The global AI video generator market size was estimated at USD 554.9 million in 2023 and is projected to reach USD 1,959.24 million by 2030, growing at a CAGR of 19.9% from 2024 to 2030. This growth is largely driven by the increasing demand for video content, as businesses and consumers are progressively embracing visual media to communicate, engage, and influence audiences more effectively.

Video content accounts for approximately 80% of online traffic, reflecting the preference of individuals for visual media over text and static images. The widespread availability of high-speed internet, the vast number of users on social media platforms, and the growing consumer inclination toward video content have collectively accelerated the adoption of AI video generation tools and services. In the era of artificial intelligence (AI), companies have developed AI-enabled tools that allow users to create videos from a variety of sources, including text, PowerPoint presentations, and spreadsheets. These tools are designed to be user-friendly, reduce manual effort, and save time, which has contributed to their rapid acceptance among users.

For example, in February 2024, OpenAI announced the development of its text-to-video generator, Sora. Sora is an AI-powered model capable of generating realistic and imaginative video scenes based on textual descriptions. It allows the creation of videos up to a minute long while maintaining high visual quality and adhering strictly to the provided instructions. Similarly, Synthesia, an AI video generation platform, enables users to create videos using avatars in a fraction of the time required by traditional methods. Synthesia supports over 60 languages, offers a screen recorder, media library, templates, and other interactive features, making the video creation process more efficient, engaging, and accessible for a wide range of users and applications.

Key Market Trends & Insights:

• The AI video generator market in Asia Pacific accounted for the largest market revenue share of 31.40% in 2023, driven by a substantial customer base and high adoption of AI video generator software across businesses and content creators in the region. The demand for AI-enabled video solutions is particularly strong in countries with large digital populations and advanced technology adoption. Among these, the China AI video generator market is poised to emerge as a rapidly expanding segment, reflecting increasing investments in AI technologies and growing utilization of AI-based video generation solutions across multiple sectors.

• By component, the solutions segment held a leading share of nearly 63.31% of the global revenue in 2023, highlighting the widespread demand for AI video generation software solutions that enable businesses and individuals to create, customize, and optimize video content efficiently. These solutions offer features that streamline video production, reduce manual effort, and enhance creativity, making them a preferred choice among users globally.

• By organization size, the large enterprises segment accounted for the leading market revenue share in 2023, as these organizations typically require scalable AI video generation tools to manage high-volume content creation, marketing campaigns, and internal communications across multiple departments and regions.

• Based on source, the text-to-video segment is expected to hold a dominant market share throughout the forecast period, reflecting the growing preference for converting textual information into engaging video content. Text-to-video solutions are widely adopted due to their efficiency, ease of use, and ability to produce visually compelling content from written scripts, presentations, and other text-based inputs, making them a key driver of market growth.

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Market Size & Forecast:

• 2023 Market Size: USD 554.9 Million

• 2030 Projected Market Size: USD 1,959.24 Million

• CAGR (2024-2030): 19.9%

• Asia Pacific: Largest market in 2023

• Middle East & Africa: Fastest growing market

Key Companies & Market Share Insights:

Key participants in the AI video generator market are focused on delivering competitive, innovative, and state-of-the-art technologies to differentiate themselves in a rapidly evolving ecosystem. The majority of leading companies are start-ups or mid-sized enterprises, which creates an environment of intense competition as they strive to achieve economies of scale and expand their market footprint.

The current market landscape is characterized by heightened rivalry among these players, with a strong emphasis on enhancing product features, improving quality, and introducing innovative functionalities. Such efforts are driving greater market consolidation and growth, as companies leverage strategic initiatives including research and development (R&D) and collaborations to maintain a competitive edge.

In addition, industry participants are increasingly forming strategic partnerships with suppliers, distributors, and technology providers to broaden their product portfolios, strengthen distribution channels, and expand their geographic presence. These collaborative strategies enable companies to meet growing customer demand, improve operational efficiency, and solidify their positioning in a highly competitive market.

Key Players

• Synthesia

• Lumen5

• Muse.ai

• Rephrase.ai

• Synths video

• Raw shorts

• Pictory

• FlexClip

• Designs.Ai

• InVideo

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Conclusion:

The AI video generator market is expected to grow strongly over the forecast period, driven by rapidly increasing global demand for video content and broad adoption of AI enabled video creation technologies. Growth is supported by widespread use of high speed internet, extensive social media engagement, and the preference for visual media across industries. Innovations in machine learning, natural language processing, and computer vision are continuously enhancing the capabilities and quality of AI video generators, making them increasingly competitive with traditional video production methods.