Generative AI in Automation Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[213+ Pages Report] According to Facts & Factors, the global generative AI in automation market size in terms of market volume was valued at USD 7.07 billion in 2023 and is predicted to surpass USD 124.22 billion by the end of 2032. The generative AI in automation industry is expected to grow by a CAGR of 37.50% between 2024 and 2032.

Market Overview

Generative AI in automation refers to the process of using AI in different activities like creating content, automatic processes, or decision-making across different end-user sectors. Generative AI, when integrated with automation technologies, can easily automate many repetitive tasks and also process complex problem-solving. Generative AI helps optimize processes in sectors like logistics and manufacturing. It also streamlines workflows and processes by recognizing inefficiencies and simulating production processes.

Key Insights

• As per the analysis shared by our research analyst, the global generative AI in automation market size is estimated to grow annually at a CAGR of around 37.50% over the forecast period (2024-2032).
• In terms of revenue, the global generative AI in automation market size was valued at around USD 7.07 billion in 2023 and is projected to reach USD 124.22 billion by 2032.
• Growing demand for automation is driving the growth of the global generative AI in automation market.
• Based on the end-users, the automotive segment is growing at a high rate and is projected to dominate the global market.
• Based on technologies, the computer vision segment is anticipated to grow with the highest CAGR in the global market.
• Based on the applications, the robotic process automation segment is projected to swipe the largest market share.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Growing demand for automation is driving the growth of the global market.

Many sectors are widely adopting AI-based automation because of various factors like higher operational costs and a shortage of skilled labor. Generative AI, when integrated with automation, can help in automating manufacturing processes, customer service, content creation, product design, and many other tasks.

Advancements in technologies like machine learning and AI are likely to revolutionize the industry. The emergence of variational autoencoders, generative adversarial networks, and many others has significantly strengthened the capabilities of generative AI. Such innovations help AI work with high precision and quality. Developments in deep learning algorithms like NLP have also expanded the scope of generative AI by helping it create human-like text.

Moreover, the growing use of artificial intelligence in personalization and content creation is also expected to fuel the growth of the industry. Generative AI is highly useful in industries like media, entertainment, and advertising, where content creation tasks are of high importance. Organizations in these sectors are adopting generative AI to improve their creative output.

Therefore, these factors are likely to contribute toward the growth of the global generative AI in automation market. For instance, Docubee partnered with ALM to come up with a study on the adoption rate of AI among professionals from different fields in 2024. The study highlights that 79% of professionals still use Word doc or other traditional ways for their work, thereby fostering the need for adopting AI-based contract automation tools.

Restraints

• Lack of skilled workforce is expected to hamper the growth of the global market.

There is an increasing shortage of skilled personnel, particularly in the fields of AI, machine learning, and data science. Therefore, organizations are witnessing challenges in adopting generative AI systems, which is expected to slow down the growth of generative AI in automation industry.

Opportunities

• Emergence of AI as a service is expected to foster growth opportunities in the global market.

Vendors have come up with an AI-as-a-service offering that can be easily accessible by businesses of all sizes. These solutions help companies use AI-drive-driven automation services without needing to install any expensive infrastructure or hire an expert team. Therefore, it is expected to foster numerous growth opportunities in the global generative AI in automation market. It is a more cost-effective method of using generative AI automation services, as smaller enterprises can also use these solutions.

Additionally, the growing scope of AI-powered chatbots or virtual agents is capturing a larger market area as they can resolve customer queries, automate conversation, and offer personalized recommendations without any requirement for a trained team or staff. For instance, Rezolve AI partnered with the Kingdom of Saudi Arabia to build and inaugurate an AI center of Excellence in 2024. The center is said to become a leading region in AI technology, and it is likely to be dedicated to advancement in technology in the field.

Challenges

• Data privacy is a big challenge in the global market.

AI works on huge data sets based on business information and sensitive data, which creates concerns regarding data protection and privacy, particularly in industries like finance and health. Therefore, it is emerging as a big challenge in the generative AI in automation industry. Also, complying with data protection regulations like CCPA and GDPR is quite complex and costly, which further negatively affects the growth of the market.

Segmentation Analysis

The global generative AI in automation market can be segmented into end-users, technologies, applications, and regions.

On the basis of end-users, the market can be segmented into consumer goods, electronics, aerospace, automotive, and others. The automotive segment will likely account for the largest share of the generative AI in automation industry during the forecast period. Generative AI is highly used in creating vehicle designs or prototyping, as the traditional method was quite expensive and slow.

Moreover, AI-based robots and systems are expected to improve production activities by eliminating errors, improving precision, and streamlining operations. These models also help optimize material use. Generative AI further helps in predictive maintenance, which in turn helps organizations eliminate any downtime while increasing the efficiency of the processes. Also, the rise in the trend of using autonomous vehicles is further expected to fuel the growth of the segment.

On the basis of technologies, the market can be segmented into deep learning, reinforcement learning, natural language processing, computer vision, and others. Computer vision is the fastest-growing segment in the global generative AI in automation market. Computer vision is largely used in advanced automation for various purposes like real-time monitoring, defect detection, and quality control. It is a highly useful technology as it eliminates human errors, improves efficiency, and increases the overall production output.

Computer vision systems help these systems in autonomous driving technologies like reading traffic lights, detecting obstacles, analyzing the environment, and many others. Computer vision is highly used in surgeries, medical imaging, and diagnostics to help healthcare professionals detect anomalies and detail medical scans. Computer vision helps organizations recognize and interpret visual data. It is of high use in retail, security, and consumer electronics sectors. Also, the rise of self-driving vehicles and smart manufacturing are some of the other major factors contributing to the growth of the segment.

On the basis of applications, the market can be segmented into quality control & anomaly detection, predictive maintenance, intelligent chatbots, process optimization, robotic process automation, and others. The robotic process automation segment is likely to dominate the generative AI in automation industry during the forecast period. Robotic process automation makes use of bots to automate various tasks.

However, the integration of AI with RPA is likely to revolutionize the market further. Computer vision, natural language processing, and machine learning help understand unstructured data, thereby expanding their capabilities. RPA also helps in achieving customer satisfaction by automating tasks like processing transactions, responding to queries, and many others with high speed and accuracy. It is being used in different industries, which further widens the scope of the segment.

Also, RPA is being highly adopted in the healthcare sector for claim processing, billing, maintaining patient records, and many others, as it helps lower administrative burdens, thereby saving time and money. It is also being deployed in the retail & e-commerce sector for personalized marketing, inventory management, and order processing to ease operations.

Report Scope

Regional Analysis

• North America to dominate the global market.

North America will account for the largest share of the global generative AI in automation market during the forecast period. Technological advancements are the major factor driving the growth of the regional market. The presence of strong tech companies like Microsoft, IBM, Google, and Amazon is further expected to revolutionize the market.

However, its wide-scale adoption in different key sectors is likely to support its growth in the coming years. The region is a leading market for the automotive sector, which is another crucial factor in fostering growth. Companies are using AI to improve vehicle design, automatic production lines, and autonomous vehicle technologies. Generative AI is also used in healthcare to improve patient outcomes and streamline administrative tasks.

However, the region is focusing strongly on healthcare automation; therefore, there is a growing scope of generative AI in the region. The United States is a leading market in North America. Major companies are based in New York, Silicon Valley, and Boston. Also, the US is witnessing fast growth in sectors like healthcare, automotive, and finance.

Asia Pacific is also an emerging region in the generative AI in automation industry because of the growing emphasis of the region on industrial automation. The growing adoption of generative AI in sectors like automotive, manufacturing, and healthcare is supporting the growth of the regional market.

Additionally, the ongoing digital transformation activities across different end-user sectors are also likely to widen the scope of the industry. China is the largest market in APAC because of the favorable regulatory environment for AI innovation and its adoption across different sectors. Japan is also witnessing growth in robotics and automation, which is another major factor likely to positively impact the growth trajectory of the regional market.

Competitive Analysis

The key players in the global generative AI in automation market include:

• Oracle Corporation
• Cisco Systems Inc.
• NVIDIA Corporation
• Autodesk Inc.
• General Electric Company
• Siemens AG
• Alphabet Inc.
• Microsoft Corporation
• IBM Corporation
• SAP SE.

For instance, Technology Foresight from GlobalData reveals the crucial role of AI in building the insurance sector in 2024. Also, innovations like treatment expense prediction and automation damage assessment solutions are expected to revolutionize the market. Moreover, increasing investment in AI-based startups is likely to grow by 18% in the coming years.

The global generative AI in automation market is segmented as follows:

By End-Users Segment Analysis

• Consumer Goods
• Electronics
• Aerospace
• Automotive
• Others

By Technologies Segment Analysis

• Deep Learning
• Reinforcement Learning
• Natural Language Processing
• Computer Vision
• Others

By Applications Segment Analysis

• Quality Control & Anomaly Detection
• Predictive Maintenance
• Intelligent Chatbots
• Process Optimization
• Robotic Process Automation
• Others

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America