The global AI in media & entertainment market size reached US$ 12.64 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 53.32 Billion by 2028, exhibiting a growth rate (CAGR) of 26.71% during 2023-2028. The increasing demand for personalized content, rapid digital transformation in the media and entertainment sector, the rise of over-the-top (OTT) platforms, and advances in AI technologies are some of the major factors propelling the market.
|AI In Media & Entertainment Market Size in 2022
||US$ 12.64 Billion
|AI In Media & Entertainment Market Forecast in 2028
||US$ 53.32 Billion
|AI In Media & Entertainment Market Growth Rate (2023-2028)
Artificial intelligence (AI) is a transformative technology used in the media & entertainment industry. It encompasses machine learning (ML) algorithms and deep learning networks to emulate human intelligence, enabling more streamlined and personalized content production and delivery. AI systems automate content curation, predicting audience preferences with precision, thus enhancing user engagement. They also drive efficiencies in media production, from scriptwriting assistance to digital effects creation. The use of AI-powered chatbots in customer service delivers 24/7 interactive experiences, improving user satisfaction. AI's predictive analytics facilitates precise ad-targeting, thereby boosting ad revenue. AI also monitors user feedback on social platforms, offering insights into audience sentiment and emerging trends. By revolutionizing the media value chain from production to consumption, AI has become instrumental in driving innovation and economic growth in the media & entertainment industry.
The rising consumer preference for personalized content, coupled with rapid digitization in the media and entertainment sector, will stimulate market growth during the forecast period. Moreover, the exponential growth in the volumes of data being generated provides a rich source for AI to draw from, offering deeper insights and analysis for decision-making processes. Along with this, AI applications offer strategic benefits such as cost and time efficiency, giving companies a competitive edge in the marketplace, which is further accelerating product adoption rates. Besides this, the growing emphasis on enhanced customer experience has catalyzed the demand for AI chatbots and virtual assistants to improve customer service by providing instant, personalized interactions. Also, as the media and entertainment industry thrives on viewer feedback and trends, there is a surge in the need for real-time analytics. AI systems can process large volumes of data at high speed, offering immediate insights and enabling media companies to make swift, informed decisions. In line with this, the escalating need for operational efficiency is favoring market growth as AI automation can reduce manual tasks, improve speed, and enhance accuracy in operational processes, such as content creation, distribution, and user management, thus improving overall business performance. Other factors, including the rise of over-the-top (OTT) platforms, the elevating need for regulatory compliance, and increasing consumption of online content due to high internet penetration rates, are also propelling the market growth.
AI in Media & Entertainment Market Trends/Drivers:
Increase in Demand for Personalized Content
With the proliferation of digital platforms, audiences now have access to a vast content library. In this context, personalization is key to user retention and engagement. AI plays a critical role by leveraging machine learning algorithms to analyze user behavior, preferences, and historical data. AI algorithms are capable of predicting consumer preferences, allowing for highly tailored content, thereby enhancing user engagement and satisfaction. These insights allow platforms to recommend content tailored to individual tastes to improve the viewer experience and foster user loyalty. AI also assists in creating personalized marketing campaigns, delivering targeted messages to potential consumers. The result is a dynamic and individualized user interface that significantly boosts engagement rates and underlines the importance of AI in driving content personalization in the media and entertainment industry.
Rise in Digital Transformation
As media and entertainment companies increasingly adopt digital technologies, the demand for AI in streamlining operations and enhancing efficiencies is witnessing an upsurge. Digital transformation includes automating routine tasks, enhancing content creation, optimizing distribution, and refining monetization strategies. For instance, AI helps automate scriptwriting, storyboard creation, and video editing, thus reducing production time and costs. AI also plays a crucial role in efficient content distribution as it helps identify the optimal platforms and timings for content release, maximizing reach and impact. Furthermore, AI supports monetization by enabling targeted advertising and subscription models based on user preferences. These applications are integral to the digital transformation journey of the industry, emphasizing the vital role of AI, which in turn is driving the market toward growth.
Continuous Advances in AI Technologies
The continuous evolution of AI technologies, including machine learning, deep learning, natural language processing, and computer vision, is propelling the growth of AI in the media and entertainment sector. Advanced machine learning algorithms can predict audience behavior and trends, enabling media companies to stay ahead of the curve. Deep learning assists in creating realistic digital effects and animations, enhancing visual storytelling. Natural language processing enhances the capability of chatbots, virtual assistants, and other interactive applications, improving user interactions. Meanwhile, computer vision aids in content moderation and copyright detection, protecting intellectual property rights. These technological advancements are fostering innovative applications and making AI an indispensable tool in the media and entertainment industry, thereby augmenting market growth.
AI in Media & Entertainment Industry Segmentation:
IMARC Group provides an analysis of the key trends in each segment of the global AI in media & entertainment market report, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on solution and application.
Breakup by Solution:
Services represents the most popular solution
The report has provided a detailed breakup and analysis of the market based on the solution. This includes hardware/equipment and services. According to the report, services represented the largest segment.
The implementation of AI requires expertise in integrating AI solutions within existing infrastructures and training the workforce to utilize these technologies effectively. These complexities strengthen the need for professional services, including consulting, system integration, and support and maintenance. Moreover, as AI technologies continue to evolve, businesses require ongoing technical assistance to keep their AI solutions updated and tackle potential issues, thus requiring managed services. Additionally, organizations may often need custom solutions tailored to their unique requirements to fully leverage AI's potential, further driving the demand for AI services. AI services also encompass the essential training and support required for the employees of media and entertainment companies to utilize AI tools effectively, thereby maximizing the return on investment. Therefore, the high demand for these varied services contributes to the growth of this segment in the market.
Breakup by Application:
- Fake Story Detection
- Plagiarism Detection
- Production Planning and Management
- Sales and Marketing
- Talent Identification
- Content Capture
- Sports Automatic Productions
Sales and marketing accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the application. This includes gaming, fake story detection, plagiarism detection, personalization, production planning and management, sales and marketing, talent identification, content capture, and sports automatic productions. According to the report, sales and marketing represented the largest segment.
AI can analyze and predict consumer behavior and trends with higher precision. The vast volumes of data generated from various sources provide a rich source for AI to draw insights, enabling the creation of highly targeted and personalized marketing campaigns. AI helps to segment the market and identify potential target audiences, allowing marketers to optimize their efforts and improve return on investment (ROI). AI-driven analytics can also measure campaign effectiveness in real time, facilitating marketers to adjust strategies promptly and efficiently.
The application of AI in sales is equally impactful as AI predictive analytics can help forecast sales trends and consumer purchasing behaviors, aiding in strategic decision-making. Moreover, AI chatbots and virtual assistants contribute to the sales process by providing 24/7 customer interaction, enhancing customer service, and subsequently improving sales potential. Therefore, the tremendous impact of AI in enhancing efficiency, precision, and personalization in sales and marketing initiatives is fueling the growth of this segment.
Breakup by Region:
- North America
- United Kingdom
- Asia Pacific
- South Korea
- Latin America
- Middle East and Africa
North America exhibits a clear dominance in the market
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market for AI in media and entertainment.
North America held the largest market share since the region is home to numerous tech giants, leading research institutions, and innovative startups specializing in AI technologies. These entities drive continuous research and development (R&D), pushing the boundaries of AI applications in the media and entertainment industry. Moreover, North America boasts a robust digital infrastructure and high internet penetration rates, providing fertile ground for the adoption and utilization of AI solutions. This infrastructure supports the creation, distribution, and consumption of digital content, making it an ideal environment for AI technologies to flourish.
Another contributing aspect is the region's strong economic growth and substantial investments in AI. The availability of venture capital funding and government support further foster the development and commercialization of AI solutions in the media and entertainment sector. Besides this, North America has a mature media and entertainment industry that readily embraces technological advancements. The presence of major film studios, broadcasting companies, and streaming platforms creates a high demand for AI-driven solutions to enhance content creation, recommendation algorithms, audience engagement, and monetization strategies, making North America a dominant region in the market.
The market is witnessing significant growth owing to its dynamic competitive landscape with the presence of both established companies and emerging players. Companies are striving to differentiate themselves through technological advancements, industry expertise, partnerships, and a focus on addressing specific needs within the media and entertainment sector. The market is also experiencing a rise in strategic partnerships and alliances among technology companies, media companies, and AI startups. These collaborations aim to combine expertise, technologies, and market reach to deliver comprehensive and integrated AI solutions. Various key players are engaging in research and development (R&D) activities to introduce niche AI solutions tailored to the media and entertainment industry. We expect the market to witness an increase in the number of startups and innovative companies focusing on introducing disruptive technologies and novel solutions to address specific industry challenges. This, coupled with new entrants and increased mergers and acquisitions (M&As), is projected to drive healthy competition within the domain during the forecast period.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- Amazon Web Services Inc. (Amazon.com Inc.)
- EVS Broadcast Equipment SA
- Gravity Media
- GrayMeta Inc.
- International Business Machines Corporation
- LMG LLC (Entertainment Technology Partners)
- Move.ai Ltd.
- PlaySight Interactive Ltd.
- Spiideo AB
- Veritone Inc.
AI in Media & Entertainment Market Report Scope:
|Base Year of the Analysis
| Historical Period
|Scope of the Report
||Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
||Gaming, Fake Story Detection, Plagiarism Detection, Personalization, Production Planning and Management, Sales and Marketing, Talent Identification, Content Capture, Sports Automatic Productions
||Asia Pacific, Europe, North America, Latin America, Middle East and Africa
||United States, Canada, Germany, France, United Kingdom, Italy, Spain, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
||Amazon Web Services Inc. (Amazon.com Inc.), EVS Broadcast Equipment SA, Gravity Media, GrayMeta Inc., Hudl, International Business Machines Corporation, LMG LLC (Entertainment Technology Partners), Move.ai Ltd., Pixellot, PlaySight Interactive Ltd., Spiideo AB, Veritone Inc., etc.
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Key Questions Answered in This Report:
- How has the global AI in media & entertainment market performed so far, and how will it perform in the coming years?
- What are the drivers, restraints, and opportunities in the global AI in media & entertainment market?
- What is the impact of each driver, restraint, and opportunity on the global AI in media & entertainment market?
- What are the key regional markets?
- Which countries represent the most attractive AI in media & entertainment market?
- What is the breakup of the market based on the solution?
- Which is the most attractive solution in the AI in media & entertainment market?
- What is the breakup of the market based on the application?
- Which is the most attractive application in the AI in media & entertainment market?
- What is the competitive structure of the global AI in media & entertainment market?
- Who are the key players/companies in the global AI in media & entertainment market?
Key Benefits for Stakeholders:
- IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the AI in media & entertainment market from 2017-2028.
- The research study provides the latest information on the market drivers, challenges, and opportunities in the global AI in media & entertainment market.
- The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
- Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the AI in media & entertainment industry and its attractiveness.
- Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.