The generative artificial intelligence market is experiencing unprecedented growth, largely driven by the development of large language models (LLM), such as OpenAI’s GPT series and Google’s BERT. These models have significantly improved natural language understanding capabilities, enabling a wide range of applications in industries such as customer service, content creation, and data analytics.
Of the nearly $15.01 billion valuation in 2023, the The size of the generative AI market in 2024 was $23.1 billionaccording to a new report from The Business Research Company. The market is predicted to continue to grow $90.61 billion by 2028growing at a compound annual growth rate (CAGR) 43.28%. The market is expected to mature further $228.3 billion in 2033.
The development of LLM technology is the main driver of generative artificial intelligence market growth
Large language models have revolutionized the field of natural language processing (NLP), enabling more accurate and human-like text generation, summarization, translation and question-answering tasks. For example, a recent study highlighted a 15% increase in efficiency for natural language understanding tasks with the latest LLMs compared to previous models. This progress highlights the potential of LLMs to transform various industries by automating and improving language processes.
Market leaders are increasingly using LLMs to automate processes
Companies are increasingly focusing on implementing large language models to automate and improve processes such as customer service, content creation, and data analytics. For example, Dynatrace launched AI observability for generative AI and LLMs, providing comprehensive security and observability for applications powered by these technologies. This development enables businesses to confidently adopt generative AI, increasing revenue, productivity and creativity.
Fast growing market segments in the generative AI market
The generative AI market is segmented as follows:
1) By component: Software, Services
2) By offer type: Image, video, speech, other offer types
3) By Technology: Generative Adversarial Networks (GANs), Transformer, Variational Auto Encoder (VAE), Diffusion Networks
4) By End User: Media & Entertainment, BFSI (Banking, Financial Services & Insurance), IT & Telecom, Healthcare, Automotive & Transportation, Other End Users
Major players in the generative AI market
The market is concentrated, the leading players represent a significant share. OpenAI leads with 10.11% market share, followed by Microsoft Corporation, Google LLC, Adobe Inc., NVIDIA Corporation, Salesforce.com, Autodesk Inc., Amazon Web Services, IBM Corporation and Oracle Financial Services Software Limited.
Known for its ChatGPT and other advanced AI models, OpenAI is at the forefront of pushing the boundaries of AI research and applications. Both Microsoft and Google are investing heavily in large language models and generative AI technologies, integrating them into their product lines to improve functionality and user experience.
Regional dominance and growth in the generative AI market
North America led the generative artificial intelligence market in 2023 with a share of 42.1% at USD 6315.2 million. Asia Pacific, Western Europe and other regions followed. Looking ahead, Asia-Pacific and North America are projected to grow the fastest, with a CAGR of 45.9% and 44.1%, respectively.
Generative AI Market Forecast and Future Trends
The generative artificial intelligence market is expected to experience significant growth in the coming years. This growth is fueled by the widespread adoption of artificial intelligence across industries, the continued development of large language models (LLM) technology, and the seamless integration of generative artificial intelligence into digital platforms. Together, these factors contribute to the expansion of the scope and applications of generative artificial intelligence, promising transformative effects in industries worldwide.
For more information, please read the Business Research Company report Generative Artificial Intelligence Global Market Opportunities and Strategies to 2033which offers an in-depth analysis of Generative Artificial Intelligence Market covering past data from 2018 to 2023 and forecast future trends from 2023 to 2028. This report covers market dynamics across various regions and major economies, highlighting the Generative Artificial Intelligence market drivers and challenges. A key element of the report is the competitive benchmarking brief, which provides a financial comparison of the leading market players, providing insight into their market positions and strategic initiatives.
About the Business Research Society
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