According to MarketsandMarkets, the generative AI market is estimated to be $20.9 billion (£15.96bn) in 2024 and is projected to reach $136.7bn (£104.43bn) by 2030. In its recently launched Generative AI Market Global Forecast to 2030, the analyst said that significant investments from venture capital, corporate funding, and government support accelerated research and development in generative AI, fostering growth and innovation.
The opportunities in adjacent markets, such as no-code AI platform and conversational AI, are opening up new revenue prospects for the generative AI market, MarketsandMarkets said.
Generative AI refers to unsupervised and semi-supervised machine learning algorithms that enable computers to use existing content such as text, audio and video files, images, and even code to create new, organic content, such as marketing mail, social media advertisements, legal contracts, and musical symphonies. Generative AI uses deep learning to build models from a given training data set. These models are trained to recognise patterns in the data and then generate new data based on those patterns. The growth of the market can be attributed to the innovation of cloud storage, enabling easy access to data, the evolution of AI and deep learning, and the rise in content creation and creative applications.
Based on offering, this market is divided into two categories: software and services. The software segment is expected to garner a higher revenue during the forecast period and reach $109.8bn (£83.88bn) by 2030 from $17.8bn (£13.59bn) in 2024, at a CAGR of 35%. The growing importance of generative AI software among creative professionals in developing models for image and video generation, style transfer, and text-to-image synthesis to enhance customer experience is expected to drive the demand for generative AI software. The services segment is projected to witness a higher growth rate during the forecast period. The growth can be attributed to the increasing requirement for technical expertise, such as product upgradation, maintenance, training, and consulting, which plays an important role during and after the implementation of generative AI software.
Big in Japan – Generative AI market overview in Japan
MarketsandMarkets reports that Japan is witnessing rapid development in generative AI because of its strong technological foundation, thriving innovation environment, and rising need in various industries such as manufacturing, media & entertainment, healthcare, and BFSI. Japan’s focus on automation and digital transformation together with large investments from top tech firms and startups are driving the growth and adoption of generative AI. In the generative AI market, Japan is expected to generate $6.8 billion by 2030 growing at a strong CAGR of 40% from 2024 to 2030.
The promise of generative AI in Japan
Japan, a country famous for its technological prowess and innovation, is on the brink of a major transformation with the arrival of Generative AI. Japan’s AI Strategic Council has recognised the country’s strong commitment to AI technologies due to its advanced research and technology capabilities. Generative AI is set to transform the creative fields, particularly in the Arts, Design, Entertainment, Sports, and Media industries. Generative AI’s ability to reduce time and costs in idea generation and content production opens new opportunities for professionals in these fields.
It has already been integrated into creative tasks, as seen with Eiichiro Oda using AI tools like ChatGPT to help with creative hurdles in projects like One Piece. Moreover, the development of PHAEDO, the world’s initial AI-generated manga artwork utilizing Nvidia’s StyleGAN, demonstrates the capabilities of Generative AI in expanding creative possibilities and acknowledging human creators’ input. Generative AI is also making crucial advancements in scientific research and healthcare. The partnership of Mitsui and NVIDIA in developing Tokyo-1, a supercomputer powered by generative AI, showcases how the technology can enhance drug discovery and aid molecular dynamics simulations. Generative AI has the potential to optimise research procedures, cut expenses, and improve educational results, proving itself as a beneficial resource across various fields such as science, healthcare, and education.
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