AI Video Generator Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Source (Text to Video, PowerPoint to Video, Spreadsheet to Video), By Component (Solution, Services), By Application (Marketing, Education, E-commerce, Social Media, Others), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 10.55 Billion
CAGR (2026-2031)	20.02%
Fastest Growing Segment	Text to video
Largest Market	North America
Market Size (2031)	USD 31.53 Billion

Market Overview

The Global AI Video Generator Market will grow from USD 10.55 Billion in 2025 to USD 31.53 Billion by 2031 at a 20.02% CAGR. The Global AI Video Generator Market comprises software solutions utilizing machine learning algorithms to synthesize video content from text or image inputs without requiring physical filming. The primary drivers supporting market growth include the escalating demand for cost-effective content production in advertising and education alongside the need for rapid scalability to meet high-volume short-form video consumption. These fundamental factors enable organizations to streamline workflows and reduce dependency on traditional resource-heavy video production methods while ensuring consistent output across digital channels.

However, the sector faces a significant challenge regarding ethical and legal complexities, specifically concerning copyright infringement and the potential creation of deepfakes which may deter risk-averse enterprise adoption. This regulatory uncertainty creates friction that could delay widespread commercial integration. Illustrating the current penetration rate, according to the Interactive Advertising Bureau, in 2025, approximately 30 percent of digital video advertisements were either built from scratch or enhanced using generative artificial intelligence. This data indicates that despite legal hurdles, the technology is rapidly transitioning into a standard asset for digital marketing portfolios.

Key Market Drivers

Rapid advancements in generative AI and deep learning algorithms serve as the primary catalyst for market expansion, fundamentally altering the speed and fidelity of content production. These technological strides have transitioned synthetic media from experimental abstractions to photorealistic assets capable of understanding complex physics and lighting without physical filming. This maturation allows creators to bypass traditional, resource-intensive logistics, enabling the instant synthesis of high-quality visuals from text prompts. Illustrating this scale of adoption, according to Adobe, September 2024, in the 'Firefly AI Hits 12 Billion Generations' press release, the company revealed that users had generated over 12 billion assets using its generative models, underscoring the explosive commercial reliance on these evolving algorithms.

The escalating integration of AI in digital marketing and advertising campaigns acts as a secondary powerhouse, driven by the critical need for scalable, personalized engagement strategies. As social media platforms fragment audiences, brands are leveraging automated tools to produce high-volume, localized video variations that manual workflows cannot sustain. According to Canva, June 2024, in the 'Visual Economy Report 2024', 82 percent of global business leaders stated they had utilized AI-powered tools to produce visual content over the past year, highlighting the widespread entrenchment of these solutions in corporate environments. This adoption is yielding tangible results; according to Wyzowl, January 2025, in the 'State of Video Marketing 2025' report, 96 percent of video marketers reported that video content has directly helped them increase brand awareness, reinforcing the strategic value of automated production.

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Key Market Challenges

The most significant impediment to the growth of the Global AI Video Generator Market is the prevalence of ethical and legal complexities, particularly regarding copyright infringement and deepfake risks. These issues create a hostile environment for enterprise adoption, as corporations fear substantial liability and reputational damage from utilizing content without clear ownership lineage. Because AI models are often trained on scraped data, legal departments within large organizations frequently halt procurement to avoid potential lawsuits from original content creators. This caution effectively bottlenecks the sales cycle, preventing the technology from becoming a core operational tool.

The impact of this hesitancy is quantifiable within the industry. According to the World Federation of Advertisers, in 2024, 66 percent of brands identified legal risks as the primary barrier to adopting generative AI solutions. This statistic highlights that despite the demand for efficiency, the fear of intellectual property violations remains a dominant force stalling widespread commercial integration. Consequently, the market's expansion is artificially capped as major stakeholders await clearer regulatory frameworks before committing to full-scale implementation.

Key Market Trends

The proliferation of synthetic avatars and virtual influencers is reshaping corporate communication strategies by replacing static text with interactive, human-like digital representatives. Enterprises are increasingly deploying these AI-generated personas to deliver consistent training, customer service, and internal messaging at a scale that physical video production cannot match. This shift is driven by the ability to update video content programmatically without reshooting, thereby maintaining brand uniformity across global markets while significantly lowering production costs. The commercial viability of this trend is evident in the rapid enterprise uptake; according to Synthesia, April 2025, in the 'Synthesia surpasses $100 million in annual recurring revenue' press release, the company reported that more than 70 percent of the Fortune 100 had adopted its avatar-based video solutions, signaling a decisive move towards virtualized corporate representation.

Simultaneously, the rise of automated content localization and dubbing is dismantling language barriers, allowing organizations to instantly adapt educational and marketing materials for international audiences. Unlike traditional subtitling, modern AI models now synchronize lip movements and preserve the original speaker's vocal characteristics in multiple languages, significantly enhancing viewer retention and comprehension. This technological leap is delivering measurable efficiency gains in knowledge transfer, making global distribution more effective than ever before. According to Coursera, April 2025, in the 'Coursera Launches AI-Dubbed Courses in Spanish, French, Brazilian Portuguese, and German' announcement, learners who accessed these AI-translated courses completed them nearly 25 percent faster than those using the original-language versions, underscoring the operational impact of seamless cross-lingual video generation.

Segmental Insights

The text-to-video segment represents the fastest-growing category in the Global AI Video Generator Market due to its ability to simplify complex production workflows. This expansion is propelled by increasing demand from enterprises for cost-effective tools that convert written prompts into visual media without requiring specialized technical skills or physical filming resources. As marketing and training departments seek to scale content output rapidly, the adoption of these solutions continues to accelerate. This operational shift allows businesses to generate high volumes of video assets efficiently, securing the position of this segment as a primary market driver.

Regional Insights

North America dominates the Global AI Video Generator Market due to the high concentration of major technology firms and a dynamic startup ecosystem specializing in generative artificial intelligence. This leadership is reinforced by substantial private and institutional investment in research and development, which accelerates the creation of capable video synthesis tools. Additionally, the region exhibits strong adoption rates within the media, marketing, and entertainment industries, where automated content production is increasingly prioritized. A well-established cloud infrastructure further supports the scalable deployment of these technologies, maintaining North America's status as the primary driver of global market growth.

Recent Developments

• In October 2024, Adobe launched its generative AI video model in a limited public beta, emphasizing its utility for commercial workflows. The Firefly Video Model was designed to be commercially safe, having been trained on licensed content and public domain footage to avoid copyright infringements. This launch included new capabilities integrated directly into Premiere Pro, the company's video editing software, such as a "Generative Extend" feature that allows editors to lengthen clips by generating new frames. The company aimed to provide creative professionals with tools to ideate, fill gaps in timelines, and add elements to existing footage, enhancing workflows without replacing the creative process.
• In June 2024, Runway released a new video generation model, Gen-3 Alpha, which offered significant improvements in fidelity, consistency, and motion compared to its predecessor. This model was trained on a new infrastructure built for large-scale multimodal training and supports generating video from text and images. The company noted that the tool features precise temporal control, allowing for imaginative transitions and exact key-framing of elements within a scene. It powers various tools including text-to-video and image-to-video workflows. The release marked the first in a series of models designed to offer fine-grained control over structure, style, and motion for creative professionals in the film and video industries.
• In May 2024, Google introduced its most capable generative video model to date during its annual I/O developer conference. Named Veo, the model generates high-quality 1080p resolution videos that can exceed a minute in length, encompassing a wide range of cinematic and visual styles. The company stated that the model has an advanced understanding of natural language and visual semantics, allowing it to interpret specific cinematic terms like "timelapse" or "aerial shot." It also supports masking and consistency in editing. The model was made available to select creators through a private preview in the company's new experimental tool, VideoFX, with plans to bring some capabilities to YouTube Shorts in the future.
• In February 2024, OpenAI unveiled a new text-to-video model capable of generating realistic and imaginative scenes from text instructions. The model, named Sora, can create videos up to a minute long while maintaining visual quality and adherence to the user's prompt. It generates complex scenes with multiple characters, specific types of motion, and accurate details of the subject and background. The organization highlighted that the model understands not only what the user has asked for in the prompt but also how those things exist in the physical world. At the time of the announcement, the tool was available to red teamers and a select group of visual artists, designers, and filmmakers to gain feedback on its capabilities and risks before a broader release.

Key Market Players

• OpenAI, Inc.
• Lumen5
• Vidnami
• Promo by Slidely
• Salesforce.com, Inc.
• Renderforest
• Magisto
• Wibbitz
• Moovly
• Kaltura

By Source	By Component	By Application	By Region
Text to Video PowerPoint to Video Spreadsheet to Video	Solution Services	Marketing Education E-commerce Social Media Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global AI Video Generator Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• AI Video Generator Market, By Source:

• Text to Video
• PowerPoint to Video
• Spreadsheet to Video

• AI Video Generator Market, By Component:

• Solution
• Services

• AI Video Generator Market, By Application:

• Marketing
• Education
• E-commerce
• Social Media
• Others

• AI Video Generator Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE