The latest analysis from IoT Analytics, a leading provider of market insights and strategic business intelligence, has revealed the front-runners in the rapidly growing generative artificial intelligence (AI) market. Following the release of its comprehensive "Generative AI Market Report 20232030", the firm underscored the dominance of NVIDIA, OpenAI and Microsoft, and the burgeoning services hub around Accenture.
The generative AI market, IoT Analytics unveiled, has surged from virtually non-existent to a hotbed of activity within a year. The firm scrutinised three interconnected markets in the generative AI sector: 1) data centre GPUs, 2) foundational models and platforms, and 3) generative AI services. Each sector exhibits its unique facets and key players.
Knud Lasse Lueth, CEO at IoT Analytics, signified the rapid dynamism in the generative AI industry, highlighting the noteworthy leading roles of Nvidia in the data centre GPU market with a 92% market share and Microsoft and OpenAI sharing a 69% market share in the models and platforms segment. "With hyperscalers developing their own data centre chips and the availability of powerful open-source models, it will be interesting to watch how much the early lead is worth for the current market leaders," he commented.
Moving on to the services market, which shows broader fragmentation, the current leader is Accenture, possessing a 6% market share. Philipp Wegner, Principal Analyst at IoT Analytics, reinforced the remarkable evolution of the Generative AI market, with established leaders and a slew of startups. "In 2024, it's a make-or-break year for Gen AI vendors, as they navigate a crowded field of competitors,” he suggested.
The rise of generative AI is clear in the success of OpenAI, particularly following the launch of ChatGPT in 2022, and NVIDIA, which boosted its data centre GPU sales from $3.6 billion in Q4 2022 to an expected $16 billion in Q4 2023. The generative AI foundational models and platforms market is projected to account for nearly 5% of global software spending by 2030, reflecting its disruptive potential and significant value proposition. The analysis also revealed that the market for data centre GPUs reached $49 billion in 2023 — primarily driven by the force of NVIDIA. Despite supply constraints and rising prices, demand is not set to decline.
The report also exposed the current leaders in the generative AI foundational model and platform market, with OpenAI leading with a 39% market share following the sweeping success of its pre-trained transformer (GPT) models. Close behind, with a 30% market share, lies Microsoft and its Azure AI platform. Meanwhile, AWS commands an 8% share of the market with its Bedrock service.
With the laser focus of boardroom discussions turning to generative AI, IoT Analytics detects a substantial opportunity for services firms who are well-positioned to assist companies in this domain. Accenture rules in the generative AI services market with a 6% share, followed by IBM and Capgemini at 2% respectively. The exciting and rapidly transforming visualisation of the generative AI market will be closely watched by IoT Analytics, with a follow-up report anticipated in 2024.