The market for artificial intelligence-powered video production will be worth nearly four times what it was in 2021 within the next five years, according to a new report from Dublin Ireland’s Research and Markets (R&M).
Monday’s report indicates that the market will be ascending at a compound annual growth rate of 22.37 per cent between now and 2028. The firm says it was worth US$362.5 million in 2021 and will be worth US$1.48 billion by the end of the forecast period.
Key factors propelling the market’s growth will include increasing rates of video usage as a marketing strategy among different companies and advertising agencies and continually emerging statistics indicating that customers prefer to engage with video content on social media.
Enhanced efficiency and speed of video production, the emergence of new media streaming websites and the adoption of AI-powered video production tools among established streaming services like Amazon Prime (NASDAQ: AMZN) will also drive the market’s growth.
Amazon Prime gained 50 million more subscribers between 2019-2022.
Key market developments in 2023
In February, Israel’s Wochit Company unveiled a new AI-powered video generation tool called the Wochit Wizard, which utilizes ChatGPT technology to transform written text into video content.
The Wochit Wizard. Video via Wochit
That month as well, the AI companies Krikey.ai and Stability AI joined forces to enable users to make animated avatar videos. These videos can be created by simply describing them in text and then downloaded and shared on social media, video editing software, or even in 3D video games.
Genius Brands International Inc (NASDAQ: GNUS) also announced in February that it would be broadcasting the children’s animated series Kidaverse Fast Facts through the use of ChatGPT technology for scriptwriting and other AI technology for images, animation and voice-overs.
North America is key player in AI video production market
North American countries are witnessing significant growth in their IT and technology industries and their media and entertainment sectors, which is partly fueled by advancements in AI technology. The presence of well-established AI video-generating software companies in the United States such as Pictory, Elai.io, InVideo AI, Synths Video and Wisecut further contributes to the expansion of AI video content in North America, according to R&M.
Major IT and software companies such as Amazon Web Services, Google (NASDAQ: GOOGL), IBM (NYSE: IBM), and Microsoft Corp (NASDAQ: MSFT) have been investing in AI tech, including video generation. The new CEO of YouTube Neal Mohan recently announced plans to launch AI-powered video tools for content creators intended to enhance the overall quality and content of their videos.
As technology continues to advance and industry players prioritize AI-powered solutions, the market size for AI-powered video production is expected to grow significantly in the continent.
Although AI can be used to help make video production faster and more efficient, the technology also has harmful potential uses. The creation of deepfakes that digitally manipulate media for malicious purposes such as generating pornographic content involving celebrities or videos of prominent world figures saying things they did not actually say is a significant concern.