Generative AI in Product Design Market By Deployment Model (Cloud-based and On-premises), By Application, By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2024-2033

Report Overview

The Generative AI In Product Design market was valued at USD 11.4 billion in 2023. It is expected to reach USD 40.5 billion by 2033, with a CAGR of 13.9% during the forecast period from 2024 to 2033.

The surge in demand for new advanced technologies and extensive usage of various types of digital platforms are some of the main key driving factors for generative AI in the product design market. Product design is important for developing new and successful products that can meet user’s requirements in today’s generation. Many firms and businesses are discovering new ways to improvise their product design process. Currently, generative artificial intelligence in product designing and design thinking has gained popularity in the marketplace.

Generative artificial intelligence uses AI algorithms to produce innovative ideas, unique designs, and solutions. While developing product design, generative artificial intelligence can change the way how designers work. By utilizing Ml and computational power, GenAI programs design tasks, discover several chances, and boost designs based on restraints. It produces design transformation, verifies feasibility, and suggests new solutions. GenAI allows designers to overcome creative hurdles and build informed design resolutions. The technique of creating innovative designs can take a lot of time and huge cost. With the advanced GenAI technology, designers have easy access to powerful software and tools that can produce product designs easily.This advanced technology is a game-changer for designers as it can substantially decrease the time and effort needed to produce new innovations.

Due to current limitations to the new technology, this is the most beneficial in the initial stages of the innovation process to hasten to visualize and examine innovative ideas. For example, Dall-E is popularly known as the photorealistic designer which was built by OpenAI and has the potential to produce innovative images from textual descriptions.

According to an article published by MarketSplash in November 2023, Dall-E has gathered more than 1.5 million users. It can generate approx. 2 million pictures and images every day. Dall-E has anticipated collecting and processing more than 4 petabytes of information. In 2023, it was projected that Dall-E would be easily available to 80% of the worldwide population. Moreover, in March 2023, approx. 70,000 firms have implemented Dall-E for their different business requirements.

Many businesses and firms are adopting GenAI in product design as it fastens the creative and ideation process of the designers and helps them to discover multiple ideas swiftly. It also helps in improving collaborations, and customized user experiences, supports streamlining daily tasks, and helps in data-driven decision-making processes. The demand for generative AI in product design will increase due to its endless opportunities in designing any product, which will help in market expansion during the forecasted period.

Generative AI in product design can assist in various stages of the design process, from ideation and concept generation to optimization, validation, and customization. It can help designers explore different design alternatives, optimize designs for specific performance metrics, and validate designs through virtual simulations.

Key Takeaways

• Market Growth: Generative AI In Product Design was valued at USD 11.4 billion in 2023. It is expected to reach USD 40.5 billion by 2033, with a CAGR of 13.9% during the forecast period from 2024 to 2033.
• Based On Deployment Model: In 2023, cloud-based generative AI dominated product design, offering scalability, innovation, and cost-efficiency over on-premises solutions.
• Based On Application: In 2023, Design Exploration and Ideation led the Generative AI in Product Design Market, fostering AI-driven creativity and efficiency in early product development stages.
• Based On End-User: In 2023, Generative AI revolutionized product design across industries, enhancing innovation, efficiency, and sustainability, promising a future of adaptive and advanced solutions.
• Regional Dominance:The North America Nuclear Fusion Market currently commands a 41% global share.
• Growth Opportunity: The global market for Generative AI in product design, particularly in telemedicine and generative design, offers pivotal growth opportunities in 2024, driving innovation, efficiency, and customization that are essential for businesses to maintain competitiveness in a dynamic market landscape.

Driving factors

Increased Innovation: Pioneering the Evolution of Product Design

Generative AI in product design has become a catalyst for innovation within the industry. Designers are empowered with new tools to explore creative possibilities as AI algorithms evolve and computing power increases. The ability of generative AI to swiftly generate and iterate through countless design variations has significantly accelerated the innovation cycle. For instance, reported that using generative design technology has resulted in up to 80% faster design iterations than traditional methods.

Moreover, generative AI allows designers to break free from conventional design constraints by generating unconventional, out-of-the-box solutions. This fosters a culture of experimentation and risk-taking, leading to breakthrough designs that captivate consumers and drive market demand. Companies like Nike have leveraged generative design to create innovative products such as the Vaporfly shoes, which have garnered widespread acclaim for their performance-enhancing features.

Customization and Realism: Tailoring Products to Individual Preferences

One of the key driving factors behind the growth of generative AI in product design is its ability to facilitate customization and enhance realism. With generative AI algorithms, designers can easily tailor products to meet the unique preferences and requirements of individual consumers. This level of customization not only enhances user experience but also fosters brand loyalty and customer satisfaction.

Furthermore, generative AI enables designers to create hyper-realistic virtual prototypes, allowing consumers to visualize products in detail before they are manufactured. This immersive experience enhances consumer confidence and reduces the likelihood of post-purchase dissatisfaction. According to a study by Deloitte, 63% of consumers are more likely to purchase products from brands that offer personalized experiences.

The combination of customization and realism empowers brands to create products that resonate with consumers on a deeper level, driving increased sales and market share.

Market Research and Consumer Insights: Data-Driven Design Decisions

Generative AI in product design is revolutionizing how companies conduct market research and gain consumer insights. By analyzing vast amounts of data, including consumer preferences, purchasing behavior, and market trends, generative AI provides invaluable guidance to designers throughout the product development process.

Through advanced data analytics, generative AI helps identify emerging consumer trends and anticipate future market demands. This proactive approach enables companies to stay ahead of the competition by introducing innovative products that resonate with evolving consumer preferences. For instance, Adidas utilized generative design technology to create the Futurecraft 4D shoes, which were developed based on insights gathered from extensive consumer data analysis.

Restraining Factors

High Initial Investment:

The high initial investment required for implementing generative AI in product design acts as a significant barrier to entry but also signals the potential for substantial growth in the market. Companies willing to invest in this technology demonstrate a commitment to innovation and efficiency. Despite the upfront costs, the return on investment can be substantial. In product design specifically, the implementation of generative AI can lead to streamlined processes, reduced time to market trends, and ultimately cost savings. Therefore, while the high initial investment may deter some, it also underscores the market's growth potential as companies increasingly recognize the long-term benefits of adopting generative AI technology.

Lack of AI Expertise:

The shortage of AI expertise presents a challenge in the adoption and implementation of generative AI in product design. However, this constraint also fosters opportunities for growth within the market. Companies that possess the necessary expertise or invest in developing it gain a competitive edge. Moreover, as demand for AI skills continues to rise, so does the market for AI training and education services.

This growing demand for AI talent not only drives the development of specialized training programs but also creates a fertile ground for AI consulting firms and service providers. By addressing the lack of AI expertise through training initiatives and partnerships, the market for generative AI in product design can expand as more businesses acquire the skills needed to leverage this transformative technology.

Based On the Deployment Model

In 2023, Cloud-based generative AI dominated product design, offering scalability, innovation, and cost-efficiency over on-premises solutions.

In 2023, Cloud-based solutions held a dominant market position in the "Based On Deployment Model" segment of the Generative AI in the Product Design Market. This paradigm shift underscores the increasing reliance on flexible, scalable, and cost-efficient infrastructure provided by cloud technologies. Organizations, ranging from startups to multinational corporations, are leveraging cloud-based generative AI to drive innovation in product design, significantly reducing the time from conceptualization to market readiness.

The ascendancy of cloud-based generative AI platforms is attributed to several critical factors. Firstly, the cloud offers unparalleled accessibility, enabling designers and engineers to collaborate seamlessly across geographies in real time. This democratization of design processes fosters a culture of innovation, where ideas can be iterated and improved upon rapidly. Secondly, cloud platforms provide a scalable solution to computational demands. Generative AI requires significant processing power, which can be scaled up or down in the cloud according to project needs, ensuring cost-effectiveness.

Based On Application

In 2023, Design Exploration and Ideation led the Generative AI in Product Design Market, fostering AI-driven creativity and efficiency in early product development stages.

In 2023, Design Exploration and Ideation held a dominant market position in the Based Application segment of the Generative AI in Product Design Market, outpacing Design Optimization and Simulation, Customization and Personalization, and Other Applications. This prominence underscores a significant shift towards leveraging AI-driven creativity and efficiency in the conceptual phases of product development.

Generative AI technologies have revolutionized how designers and engineers approach the initial stages of product development. Design Exploration and Ideation, as the forefront application, has enabled unprecedented levels of creativity and innovation. By automating the generation of design alternatives, this application allows for a broad exploration of design spaces, significantly reducing the time and resources traditionally required for ideation. This not only accelerates the design process but also enables the identification and exploration of novel solutions that may not have been considered through conventional methods.

The adoption of Generative AI in Design Exploration and Ideation signifies a broader industry trend toward data-driven decision-making and automation in the creative process. As companies strive for differentiation and innovation in a competitive market, the ability to quickly generate and iterate on design concepts is increasingly becoming a critical success factor. Furthermore, this trend reflects a growing recognition of the value of AI in enhancing human creativity, rather than replacing it, by providing tools that augment the designer's capabilities.

Based On End-User

In 2023, Generative AI revolutionized product design across industries, enhancing innovation, efficiency, and sustainability, promising a future of adaptive and advanced solutions.

In 2023, the Generative AI in Product Design Market witnessed a significant shift, primarily led by Automotive Manufacturers, which demonstrated how Generative AI can dramatically alter the landscape of vehicle design. This innovation has not only optimized the design process for efficiency and reduced time to market but has also embraced sustainability and safety, aligning with environmental standards and consumer expectations. This pivot towards Generative AI is not confined to the automotive sector but spans Healthcare and Medical Device Manufacturers, and Construction and Architecture Firms, each harnessing the technology to innovate and enhance their operations.

The healthcare sector is witnessing a revolution in the creation of personalized medical devices, propelled by Generative AI, which is improving patient outcomes and speeding up medical innovation. Meanwhile, in construction and architecture, Generative AI is playing a crucial role in sustainable and efficient design, reshaping our built environment.

Across these diverse industries, the embrace of Generative AI signals a broader trend toward innovation, efficiency, and sustainability in product design. As this technology continues to evolve, it opens up new avenues for industries to innovate and adapt, promising a future where Generative AI is integral to solving complex design challenges and meeting the dynamic needs of the market.

Key Market Segments

Based On the Deployment Model

• Cloud-based
• On-premises

Based On Application

• Design Exploration and Ideation
• Design Optimization and Simulation
• Customization and Personalization
• Other Applications

Based On End-User

• Automotive Manufacturers
• Healthcare and Medical Device Manufacturers
• Contraction and Architecture Firms
• Other End-Users

Growth Opportunity

Emerging Paradigms in Product Innovation

As we step into 2024, the global market for Generative AI in product design is poised at a pivotal juncture, underscored by transformative growth opportunities. This technology, renowned for its ability to generate innovative design solutions through AI algorithms, is redefining the paradigms of product development. The integration of Generative AI facilitates a more efficient, creative, and cost-effective design process, thereby accelerating the path from conceptualization to market readiness.

Telemedicine: A Frontier for AI-Driven Solutions

One of the most compelling applications of Generative AI lies within the telemedicine sector. As healthcare continues to embrace digital transformation, AI-generated product designs are at the forefront, enhancing the delivery of telemedicine services. This includes the development of intuitive user interfaces and patient engagement tools, which are critical in expanding access to healthcare services. Generative AI, through its ability to analyze vast datasets, can identify emerging needs and preferences, thereby guiding the creation of telemedicine products that are not only innovative but also highly personalized and accessible.

Latest Trends

Generative Design: The Dawn of Autonomous Creativity

As we navigate through 2024, the adoption of Generative Design marks a paradigm shift in product development. This technology leverages AI to explore all possible permutations of a solution, efficiently generating design alternatives and learning from each iteration to optimize for performance, cost, and manufacturability. Its application extends from automotive to aerospace, significantly reducing the time from conceptual design to market readiness. Businesses that harness this technology are poised to achieve unprecedented levels of innovation and efficiency, securing a competitive edge in their respective sectors.

AI in UX/UI Design: Crafting Intuitive Experiences

The integration of AI into UX/UI design emerges as a transformative trend, shaping the way users interact with digital products. In 2024, AI-driven tools will be increasingly employed to analyze user data and behavior, enabling the creation of more intuitive and personalized interfaces. This trend not only enhances user satisfaction and engagement but also streamlines the design process, allowing designers to focus on strategic elements rather than routine tasks. As AI technologies evolve, we anticipate a surge in adaptive interfaces capable of dynamically adjusting to user preferences, setting new standards for user experience.

Regional Analysis

North America Accounted for the Largest Market Share of 41% in the Generative AI Product Design Market in 2023.

North America is expected to be a significant market for generative AI in product design, driven by technological advancements, a strong presence of key technology companies, and a focus on innovation. The region has a robust ecosystem of AI startups and research institutions, contributing to developing and adopting generative AI technologies. Industries such as automotive, aerospace, and consumer goods are expected to drive demand for generative AI in product design in this region.

Europe is also anticipated to be a prominent market for generative AI in product design. The region has a solid manufacturing base, particularly in the automotive and aerospace sectors. There is an increasing emphasis on sustainability and energy efficiency, which aligns with the optimization capabilities offered by generative AI. European countries have been investing in AI research and development, fostering the growth of generative AI technologies in product design.

Asia Pacific is experiencing rapid growth in the generative AI in the product design market, which has a significant demand for advanced design optimization and customization. The increasing adoption of AI technologies in various industries and a large consumer market drive the growth of generative AI in product design in this region.

Key Regions and Countries

North America

• The US
• Canada
• Rest of North America

Europe

• Germany
• France
• The UK
• Spain
• Netherlands
• Russia
• Italy
• Rest of Europe

Asia-Pacific

• China
• Japan
• Singapore
• Thailand
• South Korea
• Vietnam
• India
• New Zealand
• Rest of Asia Pacific

Latin America

• Mexico
• Brazil
• Rest of Latin America

Middle East & Africa

• Saudi Arabia
• South Africa
• UAE
• Rest of Middle East & Africa

Key Players Analysis

In the rapidly evolving landscape of generative AI in product design, several key players are positioning themselves as leaders, driving innovation, and shaping the future of the industry. Autodesk Inc., Dassault Systemes SE, Siemens PLM Software, Ansys Inc., Altair Engineering Inc., Unity Technologies, PTC Inc., and Granta Design, alongside other emerging entities, are at the forefront of this transformative wave.

Autodesk Inc. and Dassault Systemes SE are leveraging their longstanding expertise in CAD and PLM software to integrate generative AI capabilities, offering designers unprecedented tools that optimize efficiency and innovation. Their solutions are increasingly cloud-based, facilitating collaboration and accessibility. Siemens PLM Software’s strength lies in its holistic approach, seamlessly integrating generative AI into the digital twin technology, thereby enhancing the simulation, testing, and optimization of product designs.

Ansys Inc. and Altair Engineering Inc. are carving niches in simulation-driven design, employing generative AI to push the boundaries of what is possible in engineering challenges, reducing time-to-market, and improving product performance. Unity Technologies is redefining the interface of design through its real-time 3D development platform, making generative AI more accessible to designers and developers alike.

PTC Inc. and Granta Design are emphasizing the sustainability aspect, using generative AI to create designs that not only meet the aesthetic and functional requirements but also address environmental sustainability by optimizing material use and reducing waste.

Top Key Players in Generative AI in Product Design Market

• Autodesk Inc.
• Dassault Systemes SE
• Siemens PLM Software
• Ansys Inc.
• Altair Engineering Inc.
• Unity Technologies
• PTC Inc.
• Granta Design
• Other Key Players

Recent Development

• In April 2024, MIT Technology Review Insights reported that manufacturers are keen on leveraging AI for enhanced innovation and operational efficiency but face challenges in talent, skills, data quality, and integration for scaling AI applications.
• In March 2024, Apple initiated discussions with Baidu, considering a partnership to integrate Baidu's generative AI technology into Apple devices in China, aiming to bolster AI capabilities and address regulatory challenges. This potential collaboration reflects Apple's strategic move to strengthen its foothold in China's competitive market and meet the rising demand for AI-driven products.
• In January 2024, Accenture announced its agreement to acquire Work & Co on , aiming to enhance its digital product and experience transformation capabilities globally through Accenture Song, its tech-powered creative group.

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