Generative AI in Media and Entertainment Market Analysis

Generative AI in Media and Entertainment Market Overview

Generative AI in Media and Entertainment Market Size was valued at USD 150,460.0 million in 2022. The Generative AI in Media and Entertainment market industry is projected to grow from USD 195,795.2 Million in 2023 to USD 4,939,219.4 million by 2032, exhibiting a compound annual growth rate (CAGR) of 43.2% during the forecast period (2023 - 2032). Increasing demand from content creators and Growing animation industry are the key market drivers boosting the growth of the Generative AI in Media and Entertainment market.  

As per Analyst at MRFR, “A new era of personalized and immersive experiences is being ushered in by Gen AI, which is completely changing the media and entertainment sector. Gen AI integration has led to more complex content generation and curation procedures that accommodate to user preferences and increase engagement. With the help of this technology, the media ecosystem will become more responsive and dynamic by optimizing audience targeting, recommendation algorithms, and content distribution. The media and entertainment sector is embracing Gen AI and working to provide audiences with personalized content experiences that will increase their pleasure and loyalty.”

FIGURE 1: GENERATIVE AI IN MEDIA AND ENTERTAINMENT MARKET SIZE 2019-2032 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Generative AI in Media and Entertainment Market Trends

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  Increasing use in video games is expected to drive market growth.

  
  

The progression of Generative AI in video games offers noteworthy prospects for industry participants, stimulating creativity and augmenting the gaming encounter. Prominent examples demonstrate this movement in the market.

November 2023: Atlas, a 3D generative AI platform, launched after securing $6M in funding. Partnering with major gaming studios like Square Enix and Consortium9, Atlas accelerates virtual world and gaming development. With cutting-edge 3D generative AI engines, it slashes production times by half, empowering AAA studios to create scalable assets aligned with existing IPs. Ethical alignment with the EU's AI guidelines positions Atlas for future public alpha testing, catering to commercial use.

November 2023: Xbox's collaboration with Inworld AI marks a strategic move to integrate AI into game creation. This partnership aims to fortify character dialogues and storytelling within games. By introducing a suite of AI tools, including an AI design copilot and character engine, Xbox facilitates the creation of intricate game plots and dynamic quests. This integration signifies a pivotal step towards AI-driven game design, enhancing player engagement.

Additionally, recent experiments in AI integration within games showcase the potential of this technology. In April 2023, a video demonstrated AI-generated dialogue in The Elder Scrolls V: Skyrim. Players engaged with NPCs, prompting AI-generated responses, signaling the advent of AI-driven interactions in gaming.

Generative AI in Media and Entertainment Market offerings Segment Insights

Generative AI in Media and Entertainment Offerings Insights

Based on offerings, the Generative AI in Media and Entertainment Market segmentation includes Solution and Services. Solution held the majority share in 2022, contributing around ~26.0% to the market revenue. Solutions within the generative AI market for the media and entertainment industry encompass AI-based software or platforms that are specifically engineered to meet the evolving demands of content creation and delivery. The growth of this segment is propelled by several factors. Primarily, it is fueled by the increasing ability of generative AI algorithms to automate complex creative processes, significantly enhancing the efficiency of content creation pipelines. This automation streamlines workflows, allowing for faster production without compromising on quality. Moreover, the growth is spurred by the escalating demand for personalized and captivating content in media and entertainment.

FIGURE 2: GENERATIVE AI IN MEDIA AND ENTERTAINMENT MARKET, BY offering, 2022 VS 2032 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Generative AI in Media and Entertainment Technology Insights

Based on technology, the Generative AI in Media and Entertainment Market segmentation includes Natural Language Program, Digital Twin, Natural Language Generation, Large Language Models, and Others. Natural Language Generation held the majority share in 2022. The natural language generation (NLG) segment involves the utilization of AI systems to convert structured data into human-readable text. Its growth is driven by the significant feature of automating content creation, enabling the generation of personalized and contextually relevant narratives at scale. Additionally, NLG's expansion is propelled by the increasing demand for dynamic storytelling and data-driven content across various media platforms.

Generative AI in Media and Entertainment Application Insights

Based on application, the Generative AI in Media and Entertainment Market segmentation includes Gaming, Film and Television, Advertising and Marketing, Music and Sound Production, Automatic Dubbing and Subtitling, Chatbots and Virtual Assistants, and Others. The Advertising and Marketing held the majority share in 2022. Generative AI has revolutionized advertising and marketing strategies across various domains. One significant application lies in personalized content creation. AI algorithms analyze vast amounts of data to generate tailored advertisements, messages, and visuals that resonate with specific target audiences, leading to higher engagement and conversion rates. Additionally, AI-driven chatbots and conversational agents enhance customer interactions, providing instant and personalized responses, thereby improving customer satisfaction and brand loyalty.

Generative AI in Media and Entertainment Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the South America. The North America Generative AI in Media and Entertainment market accounted for ~54.0% in 2022. the region's large Generative AI in Media and Entertainment industries, as well as the growing popularity of sports. The use of Generative AI in Media and Entertainment is expected to grow significantly in the coming years as companies seek to improve efficiency, productivity, and safety in their material handling and transportation operations.

One of the key factors driving the demand for Generative AI in Media and Entertainment in North America is the region's large Generative AI in Media and Entertainment industry. The Media and Entertainment sector is experiencing significant growth in North America, spurred by various factors such as the increasing demand for immersive experiences, advancements in content delivery, the imperative to enhance user engagement, and the adoption of cutting-edge technologies. This burgeoning landscape is witnessing a surge in innovation and adoption of Generative AI technologies. North America, by country, has been segmented into the US, Canada, and Mexico. The US is leading the market, while Canada is expected to witness a high growth rate in the coming future.

FIGURE 3: GENERATIVE AI IN MEDIA AND ENTERTAINMENT MARKET SIZE BY REGION 2022 VS 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Europe market accounts for the second-largest market share. The continuous rise in demand for immersive experiences and entertainment options has led to a remarkable uptick in the integration of Generative AI solutions. For instance, major entertainment hubs like Hollywood Studios in Los Angeles are leveraging Generative AI to create lifelike digital avatars for actors, revolutionizing filmmaking and virtual storytelling experiences. The need to enhance user engagement and deliver personalized content experiences is pushing media companies to invest in AI-driven recommendation engines and content creation tools that dynamically generate tailored content based on user preferences.

The infusion of cutting-edge technologies like Artificial Intelligence (AI) and Machine Learning (ML) has redefined content creation and audience engagement strategies. Media companies are harnessing Generative AI to develop hyper-personalized content, predictive analytics for audience behavior, and AI-generated storytelling formats. For example, major sports networks are leveraging AI-powered analytics tools to enhance viewer experiences by providing real-time insights, player statistics, and interactive visualizations during live sports events, thereby revolutionizing the viewer's engagement.

Generative AI in Media and Entertainment Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the Generative AI in Media and Entertainment market is highly competitive and dominated by established, pure-play vendors. Over 20 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Generative AI in Media and Entertainment market is highly competitive, with many vendors offering similar products and services.

The major players in the market include Alphabet, Microsoft, Meta Platforms, Inc, IBM Corporation, Nvidia Corporation, Open AI, Inc, and Epic Games, Inc. Industries Corporation constantly takes on new challenges to ensure the stability of its management foundation by extending its reach into business fields such as engine production, vehicle assembly, and the development and production of lift trucks and car air-conditioning compressors. It concentrates on broadening its product offerings to reach new audiences in the global market.

The Generative AI in Media and Entertainment Market is consolidated, increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Generative AI in Media and Entertainment market include

• Alphabet


• Microsoft


• Meta Platforms, Inc


• IBM Corporation


• Nvidia Corporation


• Open AI, Inc


• Epic Games, Inc.


• Amazon


• Apple Inc.


• Adobe Inc


• Unity Technologies


• Cohere


• Anthropic

Generative AI in Media and Entertainment Industry Developments

• In November 2023, OpenAI has launched GPTs, customized versions of ChatGPT for specific purposes, allowing anyone to create and share tailored AI models without coding. This emphasizes privacy, safety, and community involvement in AI development.


• In August 2023, OpenAI unveiled ChatGPT Enterprise, providing top-tier security, GPT-4 access, extended context processing, advanced analytics, tailored customization, aiming to enhance productivity and creativity in workplaces.


• in November 2023, NVIDIA launched an AI foundry service on Microsoft Azure, empowering enterprises and startups to build custom generative AI models. SAP, Amdocs, Getty Images are early adopters, leveraging NVIDIA AI Foundation Models and DGX Cloud on Azure. The collaboration aims to refine, deploy, and optimize tailored large language models (LLMs) for diverse industry applications.

Generative AI in Media and Entertainment Market Segmentation

Global Generative AI in Media and Entertainment offering Outlook

• Football


• Solution


• Services

Global Generative AI in Media and Entertainment Technology Outlook

• Line-in-Play


• Natural Language Program


• Digital Twin


• Natural Language Generation


• Large Language Models


• Others

Global Generative AI in Media and Entertainment Application Outlook

• Web-Based


• Gaming


• Film and Television


• Advertising and Marketing


• Music and Sound Production


• Automatic Dubbing and Subtitling


• Chatbots and Virtual Assistants


• Others

Generative AI in Media and Entertainment Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of MEA
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America