Global Generative AI Market Research Report: Forecast (2025-2030)

Market Insights & Analysis: Global Generative AI Market (2025-30):

The Global Generative AI Market size is valued at around USD 28.9 billion in 2024 and is estimated to reach around USD 142.7 billion by 2030. Along with this, the market is anticipated to grow at a CAGR of around 31.2% during the forecast period, i.e., 2025-30. The advancements in machine learning algorithms, the availability of vast datasets, and rising processing power are the main factors propelling the revenue growth of the generative AI industry and allowing for more complex and imaginative results.

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The market is expanding because of the growing need for tailored content and automated solutions across several industries, such as marketing, healthcare, finance, and entertainment. Furthermore, substantial investment from the public and private sectors, together with growing interest in AI-driven solutions for productivity enhancement, are driving innovation and generative AI adoption. The continual advancement of computer vision and natural language processing technology further improves generative AI applications, increasing their usefulness and accessibility for companies globally.

Moreover, the market outlook for generative AI companies is being changed by way of the incorporation of modern technologies like machine learning, computer vision, and prescient, and natural language processing. Growing in sophistication, these technologies increase the powers of generative AI structures, permitting the production of greater precise, creative, and contextually appropriate material for a range of industries, from advertising & entertainment to healthcare and banking. More investment and innovation are being spurred by this transformation, which is producing a wider range of apps and better user experiences. Furthermore, the combination of big data analytics, cloud computing, and generative AI is speeding up the adoption of this technology and creating a competitive environment that prioritizes customization, efficiency, and scalability—ultimately changing consumer expectations and market dynamics.

Several factors prevent the generative AI market growth, despite the industry's promising future. These include worries about data security and privacy as relying so heavily on big datasets creates moral dilemmas about user permission and the possibility of sensitive data being misused. Furthermore, many firms may find their resources stretched due to the constant need to invest in personnel and infrastructure. The market is also confronted with regulatory obstacles, as governments struggle to create policies that guarantee ethical AI use while promoting creativity.

Moreover, companies using generative AI for marketing or generative AI for research may become unsure due to the absence of defined measures for gauging the efficacy of generative AI solutions, which might impede the growth & expansion of the generative AI industry during the forecast period according to generative AI market research report.

Global Generative AI Market Driver:

Growing Demand for Personalized & Engaging Digital Content – The generative AI requirements are primarily driven by the increasing demand for personalized and engaging digital content because of some interconnected variables. Businesses must use AI-driven solutions that can analyze user data and produce content tailored to individual interests as customers want more and more personalized experiences.

Additionally, as social media and virtual advertising have grown in popularity, competition has reached a different level, forcing companies to create greater enticing content to capture the target market. According to a HubSpot survey, around 72% of clients said they favor engaging with tailor-made content, demonstrating the importance of this sort of content in increasing user engagement and conversion rates. The best generative AI tools also expedite the process of content creation and save time & money while increasing creativity.

These developments are especially helpful to the entertainment, advertising, and e-commerce sectors as they use AI to provide personalized shopping experiences, targeted advertisements, and immersive storylines. The Global Generative AI Market size & volume is expected to reach new heights as long as businesses prioritize customization to cultivate consumer loyalty. This is because a continuously changing digital world increases the demand for innovative & creative content.

Global Generative AI Market Opportunity:

Healthcare Sector Showing Potential Growth Prospects – The potential of generative AI to change medical research and practice makes the healthcare industry a key growth opportunity for the generative AI industry. By modeling intricate chemical interactions and producing viable drug candidates, generative AI can expedite drug discovery and drastically cut down on the time and expense required to bring novel medications to market. Artificial intelligence (AI) algorithms can evaluate and improve medical imaging pictures, hence improving the accuracy of early identification of cardiac issues or cancer.

Furthermore, by evaluating patient data to create individualized treatment plans and improving care based on unique genetic and lifestyle characteristics, generative AI can support personalized medicine. As, the healthcare sector increasingly adopts AI technologies, demand for Gen AI integration in the healthcare system will also increase in the coming years, ultimately augmenting the size & volume of the Gen AI companies.

Global Generative AI Market Challenge:

Ethical & Legal Concerns Hindering Market Growth – According to generative AI experts, the primary factor responsible for the decline in the size & volume of the industry is the ethical & legal problems related to data usage and intellectual property. The utilization of extensive datasets, sometimes obtained from the internet, presents a basic concern as it gives rise to a lot of queries about copyright infringement and the moral ramifications of using copyrighted materials without authorization. Furthermore, the absence of well-defined legal frameworks further confuses the picture; at the moment, different countries have different laws governing the development and application of AI. For instance, the proposed AI Act from the European Union seeks to offer extensive control, but it also emphasizes how challenging it is to strike a balance between innovation, safety, and ethical issues.

Global Generative AI Market Trend:

Integration with Other Advanced Technologies Changing Market Dynamics – A key trend converting the outlook & dynamics of the Gen AI Market is integration with advanced technologies. Generative AI blended with the Internet of Things (IoT), blockchain, and virtual reality (VR) technology is offering lucrative opportunities to grow & flourish in different sectors. For example, generative AI is being used together with IoT devices in the healthcare industry to evaluate patient facts in real time and create customized remedy plans. VR and AI-generated content are used in gaming and entertainment to produce immersive, interactive experiences.

Furthermore, supply chain management (SCM) and finance are the sectors where blockchain and AI are being leveraged to improve data security and transparency. The integration of generative AI and different modern-day technologies is enhancing the overall performance of AI systems, spurring creativity, and starting up more sophisticated, automated solutions for a wide range of industries. Additionally, this integration places generative AI at the leading edge of the creation of cutting-edge digital ecosystems.

Global Generative AI Market (2025-30): Segmentation Analysis

The Global Generative AI Market study by MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on the Component:

• Software
• Service

The software segment dominated the market with the largest market share and is anticipated to maintain its dominant position during the forecast period. Several variables, including an increase in fraudulent activity, an overestimation of capabilities, unanticipated results, and increased worries about data privacy, might be the causes of revenue growth of this segment. Because generative AI software is getting stronger due to strong machine learning models, it is anticipated to play a big role in different businesses and sectors, such as fashion, entertainment, and transportation, ultimately accelerating generative AI market demand. For example, generative AI has been utilized by companies like Adidas and H&M to produce personalized footwear and apparel designs. Additionally, by using this technology, designers have saved time and effort by creating original designs for textiles and prints.

Moreover, during the forecast period, the service segment is anticipated to register the fastest revenue growth. The segment growth can be attributed to the increasing concerns over the protection of data, fraud detection, trading prediction, and risk factor modeling. For instance,

• In 2023, the US-based IT service management giant Amazon Web Service (AWS) unveiled Amazon Bedrock and many generative AI capabilities.

Based on Application:

• Computer Vision
• NLP
• Robotics & Automation
• Content Generation
• Others (Chatbots & Intelligent Virtual Assistants, Predictive Analysis, etc.)

The natural language processing (NLP) segment holds the largest market share and is anticipated to grow at a substantial compound annual growth rate (CAGR) during 2025-30. With many uses for text and speech synthesis, natural language processing (NLP) is a potent generative AI technology. Advances in deep learning have led to the creation of neural natural language processing (NLP) models, including Recurrent Neural Networks (RNNs), and transformer models, such as BERT and GPT-3, created by U.S.-based AI business OpenAI and researchers at Google AI Language. These models accelerated the growth of the market by greatly improving the precision and effectiveness of NLP-based generative AI applications.

Moreover, the generative AI market map shows that the computer vision segment is anticipated to witness the fastest growth rate during the forecast period. The rapid adoption of computer vision systems in the transportation and automotive sectors is the primary factor for the fastest revenue growth rate of this segment.

Based on End User:

• Media & Entertainment
• BFSI
• Healthcare
• IT & Telecom
• Others (Automotive & Transportation, Gaming, etc.)

Among these, the Media & Entertainment segment held a considerable market share in the past years & is projected to maintain its market position in the coming years as well. The increasing adoption of the generative Al to create better advertisement campaigns probably increases the mandate for this technology in the media & entertainment sector. Moreover, the usage of generative AI for applications like image and video generation, special effects, and virtual environments is also pushing the demand graph and ultimately augmenting the adoption of Gen AI platforms in the Media & Entertainment industry.

Global Generative AI Market (2025-30): Regional Projections

Geographically, the Generative AI Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

North America held the largest market share in the past few years and is anticipated to grow at the fastest pace over the future years as well. This is due to the rise in pseudo-imagination & medical care and surging banking scams. The presence of numerous key players such as Google LLC, Meta, Nvidia, OpenAI, Microsoft, and other developed technology organizations is also aiding in uplifting the market's growth graph. The North American Generative AI Market is experiencing the impact of growing content in the media and entertainment industry, the expanding use of AI in healthcare, and various other key sectors. Additionally, the abundance of data available for training generative models is contributing to the increased adoption of generative AI across the region.

As per generative AI market research, Asia-Pacific is estimated to witness the fastest CAGR during the forecast period because this region has a significant population and large consumer base, creating demand for the best generative AI tools. Moreover, the region is home to some of the world’s fastest-growing economies and has witnessed significant advancements in AI technologies, including Generative AI, thus developing a positive market outlook for future growth & expansion.

Global Generative AI Industry Recent Developments:

• October 2024: Infosys declared an expansion of its collaboration with Microsoft Corporation to drive the adoption of generative AI & Microsoft Azure globally. It is a strategic partnership that aims to help customers realize the value of their investment in technology and achieve transformative results across various industries.
• March 2024: Long-time R&D partners Adobe and NVIDIA have launched a new collaboration to harness the potential of generative AI to enhance creative workflows. Together, Adobe and NVIDIA will create a new generation of sophisticated generative AI models to deeply integrate them into the software used by the top marketers and creators worldwide.
• February 2024: The GSMA and IBM announced a new partnership to develop the GSMA Foundry Generative AI program and GSMA Advance's AI Training program, respectively, to assist the generative AI industry's adoption and skill set.
• February 2024: OpenAI unveiled Sora, a generative AI model that can convert text to video. Concerning the user's instruction and preservation of visual quality, Sora can produce videos for up to one minute. Currently, only a small number of red team members, visual artists, designers, and filmmakers have restricted access to this model. It is not yet publicly available.

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1. Global Generative AI Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
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