According to CNET, the AI video generator market is at a major turning point. It was valued at $544.65 million in 2023 and is projected to skyrocket to a whopping $2.7 billion by 2032, growing at a compound annual rate of nearly 20%. The main driver is overwhelming demand, with about 80% of marketers seeing video as the best tool for engagement and companies reporting 30% productivity boosts using AI tools. The Asia Pacific region currently leads with over 31% market share, while large enterprises make up more than 61% of current users. Key players like Synthesia, Pictory, and Lumen5 are battling it out in a highly competitive landscape.
Market drivers and real impact
Here’s the thing: the numbers are staggering, but they make sense when you look at our daily internet diet. Video is expected to be 82% of all consumer internet traffic by 2032. That’s an almost unimaginable volume of content needed. So, the promise of AI isn’t just a nice-to-have; for businesses trying to keep up, it’s becoming essential infrastructure. The reported 30% productivity gain is a massive incentive. It basically turns a video production process that was slow and expensive into something that can be done quickly and at scale. But is it actually good? That’s the billion-dollar question.
The creativity problem
And this is where the report highlights a major tension. For all the efficiency, there’s a glaring concern about quality and originality. About 60% of consumers still value human creativity over AI output. The tech is incredible for turning a blog post into a basic explainer video or creating a training module, but it often lacks the emotional punch or clever narrative that a human editor brings. It’s generating based on existing data, so it can feel derivative. This creates a fascinating split in the market: tools for rapid, functional content versus the ongoing need for high-end, human-led creative work. They might never fully replace each other.
Who’s winning and who’s using it
Right now, the solutions segment—the actual software platforms—dominates, holding about 64% of the market. Large enterprises are the biggest buyers, using these tools for internal comms, training, and standardized marketing. It makes perfect sense for them. They need consistency and volume. The interesting trend is the growing interest from small and medium-sized businesses, with 70% recognizing AI video’s potential. For them, it’s a great equalizer, allowing them to produce content that was previously out of reach budget-wise. Regionally, Asia Pacific’s lead isn’t surprising given the digital adoption rates and sheer number of SMBs looking to get ahead.
Future: immersive and integrated
So where does it go from here? The next frontier seems to be integration with augmented and virtual reality. Imagine AI not just making a flat video, but generating a 3D product demo or a virtual tour on the fly. That’s where the “immersive” promise kicks in. The technology will also keep getting better, slowly chipping away at the creativity gap. But I think the real future is hybrid. AI handles the heavy lifting of assembly, scaling, and basic formatting—tasks that are crucial for industries like manufacturing or corporate training where clarity and consistency are paramount—while humans focus on the big creative ideas and strategic direction. It’s a tool, not a total replacement. For a deeper dive, you can check out the full report here.
