January 26, 9:48 am
A decade ago, it was hard to imagine companies and consumers worldwide using generative artificial intelligence daily to automate tasks, write documents, do market research, or even basic coding. However, the rise of large language models and generative AI has only started, with the market expected to hit a massive milestone in the next two years.
According to data presented by AltIndex.com, generative AI is expected to become a $100 billion industry by 2026.
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. While Chat GDP was the most popular showcase of generative artificial intelligence, other AI tools like Character.ai, DeepL, Quillbot, Midjourney, and Capcut also hit billions of visits, showing this market's enormous potential. The Statista data prove this.
Between 2020 and 2023, the market size of generative AI has skyrocketed by a whopping 690%, jumping from $5.7 billion to $44.9 billion. In fact, statistics show the market has been practically doubling for the past three years, with the annual growth rates floating between 93% and 106%.
Although Statista expects the annual growth rate to slow down in 2024, the value of the entire market will still increase by a massive 48.4% and hit $66.6 billion. The double-digit growth will continue in the following years, with generative AI reaching a $100 billion value by 2026, showing a huge 65% increase in just two years. By 2030, this figure is expected to more than double and jump over $207 billion.
In global comparison, the United States will remain the world's largest generative AI 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.
The surging demand for generative AI tools will help this market become one of the largest revenue streams in the AI industry. Statista expects generative AI to make 24% of the total market value by 2026, up from 20% this year.
AI tools like Chat GPT, Character.ai, DeepL, Quillbot, Midjourney, and Capcut have also played a major role in user growth in the AI industry. Last year, around 254 million people used AI tools, 2.5 times more than in 2020. With roughly 60 million people embracing AI solutions and tools per year, the entire market is set to reach more than half a billion users by 2027.
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The information provided by AltIndex is solely for informational purposes and not a substitute for professional financial advice. Investing in financial markets carries inherent risks, and past performance doesn't guarantee future results. It's crucial to do your research, consult with financial experts, and align your financial objectives and risk tolerance before investing. AltIndex creators and operators are not liable for any financial losses incurred from using this information. Users should exercise caution, seek professional advice, and be prepared for the risks involved in trading and investing in financial assets, only investing what they can afford to lose. The information in this application, derived from publicly available data, is believed to be reliable but may not always be accurate or current. Users should verify information independently and not solely rely on this application for financial decisions. By using AltIndex, you acknowledge that it doesn't offer financial advice and agree to consult a qualified financial advisor before making investment decisions.
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