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Generative AI Market Size - By Data Modality, By Offering, By Deployment, By Technology, By Application, By End-Use Growth Forecast, 2026 – 2035
Report ID: GMI6094
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Published Date: January 2026
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Report Format: PDF
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Authors: Preeti Wadhwani, Satyam Jaiswal
Premium Report Details
Base Year: 2025
Companies covered: 28
Tables & Figures: 170
Countries covered: 24
Pages: 260
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Generative AI Market
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Generative AI Market Size
The global generative AI market was valued at USD 53.7 billion in 2025. The market is expected to grow from USD 83.3 billion in 2026 to USD 988.4 billion in 2035 at a CAGR of 31.6%, according to latest report published by Global Market Insights Inc.
Enterprises everywhere are turning to generative AI’s unique capability to help streamline workflows, accelerate time-to-decision and eliminate manual work across business segments. For instance, in December 2025, Cognizant, TCS, Infosys and Wipro undertook to deploy more than 200,000 Microsoft Copilot licenses combined illustrating the significant enterprise market demand for AI-enabled automation work at scale.
Continued progress in computation infrastructures, dedicated AI chips and model structures lead generative AI to a higher level of performance and scale. “With faster processing times, increased efficiency and more sophisticated algorithms, businesses can run increasingly complex AI applications, manipulate larger data sets and develop new products across sectors fastening adoption rates and widening the generative AI market.”
Increased volumes of structured and unstructured digital data increase the training and affordances of generative AI which can produce richer outputs and industry-specific solutions. For example, global companies increasingly employ AI to produce personalized content, marketing insights and data-driven recommendations at various points across customer engagements and operational analytics to drive more profound value from AI.
Strategic investments and partnerships between AI leaders and enterprise software providers are accelerating market growth. These collaborations enable enterprises to integrate generative AI into core business workflows, improve productivity, and unlock new use cases across analytics, customer service, and software development, thereby expanding adoption and driving sustained market momentum.
For instance, on October 14, 2025, Salesforce expanded its partnerships with OpenAI and Anthropic, integrating advanced models like GPT-5 and Claude into its Agent force 360 platform to enhance enterprise workflows, analytics, and AI-powered automation.
23.6% market share
Generative AI Market Trends
Generative AI is evolving from text-only systems to multimodal models which can understand and generate text, image and audio in a unified workflow. This advancement will enable richer content creation and improve analytical capabilities. Generative AI will move beyond just simple chat bots, and expand to being used for content creation, marketing and decision-support applications in enterprises.
For instance, Google released Gemini 2.5 flash image in august 2025. This release introduced advanced multimodal capabilities for creating and editing images within the Gemini generative AI family of models. The Gemini 2.5 flash image model will create detailed images based on user's natural language prompts and include more rich visual workflows. This will open up greater enterprise and creative applications of the Gemini 2.5 flash image model.
Enterprises are growing to invest in customized generative AI models that are tailored to their industry data and workflows, and these models provide more accurate, compliant solutions for vertical-usage cases, such as legal, medical and industrial contexts. This strong trend allows enterprises to differentiate themselves from one another and provide a specialized value to their customers, this will increase demand for customized generative AI solutions in all sectors.
Autonomous AI agents that can plan, reason, and execute complex tasks are becoming a key trend, replacing simple retrieval-augmented systems with proactive workflows that help complete business processes. This is transforming service-oriented software into intelligent task executors capable of acting on insights rather than just presenting them.
More companies are integrating generative AI directly into core business processes rather than just testing pilots, embedding “AI-first” capabilities into productivity stacks and decision support tools. This shift is reshaping software development, automation, and operational strategies, signaling that businesses see generative AI as essential infrastructure for innovation and competitive advantage rather than a one-off experiment.
Generative AI Market Analysis
Based on offering, the market is divided into software and services. The software segment dominated the market, accounting for 81% in 2025 and is expected to grow at a CAGR of 30.5% through 2026 to 2035.
Based on data modality, the generative AI market is segmented into text generation, image generation, audio generation, video generation, code generation, and multimodal models. Text generation segment dominates the market with 48% share in 2025 and is expected to grow at a CAGR of 28% from 2026 to 2035.
Based on deployment, the generative AI market is segmented into cloud and on premises. The cloud segment dominates the market with 73.8% share in 2025 and is expected to grow at a CAGR of 32.5% from 2026 to 2035.
Based on technology, the market is segmented into generative adversarial networks (GANs), transformers, variational auto-encoders, diffusion networks, and others. The transformers segment is expected to dominate the market with a share of 39% in 2025.
The U.S. generative AI market reached USD 23.9 billion in 2025, growing from USD 12.8 billion in 2024.
North America dominated the generative AI market with USD 25.05 billion in 2025.
Europe generative AI market accounted for a share of 18.69% and generated revenue of USD 10.04 billion in 2025.
Germany dominates the generative AI market, showcasing strong growth potential, with a CAGR of 31.8% from 2026 to 2035.
The Asia Pacific generative AI market is anticipated to grow at the highest CAGR of 35.3% from 2026 to 2035 and generated revenue of USD 13.9 billion in 2025.
China generative AI market is estimated to grow with a CAGR of 36.8% from 2026 to 2035.
Latin America generative AI market shows lucrative growth over the forecast period.
Brazil generative AI market is estimated to grow with a CAGR of 35.1% from 2026 to 2035 and is expected to reach USD 11.35 billion by 2035.
The Middle East and Africa generative AI market accounted for USD 3.41 billion in 2025 and is anticipated to show lucrative growth over the forecast period.
UAE market is expected to experience substantial growth in the Middle East and Africa transportation management system market, with a CAGR of 29.6% from 2026 to 2035.
generative AI Market Share
Generative AI Market Companies
Major players operating in the generative AI industry are:
The generative AI market is intensely competitive, featuring a mix of global AI platform leaders, cloud infrastructure providers, and specialist model developers catering to diverse enterprise needs. Large technology companies invest heavily in R&D, high performance computing, and foundational model development, enabling them to secure strategic partnerships with enterprises and governments. These players continuously innovate in areas such as large language models, multimodal AI, and robust enterprise tooling to sustain leadership.
The market also presents growing opportunities for niche and specialized players focusing on safety oriented, domain specific, or ethical AI solutions. These firms differentiate by delivering tailored models, compliance frameworks, and custom trained systems for sectors like healthcare, finance, legal, and manufacturing. Competition is further intensified as organizations offer managed AI services such as deployment, fine tuning, governance, and optimization, helping customers integrate generative AI into existing workflows and improve long term value.
Generative AI Industry News
The generative AI market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) from 2022 to 2035, for the following segments:
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Market, By Data Modality
Market, By Offering
Market, By Deployment
Market, By Technology
Market, By Application
Market, By End-Use
The above information is provided for the following regions and countries: