Generative AI Market Size: 2023 to 2030
Source Research:
Gen AI Software
Key Trends and Forecasts
- The generative AI market size will more than double from US$10.45 billion in 2023 to US$28.34 in 2024
- Growing at a Compound Annual Growth Rate (CAGR) of 49.7%, the generative AI market size will reach more than US$176 billion by 2030.
- From a global perspective, North America will be the largest regional market in 2024 (US$12.27 billion), driven primarily by AI innovation in the United States.
- The Asia-Pacific region, primarily China, will have the largest market size for generative AI by 2028. China will account for about two-thirds of the Asia-Pacific market in the latter years of the decade
Methodology
The generative AI software & services market valuation is built using a top-down methodology and validated using a bottom-up methodology, alongside industry interviews.
Top-Down Methodology: Assess enterprise vertical total market revenue, Information and Communication Technology (ICT) spending percentage, and estimated adoption of generative AI across different frameworks.
Bottom-Up Methodology: Using an assessment of vertical adoption of generative AI software and services to estimate the price of software/services (based on yearly subscription to leading AI platforms, e.g., H20AI, DataIKU, DataRobot, Ikigai) and the average size of companies using platforms.
Each enterprise vertical has been assessed separately to understand the scope and timeline for generative AI adoption.
Each enterprise vertical has been assessed based on various factors: new technology adoption rate, current generative AI adoption and use cases, available use cases across AI frameworks, growth of Information Technology (IT) spending, internal talent, and partnership with IT/AI leaders.
Generative AI software/services are split out by understanding how different verticals will deploy solutions in-house versus utilizing third-party services. This estimate is based on an assessment of various factors: AI talent, time to market considerations, data security/sovereignty considerations, and case studies.
Definitions
ABI Research defines Generative AI as Deep Learning (DL) models that can generate text, images, and other content based on training data and prompts
