LONDON, June 17,
2024 /PRNewswire/ -- Generative AI (GenAI) software
revenue will increase at a 53% CAGR from 2023 to reach $58 billion by 2028, Omdia's latest Artificial
Intelligence Software Market Forecasts reveals. GenAI software
revenue will grow by 124% in 2024, revised upward from the prior
forecast of 100%.
Many vendors with large language models (LLMs) are seeing
revenue run rates that suggest triple-digit revenue growth in 2024.
Top SaaS vendors have been continually adding new GenAI features to
existing products, sometimes monetizing that with premium-tier
subscription offerings. Some GenAI tools, like the GitHub CoPilot,
are experiencing a surge in adoption.
Enterprises have also been eager to allocate GenAI budgets in
2024 (and expect to increase those budgets in 2025) to see what the
technology offers and to stay ahead of competitors, as shown in
Omdia's Generative AI Enterprise Survey: Early Adopters –
2024. Omdia expects market growth to slow over the
forecast horizon, primarily due to market maturation but also as
actual GenAI results in some cases fail to meet heady expectations
and overinvestment. The Omdia survey shows that the majority of
enterprises who have deployed GenAI say it is meeting expectations,
but that sentiment is not unanimous, and some projects are failing
to deliver.
"While we see a near-term frenzy in GenAI interest and actual
adoption," said Neil Dunay, Omdia
Principal Forecaster, "the prospects for disillusionment are
real."
Some of the top use cases for GenAI in 2024 will be automated
code development, virtual assistants, computer-aided art and
photography, video and audio production, and writing
assistants.
Growth in GenAI is eclipsing growth in predictive (traditional)
AI software revenue, which is entering a more mature phase. Omdia
forecasts predictive AI software revenue will reach $136 billion in 2028, a 14% CAGR.
Updated twice a year, Omdia's Artificial Intelligence
Software Market Forecasts covers both generative and predictive
AI, forecasting revenue for approximately 160 use cases by 20
industry sectors across 8 world geographic regions. Revenue is
estimated only for the AI technology portion (AI value-add), not
the entire software solution.
About Omdia
Omdia, part of Informa Tech, is a technology research and
advisory group. Our deep knowledge of tech markets combined with
our actionable insights empower organizations to make smart growth
decisions.
Fasiha Khan
Fasiha.khan@omdia.com
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SOURCE Omdia