Generative AI is rapidly transforming how media and entertainment companies create, distribute, and monetize content, with market growth significantly outpacing initial expectations.
The latest report from Research and Markets reveals that after growing at 26.42% annually since 2019, the global generative AI in media and entertainment market reached $1.97 billion in 2024. This momentum is expected to continue, with projections showing the market will reach $6.48 billion by 2029 before surging to $20.7 billion by 2034.
This growth is being driven by several key factors, including increasing cloud computing adoption, rising integration of AI into content production workflows, and supportive government initiatives. However, challenges remain, including regulatory hurdles, talent shortages, and concerns around copyright and data privacy.
By segment, text-to-image generation currently leads with 30.76% market share ($606.56 million), though image-to-image generation is expected to grow fastest at 28.7% CAGR through 2029. Gaming represents the largest application segment at 29.85% ($588.65 million), while virtual reality and augmented reality applications are projected to see remarkable 62.01% annual growth, signaling a major shift toward immersive AI-powered experiences.
The market remains fairly fragmented, with Amazon Web Services leading at 8.8% market share, followed by Microsoft (2%), Autodesk (1.67%), Adobe (1.26%), and Oracle (1.08%). North America currently dominates with 37.66% of the global market, though Asia-Pacific is emerging as the fastest-growing region with projected 31.95% annual growth through 2029.
"A new era of personalized and immersive experiences is being ushered in by generative AI, which is completely changing the media and entertainment sector," noted industry analysts. As cloud-based deployment (currently 65.39% of the market) continues to expand and AI tools become more sophisticated, media companies that innovate boldly while building responsible AI ecosystems will likely lead the future of global entertainment.