AI in Media and Entertainment Market Trends, Applications, Regional Analysis & Segment Forecast to 2029

AI In Media & Entertainment Global Market Report 2025

The Business Research Company's AI In Media & Entertainment Global Market Report 2026 – Market Size, Trends, And Global Forecast 2026-2035

LONDON, GREATER LONDON, UNITED KINGDOM, January 9, 2026 /EINPresswire.com/ -- "The integration of artificial intelligence (AI) into media and entertainment is rapidly transforming the way content is produced, distributed, and consumed. As technology advances and digital platforms expand, the AI in media and entertainment market is experiencing significant growth, driven by evolving consumer preferences and technological innovations. Let’s explore the current market size, key drivers, leading regions, and future outlook for this dynamic industry.

Market Size and Growth Outlook of the AI in Media and Entertainment Market
The AI in media and entertainment market has witnessed remarkable expansion recently. It is projected to rise from $22.46 billion in 2024 to $28.32 billion in 2025, reflecting a strong compound annual growth rate (CAGR) of 26.1%. This earlier growth phase was largely fueled by AI-powered copyright protection measures, content moderation tools, enhanced content personalization, regional market expansion, and the surge in streaming activities along with increasing demand in game development. Looking ahead, the market is expected to reach $70.66 billion by 2029, growing at an impressive CAGR of 25.7%. The forecast period’s growth will be driven by innovations such as advanced content personalization, AI-generated content creation, broader adoption of augmented reality (AR) and virtual reality (VR), AI-enhanced user engagement, and data-driven predictive analytics. Emerging trends shaping this future include AI-assisted copyright protection, initial chatbot and interaction systems, AI-powered editing, voice and language recognition technologies, and predictive analytics.

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Understanding AI Applications in Media and Entertainment
AI in media and entertainment involves using sophisticated AI technologies to enhance various facets of the industry. Its core purpose lies in generating interactive AR/VR content, creating immersive themes for gaming, events, and media productions. These AI applications help deliver novel experiences that blend creativity with technology, revolutionizing how audiences engage with content.

Increasing Popularity of OTT Platforms Spurs AI Usage
One of the primary factors encouraging AI adoption in media and entertainment is the rising appeal of over-the-top (OTT) streaming platforms along with the surge in online game streaming. Improved network infrastructure, stronger internet connectivity, and the proliferation of multimedia-capable mobile devices have led to a growing base of OTT subscribers worldwide. This trend has fueled AI deployment in streaming services to offer personalized content and realistic user experiences.

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Growth in Online Gaming Accelerates AI Implementation
The online gaming sector is another key driver propelling AI market expansion. Affordable internet access, the widespread availability of online games, and rapid development within the gaming industry contribute significantly to this growth. AI technologies are increasingly used to enhance gaming realism and virtual interactions for players and spectators alike. For instance, a 2023 US media entertainment report highlighted that the U.S. video game industry supported over 350,000 jobs, contributed nearly $66 billion to the GDP, and involved 78% of households engaging with gaming devices. Globally, the gaming market reached $184 billion with 3.2 billion gamers, where digital purchases accounted for 95% of sales and mobile games generated 49% of revenue. Additionally, according to the Department of Foreign Affairs and Trade in Australia, the global digital games industry is expected to be valued at around $294 billion by 2024. These figures exemplify how the boom in OTT platforms and online gaming is propelling AI integration in the media and entertainment sectors.

North America Leads While Asia-Pacific Shows Rapid Growth Potential
In 2024, North America held the largest share of the AI in media and entertainment market, demonstrating strong adoption across various applications. Other key regions analyzed include Asia-Pacific, Western Europe, Eastern Europe, South America, the Middle East, and Africa. Among these, Asia-Pacific is anticipated to experience the fastest growth, driven by expanding digital infrastructure, increasing smartphone penetration, and growing consumer interest in advanced media technologies.

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