GenAI To Become A $100 Billion Industry By 2026

There is a rapid growth and growing applications of GenAI technology. GenAI models are becoming increasingly sophisticated and is able to produce more realistic and creative text, images, audio, and video content.

In global comparison, the US will remain the world's largest GenAI market, expected to hit $37.3 billion in value in 2026, or 60% more than this year.

As the second largest globally, the Chinese market will grow even more, with its valuation jumping by 72% to $14.7 billion in the next two years. The German generative AI market follows with a 60% two-year increase and a valuation of $4.5 billion by 2026, a report mentioned.

Companies across various industries are exploring GenAI for tasks like marketing, design, product development, and customer service. New use cases for GenAI are constantly being discovered, driving demand and innovation. These include personalized learning, drug discovery, and even creating art and music.

The report highlights the impact of OpenAI-owned ChatGPT, marking a pivotal moment for the global AI industry in 2023 as the fastest-growing app in history with 100 million users in just two months.

The release of OpenAI's ChatGPT marked a turning point for the global AI industry. The chatbot, which became the fastest-growing app in history with 100 million users in just two months, turned artificial intelligence into one of the biggest stories in 2023, the AltIndex.com report says.

Between 2020 to 2023, the generative AI market witnessed a remarkable surge, skyrocketing from $5.7 billion to $44.9 billion, marking an extraordinary 690% increase.

Investors are pouring money into GenAI startups and research, fuelling further development and market expansion. A report by AltIndex.com projects the GenAI market to reach $100 billion by 2026, representing a substantial 65% growth over the next two years and as per the report from Statista forecasts a slightly slower growth, with the market reaching $66.6 billion by 2024 and $120.5 billion by 2027.

Overall, the future of GenAI looks promising, emphasizing its rapid expansion, driven by technological advancements and the widespread adoption of AI applications. There are significant potential to transform various industries and create new opportunities.

S Mohini Ratna, Editor, VARINDIA