In an unprecedented growth forecast from Bloomberg, generative AI will become a $1.3 trillion market by 2032. This surge is expected to revolutionize the tech industry, amplifying sales across hardware, software, services, advertisements, and gaming segments at a compound annual growth rate of about 43%.
Key Industry Players
Tech giants such as Meta, Nvidia, Microsoft, Alphabet, and Amazon.com are at the forefront of this expansion, leading the way in training for large language models (LLMs) that are the backbone of generative AI technologies.
Training Market Growth
The training market for generative AI is on a rapid ascent, projected to hit $470 billion by 2032. This market segment is likely to outpace inference markets in the near term, fueled by the broadening use of semiconductor accelerators. Companies are increasingly investing in building their LLMs, necessitating robust AI infrastructure for heightened computational demands.
Hyperscale Suppliers
Meta, Microsoft, Alphabet, Nvidia, and Amazon.com are poised to be the primary facilitators for training LLMs, as they ramp up their hyperscale supplying capabilities to support the burgeoning demand.
Hardware Market Explosion
The hardware market, essential for running heavy AI workloads, is expected to skyrocket to $640 billion by 2032 from less than $40 billion in 2022. The demand for high-capacity servers, storage, and AI enhancements in devices like smart speakers and wearables is driving this growth.
Software Sales Surge
Software spending is anticipated to grow by $318 billion by 2032, with an annual growth rate of 71% from 2022. This increase is attributed to rising demand for generative AI products in cybersecurity, drug discovery, AI assistants, and coding workflows.
The Future of Coding
One of the most impactful areas of generative AI is in software coding, where tools like Microsoft’s GitHub Copilot are making significant strides. By providing coding recommendations, these AI-powered assistants can substantially reduce coding time, addressing the persistent shortage of developers.
Generative AI is not just transforming the technological landscape but also reshaping economic models across the tech industry. As we move towards 2032, the integration of generative AI into various industry segments heralds a new era of innovation and growth.