Anticipated GenAI Software Market Growth Reaches $85 Billion by 2029, According to S&P Analysis
Stoked by AI Advancements, the Generative AI Market Set to Soar
Gear up! The generative AI software market is expected to blast off, raking in a whopping $85 billion by 2029, a remarkable 40% CAGR increase from the estimated $16 billion in 2024. However, S&P Global Market Intelligence's analysts concede that the pace of GenAI research translating into commercial opportunities remains elusive, with uncertainties looming over long-term enterprise investment and market readiness.
In media and entertainment, the spotlight zooms in on generative AI, anticipating its potential to revolutionize video creation, advertisement, content generation, and automate numerous tasks, including coding software. Up next, we break down the highlights from S&P Global Market Intelligence's projections:
- The market hits $85 billion in gold by 2029. By 2029, the market is projected to amass substantial revenue, reaching $85 billion. This forecast mirrors those issued in June 2024, with higher expectations for growth in 2026 and 2027.
- The big dogs rule the show. The top eight generative AI market heavyweights collectively made up 63% of market share in Q2 2025, marking a growth spurt since the initial Generative AI Market Monitor. Despite their dominance, the market remains fiercely competitive.
- Code generation reigns supreme. The code-generation segment stands out as the swiftest-growing sector, with a CAGR of 53% anticipated from 2024-2029. Expect code generators' revenue to surge from $2.6 million in a previous edition to $3.9 million in 2025.
- The U.S. stands tall as the majestic ruler. In 2024, 63% of revenue hailed from AI providers based in North America, with 254 generative AI vendors - a whopping 56% - headquartered in the US.
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Key Growth Factors
The generative AI market's gargantuan leap is propelled by various factors:
- Supercharged AI Techniques: The progress of deep learning approaches, such as neural networks and transformers, fortifies the market by enabling AI to generate human-like outputs. AI models like GPT and DALL-E have played a significant role in delivering sophisticated text, images, and code.
- Industry-wide Adoption: Generative AI is gaining traction across industries, powering tasks like content creation, product design, and automation. Its capacity to streamline repetitive tasks and enhance productivity is driving widespread adoption.
- Infrastructure Flourishing: Advances in computing infrastructure and access to high-quality training data have augmented generative AI's abilities to generate intricate outputs, like code.
- Personalized Solutions in Demand: The clamor for tailored AI solutions is on the rise, driving market growth, including personalized software development solutions through code generation.
Generative AI's Leading Countries
Though specific data for the generative AI code generation segment is scarce, the worldwide scope of the market suggests that the following countries, known for their robust AI research and development ecosystems, are likely pioneers:
- The U.S., driven by its bustling tech industry and hefty AI investments, is a hub for AI innovation.
- China, pushing boundaries in AI technology, is a major player in the global AI sphere.
- Europe, with contributions from countries like the UK and Germany and a focus on AI ethics and regulations, is also a significant player.
Stay tuned for more exciting developments in the world of generative AI!
- In the realm of media and entertainment, generative AI technology is predicted to transform workflows, impacting video creation, advertisement, content generation, and software coding automation.
- The global generative AI market, fueled by advances in artificial intelligence and infrastructure, is expected to reach $85 billion by 2029, with a significant growth in the code-generation segment.
- As a hub for AI innovation, the United States plays a pivotal role in the development of generative AI, with an estimated 56% of generative AI vendors headquartered within its borders.
- Other countries such as China and those in Europe, known for their robust AI research and development ecosystems, are likely to be at the forefront of generative AI developments worldwide.
