Generative AI software refers to the subset of artificial intelligence (AI) technologies that can generate new content, ideas or data that is similar but not identical to the original training data. The primary purpose of generative AI is to create realistic and novel content based on patterns and structures learned from existing data.
The generative AI software market consists of sales, by entities (organizations, sole traders or partnerships) of software based on AI that enable a range of services, such as solution customization, deployment assistance, technical support and training, along with the creation of new content, including text, images, audio and synthetic data, based on the data that they have been trained on.
The global generative AI software market was valued at $2,293.2 million in 2018 which grew till 2023 at a compound annual growth rate (CAGR) of more than 35.0%.
Increased Cloud Computing Adoption
An increase in cloud computing adoption drove the growth of the generative AI software market during historic period. Cloud computing provides a scalable infrastructure for deploying and operating generative AI software. This flexibility allowed businesses to scale AI capabilities as needed without heavy investments in on-premises infrastructure. It offered cost-effective solutions through pay-as-you-go pricing, reducing upfront hardware costs and operational expenses. Cloud providers also delivered high-performance computing power essential for tasks like natural language processing and deep learning, enhancing efficiency. For instance, in November 2021, according to survey results published by O'Reilly Media, a US-based learning company that publishes books, produces tech conferences and provides online learning platforms, 90% of businesses will use cloud computing and cloud adoption will increase in 2021, an increase from 88% in 2020. According to the survey, at least 75% of participants worked for companies that used the cloud in every area. Therefore, increased cloud computing adoption drove the growth of generative AI software during historic period.
Focus On Deployment Of Large Language Models (LLMs) To Automate Processes
Companies in the generative AI software market are focusing on the deployment of large language models (LLMs) to automate and improve various processes, such as customer service, content creation and data analysis. For example, in January 2024, Dynatrace, a US-based software company, launched AI Observability for generative AI and large language models. Dynatrace expanded its analytics and automation platform to offer comprehensive security and observability for applications powered by generative AI and LLMs. With this improvement to the Dynatrace platform, businesses throughout the globe may now confidently and affordably adopt generative AI as part of their ongoing efforts to boost revenue, productivity and creativity.
The global generative AI software market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up to 63.71% of the total market in 2023.
Generative AI Software Global Market Opportunities And Strategies To 2033 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global generative AI software market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for generative AI software? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The generative AI software market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider generative AI software market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by component, by model, by application and by end-user.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- The report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the generative AI market.
- Global Market Size And Growth- Global historic (2018-2023) and forecast (2023-2028, 2033F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2018-2023) (2023-2028, 2033F) and analysis for each segment by component, by model, by application and by end-user in the market. Historic (2018-2023) and forecast (2023-2028) and (2028-2033) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2023), historic (2018-2023) and forecast (2023-2028, 2033F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies Details on the company profiles of other major and innovative companies in the market
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for generative AI software providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Component: Software; Services
- 2) By Model: Large Language Models; Image And Video Generative Models; Multi-Modal Generative Models; Other Models
- 3) By Application: Computer Vision; Natural Language Processing; Robotics And Automation; Content Generation; Predictive Analytics; Other Applications
- 4) By End-User: Media And Entertainment; Banking, Financial Services And Insurance (BFSI); IT and Telecom; Healthcare; Automotive And Transportation; Other End-Users
- Companies Mentioned: OpenAI; Microsoft Corporation; Alphabet Iinc. (Google LLC); Amazon Web Services Inc.; Anthropic PBC
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; Italy; Spain; UK; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; generative AI software indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.