A decade ago, it was difficult to envisage businesses and people around the world employing generative artificial intelligence on a daily basis to automate processes, compose documents, conduct market research, or even perform basic coding.
However, the emergence of huge language models and generative AI is only beginning, with the market likely to reach a significant milestone over the next two years. According to AltIndex research, the generative AI business is anticipated to be worth $100 billion by 2026.
The publication of OpenAI’s ChatGPT was a turning moment for the global AI business. The chatbot, which became the fastest-growing app in history, gaining 100 million users in only two months, has made artificial intelligence one of the top stories of 2023.
While Chat GDP was the most prominent example of generative artificial intelligence, other AI applications such as Character.ai, DeepL, QuillBot, Midjourney, and Capcut received billions of visitors, demonstrating the market’s huge potential.
Between 2020 and 2023, the market for generative AI grew by 690%, from $5.7 billion to $44.9 billion. Statistics show that the market has nearly doubled over the last three years, with yearly growth rates ranging from 93% to 106%.
Although Statista estimates the annual growth rate to decelerate in 2024, the overall market value will rise by a whopping 48.4% to $66.6 billion.
The double-digit rise will continue in the next years, with the technology reaching a value of $100 billion by 2026, representing a massive 65% gain in just two years. By 2030, this value is predicted to more than double, surpassing $207 billion.
In worldwide comparison, the United States will continue to be the world’s largest generative AI market, with a value of $37.3 billion in 2026, or 60% higher than current year. As the world’s second largest, the Chinese market will expand even more, with its valuation increasing by 72% to $14.7 billion over the next two years.
The German generative AI market follows with a 60% two-year gain and a valuation of $4.5 billion in 2026.
The growing need for generative AI tools will propel this market to become one of the top revenue generators in the AI sector. Statista estimates generative AI to account for 24% of overall market value by 2026, up from 20% this year.
AI tools such as Chat GPT, Character.ai, DeepL, QuillBot, Midjourney, and Capcut have all contributed significantly to user growth in the AI business. Last year, approximately 254 million people utilized AI technologies, 2.5 times more than in 2020.
With around 60 million people adopting AI solutions and tools each year, the overall market is expected to exceed half a billion consumers by 2027.