AI Video Generator Market to Hit $7.5 Billion by 2035 as Demand Drives 23.5% CAGR
Updated
Updated · Market.us · Jun 1
AI Video Generator Market to Hit $7.5 Billion by 2035 as Demand Drives 23.5% CAGR
1 articles · Updated · Market.us · Jun 1
$7.52 billion in projected 2035 revenue would lift the AI-powered video generator market from $910.54 million in 2025, according to a June 2026 industry report.
23.5% annual growth is being driven by demand for fast, scalable video production across social media, marketing and education, where AI tools turn text into finished clips and cut production time sharply.
North America led in 2025 with a 34.9% market share and $317.77 million in revenue, while the U.S. market alone was valued at $276.47 million.
75.4% of the 2025 market came from software solutions, with large enterprises holding a 72.5% share; text-to-video led source formats at 42.4% and marketing led applications at 40.6%.
The report says wider adoption still faces cloud-connectivity limits, copyright disputes and deepfake-related ethical risks even as businesses pursue lower costs and more personalized video output.
Who owns AI-generated videos, and who is liable when they are used to create deepfakes or misinformation?
With OpenAI's Sora app shutting down, is the AI video market's explosive growth just an unsustainable bubble?
As AI floods the internet with content, how can human creators prove their value and maintain audience trust?