Global AI Video Maker Market: Key Trends, Growth Drivers, and Future Outlook

Last year, a friend of mine who is a CMO spent three months waiting for a single product video. The business had a budget, and the creative brief was locked in, but the production company was backlogged, and it took them forever to complete the post-production process. By the time she got the final cut in her email, her competitor had already created a ton of content to fill all the social networks.

She spent £15,000 on that video, and by the time it arrived, it was irrelevant.

Why hasn't every business figured this out? Video production is not only very costly but also very time-consuming. In fast-moving markets (where everything happens as fast as you can scroll), being slow means you're gone, and nobody can see you anymore.

That is why AI video generation is more than just a fad; it's going to be the future core of every business's content marketing strategy.

Important Insights about the Global AI Video Creation Industry

The market for AI video makers is on a rapid growth trajectory: The global market for AI video makers is expected to grow from USD 716.8 million in 2025 to USD 2.56 billion by 2032, growing at a rate of about 20% CAG for the next seven years. The demand for AI video makers is high across several industries, including marketing, education and e-commerce.

AI-Video Creation Tools Save Time and Money; The use of AI in making marketing videos helps brands save upwards of 60% on production costs and, on average, produce videos at least 50% quicker than previous methods. In some cases, videos that would have taken weeks to be produced now take just hours.

Video Producer Growth is Mainstreaming; About 75% of video marketers already use AI tools to create digital content, and about 54% of marketers are now using AI tools for video-editing and production only.

Asia - Pacific is the Largest Region for AI Video Making; Asia-Pacific accounts for more than 31% of the world’s revenue share for AI video making, and has a high level of engagement with social media, and it has an extensive creator economy.

The Majority of People Create Videos through Text; The text-to-video format accounts for approximately 62% of the video maker market and enables users without extensive technical skills to produce professional-looking video content from written material, including articles, scripts and prompts.

Due to Technology, Small Businesses are creating their Own Videos; Approximately 50% of small businesses have begun to leverage AI video creation technology, and the large production budget is no longer the sole domain of larger companies.

What Classic Video Production Cannot Do

Most businesses already know they need video. The data screams that.

Today, 89% of businesses deploy video to market themselves. 95% of video marketers say it's an integral part of their overall strategy.

Knowing that you have to produce a video and actually making it consistently are two entirely different things.

Traditional production calls for the whole shebang: scripts, storyboards, crews, editing suites and weeks of back-and-forth revision. It invites budgets that make finance teams nervous and timelines that make marketing teams anxious.

Before you're even done shooting one video the old-fashioned way, competitors using A.I. have four more in the can.

The gap seems to widen ever more with every passing quarter.

Why are AI Video Tools Growing so Quickly?

The evidence is very clear.

The market value of the AI video generator market in 2024 was $614.8 million. By 2032, this number will have increased to over $2.5 billion. Some estimates by industry analysts have predicted even further growth, with some of the most aggressive estimates forecasting as much as $14.8 billion by 2030 based on a projected compound annual growth rate of 35%.

Why are so many reasons working together to spur this growth?

One of the largest reasons is due to the explosion of video content as a result of the creation and popularity of social media platforms such as TikTok, Instagram Reels, and YouTube Shorts. Due to the rewards associated with posting regular video content on these platforms, businesses are being forced to create new and unique content at record speed. Those businesses that cannot keep up with the pace of video uploads will soon disappear from social media feeds.

Second, advancements in technology have made rapid advancements. Early generations of AI Video Creation Tools were producing awkward, robotic content. Nowadays, the vast majority of people cannot distinguish between an AI-generated video and a video created using traditional means.

Finally, the accessibility of the AI video maker has increased. Nowadays, it is not necessary to have any type of technical background in order to use an AI video generator. Most AI Video Generators rely on basic text prompts for users. Describe to the system what you would like your video to look like, and then it will create it for you.

The Impact of AI Video Generation on Various Industries

AI-generated video is not only making a difference for marketing companies but also has a wide range of uses across other sectors.

• Marketing and Advertising: Using AI technology, many companies are developing personalised video ads at scale. For example, brands such as Nike, Cadbury, and Virgin Voyages have created videos provided by an AI tool to deliver culturally relevant messages to many customers in various markets simultaneously.
• E-commerce: According to recent statistics, converting product demo videos created using AI can improve conversion rates by up to 40%. Sellers no longer need to hire videographers to create high-quality professional listing videos.
• Education & Training: Both course developers and corporate-based training departments utilise AI to quickly generate instructional content. Instructional videos that were previously created with the use of studio time can now be done on a laptop.
• Healthcare: Healthcare organizations utilize AI-generated video production for creating patient education materials. Leveraging AI allows these organisations to reduce the expense associated with creating videos while still being able to cover complex topics.
• Real Estate: Creating videos for properties that have cost thousands of dollars in the past can now be done in minutes through the use of AI-generated video technology.

The World of AI Video

The regional landscape for AI video will have a big effect on your business in this space.

Currently, the Asia-Pacific region has more than 31% of the overall world market share of revenue, primarily due to its large population and the rapidly expanding growth of AI video through the adoption of social media. There are two big players in this regional landscape that have a huge amount of growth potential happening in the next 5 to 10 years, The countries of China and India.

The North American region is running a close second with approximately 40% of the overall world market in various areas of the market. They have a good start with early adopters of technology, and the startup scene is very appealing to venture capitalists.

The European regions have been growing rapidly, and Germany is expected to have the highest growth rate of all European countries through 2030 of 20.5% and has been supported by the German government's heavy investment in AI development across its industries.

Participants in this Industry's Market

Within the sector's competition, several major technology firms have entered the fray. Specifically, many tech-related companies such as Google, Microsoft, Adobe and NVIDIA have been investing significant amounts of money into developing AI-based video capabilities.

Since these companies possess large amounts of resources available to them, as well as having established a large customer base, they will be able to distribute their products more efficiently than smaller startup companies.

In addition, startup companies that specialise in providing video-related services are also carving out strong footholds within the market by using their more advanced technologies. Companies like Synthesia, HeyGen, Runway, and Lumen5 are all exclusively focused on AI-based video creation. Their enhanced concentration will result in a greater user experience through a specific use case than an established tech organisation can provide.

As a result of the fragmentation still remaining within this market, new entrants continue to enter with the aid of cloud service delivery systems that will lower the entry barriers as a result of technological growth.

The Path to Growth is Not Without Obstacles

Companies may face ethical dilemmas when trying to incorporate components like deep fakes and synthetic media into their marketing strategies, due to the high incidence rate of Fraudulent Deep Fake Cases that rose over 1,740% in North America from 2022 to 2023, resulting in a combined loss of over 200 million ($) USD in the first quarter of 2025.

While AI produces content very quickly, the need for human involvement to ensure that all branded products maintain identity consistency, as well as ensuring that all information conveyed by these branded products is factually accurate through quality control processes, continues.

Laws have not yet begun to reflect the technological advancements made within the realm of AI/Videotaping. Many aspects surrounding these topics continue to go unresolved, such as questions around copyright law and likeness rights, or what constitutes proper disclosure of those involved within the production process.

Although these challenges will influence how many companies choose to implement AI Video into their business model, they will not prohibit progress toward greater use of this technology.

Smart Businesses Today

To stay ahead in the competition, Smart Businesses do not wait too long for the best way to achieve their goals; They are incorporating AI Video Tools into their workflow, training employee users how to create quality video content, developing guidelines for producing and displaying quality videos and providing quality guidelines to provide fast turnaround times while still maintaining quality in their work.

Additionally, Smart Businesses are taking into consideration what type of videos should have a mix of both AI and human involvement and which should only utilise AI capabilities. The winning approach is not purely based on an all-AI or an all-human model; The winning formula involves an effective understanding of where and how each method can provide the most efficient means of serving the customer and achieving business goals.

Looking Ahead

AI-created video content represents 40 per cent of all video content uploaded to popular social networks. The amount of video generated by AI will continue to expand as artificial intelligence tools mature and become more prevalent.

The amount of AI-created video content is estimated to increase by 5-6 times by 2030, as compared to the amount of content produced by AI in 2025. Companies that develop their ability to create video now will be at a huge advantage compared to those that do not develop a similar capability.

Simply accepting the potential impact of AI video creation on your industry is not enough. You must decide how you want to be involved in leading this change, and whether you want to take the lead role or just follow along.