Omdia’s latest Artificial Intelligence Software Market Forecasts predict that Generative AI (GenAI) software revenue will see significant growth, increasing at a 53% compound annual growth rate (CAGR) from 2023 to 2028, reaching $58 billion by 2028. The forecast for 2024 has been revised upward, anticipating a 124% growth in GenAI software revenue. This surge is driven by the rapid adoption of large language models (LLMs) and the integration of new GenAI features into existing Software-as-a-Service (SaaS) products, which are often offered as premium-tier subscriptions. Enterprises are actively investing in GenAI to leverage its capabilities and stay competitive. Despite the robust growth, Omdia warns of potential market disillusionment due to unmet expectations and overinvestment. Key GenAI use cases for 2024 include automated code development, virtual assistants, and creative applications like computer-aided art and audio production. While GenAI is experiencing rapid growth, predictive AI software is maturing, with a forecasted revenue of $136 billion by 2028 at a 14% CAGR. Omdia’s semi-annual report covers 160 use cases across 20 industries in 8 global regions, focusing only on the AI technology portion of the revenue.
Generative AI Software Revenue to Surge 53% CAGR, Hitting $58 Billion by 2028
GenAI software revenue is set to skyrocket, outpacing traditional AI growth.
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