{"id":31862,"date":"2023-06-01T09:00:12","date_gmt":"2023-06-01T13:00:12","guid":{"rendered":"https:\/\/www.bloomberg.com\/company\/press\/generative-ai-to-become-a-1-3-trillion-market-by-2032-research-finds\/"},"modified":"2023-05-31T18:13:24","modified_gmt":"2023-05-31T22:13:24","slug":"generative-ai-to-become-a-1-3-trillion-market-by-2032-research-finds","status":"publish","type":"press","link":"https:\/\/www.bloomberg.com\/company\/press\/generative-ai-to-become-a-1-3-trillion-market-by-2032-research-finds\/","title":{"rendered":"Generative AI to Become a $1.3 Trillion Market by 2032, Research Finds"},"content":{"rendered":"
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Bloomberg Intelligence: New Report Finds That the Emerging Industry Could Grow at a CAGR of 42% Over the Next 10 Years<\/strong><\/p>\n

Rising demand for generative AI products could add about $280 billion of new software revenue<\/strong><\/p>\n

New York, June 01, 2023<\/em> \u2014 With the influx of consumer generative AI programs like Google\u2019s Bard and OpenAI\u2019s ChatGPT, the generative AI market is poised to explode, growing to $1.3 trillion over the next 10 years from a market size of just $40 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 gradually shifting to inference devices for large language models (LLMs), digital ads, specialized software and services in the medium to long term, BI\u2019s research finds.<\/p>\n

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. Companies like Amazon WebServices, Microsoft, Google and Nvidia could be the biggest beneficiaries, as enterprises shift more workloads to the public cloud.<\/p>\n

Fig1: Generative AI Revenue<\/strong>
\n\"\"<\/p>\n

BI estimates that 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 will be generative AI infrastructure as a service ($247 billion by 2032) used for training LLMs, followed by digital ads driven by the technology ($192 billion) and specialized generative AI assistant software ($89 billion). On the hardware side of this, 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).<\/p>\n

Fig2: Generative AI Market Opportunity<\/strong>
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Of particular note is the potential for generative AI to benefit life sciences and education, with BI\u2019s analysis finding that early use cases of ChatGPT suggest that these are two areas that could see rapid growth from their position as a fraction of larger software segments today. The potential for specialized AI-based software assistants may be particularly transformative for search and other means of summarizing information that drive these two market segments.<\/p>\n

Fig3: Generative AI Life Sciences, Education Spending<\/strong>
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Mandeep Singh, Senior Technology Analyst<\/strong> at Bloomberg Intelligence and lead author of the report said, \u201cThe 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. The technology is set to become an increasingly essential part of IT spending, ad spending, and cybersecurity as it develops\u201d.<\/p>\n

This technology will not be a solely positive development for all players in the space, as this rapid growth opportunity for generative AI across technology may displace a number of incumbents across that vendors set to benefit from generative AI; including semiconductors, hardware, cloud software, IT services and ad companies.<\/p>\n

The full 2023 Generative AI Growth report, including a series of reports focused on the individual market segments, is available to Bloomberg Terminal subscribers who can access the report via {BI}.<\/p>\n

Contact<\/strong>
\nOktavia Catsaros
\nBloomberg Intelligence
\nocatsaros@bloomberg.net<\/a><\/p>\n

About Bloomberg Intelligence<\/strong>
\nBloomberg Intelligence (BI) research delivers an independent perspective providing interactive data and investment research on over 2,000 companies, 135 industries and all global markets. Our team of 400 research professionals help our clients make decisions with confidence in the rapidly moving investment landscape. BI analysis is backed by live, transparent data from Bloomberg and 500 third-party data contributors that clients can use to refine and support their ideas. Bloomberg Intelligence is available exclusively on the Bloomberg Terminal and the Bloomberg Professional App. Visit us at https:\/\/www.bloomberg.com\/professional\/product\/bloomberg-intelligence\/<\/a> or request a demo.<\/p>\n

Disclaimer
\nThe data included in these materials are for illustrative purposes only. The BLOOMBERG TERMINAL service and Bloomberg data products (the \u201cServices\u201d) are owned and distributed by Bloomberg Finance L.P. (\u201cBFLP\u201d) except (i) in Argentina, Australia and certain jurisdictions in the Pacific Islands, Bermuda, China, India, Japan, Korea and New Zealand, where Bloomberg L.P. and its subsidiaries (\u201cBLP\u201d) distribute these products, and (ii) in Singapore and the jurisdictions serviced by Bloomberg\u2019s Singapore office, where a subsidiary of BFLP distributes these products. BLP provides BFLP and its subsidiaries with global marketing and operational support and service. Certain features, functions, products and services are available only to sophisticated investors and only where permitted. BFLP, BLP and their affiliates do not guarantee the accuracy of prices or other information in the Services. Nothing in the Services shall constitute or be construed as an offering of financial instruments by BFLP, BLP or their affiliates, or as investment advice or recommendations by BFLP, BLP or their affiliates of an investment strategy or whether or not to \u201cbuy\u201d, \u201csell\u201d or \u201chold\u201d an investment. Information available via the Services should not be considered as information sufficient upon which to base an investment decision. The following are trademarks and service marks of BFLP, a Delaware limited partnership, or its subsidiaries: BLOOMBERG, BLOOMBERG ANYWHERE, BLOOMBERG MARKETS, BLOOMBERG NEWS, BLOOMBERG PROFESSIONAL, BLOOMBERG TERMINAL and BLOOMBERG.COM. Absence of any trademark or service mark from this list does not waive Bloomberg\u2019s intellectual property rights in that name, mark or logo. All rights reserved. \u00a9 2023 Bloomberg.<\/p>\n

Bloomberg Intelligence is a service provided by Bloomberg Finance L.P. and its affiliates. Bloomberg Intelligence likewise shall not constitute, nor be construed as, investment advice or investment recommendations, or as information sufficient upon which to base an investment decision. The Bloomberg Intelligence function, and the information provided by Bloomberg Intelligence, is impersonal and is not based on the consideration of any customer’s individual circumstances. You should determine on your own whether you agree with Bloomberg Intelligence.<\/p>\n

Bloomberg Intelligence Credit and Company research is offered only in certain jurisdictions. Bloomberg Intelligence should not be construed as tax or accounting advice or as a service designed to facilitate any Bloomberg Intelligence subscriber’s compliance with its tax, accounting, or other legal obligations. Employees involved in Bloomberg Intelligence may hold positions in the securities analyzed or discussed on Bloomberg Intelligence.<\/p>\n\n<\/div>\n\n\n<\/div>\n\n\t\t\n\t<\/div>\n<\/div>\n

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