DETROIT – Two years ago, OpenAI launched ChatGPT, bringing generative AI into the global spotlight. Since then, hundreds of millions of tech-savvy users embraced generative AI as their everyday tool, turning it into the fastest-growing segment of the AI industry. While the growth over the past two years has been remarkable, that’s nothing compared to market forecast for the following years.
According to data presented by AltIndex.com, the generative AI market is set to grow tenfold and hit a $356 billion value by 2030.
Market to Grow by a CAGR of 47% by the End of a Decade
Generative AI is entering its golden era. Over the past years, tech giants like Microsoft, Google, OpenAI, Baidu, and Tencent have poured billions into this field, spurring rapid growth and attracting significant venture capital investments. But that`s just the beginning, with 2024 marking the start of five-year double-digit market growth.
According to Statista Market Insights survey, the generative AI market size has already skyrocketed by 554% in the past four years, reaching $36 billion value in 2024. Although quite impressive, these numbers pale in comparison to future market projections. Statista expects the generative AI landscape to continue growing by a CAGR of 47% in the next five years, resulting in a market value of $356 billion by the end of a decade. That means that the generative AI market size will grow by an average of $50 billion per year, more than most other segments of the AI industry.
The Statista data show all major genAI markets will see triple-digit growth in the following years. In the United States, the market is expected to grow by 891%, reaching $115 billion by 2030. China is on a similar path, with its market projected to expand by 903% to hit $31.1 billion. The United Kingdom, Germany, and Japan are also experiencing incredible growth, with their markets set to grow by around 900% each by the end of the decade.
The number of users will also skyrocket. In 2024 alone, around 315 million people used AI apps and solutions, 60 million more than last year. Tools like ChatGPT, Character.ai, DeepL, Quillbot, MidJourney, and CapCut have played a significant role in this surge. With an estimated 65 million new users adopting AI tools each year, the total number of users is expected to reach 730 million by 2030.
Generative AI Will Make 43% of Total AI Industry Market Size by 2030, Twice as Much as This Year
Although generative AI is already a major force in the AI industry, its market share will skyrocket in the future. Just two years ago, it made less than 10% of global AI revenues. That share has already doubled to nearly 20%. However, with user base, revenue, and VC investments soaring, genAI`s market share will soar to 43% by 2030, marking a fourfold increase in just eight years.
The full story and statistics can be found here: https://altindex.com/news/generate-ai-market-skyrocket
