Generative AI - GCC | Statista Market Forecast

The market size in the Generative AI market is projected to reach US$515.00m in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 46.47%, resulting in a market volume of US$5.09bn by 2030.
In global comparison, the largest market size will be United States (US$11.66bn in 2024).

Definition:
Generative artificial intelligence (AI) is a field of artificial intelligence that focuses on creating models and systems capable of generating new content, such as images, videos, music, or text. By training on large datasets, generative AI models learn patterns and structures within the data to produce novel and realistic outputs that mimic the original data distribution. Using techniques like generative adversarial networks (GANs) or variational autoencoders (VAEs), generative AI has the potential to enhance creativity, enable data synthesis, and revolutionize various industries including art, entertainment, and content creation.

Additional Information:

The market comprises two key performance indicators: market sizes, and market sizes by industry. Market sizes are generated by the funding amount of Generative Artificial Intelligence companies. Key players of the market include companies such as Open AI, NVIDIA DeepL Learning and Google (Magenta, DeepDream).

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Applications of generative artificial intelligence to create new content, such as images, music, and text, which is indistinguishable from human-generated content.

Non-artificial intelligence applications of generative systems, such as procedural content generation in video games, which do not involve machine learning or creativity.

In recent years, the Generative AI market in the GCC region has seen intense growth, fueled by factors such as the increasing adoption of artificial intelligence, a growing awareness of its potential in the healthcare sector, and the convenience it offers in terms of online services. This robust growth can be attributed to the development of advanced algorithms and the integration of AI in various industries. With the GCC's focus on innovation and technology, this trend is expected to continue in the coming years.

Customer preferences: As the GCC and Generative AI Market within the Artificial Intelligence Market continues to grow, consumers are increasingly gravitating towards personalized and customizable AI solutions. This trend is driven by the desire for more efficient and accurate decision-making processes, as well as the need for more tailored and relevant experiences. With advancements in technology and a growing reliance on AI, consumers are seeking out more innovative and sophisticated solutions that can adapt to their specific needs and preferences.

Trends in the market: In the GCC region, there is a growing demand for Generative AI solutions in various industries, including healthcare, finance, and retail. This trend is driven by the increasing adoption of digital transformation strategies and the need for efficient and personalized solutions. Companies are investing in AI technologies to gain a competitive edge and optimize their operations. This trend is expected to continue, with the GCC AI market projected to reach $2.5 billion by 2025. As a result, industry stakeholders need to stay updated on the latest AI developments and incorporate AI solutions into their business strategies to stay relevant in the market.

Local special circumstances: In the GCC region, the Generative AI Market within the Artificial Intelligence Market is driven by the increasing investments in advanced technologies and government initiatives promoting digital transformation. The region also has a strong focus on developing smart cities, which is driving the demand for AI-powered solutions in various sectors. Additionally, the culturally diverse population in the GCC presents unique challenges and opportunities for AI companies to cater to the specific needs of different communities.

Underlying macroeconomic factors: The growth of the Generative AI market is also influenced by macroeconomic factors such as technological advancements, regulatory support, and investment in artificial intelligence infrastructure. Countries with favorable regulatory environments and strong investment in AI technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing adoption of AI across various industries, along with the rising demand for automation and efficiency, are driving the market growth in the GCC region.

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Artificial intelligence evokes images of supercomputer assistants, machines that can think creatively, and, to some, scenes from their favorite sci-fi movie. The reality, despite not being as futuristic, is not far off from this. AI refers to the ability of a computer or machine to mimic the competencies of the human mind, which often learns from previous experiences to understand and respond to language, decisions, and problems. The market for AI technologies is vast, amounting to around 200 billion U.S. dollars in 2023 and is expected to grow well beyond that to over 1.8 trillion U.S. dollars by 2030.

Artificial intelligence (AI), the technology that allows digital computers or computer-controlled robots to perform tasks more commonly associated with intelligent beings, has been leaping into the limelight following the release of a wide variety of Generative AI models in 2023. The United States, being the largest economy in the world, has a natural advantage. Although human-like androids such as those portrayed in the science fiction movie Blade Runner are still far from reality, applications of AI such as smartphone virtual assistants and industrial robots are already widespread in U.S. society. The industry’s powerful ability to improve efficiency and increase productivity has made it of strategic importance to U.S. industries and government, both of which push the U.S. lead in the AI race.