A new analysis from S&P Global Market Intelligence projects revenues from the generative AI software market will reach $85 billion by 2029, up from about $16 billion in 2024.
That translates into a 40% compound annual growth rate (CAGR) over that period, even though the researchers acknowledged the difficulty in getting a firm handle on how advances in GenAI research will translate into commercial opportunities. There are also ongoing uncertainties regarding the appetite for long-term enterprise investment and market readiness for different solutions.
In media and entertainment, developments in generative AI solutions have been particularly closely watched for their potential to produce video, generate advertising, create content and automate various operations, including software coding.
In releasing the new study, S&P Global Market Intelligence highlighted key points about the market's prospects:
- Market is forecasted to reach $85 billion by 2029. Aggregate revenue is projected to reach $85 billion by 2029, marking a substantial increase from the estimated $16 billion achieved in 2024. This overall forecast broadly aligns with those issued in June 2024; however, there has been a modest uplift, with higher anticipations for growth in 2026 and 2027.
- Revenue acceleration is led by the largest players. The share of the generative AI market held by the top eight vendors has steadily increased and stands at 63% in the second quarter of 2025. Despite the significant growth of these leading players since the first edition of the Generative AI Market Monitor, the market remains competitive.
- Code generation remains the fastest-growing segment. The code-generation sector is projected to grow at a compound annual growth rate (CAGR) of 53% from 2024–2029, surpassing other generative AI modalities. Revenue forecasts for 2025 have been revised upward for code generators, increasing from $2.6 million in the previous edition to $3.9 million.
- The U.S. remains the largest market for generative AI. About 63% of 2024 revenue was attributed to AI providers based in North America. In total, 254 generative AI vendors in the Market Monitor are headquartered in the U.S., representing 56% of the market by count.
