The Global Generative AI Market is projected to grow at a CAGR of around 29.4% during the forecast period of 2023-28, cites MarkNtel Advisors in the recent research report. The market for generative AI has expanded rapidly in the past few years & is expected to do the same in the coming years. The systems that can generate content such as images, music, and text without human intervention are referred to as generative AI. Machine learning algorithms are used in these systems to learn patterns in existing data & generate new content based on those patterns. Several factors are driving the market for this technology, including its increasing adoption across industries, rising demand for personalized & unique content, and the development of new & more advanced technologies.
This technology used unsupervised learning algorithms for spam detection, image compression, and data preparation stages, such as removing noise from visual data to improve picture quality. Furthermore, supervised learning techniques are used in image categorization & medical imaging. It is also used in a variety of industries, including banking & finance, healthcare, automotive & transportation, information technology & telecommunications, media & entertainment, and others. However, this technology requires a skilled workforce & significant investment in implementation to a greater extent. As a result, large corporations are investing in this technology to create a variety of AI-based products & enter a new market.
Moreover, there are numerous applications of this technology, and they have enormous potential to transform businesses & industries by changing how they operate. AI developers frequently use this technology to create new virtual worlds & gaming environments. Using the technology in appropriate cases, such as VR games & training simulations, has the potential to dramatically expand their efficiency because it enables virtual reality (VR) creators to build an infinite library of distinct & immersive gaming worlds, paving the way for global market growth, further states the research report, “Global Generative AI Market Analysis, 2023.”
Cloud Deployment Accounts for a Significant Market Share
Based on the deployment segment, the market is further bifurcated into, Cloud & On-premises. Among them, Cloud-based solution holds the maximum share in the market of Generative AI during the historical years. This solution tends to be more cost-effective as it does not require businesses to purchase & maintain their hardware & infrastructure and can be easily scaled up or down based on business needs.
This has led to the adoption of cloud-based AI generation services by various companies as it is ideal for organizations to run their businesses efficiently. Further, the easy accessibility, cost-effectiveness, and scaling of customization of cloud-based services would increase the demand for this technology in the coming forecast years.
Generative AI Market is Dominated by North America
Geographically, North America accounts for the major share of the Global Generative AI market. This can be attributed to a variety of factors, including increased demand for pseudo-imagination & medical care, as well as an upsurge in the region's banking fraud. Furthermore, the presence of prominent market players such as Meta, Microsoft, and Google LLC, as well as other developed technology organizations, is expected to drive the growth of the North American market. These firms have made significant investments in R&D and have developed advanced technologies, capable of producing accurate & effective results.
In addition to this, the region has a well-established academic & research infrastructure, which has produced a large number of skilled professionals with expertise in artificial intelligence & related fields that are predicted to contribute to the revenue growth of the market during the forthcoming period.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including (Intel Corporation, Microsoft, IBM, Google, Synthesia, Rephrase AI, D-ID, Adobe, Amazon Web Service, Mostly AI, Geneie AI, Althea, NVIDIA) are looking forward to strengthening their market position.
Key Questions Answered in the Research Report