The generative AI market has witnessed a remarkable surge between 2020 and 2023, experiencing a staggering increase from $5.7 billion to $44.9 billion, marking a phenomenal growth rate of 690 percent. A recent report from AltIndex.com predicts that Generative AI (genAI) is set to become a $100 billion industry by 2026, with a substantial 65 percent growth expected in the genAI market over the next two years. The report underscores the significant impact of OpenAI’s ChatGPT, identifying it as a pivotal moment for the global AI industry in 2023, achieving the status of the fastest-growing app in history with 100 million users within just two months.
The release of OpenAI’s ChatGPT has been described as a turning point for the global AI industry, making artificial intelligence one of the major stories of 2023. The explosive growth of this chatbot, becoming the fastest-growing app in history, has propelled the AI sector into the spotlight.
The generative AI market’s exceptional growth from $5.7 billion to $44.9 billion between 2020 and 2023 represents a substantial 690 percent increase. However, projections from Statista suggest a slowdown in the annual growth rate for 2024, with the overall market projected to experience a significant but reduced 48.4 percent increase, reaching a total value of $66.6 billion.
Despite this anticipated slowdown, the report from AltIndex.com foresees robust double-digit growth continuing in the coming years, propelling the genAI market to a valuation of $100 billion by 2026. This projection indicates a significant 65 percent increase within the next two years. Looking ahead to 2030, the report envisions even more substantial growth, with the genAI market more than doubling and surpassing $207 billion.
In terms of geographical distribution, the United States is expected to maintain its position as the largest genAI market globally, with a projected value of $37.3 billion in 2026. This represents a substantial 60 percent increase compared to the current year. China, positioned as the second-largest market globally, is anticipated to experience even more significant growth, with its genAI market valuation soaring by 72 percent to reach $14.7 billion in the next two years.
The generative AI market in Germany is also forecasted to see robust growth, with a projected 60 percent increase over the next two years. By 2026, the market is expected to reach a valuation of $4.5 billion, according to the report.
Overall, the report paints a positive and optimistic outlook for the generative AI market, emphasizing its rapid expansion, driven by technological advancements and the widespread adoption of AI applications. The transformative impact of AI, particularly exemplified by ChatGPT, is positioned to shape the future trajectory of the global AI industry, with sustained growth anticipated in the years to come.
