Rising Adoption of AI and Machine Learning Drives Generative AI Market Size from US$ 90.90 Billion In 2025
Global Generative AI Market Key Takeaways
• In terms of Technology, the Deep learning segment is expected to hold around 46.8% shares in 2025. This is owing to its ability to efficiently manage large and unstructured datasets.
• By Deployment mode segment, in terms of market share, the Cloud-based segment is expected to contribute the largest share, accounting for 75.9% of the market in 2025.
• Based on Application, Content Creation segment is poised to hold around 34.7% shares in 2025, driven by high volume of content based on daily basis.
• Asia Pacific is home to the majority of generative AI, particularly in countries such as Japan, China, and South Korea. Growing population and digital infrastructure a key factors driving the market growth in APAC.
• Coherent Market Insights forecasts that North America will account for 45.1% market share in 2025. Manufacturers in North America such as OpenAI, Anthropic, Uber, and DeepMind are investing in generative AI capabilities. Presence of high-skilled workers and strong focus from both public and private will provide opportunities for growth.
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Driving Growth with AI and Machine Learning Adoption
The rising usage of AI and machine learning will drive the demand for generative AI across various industries. These models are now getting immense popularity as these models will aid in minimizing cost and maximizing production by automating the repetitive tasks. The ability of generative AI to develop meaningful insight from large dataset without human intervention will drive demand in the global market.
Ethical Concerns about the Use of Generative AI in the Art and Journalism Sector
Rising ethical concerns about the use of AI in field especially art and journalism may hinder growth in the global market. Additionally, people also encountered that the use of AI generated content also need human labor to develop model and provide a way of collaboration between human and machine. It became important to evaluate and filter the data to address these ethical issues and ensue that the use of GenAI is done responsibly.
Opportunities for Generative AI Market Growth
The rising adoption of user-friendly and accessible generative AI tools for non-technical persons will provide an opportunity for growth in the global market. Many generative systems need advanced coding and the use of machine learning that will hinder growth. But the ability to design novel generative AI products and services for well-known mobile apps and social media platforms. Generative AI helps in generating text, video, images, and audio in an engaging way for everyday businesses and consumers.
Emerging Market Trends
The increasing adoption of Artificial intelligence in e-commerce to enhance customer experience and streamline supply chain operation drive demand globally. According to Coherent Market Insights, the global artificial intelligence in e-commerce market is expected to each at US$ 37.69 billion by 2032 and is projected to exhibit a CAGR of 25.5% from 2025 to 2032.
The global artificial intelligence in retail market is experiencing increased adoption, driven by rising demand for personalized experience among consumers. Coherent Market Insights projects the artificial intelligence in retail maket to exhibit a CAGR of 32% over the forecast period, increasing from US$ 13.86 bn in 2025 to US$ 97.83 Mn by 2032.
Analyst’s View
The global Generative AI market is poised for notable growth, owing to growing demand for AI-generated content in several sectors. Organizations are well versed in the potential of using GenAI technology. These companies are now automating their repetitive task that leads to huge adoption of generative AI,” said senior analyst Suraj Bhanudas Jagpat. “The market is restricted by rising privacy and security concerns with the use of large language models.
Competitor Insights:
Leading companies in the Generative AI market include:
– Abacus.AI
– Accenture
– Adobe
– Adept
– AI21 Labs
– Amazon Web Services
– Anthropic
– Character.ai
– Cohere
– Google
– Hugging Face
– IBM
– Insilico Medicine
– Microsoft
– NVIDIA
Key Development
In February 2025, Amdocs announced the expansion of its Amdocs Experience Lab, its cutting-edge innovation facility in Dallas, Texas. This new lab has emerged with a large footprint, AI-focused hardware, and infrastructure. It has evolved to focus on generative AI and offers an innovation catalyst for new GenAI capabilities.
In January 2025, DigitalOcean, announced the launch of its new GenAI platform at the company’s developer conference. It allows customers to use the foundational model from a third-party provider to build and use the AI model within a few minutes.
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