India Generative AI Market | Analysis 2019-2032

INDIA GENERATIVE AI MARKET SNAPSHOT

• DataCube Research foresees the India generative AI market making significant strides on the global stage, with projected revenue reaching US$ 2.70 billion by 2024. Moreover, our analysis indicates a promising trajectory, an anticipated CAGR of 34.91% from 2024 to 2032 to reach US$ 29.66 billion by 2032.
• Within the Indian generative AI market, our research highlights the dominance of the hardware segment, which claimed the largest market share of 67.98% in 2023. This underscores the segment's robust position and potential for continued growth.
• In our projections, we also pay close attention to end user dynamics. We anticipate the IT and Telecom sector to emerge as a key driver of growth, expanding with a fastest CAGR of 35.73% during the forecast period spanning 2024 to 2032.

INDIA GENERATIVE AI MARKET OUTLOOK

Over the past decade, India has established a robust foundation to support its AI economy and has emerged as a significant contributor to global AI advancements. According to Stanford University’s AI Index, India ranks among the top ten countries globally for private investment in AI ecosystem, assessed across various metrics spanning research, development, and economy. Notably, generative AI adoption is widespread in key sectors such as BFSI and IT & telecom, collectively constituting over one-third of India generative AI market share. Major institutes such as the World Bank and the IMF has acknowledged and recognized India as the fastest growing among major nations. Given the significant potential of Generative AI in enhancing productivity and efficiency, its widespread adoption is anticipated to further accelerate India’s growth trajectory. Therefore, increasing investment in Generative AI, education, and upskilling initiatives is imperative to fully leverage India's demographic dividend.

INDIA GENERATIVE AI MARKET TRENDS AND DEVELOPMENTS

Governments worldwide are acknowledging the potential of Generative AI to drive economic growth and are actively considering strategies to promote and regulate AI development. In India, the government recognizes AI's economic significance, with some advocating for a more focused national strategy for AI development. Positioning Gen AI as public goods could significantly impact economic dynamics and facilitate widespread deployment. For enterprises, embracing an AI-first approach entails a comprehensive overhaul of digital transformation strategies, integrating AI with digital, cloud, and automation capabilities. This shift enables the emergence of new business models, personalized experiences, and accelerated innovation, while also facilitating the integration of Gen AI for intelligent automation and decision-making. Unlike other emerging technologies, Gen AI is readily accessible, simplifying the establishment of technological foundations. Developing a clear enterprise AI and Gen AI strategy is crucial for success. Additionally, across sectors such as education, healthcare, and agriculture, government initiatives play a pivotal role in promoting Gen AI development. Policy actions must prioritize data accessibility, including the development of indigenous training datasets, particularly for local languages, to foster Gen AI growth.

Moreover, major players in the India generative AI market are strategically expanding their GenAI accessibility by leveraging open-source platforms and forming key partnerships with cloud and AI leaders. These collaborations are driving industry-specific AI implementations, accelerating digital transformation, enhancing operational efficiency, and fostering targeted innovation across sectors.

• In October 2024, Infosys, a leading IT company, deepened its collaboration with Meta to advance generative AI through open-source initiatives. By utilizing Meta’s Llama stack, an open-source suite of large language models (LLMs), Infosys aims to make AI technology more accessible, fostering innovation across various industries. This partnership is set to accelerate the integration of artificial intelligence in enterprise solutions, helping businesses adopt AI-driven advancements more effectively.

• Further, in September 2024, Tech Mahindra, a global leader in technology consulting and digital solutions, partnered with Google Cloud to accelerate the adoption of generative AI (gen AI) and lead digital transformation efforts for Mahindra & Mahindra (M&M), one of India’s prominent industrial enterprises. This collaboration aimed to enhance M&M’s operations by leveraging advanced AI technologies, fostering greater innovation and efficiency across its various business units.

This research report on India generative AI market would be produced using first-hand market information gathered from industry experts and major participants across the value chain, during primary research. It would provide broad view of current market trends, growth factors and competitive analysis.

INDIA GENERATIVE AI MARKET COVERAGE