AI Video Generation Market Forecast to Hit $24.89 Billion by 2036
Meticulous Research projects the global AI video generation and editing software market to grow from USD 3.67 billion in 2026 to USD 24.89 billion by 2036, driven by demand for faster, personalized content creation. This significant growth highlights the increasing adoption of AI-powered tools by organizations and media companies to streamline video production and enhance audience engagement. The report indicates that auto-editing solutions will hold the largest share and cloud-based deployment models are gaining strong traction.
Key Takeaways
- Meticulous Research forecasts a 21.4% CAGR for AI video generation and editing software from 2026 to 2036.
- The market is projected to grow from $3.67 billion in 2026 to $24.89 billion by 2036.
- North America is estimated to hold the largest market share in 2026 due to AI technology leadership and a large creator economy.
- Asia-Pacific is expected to show the highest growth rate, fueled by short-form video consumption and e-commerce video marketing.
- Auto-editing solutions are anticipated to hold the largest market segment share in 2026.
Why It Matters
The rapid expansion of AI video generation tools signals a fundamental shift in content production workflows, enabling faster, more cost-effective, and scalable video creation across industries. This growth will intensify competition among AI platform providers and impact how media companies meet increasing demand for personalized, high-volume video. Keep an eye on the integration of these AI tools into existing streaming platforms and their influence on content velocity and audience engagement metrics.
Additional Context
The AI video generation and editing market is experiencing rapid advancements and competitive shifts. ByteDance, for example, recently integrated its Seedance 2.0 multimodal video generator into its CapCut editing app, which has 736 million monthly active users on mobile (Deeplearning.ai, June 2026). This move allows ByteDance to control both video generation and editing within a single ecosystem. Seedance 2.0 has reportedly achieved over 1 billion yuan in monthly revenue for ByteDance's Volcengine, demonstrating strong commercial traction for advanced video models (36Kr, June 2026). In contrast, OpenAI reportedly discontinued its Sora app and API in March 2026, as its daily active user count fell and operational costs were estimated at $1 million per day (Deeplearning.ai, June 2026).
Other notable developments include Utopai Studios launching PAI 2.0, an updated AI video storytelling platform for marketing agencies and creators (Variety, June 2026). PAI 2.0 focuses on improving user experience, adding rapid variant generation, and enabling 4K video production for longer-form content. Meanwhile, Universal Ads launched an in-platform ad creation tool using generative AI in September 2025, allowing brands to build commercials in minutes without pre-existing video assets (Fortune Business Insights). These developments underscore the industry's drive to lower barriers to video creation and scale content production across diverse applications.
Read full article at openpr.com
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