In 2023,Generative AI（GenAIThe rise of GenAI technology has shaken the world. While many organizations have shown a keen interest in GenAI technology, the market has been relatively limited so far. European technology company Sopra Steria Next conducted a study to understand the trajectory of the GenAI market in the coming years.
The study states that the GenAI market is expected to grow to more than $100 billion in 2028. This represents a tenfold increase in the GenAI market, from approximately $8 billion in 2023 to more than $100 billion in 2028.
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Fabrice Asvazadourian, CEO of Sopra Steria Next, compared this growth to the American Gold Rush phenomenon: “During the early days of the Gold Rush,FirstThe wholesalers are actually those who sell shovels and picks; similarly, althoughGenerative AIRapidly gaining market adoption, it will generate only limited revenue for cloud service providers and their graphics processor manufacturers in 2023.”
According to Asvazadourian, reports show that 2024 will be the starting point for the growth of GenAI monetization. He expects that more and more GenAI solutions will be sold, major technology companies will seek to expand their existing products, and startups will provide more solutions for specific purposes.
A recent report from International Data Corporation (IDC) predicts that spending on GenAI solutions will reach $143 billion by 2027, with a five-year compound annual growth rate of 73.3%. IDC expects that the growth of GenAI will follow a natural progression, where organizations will transition from early experiments to active deployment for specific uses and eventually achieve widespread adoption in business activities.
A Bloomberg study of the longer-term growth of the GenAI market suggests it could explode to $1.3 trillion over the next decade. This includes $280 billion in new software revenue driven by specialized assistants, new infrastructure products, and co-pilots that accelerate coding.advancedAccording to technology analyst Mandeep Singh, “In the next decade, the world is expected to witness explosive growth in the field of generative AI, which will fundamentally change the way the technology industry operates. As the technology develops, generative AI will become an increasingly important component of IT spending, advertising spending and cybersecurity.”