New Delhi, Jan 29 (IANS): Generative AI (genAI) is expected to become a $100 billion industry by 2026, a new report said on Monday.

According to data presented by AltIndex.com, the genAI market to grow by a massive 65 per cent in the next two years.

"The release of OpenAI's ChatGPT marked a turning point for the global AI industry. The chatbot, which became the fastest-growing app in history with 100 million users in just two months, turned artificial intelligence into one of the biggest stories in 2023," the report said.

"While ChatGPT was the most popular showcase of generative artificial intelligence, other AI tools like Character.ai, DeepL, Quillbot, Midjourney, and Capcut also hit billions of visits, showing this market's enormous potential," it added.

Between 2020 and 2023, the generative AI market exploded, growing from $5.7 billion to $44.9 billion -- a staggering 690 per cent increase.

As per statistics, the market has been practically doubling for the past three years, with the annual growth rates floating between 93 per cent and 106 per cent.

However, Statista predicts the annual growth rate to slow down in 2024, the value of the entire market will still increase by a massive 48.4 per cent and hit $66.6 billion.

The double-digit growth will continue in the following years, with genAI reaching a $100 billion value by 2026, showing a huge 65 per cent increase in just two years. By 2030, this figure is expected to more than double and jump over $207 billion.

In global comparison, the US will remain the world's largest genAI market, expected to hit $37.3 billion in value in 2026, or 60 per cent more than this year.

As the second largest globally, the Chinese market will grow even more, with its valuation jumping by 72 per cent to $14.7 billion in the next two years.

The German generative AI market follows with a 60 per cent two-year increase and a valuation of $4.5 billion by 2026, the report mentioned.