Generative AI Software Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The generative AI software market size has grown exponentially in recent years. It will grow from $15.99 billion in 2024 to $23.37 billion in 2025 at a compound annual growth rate (CAGR) of 46.1%. The growth in the historic period can be attributed to increased computational power, advancements in deep learning algorithms, growth in demand for automation and efficiency, availability of large datasets for training, and expansion of applications across industries.

The generative AI software market size is expected to see exponential growth in the next few years. It will grow to $71.94 billion in 2029 at a compound annual growth rate (CAGR) of 32.5%. The growth in the forecast period can be attributed to the rising adoption of AI in creative industries, the emergence of new generative AI techniques, integration with virtual and augmented reality, demand for personalized content and experiences, and expansion of generative AI in healthcare and drug discovery. Major trends in the forecast period include the democratization of generative AI tools, increased focus on ethical and responsible AI development, convergence of generative AI with blockchain technology, the rise of AI-powered generative design in manufacturing, and growth of generative AI for content generation in social media and marketing.

The expansion of the gaming industry is expected to drive the growth of the generative AI software market. The gaming industry includes the development, production, distribution, and monetization of video games across various platforms such as consoles, PCs, and mobile devices. The industry is growing due to factors like increased accessibility through mobile platforms and a rising global audience that embraces gaming as both entertainment and a competitive activity. Generative AI software enhances the gaming experience by dynamically creating immersive worlds, characters, and content, adding personalized and unpredictable elements for players. For example, in April 2024, a report from UKIE, an association for UK Interactive Entertainment, revealed that the UK video game consumer market reached USD 8.46 billion (£7.82 billion) in 2023, a 4.4% increase from the adjusted 2022 figure of USD 8.11 billion (£7.49 billion). This growth demonstrates the sector’s resilience despite economic challenges. Game software sales saw a 4.1% year-over-year growth, totaling USD 5.61 billion (£5.18 billion), while mobile game sales rose by 4.5%, reaching USD 1.64 billion (£1.52 billion). Therefore, the expansion of the gaming industry is driving the growth of the generative AI software market.

Key players in the generative AI software market are concentrating on developing software with advanced technology, such as text-to-image tools, to maintain a competitive edge. Text-to-image tools are software systems or applications that utilize artificial intelligence algorithms, particularly generative models, to create images based on textual descriptions or prompts. For instance, in September 2023, OpenAI Inc. introduced an upgraded version of its text-to-image tool, DALL-E 3, which uses natural language inputs to generate images based on provided descriptions. The tool employs AI chatbots like ChatGPT to generate tailored prompts based on user ideas, ensuring a better understanding of textual prompts and creation of detailed images while adhering to legal and safety protocols to prevent the generation of explicit or discriminatory content and respect intellectual property rights.

In March 2024, Apple Inc. acquired DarwinAI Corp. for an undisclosed sum, enhancing its expertise in AI, particularly generative AI, and reinforcing its position in the AI sector. DarwinAI Corp. is a Canada-based artificial intelligence company specializing in providing generative AI software through its Generative Synthesis (GenSynth) technology.

Major companies operating in the generative AI software market report are Alphabet Inc.; Microsoft Corporation; Meta Platforms Inc.; Amazon Web Services Inc.; International Business Machines Corporation; NVIDIA Corporation; Adobe Inc.; Databricks Inc.; Anthropic Technology Ltd.; OpenAI LP; C3 AI Inc.; Hugging Face Inc.; Glean Labs Inc.; Synthesia Technologies Ltd.; Stability AI Inc.; SoluLab Inc.; Accubits Technologies Inc.; Neoteric Technology Ltd.; Tome Labs Inc.; Inflection AI Inc.; Cohere Technologies Inc.; Mostly AI GmbH; Jasper Solutions Inc.; Addepto Sp. z o.o.; Markovate Inc.

North America was the largest region in the generative AI software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative AI software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative AI software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The generative AI software market includes revenues earned by providing services such as content creation, design automation, and personalized recommendation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Generative AI software refers to a type of artificial intelligence technology specifically developed to produce new content, such as images, text, audio, or video, leveraging patterns and examples from existing data. It employs techniques including neural networks, deep learning, and machine learning algorithms to discern the underlying structure of the data and subsequently generate original outputs that mimic or closely resemble the original data.

The primary components of generative AI software consist of software and services. Software encompasses a collection of instructions and data enabling a computer or other device to execute specific tasks or functions. These software include various models such as large language models, image and video generative models, multi-modal generative models, among others, utilized across multiple applications including computer vision, natural language processing (NLP), robotics and automation, content generation, predictive analytics, among others. Generative AI software finds application across diverse sectors, primarily including media and entertainment, banking, financial services and insurance (BFSI), information technology (IT) and telecommunication, healthcare, automotive and transportation, among others.

The generative AI software market research report is one of a series of new reports that provides generative AI software market statistics, including generative AI software industry global market size, regional shares, competitors with a generative AI software market share, detailed generative AI software market segments, market trends and opportunities, and any further data you may need to thrive in the generative AI software industry. This generative AI software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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