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Generative AI Market Size, Trends, & Statistics (2024-2026)

by Josh Howarth
November 17, 2023

Generative AI is experiencing unprecedented growth.

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Searches for "Generative AI" have spiked over the last year.

New AI tools use neural networks to learn patterns from existing data in order to create new, original content.

This report will take a closer look at the following generative AI trends and statistics:

  • Generative AI Industry Highlights
  • Generative AI Market Size
  • Generative AI Market Growth Projections
  • Generative AI Adoption Statistics
  • Generative AI Funding Statistics
  • Key Players In The Generative AI Market
  • Generative AI Market Segments

Generative AI Industry Highlights

  • The global generative AI market is currently worth over $13 billion.
  • By 2025, the global generative AI market is expected to surpass $$22 billion.
  • The global generative AI market is growing at a CAGR of 27.02%.
  • The North American generative AI market holds a 41% revenue share.
  • Transformer models accounted for 42% of generative AI revenues in 2022.

Generative AI Market Size

The global generative AI market is worth an estimated $13.71 billion.

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Several factors contribute to the rapid growth of generative AI, such as the explosion of digital data availability, adoption rates (led largely by ChatGPT), and huge advancements in machine learning.

Overall, North America owns a 41% share of the generative AI market.

Sources: Precedence Research, Market.Us

Generative AI Market Growth Projections

The generative AI market is estimated to reach $22.12 billion by 2025.

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The market is expected to grow at a compound annual growth rate (CAGR) of 27.02%.

The table below shows the expected generative AI market growth:

Year Market Valuation Calculated Based on CAGR
2022 $10.79 billion*
2023 $13.71 billion
2024 $17.41 billion
2025 $22.12 billion
2026 $28.10 billion
2027 $35.69 billion
2028 $45.34 billion
2029 $57.60 billion
2030 $73.16 billion
2031 $92.94 billion
2032 $118.06 billion

*Historical figure

Sources: Precedence Research

Generative AI Adoption Statistics

Generative AI tools have already made their way into the workplace. A recent survey indicated that 29% of Gen Z, 28% of Gen X, and 27% of Millennial respondents use generative AI tools in the office.

Another survey was conducted to determine which industries are experiencing the most generative AI disruption. These industries have been impacted the most:

  • 37% of people in advertising and marketing
  • 35% of people in technology
  • 30% of people in consulting
  • 19% of people in accounting
  • 15% of people in healthcare

In 2022, large-scale generative AI adoption was 23%. Large-scale adoption of AI is expected to reach 46% in 2025.

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Sources: Statista, Statista (2), Statista (3)

Generative AI Funding Statistics

Generative AI startups raised $2.6 billion across 110 deals in 2022.

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In the Q1 2023, generative AI startups completed $1.7 billion in funding across 46 deals. Another $10.68 billion worth of deals were announced but not completed during the quarter.

13 generative AI startups have reached unicorn status with a $1 billion or higher valuation. OpenAI is the highest-valued generative AI startup at $29 billion.

Sources: TechCrunch, CB Insights, PitchBook

Key Players In The Generative AI Market

  • OpenAI
  • Midjourney
  • Hugging Face
  • Lightricks
  • Jasper
  • Glean
  • Stability AI
  • Runway
  • Descript
  • Replit
  • Anthropic
  • Inflection AI
  • Cohere
  • Synthesis AI
  • Copy AI
  • Tabnine
  • Microsoft
  • Adobe
  • IBM
  • Amazon Web Services
  • Rephrase AI

Sources: CB Insights, eWeek

Generative AI Market Segments

The generative AI market is divided into multiple segments, including auto-encoders, GANs, diffusion networks, and transformers.

According to 2022 data, transformers led the industry and generated over 42% of the revenue. Diffusion networks are growing the fastest, with a CAGR of 37.2%.

Generative AI is also divided into software and services. Software had a higher market share of 65.50% in 2022.

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The service sector is expected to grow at a faster CAGR of 36.5%.

Sources: Precedence Research

Conclusion

The generative AI industry is arguably the fastest-growing market year-over-year right now.

Faster content creation, rapid LLM improvements, and new sector adoption are key growth drivers for the generative AI market.

If you liked these statistics, check out other related topics to learn more: Booming Generative AI Companies & Startups and Top AI Trends.