Text-to-Video Artificial Intelligence (AI) - Global Strategic Business Report

The global market for Text-to-Video Artificial Intelligence (AI) was valued at US$222.3 Million in 2024 and is projected to reach US$1.4 Billion by 2030, growing at a CAGR of 35.1% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Text-to-Video Artificial Intelligence (AI) market.

Global Text-to-Video Artificial Intelligence (AI) Market - Key Trends & Drivers Summarized

Inside the Rise of Text-to-Video AI Technology

Text-to-video Artificial Intelligence (AI) is revolutionizing content creation by transforming written prompts into dynamic, realistic video outputs - automatically and at scale. This emerging technology merges natural language processing (NLP), generative adversarial networks (GANs), and multimodal AI to produce short-form and long-form videos from text inputs without the need for cameras, actors, or post-production editing. Text-to-video AI is gaining traction across industries including media & entertainment, education, marketing, advertising, gaming, and enterprise communications, where demand for personalized, scalable, and cost-effective video content is skyrocketing.

A significant trend in the market is the shift toward multimodal AI systems that understand and synthesize multiple data types - text, image, audio, and motion - to generate contextually accurate videos. Large language models (LLMs), when integrated with generative visual models, enable users to describe scenes, actions, or narratives, and have AI render them as coherent video sequences. This is complemented by advancements in video diffusion models, which increase visual realism and temporal continuity. Furthermore, platforms are now offering text-to-video generation in real time, supporting interactive applications such as personalized marketing, virtual training simulations, and immersive storytelling - all without requiring technical expertise from users.

How Is Text-to-Video AI Transforming Creative Industries and Content Workflows?

Text-to-video AI is redefining the creative process by removing traditional barriers to video production - such as budget, equipment, or technical skills. For media companies, it enables the automatic generation of news recaps, trailers, or content previews based on article summaries or scripts. Marketing and advertising agencies are using AI to produce personalized video ads tailored to individual customer segments, with localized language, imagery, and themes - all generated from a simple text brief. In education, instructors and platforms can transform learning materials into engaging video lectures or animated explainers, enhancing learner engagement and knowledge retention.

Content creators and influencers are leveraging text-to-video tools to scale their output across multiple platforms without the need for complex editing software. AI-generated avatars and voice synthesis further allow creators to personalize narration and appearances within videos, making it possible to build entire branded experiences programmatically. In the gaming industry, text-to-video AI is being explored for rapid prototyping, cinematic cutscene generation, and even NPC dialogue animation - reducing creative cycles and enhancing narrative depth. These capabilities are not only streamlining content workflows but also democratizing access to high-quality video production.

Where Else Is Text-to-Video AI Finding Strategic Applications?

Beyond content creation, text-to-video AI is being adopted in enterprise communications, e-learning, customer service, and corporate training. Businesses are using AI to convert policy documents, training manuals, and HR guidelines into engaging, interactive video content that’s easier to consume and retain. In healthcare, providers and health-tech companies are using AI-generated videos to explain medical conditions, procedures, and treatment options in layman-friendly formats - helping improve patient education and compliance. Public sector organizations are experimenting with text-to-video AI to scale public information campaigns, crisis response content, and citizen education materials.

Text-to-video AI is also entering the metaverse and virtual reality (VR) environments, where it’s used to generate immersive storyboards and simulate complex social or professional interactions. In legal and compliance sectors, AI-generated videos can summarize legal jargon into visually accessible formats, improving comprehension across non-technical stakeholders. Additionally, the ability to rapidly generate video documentation from textual logs, customer chats, or meeting transcripts is being explored to augment business intelligence and internal knowledge-sharing systems. As user expectations shift toward more visual and immersive digital experiences, the demand for AI-generated video content is expanding across both consumer and enterprise applications.

What’s Fueling the Growth in the Text-to-Video AI Market?

The growth in the text-to-video AI market is driven by several factors related to generative model innovation, enterprise demand for scalable content, and the global pivot toward visual-first communication. One of the most critical drivers is the evolution of foundational models like transformers and diffusion-based architectures, which allow for high-resolution, temporally coherent video generation from textual descriptions. These models are trained on massive datasets of paired text-video content, enabling increasingly accurate semantic interpretation and visual synthesis.

The rising need for personalized and localized content at scale - particularly in marketing, e-commerce, and digital learning - is prompting organizations to invest in text-to-video tools that can dynamically generate videos in multiple languages, formats, and tones. The proliferation of low-code/no-code AI platforms is also democratizing access to video creation tools, enabling SMEs and individuals to use enterprise-grade capabilities without technical backgrounds. In parallel, cost and time efficiencies are a major growth driver: AI-generated videos eliminate the need for cameras, actors, studios, and editors, reducing production timelines from weeks to hours.

Another significant factor is the increased engagement and conversion rates associated with video content compared to text or images alone, pushing businesses to produce more video assets as part of their digital strategies. The integration of voice cloning, emotion-driven avatars, and motion dynamics is making these videos more lifelike, customizable, and interactive - enhancing their effectiveness across industries. Finally, as digital ecosystems such as the metaverse, AR/VR platforms, and smart assistants continue to evolve, text-to-video AI is becoming foundational to content automation, virtual experience design, and real-time human-computer interaction. These forces collectively are propelling the market forward, positioning text-to-video AI as a disruptive and scalable solution for the future of digital communication.

Report Scope

The report analyzes the Text-to-Video Artificial Intelligence (AI) market, presented in terms of units. The analysis covers the key segments and geographic regions outlined below.

Segments: Component (Software, Services); Vertical (Education, Media & Entertainment, Fashion & Beauty, Travel & Hospitality, Food & Beverage, Retail & eCommerce, Other Verticals).

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Software segment, which is expected to reach US$895.3 Million by 2030 with a CAGR of a 33.2%. The Services segment is also set to grow at 39.7% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, valued at $61.9 Million in 2024, and China, forecasted to grow at an impressive 33.3% CAGR to reach $198.6 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Text-to-Video Artificial Intelligence (AI) Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Text-to-Video Artificial Intelligence (AI) Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Text-to-Video Artificial Intelligence (AI) Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Animaker, Elai.io, Hour One Ltd., InVideo, Kapwing and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 23 companies featured in this Text-to-Video Artificial Intelligence (AI) market report include:

• Animaker
• Elai.io
• Hour One Ltd.
• InVideo
• Kapwing
• PicsArt
• Raw Shorts
• Wave.video

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What’s Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry