With hundreds of millions of tech-savvy users worldwide embracing generative AI as their everyday tool, the entire industry is set to hit a record valuation and increase its market share significantly.
According to data presented by Stocklytics.com, generative AI will make up over 40% of the total AI industry market size by 2030, or twice as much as this year.
Generative AI Industry to Grow Tenfold by the End of a Decade
It looks like generative AI will stay one of the hottest topics in the tech space for quite a while. Although 2023 was the turning year for the technology, drawing millions of users worldwide, Google searches for the keyword "generative AI" skyrocketed this year, ranging between 95 and 100 index points over the past six months.
The surging interest in generative AI and its swelling global user base have triggered an enormous influx of VC investments in this market. At the same time, major tech companies Microsoft, Google, OpenAI, Baidu, and Tencent are also heavily investing in generative AI research and development, fuelling further market growth. As a result, the generative AI market size skyrocketed by 554% in the past four years, reaching $36 billion value and making up close to 20% of the total AI industry market size in 2024.
These figures are just the beginning. According to Statista Market Forecast, the generative AI industry is poised to increase tenfold, with its market size jumping from $46 billion to $356 billion by 2030. The triple-digit growth will enable generative AI to nearly double its market share, accounting for over 40% of the total AI industry by the end of the decade.
The number of people using generative AI tools will also skyrocket in this period. While ChatGPT is still the most popular showcase of generative artificial intelligence, other AI tools like Character.ai, DeepL, Quillbot, Midjourney, and Capcut have also played a significant role in user growth in the AI industry. Statista expects close to 315 million people to use AI tools in 2024, or 60 million more than last year, and generative AI has a huge part in this massive user base. With an average of 65 million people embracing AI solutions and tools annually, the industry will reach close to 730 million users by 2030.
China Has the Fastest Growing Generative AI Industry, Market Size to Swell by 903% by 2030
Although the United States will remain the world's largest generative AI market by the end of a decade, China will outpace it in market growth. Statistics show the US market will grow by 891% in the next six years, helping its valuation skyrocket from $11.3 billion in 2024 to $115 billion in 2030. The Chinese market will see an even bigger increase, and there are many reasons for that.
The rapid growth of the Chinese generative AI industry can be attributed to significant government support, the availability of enormous data resources, substantial investment from tech giants, a strong talent pool, and a massive tech-savvy consumer base. These factors, combined with intense competition and the quick integration of AI technologies into different business models, will help the generative AI market size in China to surge by 903% and reach a value of $31.1 billion by the end of a decade. Other major generative AI markets, including the United Kingdom, Germany, and Japan, will see smaller growth, with their market valuation increasing by 900% and 881%, respectively. Statistics also show that all five major markets will outpace the global generative AI industry growth, which is expected to swell by 888% in this period.
