11 Sep 2024 Generative AI: a market overview
Generative Artificial Intelligence refers to AI products that are capable of creating new content, such as text, images, audio, or video, by learning patterns from existing data. Today such models are widely used by both individuals and businesses. In this article, we provide an overview of the Generative AI market.
The graph below shows the projected growth of the Generative AI market (source: Statista).
In 2024, the market size is projected to be $36 billion. In the next 6 years, it is expected to grow very rapidly with a CAGR of 46.47% and reach $356 billion by 2030.
The Generative AI products can be divided into two large categories. The first one are foundational models which are pre-trained on a large scale of general data and capable of performing various general tasks such as text and image generation based on user’s instructions. The second group are generative AI platforms which are designed and trained to perform well in specific tasks.
The leading Generative AI companies are OpenAI, Microsoft, Amazon and Google. In 2023, OpenAI had a share of 39% of the Generative AI models & platforms market. The company’s major products include a large language model (LLM) ChatGPT, an image generating model Dall-E and a video-generating model Sora. Microsoft covers 30% of the Generative AI models & platforms market. The company owns a platform Azure AI that allows businesses to leverage generative AI while benefiting from high data security and model customization. Microsoft also integrates its Generative AI model Copilot into its other products such as Microsoft Office and Bing. Notably, Microsoft owns 49% of OpenAI and has agreements to use OpenAI models in its AI products. Amazon holds 8% of the Generative AI models & platforms market. Its main product is Amazon Bedrock that provides access to models from several AI companies, such as Anthropic, AI21 labs, and Cohere, and combines them with developer tool sets to help customers build and scale generative AI platforms for the specific applications. Lastly, Google has 7% of the market. It operates an LLM Gemini as well as Vertex AI cloud platform that facilitates machine learning projects.
Important trend in the Generative AI market is the growing demands for data protection. Many businesses are worried that the AI companies would use their data to train the models. Therefore, model providers offers special packages for businesses with enhanced privacy and security such as, for example, ChatGPT Enterprise. Another trend is customization. Businesses want to be able to use their own data to fine-tune the models so that they perform better in their own proprietary tasks. Products like Microsoft Azure AI or Amazon Bedrock meet this demand.
In terms of Global Generative AI by industry, the graph below provides the Global Generative AI market share by industry worldwide (Source: Fortune Business Insights).
The leading industries are IT & Telecom, manufacturing and healthcare. Many companies that want to leverage Generative AI in their business hire generative AI services companies. These companies provide consulting, integration, and implementation support for organizations aiming to integrate generative AI capabilities. Today the market of AI services is very dispersed. Accenture, the market leader, has only 6% of the market share. It is followed by IBM and Capgemini that each have 2% of the market share.
For further information, please consult the following sources:
https://www.statista.com/outlook/tmo/artificial-intelligence/worldwide#market-size
https://iot-analytics.com/leading-generative-ai-companies/