel the growth of the market. Moreover, building and scripting tools in many virtual world applications are useful for designers and programmers. However, gen AI is used to create 3D models from text or 2D animations. It allows users to have a rich experience in an unfamiliar 3D environment.


Risks Related to Data Breaches and Sensitive Information to Hinder Market Growth 

Data security concerns and unresolved generative AI projects are hindering the expansion of the market. Data security becomes even more important in generative AI technology projects as data privacy regulations tighten worldwide. The unstructured data used for tagging contains personally identifiable information such as license plates, faces, and even sensitive medical information, which can lead to severe data breaches if not adequately protected.

Problems often arise when companies outsource AI generation projects, and many freelancers work with data from several locations. Data security company Trust Wave estimates that nearly 63% of data thefts are due to a lack of due diligence, while third parties outsource data. 

Generative AI Market Segmentation Analysis

By Model Analysis

Increasing Need for Adversarial Networks Tools for Video Generation Contributing to Segmental Growth

Based on the Model, the global market is segmented into Generative Adversarial Networks or GANs and Transformer-based models.

Generative Adversarial Networks or GANs, accounted for over 74% of the market share in 2023. This is due to the increasing need to generate text, images, audio, and video equivalent to real data. Images generated by GANs have applications in gaming, e-commerce, marketing, advertising, and many other industries.  The availability of trained GAN models makes it easier for businesses to integrate GAN technology into their products and services without the need for extensive model training.

Transformer-based models are predicted to grow at the highest CAGR during the forecast period. This is likely due to the prevalence of conversion applications such as Text-to-Image AI, which converts text to images. For instance, DALL-E is a transformer that understands text data and transforms the data accordingly. GPT-3 is another example of a transformer assembled by the San Francisco-based artificial intelligence research institute, OpenAI team. This model can generate human-like text and compose poems and emails.  

By Industry vs Application Analysis

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Rising Investment in Healthcare Sector by Organizations and Providers to Scale Healthcare Sector

Based on the industry, the global market is studied into Manufacturing, Healthcare, IT & Telecom Marketing & Advertising, Travel & Transportation, Energy & Utility, and Others (Education, Oil & Gas)

These industries are further categorized into application such as product development & design, quality control, supply chain management, customer interactions, and support comes under manufacturing, medical simulation, medical chatbots, and medical imaging falls under healthcare, IT & telecom applications are network optimization, predictive maintenance, network security, intelligent infrastructure, marketing & advertising studied by targeted advertising, digital advertising, email marketing, and campaign analytics, traffic detection, traffic flow analysis, driver monitoring, road condition monitoring falls under travel & transportation sector, and energy and supply forecasting, distribution management, storage optimization included in energy & utility industry.

Among these, healthcare segment is held a significant market share in 2023. Government agencies in several countries, such as U.S., Germany, and China, are investing more in the healthcare sector. Generative AI is already embedded in diagnostic algorithms for the early detection of diseases such as cancer, cardiovascular disease, and diabetes. Machine learning and deep learning algorithms are used to analyze data and patient histories. Further, generative AI is becoming more prevalent in clinical research and clinical trials to identify potential targets for new drugs and their efficacy. Healthcare providers and organizations are working with AI specialist companies, positively impacting market growth.  

Whereas the marketing & advertising sector growing at the highest CAGR during the forecast period owing to increased awareness about digital marketing, automated content creation, data analysis, customer interaction, and personalized marketing. This automation saves a lot of time, and the AI ​​can work 24/7, allowing users to produce content at scale.


The market is geographically studied into the following key regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

North America Generative AI Market Size, 2023 (USD Billion)

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The North American market held the largest Generative AI market share in 2023. The region’s advanced technological infrastructure, intense research and development activities, and the presence of leading AI companies contribute to its market growth. Several major technology companies in North America have invested in developed generative AI capabilities. Companies like IBM, Adobe, and Microsoft have developed and deployed this tool and platform. These companies leverage this AI for various purposes, including image manipulation, content creation, and design automation. Further, a collaboration between industry players, research institutions, and startups is essential for market growth in North America.

The Europe market is growing at a considerable CAGR during the predicted years. European governments have recognized AI's potential and launched initiatives to support its development and adoption. Funding programs, policy frameworks, and research grants have facilitated the growth of the European market. Europe has a vibrant startup ecosystem, with numerous AI startups focusing on Generative AI solutions. These startups drive innovations, bring new ideas to the market, and contribute to the industry's growth.

Asia Pacific is estimated to hold the highest CAGR during the forecast period. The region is home to some of the world’s fastest-growing economies and has witnessed significant advancements in AI technologies, including Generative AI. Asia Pacific is a hub for AI startups and innovative companies focusing on AI technology. These startups are developing cutting-edge AI solutions, including generative adversarial networks (GANs), deep learning models, and creative AI platforms. Further, Asia Pacific has a significant population and large consumer base, creating demand for AI-powered products and services.

Middle East & Africa and South America are in a growing phase owing to digital transformation initiatives across the sector, including healthcare, finance, energy, and manufacturing, all contributing to the region’s growth. Several cities in the MEA region, such as Dubai and Johannesburg, are actively pursuing smart city initiatives. It plays a role in smart city applications, including security systems and urban planning.

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List of Key Companies in Generative AI Market

Key Players Focus on Developing AI-based Tools and Services to Strengthen Competition

Companies operating in the market, including Google LLC, IBM Corporation, Adobe, AWS, Inc., Synthesis AI, and Nvidia Corporation, are launching different generative AI tools and services. Additionally, major market players are observed to make significant investments in AI-based startups and infrastructure.

List of Key Companies Profiled:


  • June 2023: Salesforce launched two generative artificial intelligence (AI) products for commerce experience and customized consumers –Commerce GPT and Marketing GPT. The Marketing GPT model leverages data from Salesforce's real-time data cloud platform to generate more innovative audience segments, personalized emails, and marketing strategies.

  • June 2023: Accenture and Microsoft are teaming up to help companies primarily transform their businesses by harnessing the power of generative AI accelerated by the cloud. It helps customers find the right way to build and extend technology in their business responsibly.

  • May 2023: SAP SE partnered with Microsoft to help customers solve their fundamental business challenges with the latest enterprise-ready innovations. This integration will enable new experiences to improve how businesses attract, retain and qualify their employees. 

  • April 2023: Amazon Web Services, Inc. launched a global generative AI accelerator for startups. The company’s Generative AI Accelerator offers access to impactful AI tools and models, machine learning stack optimization, customized go-to-market strategies, and more.

  • March 2023:  Adobe and NVIDIA have partnered to join the growth of generative AI and additional advanced creative workflows. Adobe and NVIDIA will innovate advanced AI models with new generations aiming at tight integration into the applications that significant developers and marketers use. 


An Infographic Representation of Generative AI Market

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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the industry trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 39.6% from 2024 to 2032


Value (USD Billion)























By Model

  • Generative Adversarial Networks or GANs

  • Transformer-based Models

By Industry vs Application

  • Manufacturing

    • Product Development & Design

    • Quality Control

    • Supply Chain Management

    • Customer Interactions and Support

  • Healthcare

    • Medical Simulation

    • Medical Chatbots

    • Medical Imaging

  • IT & Telecom

    • Network Optimization

    • Predictive Maintenance

    • Network Security

    • Intelligent Infrastructure

  • Marketing & Advertising

    • Targeted Advertising

    • Digital Advertising

    • Email Marketing and Campaign Analytics

  • Travel & Transportation

    • Traffic Detection

    • Traffic Flow Analysis

    • Driver Monitoring

    • Road Condition Monitoring

  • Energy & Utility

    • Energy and Supply Forecasting

    • Distribution Management

    • Storage Optimization

  • Others

By Region

  • North America (By Model, By Industry vs Application, and By Country)

    • U.S. (By Industry)

    • Canada (By Industry)

    • Mexico (By Industry)

  • South America (By Model, By Industry vs Application, and By Country)

    • Brazil (By Industry)

    • Argentina (By Industry)

    • Rest of South America

  • Europe (By Model, By Industry vs Application, and By Country)

    • U.K. (By Industry)

    • Germany (By Industry)

    • France (By Industry)

    • Italy (By Industry)

    • Spain (By Industry)

    • Russia (By Industry)

    • Benelux (By Industry)

    • Nordics (By Industry)

    • Rest of Europe

  • Middle East & Africa (By Model, By Industry vs Application, and By Country)

    • Turkey (By Industry)

    • Israel (By Industry)

    • GCC (By Industry)

    • North Africa (By Industry)

    • South Africa (By Industry)

    • Rest of the Middle East & Africa

  • Asia Pacific (By Model, By Industry vs Application, and By Country)

    • China (By Industry)

    • Japan (By Industry)

    • India (By Industry)

    • South Korea (By Industry)

    • ASEAN (By Industry)

    • Oceania (By Industry)

    • Rest of Asia Pacific

Frequently Asked Questions

According to Fortune Business Insights, the market is projected to reach USD 967.65 billion by 2032.

In 2023, the market was valued at USD 43.87 billion.

The market is projected to grow at a CAGR of 39.6% during the forecast period.

In 2023, Generative Adversarial Networks or GANs segment led the market.

Growing necessity to create a virtual world in the metaverse and modernize the workforce throughout industry driving the market

Google LLC, AWS, Inc., IBM Corporation, SAP SE, and Accenture are the top players in the market.

North America is expected to hold the highest market share.

By industry, marketing & advertising sector is expected to grow with a remarkable CAGR during the forecast period.

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