Generative AI in Video Market By Component (Software, Services), By Deployment Mode (On-Premises, Cloud), By Application (Video Editing and Post-Production, Content Creation and Enhancement, Virtual Production and Simulation, Others), By End-User (Media and Entertainment, Advertising and Marketing, Gaming, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Generative AI in Video Market was valued at USD 252.4 Mn in 2023. It is expected to reach USD 3726.5 Mn by 2033, with a CAGR of 31.8% during the forecast period from 2024 to 2033.

The Generative AI in Video Market encompasses the use of advanced AI technologies to create, edit, and enhance video content. This market includes AI-driven tools and platforms that automate video production processes, generate realistic visual effects, and personalize content. By leveraging machine learning algorithms, generative AI can significantly streamline video workflows, reduce production time, and improve the quality of visual content. The integration of generative AI in video production is transforming the industry, offering innovative solutions that enhance creativity and efficiency. The Generative AI in Video Market is witnessing substantial growth, driven by the integration of advanced AI technologies in video production and editing processes. This market is characterized by AI-driven tools that automate various aspects of video creation, from editing to visual effects, significantly enhancing productivity and creativity. The incorporation of generative AI into video editing software, such as Adobe Premiere Pro, has improved editing workflows by 35%, highlighting the profound impact of AI on boosting productivity in the video industry.

In addition to enhancing workflows, generative AI is revolutionizing content creation. As of July 2024, 92% of users reported that Runway's video model was highly effective for content creation, demonstrating the significant role of AI in the video market. This widespread adoption of AI tools underscores their effectiveness in delivering high-quality, engaging video content. AI-driven platforms enable creators to generate realistic visual effects and personalized content, reducing the time and expertise required for complex video production tasks.

The continuous advancements in generative AI technologies are expected to drive further innovations in the video market. These technologies offer powerful tools that enhance the creative process, streamline workflows, and improve the overall quality of video content. As the adoption of generative AI in video production continues to rise, the market is poised for significant expansion, providing transformative solutions that redefine the future of video creation and editing. This market's growth is set to offer substantial benefits to businesses and content creators, fostering a more dynamic and efficient video production landscape.

Key Takeaways

• Market Value: The Global Generative AI in Video Market was valued at USD 252.4 Mn in 2023. It is expected to reach USD 3726.5 Mn by 2033, with a CAGR of 31.8% during the forecast period from 2024 to 2033.
• By Component: Software makes up 65% of the market, offering advanced tools for video creation and editing.
• By Deployment Mode: Cloud deployment leads with 70%, providing flexibility and scalability for video production.
• By Application: Content Creation and Enhancement utilizes 35%, enabling high-quality, dynamic video content.
• By End-User: Media and Entertainment dominate with 40%, leveraging AI to enhance production quality and audience engagement.
• Regional Dominance: North America holds a 45% market share, driven by high demand for advanced media technologies.
• Growth Opportunity: Developing AI tools for automated video editing and real-time content personalization can drive significant growth in the media and entertainment industry.

Driving factors

Growing Interest in Digital and AI-Generated Art

The generative AI in video market is significantly driven by the growing interest in digital and AI-generated art. With the rise of digital platforms and the increasing consumption of video content, there is a heightened demand for innovative and visually captivating media. Generative AI enables the creation of unique and complex video art that would be difficult or impossible to produce manually. This technology appeals to a wide audience, including content creators, advertisers, and consumers who seek novel and engaging experiences.

The global digital art market, which includes AI-generated art, is projected to grow at a significant rate, reflecting the increasing acceptance and popularity of AI-driven creativity. This trend not only enhances the artistic landscape but also drives the adoption of generative AI technologies in video production, contributing to market growth.

Advancements in AI and Machine Learning Techniques

Advancements in AI and machine learning techniques are pivotal to the growth of the generative AI in video market. Recent developments in deep learning, neural networks, and natural language processing have significantly improved the capabilities of generative AI. These advancements allow for more sophisticated and realistic video content generation, from dynamic animations to realistic simulations.

AI algorithms can now learn from vast amounts of data, enabling them to create high-quality video content with minimal human intervention. The continuous improvement in AI technologies enhances the efficiency and quality of video production, making it more accessible and cost-effective for creators and businesses. As AI techniques continue to evolve, they will further drive innovation and expansion in the generative AI in video market.

Increasing Demand for Unique and Customizable Art Pieces

The increasing demand for unique and customizable art pieces is another crucial factor contributing to the growth of the generative AI in video market. Consumers and businesses alike are seeking personalized and distinctive video content that stands out in a crowded digital landscape. Generative AI enables the creation of bespoke video art tailored to individual preferences and specifications. This customization can be applied in various contexts, from personalized marketing campaigns to unique artistic expressions.

AI-driven video tools can generate personalized advertisements that resonate more deeply with target audiences, leading to higher engagement and conversion rates. The ability to produce unique and customizable video content is a significant driver of demand, encouraging more creators and organizations to adopt generative AI technologies.

Restraining Factors

Concerns Over Originality and Intellectual Property Rights

Concerns over originality and intellectual property rights present significant challenges to the growth of the generative AI in video market. As AI-generated content becomes more prevalent, questions regarding the originality of the work and ownership rights emerge. Intellectual property laws have not yet fully caught up with the advancements in AI, leading to ambiguities around the ownership of AI-created content.

Artists, creators, and businesses may hesitate to adopt generative AI technologies due to fears of legal disputes and challenges in protecting their intellectual property. This uncertainty can hinder the widespread acceptance and integration of AI-driven video production tools, slowing down market growth. Ensuring clear guidelines and legal frameworks for AI-generated content is crucial to addressing these concerns and fostering a more supportive environment for innovation.

High Computational Costs

High computational costs are another major retraining factor for the generative AI in video market. The creation and rendering of high-quality AI-generated video content require significant computational power and resources. Advanced hardware, such as GPUs and cloud infrastructure service, are often necessary to handle the intensive processing demands of AI algorithms.

These resources come with substantial costs, which can be prohibitive for small and medium-sized enterprises (SMEs) and independent creators. Additionally, ongoing operational expenses, including energy consumption and maintenance, further add to the financial burden. The high cost of implementing and maintaining generative AI systems can limit accessibility, particularly for those with limited budgets, thus slowing market penetration and adoption.

By Component

Software held a dominant market position in the By Component segment of the Generative AI in Video Market, capturing 65% share.

In 2023, Software held a dominant market position in the By Component segment of the Generative AI in Video Market, capturing more than a 65% share. The software's dominance is driven by its critical role in enabling advanced video creation and enhancement capabilities. Generative AI software tools are widely adopted for their ability to automate and optimize various aspects of video production, including editing, special effects, animation, and content creation.

Services also play an essential role, encompassing implementation, training, and support services that facilitate the deployment and use of generative AI software. However, the market share for services is smaller compared to software due to the one-time or less frequent nature of service engagements, whereas software solutions provide ongoing value.

By Deployment Mode

In 2023, Cloud held a dominant market position in the By Deployment Mode segment of the Generative AI in Video Market, capturing more than a 70% share.

In 2023, Cloud deployment held a dominant market position in the By Deployment Mode segment of the Generative AI in Video Market, capturing more than a 70% share. The preference for cloud-based solutions is driven by their scalability, flexibility, and cost-efficiency. Cloud platforms allow video creators to access advanced AI tools without substantial upfront investments in hardware, providing significant benefits in terms of storage, processing power, and collaboration capabilities.

On-Premises solutions, while still relevant, hold a smaller market share. These solutions are preferred by organizations with stringent data security requirements or limited internet connectivity. On-premises deployments offer greater control over data and infrastructure but involve higher costs and maintenance efforts compared to cloud-based solutions.

By Application

Content Creation and Enhancement held a dominant market position in the By Application segment of the Generative AI in Video Market, capturing 35% share.

In 2023, Content Creation and Enhancement held a dominant market position in the By Application segment of the Generative AI in Video Market, capturing more than a 35% share. The application of generative AI in content creation and enhancement is pivotal for producing high-quality, engaging video content. AI tools are utilized to generate new content, enhance existing footage, and add sophisticated effects that elevate the overall production value.

Video Editing and Post-Production also represent a critical application area, leveraging AI to streamline the editing process, add effects, and refine final outputs. While essential, this segment holds a smaller market share compared to content creation and enhancement due to its more specific focus on the editing stage of video production.

Virtual Production and Simulation use generative AI to create realistic virtual environments and simulate complex scenarios, which are increasingly popular in film production and interactive media. Although growing rapidly, this segment has a smaller market share relative to the broader content creation and enhancement applications.

Others include various niche applications such as automated transcription, captioning, and metadata generation, which collectively hold a smaller market share due to their specialized nature.

By End-User

Media and Entertainment held a dominant market position in the By End-User segment of the Generative AI in Video Market, capturing 40% share.

In 2023, Media and Entertainment held a dominant market position in the By End-User segment of the Generative AI in Video Market, capturing more than a 40% share. The media and entertainment industry heavily relies on generative AI to innovate and streamline video production processes, enhance visual effects, and create immersive content experiences. AI-driven tools are widely adopted for their ability to automate complex tasks, improve production quality, and enable new forms of interactive and engaging media.

Advertising and Marketing also represent a substantial segment, utilizing generative AI to create personalized and impactful video advertisements that resonate with target audiences. The application of AI in creating dynamic and data-driven marketing content is crucial, though the market share is smaller compared to media and entertainment due to the narrower focus of the advertising segment.

Gaming leverages generative AI to enhance game design, create realistic animations, and develop interactive environments. This segment is growing rapidly, with AI playing a crucial role in cloud gaming and mobile gaming experiences. However, its market share is modest compared to the broader media and entertainment sector.

Others include educational institutions, corporate training, and healthcare, where AI-generated video content is used for various purposes such as training, instructional videos, and telemedicine.

Key Market Segments

By Component

• Software
• Services

By Deployment Mode

• On-Premises
• Cloud

By Application

• Video Editing and Post-Production
• Content Creation and Enhancement
• Virtual Production and Simulation
• Other Applications

By End-User

• Media and Entertainment
• Advertising and Marketing
• Gaming
• Other End-Users

Growth Opportunity

Development of AI Tools for Collaborative Art Creation

The development of AI tools for collaborative art creation presents a significant growth opportunity for the generative AI in video market in 2024. Collaborative AI tools enable multiple creators to work together seamlessly, combining their artistic visions and styles to produce unique and innovative video content.

These tools can facilitate real-time collaboration, allowing artists to merge traditional techniques with AI-driven enhancements. This approach not only expands the creative possibilities but also fosters a more inclusive and diverse artistic community. For instance, platforms that support collaborative AI-driven video creation can attract a broad range of users, from professional artists to hobbyists, driving increased engagement and market growth.

Expansion in the Digital Art Market and NFT Space

The expansion of the digital art market and the Non-Fungible Token (NFT) space offers another promising avenue for the generative AI in video market. NFTs have revolutionized the digital art world by providing a way to authenticate and monetize digital creations. AI-generated video art can be minted as NFTs, offering creators new revenue streams and enhancing the value of their work.

The global NFT market has seen exponential growth, with total sales reaching billions of dollars in recent years. This trend is expected to continue, providing a lucrative opportunity for AI-generated video content. As more artists and collectors embrace digital art and NFTs, the demand for generative AI tools will increase, driving market expansion.

Latest Trends

Use of Generative AI for Creating Immersive and Interactive Art Installations

In 2024, a key trend in the generative AI in video market is the use of AI to create immersive and interactive art installations. These installations leverage generative AI to produce dynamic and responsive environments that engage viewers in unique ways. AI-driven art installations can adapt in real-time to audience interactions, creating personalized and evolving experiences. For instance, generative AI can be used to develop video projections that change based on viewers’ movements or inputs, providing a deeply immersive experience.

This trend not only enhances the appeal of public art and exhibitions but also opens up new avenues for artistic expression and audience engagement. By making art more interactive and personalized, generative AI installations can attract larger audiences and create memorable experiences, driving growth in the market.

Integration with Virtual Reality for Creating New Forms of Artistic Expression

Another significant trend in 2024 is the integration of generative AI with virtual reality (VR) to create new forms of artistic expression. VR technology, combined with generative AI, allows artists to develop fully immersive digital environments where users can experience and interact with art in unprecedented ways. This integration enables the creation of virtual art galleries, interactive storytelling experiences, and immersive performances that transcend traditional boundaries.

The global VR market is rapidly expanding, and its synergy with AI-generated video art offers exciting possibilities for innovation. Artists can use VR to craft experiences that are not only visually stunning but also deeply engaging and interactive, attracting a diverse audience and driving market expansion.

Regional Analysis

North America dominated the Generative AI in Video Market, capturing 45% market share.

In 2023, North America dominated the Generative AI in Video Market, capturing a significant market share of around 45%. This dominance is driven by the high concentration of leading video streaming platforms, production studios, and tech companies in the region. Generative AI is widely used for video content creation, editing, and enhancement, catering to the growing demand for high-quality and engaging video content. The presence of a robust digital infrastructure and significant investments in AI research and development further support market growth in North America.

Europe holds a notable share in the generative AI in video market, with countries like the UK, Germany, and France being key contributors. The region benefits from a strong media and entertainment industry and increasing adoption of AI technologies for video production and distribution.

Asia Pacific is experiencing rapid growth, driven by the expanding digital media landscape and increasing consumption of video content. Countries such as China, Japan, and India are leading the market, with significant investments in AI technologies for video applications.

Middle East & Africa show promising potential, with a growing focus on digital content creation and the adoption of AI technologies in the media industry. The market is supported by increasing internet penetration and the rising popularity of video streaming services.

Latin America is emerging as a growing market for generative AI in video, with Brazil and Mexico leading the demand. The region benefits from increasing digitalization and investments in AI-driven video production and distribution solutions.

Key Regions and Countries

North America

• US
• Canada
• Mexico

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

The Generative AI in Video Market in 2024 is set for substantial growth, driven by key players such as NVIDIA Corporation, Adobe Inc., DeepMind, DALL-E by OpenAI, Synthesia Limited, Meta, Runway, DeepBrain AI, and D-ID AI Video. NVIDIA Corporation's AI-powered video technologies enable high-quality video generation and editing, pushing the boundaries of visual content creation. Adobe Inc. integrates generative AI into its video editing software, providing creators with powerful tools to enhance their workflows and creativity.

DeepMind's cutting-edge AI research contributes to advanced video generation techniques, enabling the creation of realistic and innovative video content. DALL-E by OpenAI revolutionizes video generation with its ability to create detailed and imaginative scenes from textual descriptions. Synthesia Limited focuses on AI-driven video synthesis, offering solutions for personalized and automated video content creation.

Meta leverages its extensive AI capabilities to enhance video content on its platforms, improving user engagement and experience. Runway provides creative tools that utilize generative AI for video editing and effects, empowering creators with advanced capabilities. DeepBrain AI specializes in AI-powered video synthesis, offering solutions for various industries, from entertainment to education. D-ID AI Video focuses on creating realistic and interactive video content using generative AI, enhancing user experience and engagement.

Other key players in the market are also driving innovation, making the Generative AI in Video Market highly competitive and dynamic in 2024. The integration of AI in video production is set to revolutionize the industry, improving efficiency, creativity, and accessibility.

Market Key Players

• NVIDIA Corporation
• Adobe Inc.
• DeepMind
• DALL-E by OpenAI
• Synthesia Limited
• Meta
• Runway
• DeepBrain AI
• D-ID AI Video
• Other Key Players

Recent Development

• In January 2024, NVIDIA Corporation introduced an AI-based tool for generating high-quality video content from text descriptions. This tool aims to revolutionize content creation by making it faster and more accessible.
• In May 2024, DeepMind developed an advanced AI model that can generate realistic animations from simple sketches. This model aims to streamline the animation process and enhance creativity for artists and animators.

Report Scope