As generative artificial intelligence (AI) transitions from research to commercialization, the software segment of the generative AI market is poised for substantial growth, projected to reach $52.2 billion by 2028 at a compound annual growth rate of 58% from 2023, according to S&P Global Market Intelligence.
Published by 451 Research, a division of S&P Global Market Intelligence, the Generative AI Market Monitor report highlights rapid adoption of generative AI technologies across diverse sectors. This surge is driven by advancements in AI models capable of creating new content such as text, images, and code, thereby enhancing operational efficiencies and fostering innovation in business applications.
Nick Patience, Managing Analyst of Data, AI, Infosecurity & Risk at S&P Global Market Intelligence, commented, “Our comprehensive market forecast for generative AI software underscores its immense potential as a transformative technology across industries. Organizations worldwide are investing resources to leverage this shift from conventional AI to generative AI.”
Key insights from the report include:
The forecasted revenue estimates have been significantly revised upwards, with 2023 projections increasing from $3.7 billion to $5.1 billion, and the 2028 outlook rising from $36 billion to $52.2 billion, reflecting accelerated market expansion. Drivers of this growth include accelerated enterprise adoption, a surge in new market entrants, and heightened focus on monetization as businesses seek tangible financial outcomes. While North America currently leads with 64% of generative AI revenue in 2023, Asia-Pacific and Europe, Middle East, and Africa are anticipated to experience faster growth, potentially reducing North America’s dominance. The distinction between market segments is blurring as multi-modal models, capable of processing and generating various types of data, become more advanced, and software providers develop solutions spanning multiple segments. Code generation is expected to experience the highest growth rate, increasing its market share from 6% in 2023 to 10% by 2028. This growth reflects strong early demand for products like GitHub Copilot and improvements in leading model performance. According to S&P Global Market Intelligence’s Voice of the Enterprise: AI & Machine Learning, Use Cases 2024 survey, respondents identified process automation (45%), customer interaction (41%), and employee training (39%) as areas where generative AI delivers significant value. For more information on the Generative AI Market Monitor & Forecast or to schedule analyst interviews, please contact [email protected].
S&P Global Market Intelligence emphasizes that its opinions, estimates, projections, and analyses are expressions of opinion as of their publication date, not factual statements or investment recommendations. They do not assess the suitability of any security and are not obligations for updates.
