The generative AI market has experienced significant growth in recent years and is projected to continue expanding rapidly. According to data from Statista, the market size has increased by 554 percent over the past four years, reaching $36 billion in 2024. Looking ahead, Statista forecasts a compound annual growth rate (CAGR) of 47 percent over the next five years, with the market expected to reach $356 billion by 2030.
This growth is driven by substantial investments from tech giants such as Microsoft, Google, OpenAI, Baidu and Tencent, which have collectively poured billions into generative AI research and development. These investments have spurred rapid advancements and attracted significant venture capital funding, further propelling the market's expansion. Regionally, major markets are anticipated to experience substantial growth. In the United States, the generative AI market is expected to grow by 891 percent, reaching $115 billion by 2030. China's market is projected to expand by 903 percent to hit $31.1 billion. Similarly, the United Kingdom, Germany and Japan are forecasted to see their markets grow by around 900 percent each by the end of the decade. The user base for generative AI tools is also expanding rapidly. In 2024, approximately 315 million people utilized AI applications and solutions, an increase of 60 million from the previous year. With an estimated 65 million new users adopting AI tools annually, the total number of users is expected to reach 730 million by 2030. As a result of this growth, generative AI's share of the total AI industry market size is projected to increase significantly. Two years ago, it accounted for less than 10 percent of global AI revenues, a share that has since doubled to nearly 20 percent. By 2030, generative AI is expected to comprise 43 percent of the total AI market, marking a fourfold increase in just eight years
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