AI Image Generator Market Size, Share, Forecast, & Trends Analysis by Offering (Solutions, Services), Deployment Mode, Application (Personal, Professional), Platform (Web-based, Mobile), End User (Media & Entertainment, Marketing, and Advertising), and Geography - Global Forecast to 2031

The AI Image Generator Market was valued at $327.1 million in 2023. This market is expected to reach $1,093.1 million by 2031 from an estimated $376.8 million in 2024, at a CAGR of 16.4% during the forecast period from 2024 to 2031.

AI Image Generator Market Size & Forecast

This market's growth is driven by the increasing adoption of AI image-generation solutions in marketing and advertising and the growing prevalence of do-it-yourself (DIY) content creation platforms. However, concerns regarding data privacy and the potential for the creation of malicious content are anticipated to impede its growth.

The increasing adoption of AI image generators in the healthcare sector, the rising integration of generative AI and computer vision for advanced image manipulation, and the growing use of AI image generators by individual users are expected to generate growth opportunities for market stakeholders. On the other hand, challenges associated with the high dimensionality of images present a significant hurdle for companies operating in this market. Moreover, the integration of AI image generators for educational purposes is a prominent market trend in the AI image generator market.

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AI Image Generator Market Growth Drivers

High Adoption of AI Image Generator Solutions for Marketing and Advertising

In recent years, the use of AI image generators in marketing and advertising has increasingly enabled the creation of highly customized images that align with specific brand guidelines and campaign themes. AI-generated images enhance brand visualization and identity for organizations. AI facilitates the creation of personalized content based on user data, allowing for a reflection of individual preferences and demographics, which in turn boosts engagement and conversion rates for businesses.

With the increasing integration of AI image generator solutions, marketers and advertisers can enhance their creative processes, efficiently produce high-quality content, and engage audiences with visually compelling materials. Consequently, several companies are offering AI-enabled content engines for digital advertising. For example, in May 2023, Nvidia Corporation (U.S.) partnered with WPP plc (U.K.) to develop a generative AI-enabled content engine for digital advertising. This new engine connects a suite of 3D design, manufacturing, and creative supply chain tools, including offerings from Adobe and Getty Images, enabling WPP’s artists and designers to seamlessly integrate 3D content creation with generative AI. Such advancements are expected to drive the demand for AI image generators in marketing and advertising throughout the forecast period.

AI Image Generator Market Opportunity

Growing Adoption of AI Image Generators in the Healthcare Sector

The increasing adoption of AI image generators in the healthcare sector is enhancing diagnostic accuracy, medical training, and patient care. Healthcare organizations are progressively integrating these tools to create synthetic medical images for diagnostic training, thereby improving the accuracy of diagnostic algorithms. Additionally, many hospitals and training centers are utilizing AI image generators for medical education, producing virtual models of anatomy and pathology that serve both educational purposes and surgical planning.

Furthermore, AI image generators facilitate the creation of personalized visual representations of a patient's body structure, enabling the design and planning of individualized treatment strategies. Given these advantages, several providers are launching solutions tailored for the healthcare sector. For instance, in September 2024, Harrison-AI Pty Ltd (Australia) introduced a radiology-specific language model as a foundational component for healthcare AI. This model enhances the speed and accuracy of radiology image analysis, thereby improving diagnostic precision in pathology. The Harrison.rad.1 model is dialogue-based, capable of answering open-ended visual questions about radiology images, detecting findings, providing descriptions, and generating structured reports. Such advancements are expected to significantly drive the growth of AI image generators for accurate diagnostics, improved training, and more personalized patient care within the healthcare sector.

AI Image Generator Market Trend

Integration of AI Image Generators for Educational Purposes

The rapid advancement of technology has positioned image-generation techniques as powerful tools in educational settings. The increasing adoption of AI image generators for various educational purposes enhances learning experiences across subjects such as art and design, science and geography, and language learning activities. As a result, the growing use of AI image generator solutions in education significantly enriches students' learning experiences, thereby driving demand in the education sector.

Many educational institutions are increasingly utilizing AI image generator solutions to provide visual aids and interactive experiences for students. These solutions transform the learning environment into a more immersive, stimulating, and engaging experience. The visual representations generated through these tools facilitate better comprehension of complex concepts, enhance information retention, and foster creativity among students. Moreover, AI image generator solutions cater to diverse learning styles and preferences, personalizing the educational experience and making it more engaging. Such developments are expected to drive the adoption of AI image generator solutions for educational purposes in the coming years.

AI Image Generator Market Analysis: Key Findings

The Solutions Segment to Dominate the AI Image Generator Market in 2024

Based on offering, the AI image generator market is segmented into solutions and services. In 2024, the solutions segment is expected to account for a larger share of over 73.0% of the AI image generator market. This segment's substantial market share is attributed to the increasing adoption of AI image generator solutions that reduce the time required for manual visual creation and the rising use of these tools for customization, allowing users to create images tailored to their specific needs. Additionally, AI image generator solutions are cost-effective, making high-quality image creation more accessible to individuals and small businesses. Moreover, the solutions segment is estimated to register a higher CAGR during the forecast period.

The Cloud-based Segment to Dominate the AI Image Generator Market in 2024

Based on deployment mode, the AI image generator market is segmented into cloud-based and on-premise. In 2024, the cloud-based segment is expected to account for a larger share of over 66.0% of the AI image generator market. This segment's substantial market share is driven by the increasing adoption of cloud-based AI image generators for efficiently managing large-scale image generation tasks, as well as the rising demand for subscription-based or pay-as-you-go models. Additionally, users increasingly accessing these solutions from any location enhances flexibility and convenience, contributing to the growth of this segment. Moreover, the cloud-based segment is estimated to register a higher CAGR during the forecast period.

The Professional/Enterprises Segment to Dominate the AI Image Generator Market in 2024

Based on application, the AI image generator market is segmented into personal and professional/enterprises. In 2024, the professional/enterprises segment is expected to account for a larger share of over 74.0% of the AI image generator market. This segment's substantial market share is attributed to the increasing adoption of AI image generator solutions by enterprises for creating images tailored to specific brand guidelines, target audiences, and campaign themes. Additionally, the rising integration of AI image generators within enterprises enables the management of large-scale content creation, allowing for the rapid and efficient production of vast quantities of images.

However, the personal segment is estimated to register a higher CAGR during the forecast period. This segment's growth is attributed to the growing adoption of AI image generator solutions among individuals to generate high-quality images at low cost. AI image generators are designed to be intuitive and easy to navigate, helping users with no technical expertise create high-quality visuals.

The Web-based Segment to Dominate the AI Image Generator Market in 2024

Based on platform, the AI image generator market is segmented into web-based and mobile. In 2024, the web-based segment is expected to account for a larger share of over 71.0% of the global AI image generator market. This segment's substantial market share is attributed to the increasing adoption of web-based AI image generator solutions that can efficiently manage large-scale or complex image generation tasks using cloud infrastructure, thus avoiding performance issues. Additionally, the rising integration of web-based tools across various operating systems and devices—without the need for specific software installations—ensures a seamless user experience.

However, the mobile segment is estimated to register a higher CAGR during the forecast period. This segment's growth is driven by the rising adoption of mobile-based AI image generators, which enable users to create and edit images remotely in real time from their smartphones or tablets. Furthermore, the increasing popularity of social media platforms encourages individuals to utilize AI image generators through mobile applications for posting images directly to these platforms.

The Marketing and Advertising Segment to Dominate the AI Image Generator Market in 2024

Based on end user, the AI image generator market is segmented into IT & telecommunication, media & entertainment, marketing, and advertising, healthcare & life sciences, gaming, education & training, retail & E-commerce, construction & real estate, government & defense, BFSI, art and design, fashion & apparel, energy & utilities, and other end users. In 2024, the marketing and advertising segment is expected to account for the largest share of over 36.0% of the AI image generator market. This segment's substantial market share is attributed to the increasing adoption of AI image generators in marketing, which allows for the generation of large volumes of images for campaigns, product launches, and promotional activities. Additionally, the growing use of cloud-based AI image generators facilitates real-time editing and feedback among marketing teams, designers, and stakeholders.

However, the media and entertainment segment is estimated to register a higher CAGR during the forecast period. This segment's growth is driven by the rising use of AI image generators to effectively visualize storyboards, scenes, and character designs. These tools enable media and entertainment companies to create personalized and targeted visuals, thereby enhancing audience engagement.

Geographical Analysis

North America to Dominate the AI Image Generator Market in 2024

In 2024, North America is expected to account for the largest share of over 42.0% of the global AI image generator market. North America’s substantial market share is primarily driven by the widespread adoption of AI image generators in the healthcare sector to enhance diagnostic accuracy and efficiency. Additionally, the region has seen a significant rise in the use of AI image generator solutions within the advertising and marketing industries. The high concentration of AI image generator solution providers in the region further contributes to this growth, along with an increasing number of personal users leveraging these technologies.

However, Asia-Pacific is estimated to register the highest CAGR of over 17.5% during the forecast period. This segment's growth is attributed to the growing investment in AI technology from the government and private sectors and the increasing adoption of AI image generators in businesses to engage with target audiences and create more relevant content.

AI Image Generator Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the AI image generator market are Microsoft Corporation (U.S.), Google LLC (A Subsidiary of Alphabet Inc.) (U.S.), Amazon Web Services, Inc. (A Subsidiary of Amazon.com Inc.) (U.S.), Adobe Inc. (U.S.), OpenAI, L.L.C. (U.S.), Nvidia Corporation (U.S.), Meta Platforms, Inc (U.S.), Databricks, Inc.(U.S.), Vyro LLC (Australia), Jasper AI, Inc. (U.S.), NightCafe Studio Pty Ltd (Australia), Stability AI Ltd (U.K.), Lightricks Ltd. (Israel), Runway AI, Inc. (U.S.), Lumen5 Technologies Ltd (Canada), Craiyon LLC (U.S.), Resleeve B.V. (Netherlands), and starryai, Inc. (U.S.).

AI Image Generator Industry Overview: Latest Developments from Key Industry Players

• In April 2024, Appy Pie LLP (India) launched an AI image generator, an AI-powered platform that converts text prompts into unique and creative images. The tool allows users to create beautiful images easily and in less time.
• In October 2023, Amazon Web Services, Inc. (U.S.) launched AI-powered image generation to help advertisers deliver a better ad experience for customers.
• In May 2023, Adobe Inc.(U.S.) launched Generative Fill in Photoshop, bringing Adobe Firefly generative AI capabilities directly into design workflows. The new Firefly-powered Generative Fill gives users a magical new way to work by easily adding, extending, or removing content from images non-destructively in seconds using simple text prompts.

AI Image Generator Market Research Summary

Key questions answered in the AI image generator market report: