AI In Media & Entertainment Global Market Report 2025

AI applications in the media and entertainment sector involve leveraging technology to develop interactive augmented reality/virtual reality content and themes for various purposes, including content creation, gaming, and events. The overarching objective is to enhance the overall user experience within the industry.

The principal components of AI solutions in the media and entertainment sector encompass hardware, equipment, and associated services. In this context, ''hardware/equipment'' pertains to tools and small-scale devices utilized in the industry. Hardware refers to the tangible elements or delivery systems within a computer that store and execute instructions from software. The product offerings of AI in media and entertainment solutions encompass simulation FX, animation, modeling, matte painting, and compositing. These applications find use in various areas such as gaming, fake story detection, plagiarism detection, personalization, production planning and management, sales and marketing, talent identification, content capture, and automated sports productions.

The AI in media and entertainment market research report is one of a series of new reports from The Business Research Company that provides AI in media and entertainment market statistics, including AI in media and entertainment industry global market size, regional shares, competitors with a AI in media and entertainment market share, detailed AI in media and entertainment market segments, market trends and opportunities, and any further data you may need to thrive in the AI in media and entertainment industry. This AI in media and entertainment market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The AI in media & entertainment market size has grown exponentially in recent years. It will grow from $17.3 billion in 2024 to $21.99 billion in 2025 at a compound annual growth rate (CAGR) of 27.1%. The growth in the historic period can be attributed to initial AI-based copyright protection, content moderation tools, rise in content personalization, regional expansion and increased streaming activities, demand for game development.

The AI in media & entertainment market size is expected to see exponential growth in the next few years. It will grow to $58.61 billion in 2029 at a compound annual growth rate (CAGR) of 27.8%. The growth in the forecast period can be attributed to advanced content personalization, ai-generated content creation, expanded AR and VR applications, ai-enhanced user interaction, data-driven predictive analytics. Major trends in the forecast period include content copyright protection, initial chatbot and interaction systems, ai-enhanced editing, voice and language recognition, predictive analytics.

The surge in popularity of OTT platforms and the rise of online game streaming are anticipated to drive the growth of AI in the media and entertainment market. The number of subscribers on over-the-top (OTT) platforms is increasing due to enhanced networks, improved internet connectivity, and mobile devices capable of multimedia services. Additionally, the online gaming industry has experienced growth due to various factors, including wider access to affordable internet, availability of online games, and significant advancements in gaming development. This rising demand for OTT platforms and online gaming has led to greater use of AI in these sectors to provide immersive gaming and viewing experiences for players and audiences on virtual platforms. For instance, a media entertainment report from the U.S. indicated that in 2023, the U.S. video game industry supported over 350,000 jobs and contributed nearly $66 billion to the GDP, with 78% of households engaging with gaming devices. Worldwide, the industry generated $184 billion, with 3.2 billion gamers. Digital purchases made up 95% of this revenue, and mobile games accounted for 49%. Furthermore, the Department of Foreign Affairs and Trade, an Australian government agency, projected that by 2024, the global digital games industry would be valued at approximately $294 billion. Additionally, a press release from Netflix Inc., a U.S.-based streaming media company, reported that Netflix had 223 million paying subscribers in the fourth quarter of 2022, which increased to 231 million in the first three months of 2023. Therefore, the growing popularity of OTT platforms and online game streaming will propel AI in the media and entertainment market.

The anticipated surge in unstructured data volume is poised to drive significant growth within the AI sector of the media and entertainment industry. Unstructured data, characterized by its lack of predefined organization or data models, presents a challenge for analysis, necessitating specialized tools and methodologies for processing and extraction. In the realm of AI in media and entertainment, this unstructured data, sourced from diverse channels such as social media, reviews, and comments, serves as crucial fodder for understanding audience sentiments, reactions, and preferences. Consequently, this insight enables content customization to better align with audience expectations. For instance, as of August 2022, Komprise, a US-based provider of unstructured data management solutions, observed a substantial increase, with 87% of IT leaders placing greater emphasis on managing unstructured data growth compared to 70% in 2021. Hence, the burgeoning volume of unstructured data stands as a significant driver behind the expansion of AI applications within the media and entertainment sector.

Major companies in the AI media and entertainment market are concentrating on developing advanced technological solutions, such as AI-powered cloud services, to improve content creation, streamline production processes, and personalize viewer experiences. AI-powered cloud solutions merge cloud computing with artificial intelligence to enhance performance and optimize data processing. By leveraging machine learning and automation, these solutions assist businesses in making better decisions and fostering innovation across various sectors. For example, in September 2024, Huawei Technologies Co., Ltd., a China-based manufacturing company, introduced Huawei Cloud E3 Media Services, aimed at improving content production and distribution efficiency, especially within the media and entertainment industry. This service enhances content production efficiency and transforms content distribution. Its advanced infrastructure supports low-latency streaming and scalable resources, allowing companies to quickly adapt to traffic demands while ensuring high security and reliability for the management of sensitive data.

Prominent enterprises within the AI in media and entertainment sector are prioritizing the introduction of sophisticated solutions, notably embracing generative AI-powered recommendations, as a strategic approach to attain a competitive advantage. This technology employs advanced machine learning algorithms to curate highly personalized and pertinent content suggestions for users, drawing insights from their preferences, purchase history, and browsing behaviors. A case in point is Google LLC, a US-based technology giant, which in November 2023 unveiled Vertex AI Search. This innovative suite of functionalities harnesses generative AI capabilities to deliver advanced search and recommendation features across diverse industries, including media and entertainment, healthcare, and life sciences. Vertex AI Search empowers organizations by streamlining data ingestion, facilitating customization, and enabling the development of search engines or chatbots capable of engaging customers and furnishing insights drawn from enterprise data repositories. This signifies a strategic move by major players to leverage generative AI-powered solutions, fostering enhanced user experiences and competitive positioning within the market landscape.

In March 2022, Microsoft, a US-based IT company, acquired Nuance Communications for an undisclosed amount. Through this acquisition, Microsoft aims to improve healthcare delivery and customer engagement with advanced AI solutions while also expanding its cloud services and bolstering its competitive position in the market. Nuance Communications, a US-based software company, utilizes AI in media and entertainment to enhance voice interaction, content creation, accessibility, and personalized user experiences.

Major companies operating in the AI in media & entertainment market include Amazon.com Inc., Alphabet Inc., Microsoft Corporation, Intel Corporation, International Business Machines Corp., Oracle Corporation, NVIDIA Corporation, Ericsson AB, Dolby Laboratories Inc., Production Resource Group L.L.C., Avid Technology Inc., Blackmagic Design Pty. Ltd., Quantum Corporation, Imagine Communications Corp., Deluxe Entertainment Services Group Inc., Gravity Media Ltd., Matchroom Sport Ltd., Brightcove Inc., Veritone Inc., EVS Broadcast Equipment S.A., Gearhouse South Africa PTY. Limited, Pixellot Ltd., Synthesia Ltd., LMG LLC, Valossa Labs Ltd., Spiideo, PlaySight Interactive Ltd., Move AI, Sportway AB, GrayMeta Inc., AISportsWatch GmbH, AutomaticTV, Ross Video Ltd., Sony Corporation, Technicolor SA, Telestream LLC, Vizrt Group AS

North America was the largest region in the AI in media & entertainment market share in 2024. The regions covered in the ai in media & entertainment market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the ai in media & entertainment market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The AI in the media and entertainment market consists of revenues earned by providing target marketing, content personalization, film production, TV, games, and gambling services. The market value includes the value of related goods sold by the service provider or included within the service offering. AI in the media and entertainment market also includes sales of media operating devices that are used for broadcasting. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

AI In Media & Entertainment Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on ai in media & entertainment market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for ai in media & entertainment ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The ai in media & entertainment 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 historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Solution: Hardware/Equipment; Services
• 2) By Product: Simulation FX; Animation; Modelling; Matte Painting; Compositing
• 3) By Application: Gaming; Fake Story Detection; Plagiarism Detection; Personalization; Production Planning & Management; Sales and Marketing; Talent Identification; Content Capture; Sports Automatic Productions
• Subsegments:
• 1) By Hardware/Equipment: AI-Enabled Cameras and Imaging Devices; Streaming Devices With AI Capabilities; Smart TVs With AI Integration; Audio Equipment With AI Features
• 2) By Services: Content Creation And Editing Services; AI-Powered Recommendation Engines; Audience Analytics and Insights Services; Automated Moderation And Content Review Services; Virtual Reality And Augmented Reality Experiences
• Companies Mentioned: Amazon.com Inc.; Alphabet Inc.; Microsoft Corporation; Intel Corporation; International Business Machines Corp.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• 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,
• 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.
• Delivery format: PDF, Word and Excel Data Dashboard.