Generative AI Market to reach USD 669.50 billion by 2032 - Coherent Market Insights

The global generative AI market size is expected to be valued at USD 90.90 billion in 2025. It is forecast to touch a USD 669.50 billion valuation by 2032, exhibiting a CAGR of 33% during the forecast period (2025-2032).  

Advances in deep learning and neural models, as well as increasing investment by venture capital firms into artificial intelligence (AI) are major drivers of the market. The evolution of large language models and their improving capacity to understand human prompts is likely to drive its adoption during the forecast period.

Key Market Insights

The generative AI market is expected to scale in size during the forecast period owing to its potential business value in accelerating productivity and efficiency. Applications of generative AI across marketing, sales, banking, and healthcare are likely to increase the number of proponents of the technology.

• By technology, the deep learning segment is expected to gain 46.8% market share in 2025. Deep learning is a technique of generative AI that can produce text or images as per the request of human prompts. Deep learning models have been trained on voluminous amounts of data to improve their accuracy pertaining to basic human queries. The application of deep learning in chatbots and content creation can drive the segment growth during the forecast period.
• In terms of deployment mode, the cloud-based segment is expected to account for a 75.9% market share in 2025. It is driven by low costs of cloud solutions as well as the capability of the cloud to grant access to generative AI models from any location. Moreover, its adoption by small and medium enterprises and the pay-as-you-go subscription model in cloud services can drive the segment growth over the forecast period.
• By application, the content creation segment is expected to hold a 34.7% share of the generative AI market in 2025. The use of AI in producing bulk quantities of content and its use by writers to relieve their workload is expected to drive the segment growth throughout the forecast period.
• In terms of region, North America is expected to lead the generative AI market with a 45.1% market share in 2025. It is home to market players such as Anthropic, DeepMind, and OpenAI. Adoption of generative artificial intelligence by market leaders across industries as well as injection of capital from private firms can drive demand in the region.

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Generative AI Market Report Coverage

Market Dynamics

The generative AI market growth is driven by its demand across industries for creating content as well as fetching information from the internet easily. AI-driven solutions are driving innovation and operational efficiency through the evolution of large language models.

The expansion of cloud storage solutions and the introduction of subscription models like pay-as-you-go for AI solutions can drive the generative AI market growth. Additionally, the integration of AI capabilities across various company departments as well as the potential for AI-based software assistants can transform the global market over the forecast period.

Market Opportunities

Development of User-friendly Generative AI Tools for Non-technical Users

User-friendly generative AI tools are being developed by companies to increase their application use. Generative AI multimodal models are trained on voluminous amounts of data to produce text, images, and video.

AI agents are being developed by companies to take ownership of processes within companies and enhance their efficiency and output quality. For instance, Best Buy, a leading American multinational retailer specializing in consumer electronics and appliances, is using Google Gemini to launch a virtual assistant. The said assistant is supposed to be capable of troubleshooting customer queries, rescheduling order deliveries, and managing subscriptions.

Market Challenges

Ethical Concerns Around the Use of Gen AI Pertaining to Art and Journalism

The use of generative AI to create works of art without crediting the respected artists has posed a challenge for market leaders. Although the market players are training models based on existing data, there are pushbacks from artists and other creative authors. This is witnessed from the launch of a Ghibli style form available in ChatGPT, which caused a furore among artists due to fears of being replaced by machines and excitement among the masses.

Analyst’s View

“The generative AI market is expected to thrive from 2025 to 2032 due to the demand for AI-generated content across industries,” said Mr. Suraj Bhanudas Jagtap, a senior management consultant of Coherent Market Insights.

“North America is currently dominating the global market due to heavy investments from technology giants and startups.

However, Asia Pacific is touted to be the fastest-growing region for the generative AI market owing to an immense talent pool of AI researchers in China and India and the development of generative AI tools for healthcare, media & entertainment, e-commerce, and education sectors.

Data privacy concerns regarding the use of large language models may hamper the market growth.”

Recent Developments

Lockheed Martin, a leading defense and aerospace corporation, decided to partner with Google Public Sector in March 2025 to integrate generative AI into their AI Factory ecosystem. This move can enhance the company’s capacity to churn out scientific, aerospace, and defense applications.

Competitor Insights

• Character.ai
• Anthropic
• AI21 Labs
• Microsoft
• IBM
• Cohere
• Insilico Medicine
• Amazon Web Services
• Accenture
• Hugging Face
• NVIDIA
• Google
• Adept
• Adobe
• Abacus.AI

Market Segmentation

• Technology Insights
• Natural Language Processing (NLP)
• Deep Learning
• Machine Learning
•  Deployment Mode Insights
• Cloud-based
• On-premises
•  Application Insights
• Music Generation
• Content Generation
• Image and Video Generation
• Chatbots and Virtual Assistants
• Others

Regional Insights

• North America
• • U.S.
  • Canada
• Latin America
  • Mexico
  • Brazil
  • Argentina
  • Rest of Latin America
• Europe
  • Italy
  • Germany
  • U.K.
  • Spain
  • France
  • Russia
  • Rest of Europe
• Asia Pacific
  • South Korea
  • India
  • Japan
  • China
  • Australia
  • ASEAN
  • Rest of Asia Pacific
• Middle East
  • GCC Countries
  • Israel
  • Rest of Middle East
• Africa
  • South Africa
  • North Africa
  • Central Africa