Generative AI software revenue in Asia and Oceania to exceed $18B by 2028 – Omdia

Since ChatGPT emerged, Generative AI (GenAI) development and deployment have been gaining significant momentum in Asia and Oceania, Omdia's new, Generative AI in Asia & Oceania – 2024: Democratization through localization report indicates that software revenue for GenAI in this region is estimated to be around $3.4 billion by the end of 2024 but is projected to exceed $18 billion by 2028.

China, Japan and South Korea stand out as leading examples compared to other markets in the development of GenAI. Leveraging localized AI infrastructure, data and human resources, vendors in these markets develop GenAI models with multilingual capacity, deep understanding of local cultures, and compliance with local legal requirements. Collectively, vendors from all three markets account for over 300 foundation models, all developed for various applications including chatbots and virtual assistants, video analytics, gaming and software development, autonomous vehicles and robots, and more.

In addition to these markets, India and Singapore are making strides in the AI landscape. Indian vendors such as Ola, Sarva AI, Tech Mahindra and CoRover.ai are developing large language models (LLMs) that support text and voice in Hindi, English and multiple regional languages. Meanwhile, Singapore recently launched a suite of pre-trained and instruct-tuned LLMs known as Southeast Asian Languages in One Model (SEA-LION), developed jointly by AI Singapore, A*STAR and AWS. SEA-LION is designed for multiple Southeast Asian languages, including Bahasa Indonesia, Bahasa Melayu, Thai and Vietnamese. Additionally, Singapore is partnering with Google Cloud and Microsoft Azure to offer GenAI training and development solutions for local enterprises.

Omdia notes that most organizations in Asia and Oceania lack expertise in GenAI development and struggle to compete with major technology vendors and startups for AI talent. GenAI solution developers and service providers in Asia and Oceania must acknowledge the complexity of creating a regional GenAI solution and deploy proper resources to help their clients meet data sovereignty requirements.

Read the full press release here.

Omdia