Report Overview

India Generative AI Market – Industry Trends & Forecast Report, 2030

The India Generative AI Market size was estimated at USD 3.41 billion in 2023. During the forecast period between 2024 and 2030, the India Generative AI Market size is projected to grow at a CAGR of 8.1% reaching a value of USD 6.78 billion by 2030. Prominent drivers of the market include the growing influx of generated data, rising sophistication of machine learning techniques, the expanding information technology (IT) sector, and the increasing adoption of products across a wide array of industries. Generative AI harnesses the power of advanced neural networks, like Generative Adversarial Networks (GANs) and Variational Autoencoders (VAEs), to produce remarkably lifelike content. This includes images, text, audio, video, and a vast array of other formats. The applications of generative AI are expanding rapidly across numerous industries. For instance, it can be used to create stunning artwork, music, and video game scenes. It can also enhance datasets through data augmentation, a technique that helps improve the performance of machine learning models. Also, generative AI plays a valuable role in natural language processing tasks, such as machine translation and text summarization. These diverse applications contribute to the market's significant growth. Notably, generative AI is revolutionizing fields like drug discovery and material design. By enabling the creation of tailored molecular structures and materials, generative AI can significantly accelerate the development of new drugs and materials with specific properties. In addition, generative AI facilitates personalized content creation and recommendations, offering tailored solutions across multiple domains, such as e-commerce and entertainment. The substantial investments from established firms and venture capitalists have bolstered research, development, and commercialization endeavors, fostering a promising market outlook in India.

Generative AI – Overview

Generative AI constitutes a branch of artificial intelligence (AI) dedicated to producing novel content, spanning images, videos, music, or text. In contrast to conventional AI models geared towards classification or prediction, generative AI models strive to generate fresh content absent in the training dataset. Leveraging extensive datasets, they discern patterns and correlations to generate new instances, often mimicking the style, structure, and attributes of the input data. Consequently, its application transcends various sectors, including healthcare, information technology (IT), robotics, and banking, financial services, and insurance (BFSI).

India Generative AI Market

Growth Drivers

Rising Demand for Automated Content Creation

In the age of digital transformation, there's a burgeoning demand for automated content creation, driven by the potential of Generative AI (Gen AI). This technology promises to revolutionize industries, overhaul value chains, and significantly enhance productivity and efficiency. As enterprises in India gear up to embrace Gen AI, they recognize its capacity to streamline processes, including content creation, through automation. With Gen AI at the helm, businesses are poised to witness a paradigm shift towards automated content generation, facilitating agile responses to consumer needs and market trends. This rising demand underscores the pivotal role Gen AI plays in shaping the future landscape of content creation across various sectors in India.

Challenges

Quality and Reliability Issues

The India Generative AI Market faces significant challenges related to quality and reliability. These issues restrain widespread adoption and hinder the realization of Gen AI's full potential. Concerns regarding the accuracy and consistency of generated content, alongside reliability in critical decision-making processes, pose barriers to trust and confidence among users and enterprises. Addressing these challenges is imperative to foster trust, enhance reliability, and unlock the transformative capabilities of generative AI within the Indian market landscape.

Impact of Escalating Geopolitical Tensions on India Generative AI Market

Geopolitical tensions can have a multifaceted impact on the India Generative AI Market. Uncertainties stemming from geopolitical conflicts can disrupt supply chains, impede international collaborations, and heighten regulatory complexities. Such disruptions may hinder the flow of essential resources, including talent, technology, and investment, crucial for the advancement of Generative AI initiatives. Moreover, heightened geopolitical tensions can instigate trade barriers and geopolitical risks, dampening investor confidence and hindering market growth. To mitigate these impacts, fostering stable diplomatic relations, promoting open dialogue, and fostering a conducive environment for international cooperation are essential to sustain and propel the growth of the Generative AI market in India.

India Generative AI Market

Segmental Coverage

India Generative AI Market – By Component

By component, the India Generative AI Market is bifurcated into Software and Service segments. The software segment holds a higher share in the India Generative AI Market by component. It is primarily due to its critical role in developing and deploying AI solutions. Generative AI software encompasses a range of applications, from natural language processing and automated content creation to predictive analytics and personalized recommendations. The demand for these advanced AI-driven capabilities drives investment in software development. Furthermore, the scalability, flexibility, and continuous innovation associated with software solutions make them essential for enterprises seeking to integrate AI into their operations. This robust demand and the essential nature of software tools contribute to the higher market share of the software segment in the India Generative AI market.

India Generative AI Market – By Technology

Based on technology, the India Generative AI Market is divided into Generative Adversarial Networks (GANs), Transformers, Variational Auto-encoders, and Diffusion Networks segments. The generative adversarial networks (GANS) segment holds the highest share in the India Generative AI Market by technology. It is primarily due to their superior capacity for generating highly realistic data. Utilizing a dual neural network system—the generator and the discriminator—GANs excel in producing convincing images, videos, and text. Their extensive applications across image generation, medical imaging, and natural language processing drive significant demand. Furthermore, advancements in GAN architectures, such as Deep Convolutional GANs and Wasserstein GANs, enhance their performance and stability. This technological edge and broad applicability establish GANs as the leading segment in India's growing AI sector.

India Generative AI Market – By Application

Based on application, the India Generative AI Market is divided into Computer Vision, NLP, Robotics And Automation, Content Generation, Chatbots & Intelligent Virtual Assistants, and Predictive Analytics segments.

India Generative AI Market – By Model

Based on model, the India Generative AI Market is divided into Large Language Models, Image & Video Generative Models, and Multi-modal Generative models segments. The image & video generative models segment holds the highest share in the India Generative AI Market by model. It can be attributed to the substantial consumer demand for high-quality, visually appealing content. Advances in generative AI have enabled the creation of sophisticated, realistic, and diverse images, driving widespread adoption in various industries. Additionally, the increasing consumption of video content on platforms like social media, streaming services, and online advertising has fueled the need for generative AI in video production. This technology enhances and automates video creation processes, meeting the growing demand and solidifying its dominant market position.

India Generative AI Market – By End Use

Based on end use, the India Generative AI Market is divided into Media & Entertainment, BFSI, IT & Telecommunications, Healthcare, Automotive & Transportation, and Gaming segments. The media & entertainment segment holds the highest share in the India Generative AI Market by end use. The media & entertainment industry significantly relies on visual content for movies, TV shows, video games, and immersive VR and AR experiences. Generative AI techniques, such as image and video generation, are essential in creating visually stunning and realistic content, including computer-generated graphics, special effects, virtual environments, and characters. Animation studios and visual effects companies are increasingly adopting these techniques to streamline and enhance production processes. This widespread use of generative AI in the creation of high-quality visual content drives the segment's dominance in the India Generative AI Market.

India Generative AI Market – By Region

Geographically, the India Generative AI Market is divided into North India, South India, East India, and West India regions. The South India region holds the highest share in the India Generative AI Market. Bengaluru, situated in South India, stands out as the focal point of India's Generative AI landscape. Renowned as the country's tech hub, Bengaluru harbors a multitude of AI startups and established tech giants, all harnessing the power of generative AI across diverse sectors. The city's companies lead the charge in pioneering innovative AI solutions tailored to industries such as insurance, agriculture, and cultural heritage. Noteworthy generative AI platforms like PolicyGPT and BharatGPT trace their origins to Bengaluru-based enterprises, underscoring the city's prominence in AI innovation and implementation. With its wealth of talent, resources, and a conducive ecosystem, Bengaluru emerges as a pivotal epicenter for driving generative AI advancements across India.

Competitive Landscape

Major players operating in India Generative AI Market include GeekyAnts, Dreamztech Solutions, IBM, Google LLC, Microsoft, Adobe, Rephrase.ai, Agile Infoways LLC, and Intuz. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In May 2024 - Airtel formed a collaboration with Google Cloud to deploy advanced AI solutions for Indian businesses, aiming to revolutionize customer experiences. This long-term partnership offers a suite of cloud solutions to accelerate cloud adoption and modernization. Airtel provides cloud managed services to its vast customer base, including large enterprises and emerging businesses. The collaboration focuses on developing AI/ML solutions leveraging Airtel's data, enhancing capabilities such as geospatial analytics, voice analytics, and marketing technology. Airtel's establishment of a managed services center in Pune underscores its commitment to delivering cutting-edge cloud-based solutions, supported by 300+ experts trained in Google Cloud services.

• In December 2023 - Yantra Tech Innovation Labs Pvt Ltd (Yantra) announced its plans to invest INR 100 crore in the India Generative AI market, aiming to propel AI development in the country. The investment includes hiring 500 skilled individuals over two years.

Scope of the Report

By Component

• Software

• Service

By Technology

• Generative Adversarial Networks (GANs)

• Transformers

• Variational Auto-encoders

• Diffusion Networks

By Application

• Computer Vision

• NLP

• Robotics & Automation

• Content Generation

• Chatbots & Intelligent Virtual Assistants

• Predictive Analytics

By Model

• Large Language Models

• Image & Video Generative Models

• Multi-modal Generative Models

By End Use

• Media & Entertainment

• BFSI

• IT & Telecommunications

• Healthcare

• Automotive & Transportation

• Gaming

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Generative AI Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Demand for Automated Content Creation
         2. Personalization Craze
         3. Integration with Machine Learning
      2. Restraints
         1. Quality and Reliability Issue
         2. Data Biases
      3.  Opportunities
         1. Advancements in AI Technology
         2. Shift Towards Subscription Models
      4. Challenges
         1. Lack of Standardization
         2. Lack of Explainability and Control
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Generative AI Market: Marketing Strategies
5. India Generative AI Market: Pricing Analysis
6. India Generative AI Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Component
         1. Software
         2. Service
      2. By Technology
         1. Generative Adversarial Networks (GANs)
         2. Transformers
         3. Variational Auto-encoders
         4. Diffusion Networks
      3. By Application
         1. Computer Vision
         2. NLP
         3. Robotics And Automation
         4. Content Generation
         5. Chatbots & Intelligent Virtual Assistants
         6. Predictive Analytics
         7. Others
      4. By Model
         1. Large Language Models
         2. Image & Video Generative Models
         3. Multi-modal Generative Models
         4. Others
      5. By End Use
         1. Media & Entertainment
         2. BFSI
         3. IT & Telecommunication
         4. Healthcare
         5. Automotive & Transportation
         6. Gaming
         7. Others
      6. By Region
         1. North India
         2. South India
         3. East India
         4. West India
7. North India Generative AI Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Component
      2. By Technology
      3. By Application
      4. By Model
      5. By End Use
8. South India Generative AI Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Component
      2. By Technology
      3. By Application
      4. By Model
      5. By End Use
9. East India Generative AI Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Component
      2. By Technology
      3. By Application
      4. By Model
      5. By End Use
10. West India Generative AI Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Component
       2. By Technology
       3. By Application
       4. By Model
       5. By End Use
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Generative AI Market Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
12. Impact of Escalating Geopolitical Tensions on India Generative AI Market
13. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. GeekyAnts
    2. Dreamztech Solutions
    3. IBM
    4. Google LLC
    5. Microsoft
    6. Adobe
    7. Rephrase.ai
    8. Agile Infoways LLC
    9. Intuz
    10. Other Prominent Players
14. Key Strategic Recommendations
15. Research Methodology
    1.       Qualitative Research
       1.   Primary & Secondary Research
    2.       Quantitative Research
    3.       Market Breakdown & Data Triangulation
       1.   Secondary Research
       2.   Primary Research
    4.       Breakdown of Primary Research Respondents, By Country
    5.       Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       India Generative AI Segmentation      

Figure 2       India Generative AI Market Value Chain Analysis    

Figure 3       Company Market Share Analysis, 2023

Figure 4       India Generative AI Market Size, By Value (USD Billion), 2019–2030   

Figure 5       India Generative AI Market Share, By Component, By Value, 2019–2030      

Figure 6       India Generative AI Market Share, By Technology, By Value, 2019–2030      

Figure 7       India Generative AI Market Share, By Application, By Value, 2019–2030       

Figure 8       India Generative AI Market Share, By Model, By Value, 2019–2030     

Figure 9       India Generative AI Market Share, By End Use, By Value, 2019–2030  

Figure 10     India Generative AI Market Share, By Region, By Value, 2019–2030    

Figure 11     North India Generative AI Market Size, By Value (USD Billion), 2019–2030   

Figure 12     North India Generative AI Market Share, By Component, By Value, 2019–2030         

Figure 13     North India Generative AI Market Share, By Technology, By Value, 2019–2030         

Figure 14     North India Generative AI Market Share, By Application, By Value, 2019–2030         

Figure 15     North India Generative AI Market Share, By Model, By Value, 2019–2030     

Figure 16     North India Generative AI Market Share, By End Use, By Value, 2019–2030  

Figure 17     South India Generative AI Market Size, By Value (USD Billion), 2019–2030   

Figure 18     South India Generative AI Market Share, By Component, By Value, 2019–2030         

Figure 19     South India Generative AI Market Share, By Technology, By Value, 2019–2030         

Figure 20     South India Generative AI Market Share, By Application, By Value, 2019–2030         

Figure 21     South India Generative AI Market Share, By Model, By Value, 2019–2030     

Figure 22     South India Generative AI Market Share, By End Use, By Value, 2019–2030  

Figure 23     East India Generative AI Market Size, By Value (USD Billion), 2019–2030     

Figure 24     East India Generative AI Market Share, By Component, By Value, 2019–2030

Figure 25     East India Generative AI Market Share, By Technology, By Value, 2019–2030

Figure 26     East India Generative AI Market Share, By Application, By Value, 2019–2030

Figure 27     East India Generative AI Market Share, By Model, By Value, 2019–2030       

Figure 28     East India Generative AI Market Share, By End Use, By Value, 2019–2030    

Figure 29     West India Generative AI Market Size, By Value (USD Billion), 2019–2030    

Figure 30     West India Generative AI Market Share, By Component, By Value, 2019–2030         

Figure 31     West India Generative AI Market Share, By Technology, By Value, 2019–2030         

Figure 32     West India Generative AI Market Share, By Application, By Value, 2019–2030

Figure 33     West India Generative AI Market Share, By Model, By Value, 2019–2030      

Figure 34     West India Generative AI Market Share, By End Use, By Value, 2019–2030   

List of Tables

Table 1        India Generative AI Market Size, By Value (USD Billion), 2019–2030

Table 2        India Generative AI Market Size, By Component, By Value, 2019–2030

Table 3        India Generative AI Market Size, By Technology, By Value, 2019–2030

Table 4        India Generative AI Market Size, By Application, By Value, 2019–2030

Table 5        India Generative AI Market Size, By Model, By Value, 2019–2030

Table 6        India Generative AI Market Size, By End Use, By Value, 2019–2030

Table 7        India Generative AI Market Size, By Region, By Value, 2019–2030

Table 8        North India Generative AI Market Size, By Value (USD Billion), 2019–2030

Table 9        North India Generative AI Market Size, By Component, By Value, 2019–2030

Table 10      North India Generative AI Market Size, By Technology, By Value, 2019–2030

Table 11      North India Generative AI Market Size, By Application, By Value, 2019–2030

Table 12      North India Generative AI Market Size, By Model, By Value, 2019–2030

Table 13      North India Generative AI Market Size, By End Use, By Value, 2019–2030

Table 14      South India Generative AI Market Size, By Value (USD Billion), 2019–2030

Table 15      South India Generative AI Market Size, By Component, By Value, 2019–2030

Table 16      South India Generative AI Market Size, By Technology, By Value, 2019–2030

Table 17      South India Generative AI Market Size, By Application, By Value, 2019–2030

Table 18      South India Generative AI Market Size, By Model, By Value, 2019–2030

Table 19      South India Generative AI Market Size, By End Use, By Value, 2019–2030

Table 20      East India Generative AI Market Size, By Value (USD Billion), 2019–2030

Table 21      East India Generative AI Market Size, By Component, By Value, 2019–2030

Table 22      East India Generative AI Market Size, By Technology, By Value, 2019–2030

Table 23      East India Generative AI Market Size, By Application, By Value, 2019–2030

Table 24      East India Generative AI Market Size, By Model, By Value, 2019–2030

Table 25      East India Generative AI Market Size, By End Use, By Value, 2019–2030

Table 26      West India Generative AI Market Size, By Value (USD Billion), 2019–2030

Table 27      West India Generative AI Market Size, By Component, By Value, 2019–2030

Table 28      West India Generative AI Market Size, By Technology, By Value, 2019–2030

Table 29      West India Generative AI Market Size, By Application, By Value, 2019–2030

Table 30      West India Generative AI Market Size, By Model, By Value, 2019–2030

Table 31      West India Generative AI Market Size, By End Use, By Value, 2019–2030

Table 32      GeekyAnts Company Overview

Table 33      GeekyAnts Financial Overview

Table 34      Dreamztech Solutions Company Overview

Table 35      Dreamztech Solutions Financial Overview

Table 36      IBM Company Overview

Table 37      IBM Financial Overview

Table 38      Google LLC Company Overview

Table 39      Google LLC Financial Overview

Table 40      Microsoft Company Overview

Table 41      Microsoft Financial Overview

Table 42      Adobe Company Overview

Table 43      Adobe Financial Overview

Table 44      Rephrase.ai Company Overview

Table 45      Rephrase.ai Financial Overview

Table 46      Agile Infoways LLC Company Overview

Table 47      Agile Infoways LLC Financial Overview

Table 48      Intuz Company Overview

Table 49      Intuz Financial Overview