Ai In Media And Entertainment Market

Market Overview

The global AI in media and entertainment market size was valued at USD 10.25 billion in 2021 and is projected to reach USD 104.36 billion by 2030 at a CAGR of 26.12% from 2022 to 2030.

Artificial intelligence (AI) utilised in gameplay, fake story recognition, plagiarised detection, production planning and management, personalisation, sales and marketing, and talent scouting, among other areas, is driving the rise of AI in the global media and entertainment industry.

The market is primarily driven by the increasing popularity of virtual creation in the media and entertainment industry, as well as it's capacity to produce high-definition graphics and real-time virtual worlds. Due to the rising popularity of OTT platforms and improved online gaming experience, the global AI in Media & Entertainment market is anticipated to expand at a rapid rate during the period of forecast.

Market Dynamics

Drivers for the Global Ai in Media And Entertainment Market

OTT Platforms Are Driving the Market

Positive effects of government initiatives on industry growth are anticipated. In sporting events, AI systems are used to recognise objects and behaviour. Additionally, it can use drone footage to provide broadcasts with engaging content and in-depth sports analysis. In a football game, for instance, AI-generated live footage may capture the action and the players' and fans' reactions after each goal.

The visuals used in the live broadcast of a match should aid in the development of an engaging narrative. Companies use artificial intelligence to create more customised services for users by promoting personalised content based on their preferences when they browse a video site and scalability for users with different Internet speeds and bandwidths.

For instance, Netflix has implemented AI technology in an effort to provide its subscribers with a superior personalised experience. This artificial intelligence-enabled system will automatically execute multiple machine learning pipelines that provide show/movie/program recommendations.

Interest-Specific Content Propels the Market

To increase content consumption, one of the most influential contributions of AI technology to media and entertainment platforms is the ability to filter their content based on the customer's specific interests and preferences. Service providers are utilising AI to determine their preferences, such as what shows the user likes and dislikes and how much time they spend on a media platform. Companies are utilising this data to promote shows that match the user's preferences, resulting in hyper-personalized content and increased consumer satisfaction.

Furthermore, the availability of rich content metadata is essential for making content searchable. By accurately gathering metadata, AI can target these emotions and create customised highlights to guide the user to their favourite show, thereby increasing viewership and user preference.

Restraints for the Global Ai in Media And Entertainment Market

High Cost And Lack Of Accuracy And Data Are Hindering The Market

Lack of skilled professionals, inaccurate data, and the higher cost of acquiring AI technologies due to their complexity are the major obstacles in the market in question. In addition, customer privacy is one of the most significant factors that will likely impede the market expansion of AI in the Media and Entertainment Market in the coming years.

Opportunities for the Global Ai in Media And Entertainment Market

Analytics And Machine Learning Will Drive The Market In Future

The entertainment and media industry is experiencing unprecedented disruption. Several powerful forces are reshaping the media and entertainment industry, including the rapid adoption of connected devices and customers' heightened expectations, as well as the ongoing competition from internet video streaming providers and social media.

The incorporation of artificial intelligence elevates analytics to the next level by applying machine learning algorithms and natural language processing to make sense of vast amounts of unstructured data, of which more than 80 per cent are unstructured. They can assist businesses in leveraging building blocks such as dialogue capabilities, visual recognition, sentiment analysis, personality insights, and tone analysis in order to generate competitive advantages.

Regional Analysis

In 2021, North America dominated the market and accounted for over 38% of the total revenue. The AI in Media & Entertainment Market in North America is anticipated to surpass US$ 65 billion by 2030, expanding at a CAGR of 24.2% during the forecast period. This growth is primarily attributable to the significant investments made by companies in R&D for the creation of AI-based virtual production software solutions. Voice and speech recognition utilising AI is one of the region's most notable developments.

As substantial investments are being made in artificial intelligence (AI) projects and related research and development (R&D) activities, it is anticipated that the region will offer substantial opportunities for industry expansion. For instance, in June 2020, the enhanced version of Unreal Engine 4.25, a PlayStation software developed by Epic Games, Inc., was released. An unreal engine is VFX software used for designing, pre-visualizing, and editing real-time visual effects. In addition, increasing efforts by film companies, such as 20th century Fox's use of Watson, IBM's artificial intelligence system, to create a trailer for the horror film "Morgan."

The APAC AI in Media & Entertainment market is expected to reach 45 billion US dollars by 2030, up from 3.6 billion US dollars in 2021. The market is anticipated to expand at a CAGR of 25.8 per cent during the period of the projection. The increasing prevalence of content creation tools such as high-resolution cameras, content creation software, and smartphones has made it possible for anyone to create, publish, and distribute written, audio, and video content. The proliferation of the internet has led to the replacement of traditional media channels such as cable and radio in the region with on-demand streaming platforms such as Netflix and YouTube.

Segmental Analysis

This Ai in media and entertainment market share can be segmented on the basis of solution, application, regions and competitors. With a revenue share of 59.2 per cent in 2021, the service segment dominated the artificial intelligence in the media & entertainment market by solution. The increasing use of computer-generated graphics and visual effects in commercial advertisements and motion pictures is anticipated to positively impact market growth. Moreover, ongoing technological advancements in AI-based technologies permit the incorporation of advanced visual effect structures into the development of engaging content.

As a result of the lack of trained professionals in virtual production and VFX technology, film studios and filmmakers frequently hire qualified agencies and their services to implement VFX in their video productions, and this segment is expected to grow at the fastest rate.

The hardware market segment is anticipated to expand at a rapid rate over the forecast period. This is due to an increase in the demand for real-time background visuals, which are essential for in-house shoots. The AI ecosystem is expanding, the targeted problems are becoming more complex, and AI-specific hardware components are being developed to address these issues for a variety of applications. In the near future, the increasing use of artificial intelligence-based virtual production technology in movie studios and television shows is anticipated to increase the demand for motion capture workstations, virtual camera systems, simulation cameras, and other hardware for virtual production.

With a revenue share of 21.7 per cent in 2022, the segment of sales and marketing will be the market leader. The marketing subsegment accounts for the largest share of worldwide sales and market revenue. AI is used in trading and marketing, including design, advertising, and promotions in the media and entertainment industries. Creative marketing and advertising solutions can be developed by AI-powered frameworks.

Over the past few years, the segment of personalisation has experienced significant growth. Leading music and video streaming platforms, such as Spotify and Netflix, are also successful due to the fact that they cater to a variety of user preferences and tastes from around the world.

A.I. is also gaining prominence in automated sports productions with enhanced accuracy and efficiency for live streaming, broadcasting, and analytic services. With the implementation of advanced automatic sports production technology, the creation of footage can be completed more quickly. The gaming industry also accounts for a substantial revenue share. In most games, AI is used to control non-player characters (NPCs). AI models determine alterations in a gamer's behaviour in specific scenarios by analysing the actions of players and predicting their next moves.

Recent Developments

• Amazon Elastic Compute Cloud (Amazon EC2) C7g instances, the next generation of compute-optimized instances powered by AWS-designed Graviton3 processors, became generally available in May 2022.
• In May 2022, Taboola, a global leader in powering recommendations for the open web and assisting users in discovering content they may enjoy, announced it had entered into a definitive agreement to acquire Gravity R&D, a leading personalisation technology company founded on data science.
• At Mobile World Congress in Los Angeles in October 2021, IBM announced new collaborations and expanded partner relationships to advance the company's capabilities in hybrid cloud, AI, network automation, and security. These innovations demonstrate IBM's contribution to the evolution of the telecommunications industry, as 5G and Edge Computing redefine how businesses and consumers connect.