Online content creation is becoming increasingly important for brands and businesses—especially true since the pandemic drove most consumers to the internet for everything they needed, and where they’ve stayed to a large extent. And now, content creation is big business.
New research from market research and consulting firm Grand View Research reveals that the global digital content creation market size is anticipated to reach $69.8 billion by 2030—and the market is expected to expand at a CAGR of 13.5 percent from 2023 to 2030.
The increasing adoption of various technological advancements like AI-based applications, along with an increase in the usage of smartphones and the internet, and the rise of cloud computing is expected to create growth opportunities for digital content creation tools and services in the global market.
Key industry insights & findings from the report:
- In terms of component, tools dominated the market with a share of 73.7 percent in 2022. The segment is led by tools owing to their usage in digital marketing which will result in driving the use of digital content creation tools. The services segment is estimated to register a higher CAGR of 14.8 percent owing to the growth of AI adoption. In 2022, according to the IBM Global Adoption AI Index report, 50 percent of businesses saw benefits from automating their operations through the implementation of AI respectively.
- In terms of content format, video dominated the market with a share of 38.7 percent in 2022 and registered the highest CAGR of 14.4 percent in the forecast period. This is owing to the growth in the number of users who feel comfort in watching video content—for instance, according to a survey by Google, 79 percent of the respondents in the U.S. said that they found comfort and solace in consuming video content.
- In terms of deployment, the cloud segment dominated the market with a share of 74.7 percent in 2022 and registered the highest CAGR of over 13.9 percent in the forecast period. This is owing to the growth of cloud-based digital content creation tools such as Figma, Adobe Creativity Cloud, and several others. In 2021, according to a design tool survey, 63 percent of designers preferred to use Figma as their primary tool.
- In terms of enterprise size, the large enterprise segment dominated the market with a share of 61.7 percent in 2022. In the large enterprise segment, firms are adopting AI at a faster rate. For instance, according to Adobe, four in ten organizations were planning to leverage AI, and in 2020, 39 percent of companies in the large enterprises segment planned to invest in AI. Moreover, small and medium enterprises will register the highest CAGR of over 14.1 percent owing to the adoption of cloud computing services. According to a cloud computing statistics report published in 2022 by a computer software company, Flexera, the pandemic caused more than 30 percent of small and medium businesses to use cloud computing.
- In terms of end user, retail and e-commerce dominated the market with a share of 32.4 percent in 2022 owing to the growth of digital advertising spending in the retail industry, which would drive the creation of digital content. Furthermore, media and entertainment will register the highest CAGR of 14.9 percent. One of the factors responsible for its dominance is the growth in the OTT video market—according to research by ABI in 2020, the global OTT video market will reach $200 billion by 2024.
- The market was dominated by the North American region with a share of 33.8 percent in 2022, one of the key reasons being the dominance of the music industry in North America—according to the Recording Industry Association of America, 83 percent of the revenue made by the American music industry in 2021 came from streaming services. Moreover, the Asia Pacific region will witness the highest CAGR of over 15.0% in the forecast period, as in July 2022—according to the GSMA report, the number of 5G subscribers increased by 67 percent in the developed region of Asia Pacific region respectively.
Digital content creation market growth & trends
In 2022, according to the IBM Global Adoption AI Index report, 35 percent of surveyed firms reported using AI in their operations, which was a four-point growth from 2021. The key factor for adopting AI was the accessibility that made AI simple to implement throughout the firm, and various firms are shifting to AI to help them enhance task automation and reduce costs.