Generative AI Market Set To Surpass USD1.3 Trillion by 2032
- By Paul Mah
- June 13, 2023
The generative AI market is poised to reach USD1.3 trillion over the next 10 years from just USD40 billion in 2022, according to a new report by Bloomberg Intelligence (BI).
Growth could expand at a CAGR of 42%, driven by training infrastructure in the near term. And as enterprises shift more workloads to the public cloud, technology giants such as AWS, Microsoft, Google and Nvidia could be the biggest beneficiaries.
The rise of generative AI
Beyond training infrastructure, BI says growth will gradually shift to inference devices for large language models (LLMs), digital ads, specialized software and services in the medium to long term.
Moreover, rising demand for generative AI products could add about $280 billion of new software revenue, driven by specialized assistants, new infrastructure products, and copilots that accelerate coding.
Indeed, generative AI is poised to expand its impact from less than 1% of total IT hardware, software services, ad spending, and gaming market spending to 10% by 2032.
The largest drivers of incremental revenue are:
- Generative AI infrastructure for training LLMs ($247 billion by 2032)
- Technology-driven digital ads ($192 billion)
- Specialized generative AI assistant software ($89 billion)
On the hardware side, revenue will be driven by AI servers ($132 billion), AI storage ($93 billion), computer vision AI products ($61 billion) and conversational AI devices ($108 billion).
The BI report drew attention to the potential for generative AI to benefit life sciences and education. Specialized AI-based software assistants may be particularly transformative for search and other means of summarizing information to drive these two market segments.
Generative AI isn’t all good news, however. The report cautioned that the rapid growth opportunity for generative AI across technology may displace incumbents in diverse niches in semiconductors, hardware, cloud software, IT services and ad companies.
“The world is poised to see an explosion of growth in the generative AI sector over the next ten years that promises to fundamentally change the way the technology sector operates,” says Mandeep Singh, a senior technology analyst and the lead author of the report.
“The technology is set to become an increasingly essential part of IT spending, ad spending, and cybersecurity as it develops,” he said.
The full report is only available to Bloomberg subscribers.
Paul Mah is the editor of DSAITrends. A former system administrator, programmer, and IT lecturer, he enjoys writing both code and prose. You can reach him at [email protected].
Image credit: iStockphoto/zGel
Paul Mah
Paul Mah is the editor of DSAITrends, where he report on the latest developments in data science and AI. A former system administrator, programmer, and IT lecturer, he enjoys writing both code and prose.