With the continuous development of text to video AI technology, the text to video AI market has become the focus of the industry, which is expected to replace the traditional way of video production and lead the growing demand for content technology in various fields such as social media, online education, and advertising and marketing.

This is the most comprehensive study of the Text to Video AI market, integrating authoritative data on the market size, development trends, and market regional shares to present you a complete research report on the Text to Video AI market.

1 Market Size and Forcast

According to SNS Insider, the text-to-video AI market has skyrocketed since 2022, growing from $100 million in 2022 to $144 million in 2023, with a market size of $160 million in 2024.

And with a conforming CAGR of about 35.4% over the forecast period of 2024s to 2032, the text-to-video AI market will be worth $2.199 billion in 2032.

And this growth is due to several factors such as strong government support, the U.S. government spent $1.2 billion on AI research, as well as expanding demand for applications, such as increased demand in areas such as advertising creation and educational video production.

Data Sources: SNS Insider

2 Market Region Outlook

In the era of booming global text-to-video AI market, there are some key regions leading the overall market and they will continue to grow in the coming period as well.

The region holding the major market share is North America.

According the SNS Insider, North America accounted for 35% share of the global text to video AI market in 2023, while the U.S. also reached $44.1 million in 2023.

Asia Pacific is expected to be the highest growing region in the global text-to-video AI market with a CAGR of 35.2%.

• According KBV Research, China market is expected to dominate the Asia Pacific region from 2021 and continue to dominate the market till 2028 and will be valued at USD 709.453 million in 2028.
• The Japanese market is expected to grow at a CAGR of 36.8% between 2022 and 2028.
• The India market is expected to grow at a CAGR of 38.5% from 2022 to 2028.

The European market is growing at a CAGR of 36% over the period 2022 - 2028.

1 Global Major Suppliers

In the huge text to video AI market, leading the global market and energising the market are some of the major vendors, which also hold the majority share of the market, and understanding them is beneficial in controlling the landscape of the market and tracking the market trends.

Data Sources: MarketsandMarkets

2 Top 5 Generator on 4 Country

Shifting the perspective from the global market scenario to the Text to Video AI Generator market share situation in the popular countries, the next step is to take a look at the brands that occupy the top 5 positions in each country, in terms of their local search volume.

Data Sources: Definition

Data Sources: Definition

Data Sources: Definition

Data Sources: Definition

The application segmentation of the text to video AI market globally can be segmented and analyzed, and explored in terms of the following different dimensions such as organizationsize, application usage, industry, etc. to understand the application of text to video AI in different dimensions at this stage:

By Component:

• The software segment accounted for more than 58% of the market share in 2023.
• Services account for about 42% of the market share in 2023.

Data Sources: SNS Insider

Organization Size:

• In 2022, large enterprises will account for more than 65% of the text-to-video AI market in terms of revenue share, valued at more than $50 million. Large enterprises typically have greater technical capabilities and resources to invest in complex AI solutions.
• SMBs, on the other hand, hold only about 35% of the market, but are currently on a continuous growth trend and are expected to record the highest CAGR in the coming years.

Data Sources: Global Market Insights

Industry Application Expansion:

• Marketing & Advertising: Businesses use text-to-video tools to quickly generate high-quality advertising content to increase brand awareness and customer engagement.
• Education: Educational institutions use these tools to convert course content into video to enhance the learning experience, with the education market expected to exceed $350 million by 2032.
• Social Media: With the popularity of social media, organisations are increasingly using text-to-video tools to create compelling content that engages users to interact.

Technological Advancements:

• Development of multimodal AI: Multimodal AI combines text, image, and video data to enhance the relevance and accuracy of the generated video, and according to Gartner's report, the adoption of multimodal AI is expected to grow by more than 50% in the next 3 years.
• Real-time generation: According to IDC's analysis, more than 50% of text-to-video generation is expected to achieve low-latency processing by 2025.
• Convergence of reality (AR) and virtual reality (VR): Text-to-video technology will be combined with AR and VR technology, and the AR and VR market is expected to reach $209 billion by 2025, according to research by MarketsandMarkets.
• Automation and personalisation: According to a study by HubSpot, personalized content converts 80% more than non-personalized content, driving demand for AI-generated content in the enterprise.
• Ethics and compliance technology: According to Pew Research, more than 70% of enterprises said they need to establish clear policies on AI use to address copyright and ethical issues of generated content.

Diversified Application Scenarios:

• Education and training: More and more educational institutions are using text-to-video technology to generate teaching videos, and the market share in the education sector is expected to reach 30% by 2025.
• Marketing and advertising: Brands are increasing customer engagement through personalized video ads, which are expected to account for 35% of the market share.
• Enterprises: 78% of enterprises plan to invest in AI-powered video marketing tools for personalized content in the next two years.

So what are the driving factors that are propelling the text to video AI market, to grow at a rapid and drastic pace?

• The surge in demand for content in areas such as education and training is driving the text-to-video AI market.
Increase in the utilisation of video content in different sectors is significantly driving the market growth, for example, 91% of businesses are adopting video marketing, and is also significantly leading to the growing market for text-generated video AI.
• Rise in social media platforms as a catalyst for the growth of text-to-video AI market.

With the popularity of social media and short-form video platforms, the ever-expanding use of AI-generated content by users, with 2.5 billion monthly logged-in users on YouTube and 1 billion monthly active users on TikTok as of early 2024 reported by SNS Insider, the growth of video apps is driving a growing demand for text-to-video AI.

• Increased market competition drives the text-to-video AI market.

Several tech companies have entered the text-to-video space, launching their own AI text-to-video generators to compete in the market, such as ByteDance's launch of i.e. Dream AI in August 2024, competing with the likes of OpenAI's Sora.

• Technological advancements driving the text-to-video AI market.

The emergence and adoption of generative AI technologies has driven the development of text-to-video models, leading to rapid advancements in deep learning, natural language processing, and other technologies, with Alibaba releasing new open-source AI models and text-to-video technologies in September 2024.

The text-to-video AI market, although currently showing a booming trend, is actually facing many challenges.

• Technical Limitations

Video generation can be more demanding on the model's computing power and data processing, and the StableVideoDiffusion model faced challenges such as increased GPU and memory during development.

Copyright and Ethical Issues

With the popularity of AI-generated content, the issue of copyright ownership of generated videos is becoming more and more prominent. According to a survey by Pew Research, more than 70% of enterprises are concerned about the copyright and compliance of AI-generated content, which may affect their marketing strategies.

Information Security and Privacy

According to a report by IBM, the average cost due to a data breach is as high as $4 million in 2022, and the process of generating video involves the collection and analysis of large amounts of user data resulting in increasing pressure on businesses to protect user data.

Increased Competition in the Market

Research by MarketsandMarkets estimates that the number of players in the text-to-video market will increase by 50% by 2025, with an increasing number of companies entering the space, leading to competition becoming extremely fierce.

User Acceptance

Despite technological advances, there are still users who address the use of emerging technologies. According to McKinsey's analysis, about 60% of companies face user resistance when promoting new technologies, especially in the field of education and training.

Lack of Regulations and Standards

Currently, the text-to-video market lacks unified industry standards and regulations, leading to varying quality and security, according to Gartner research, about 75% of enterprises said they need industry standards to guide the use and implementation of AI technology to enhance trust.

Part 7. Text to Video AI Market Lates News

With all the text to video AI market analyses in hand, find out what are the latest market developments.

• In July 2023, Vimeo.com, Inc. announced that it would be partnering with De-Identification Ltd. to launch a new text-to-video AI service called "Vimeo Video Maker". The service will allow users to generate films from text simply by uploading a script or blog post.
• In July 2023, Meta Platforms, Inc. said it was developing a new text-to-video AI feature for the Facebook platform. The tool allows users to create videos from text by simply speaking their thoughts into a microphone.
• In July 2024, OpenAI released a major update to its text-to-video AI software, improving its ability to create high-quality, human-like video content from text input. The update is expected to increase the speed of video generation by 25 per cent.
• In March 2024, to enhance its AI capabilities, Google acquired Synthesia, a pioneer in text-to-video AI, for $550 million, which will expand Google's portfolio of AI-driven video solutions.

Data Sources: MarketsandMarkets

In Conclusion

I believe that the above data and industry analysis can help you understand the application and development of the Text-to-Video AI industry now, as well as future trends.

I believe that in 2025 and the future, the industry will not only be further expanded in the traditional areas of advertising and marketing, education, and training, but will also be combined with the emerging technologies of Virtual Reality (VR), Augmented Reality (AR) and other emerging technologies to create a more immersive content experience, generate more high-quality video, you are ready to meet the text to video AI development high-speed period.


Key Fearures:
• Download and launch top LLMs like Llama, Mistral, Gemma.
• Easy setup with no coding, perfect for beginners and pros.
• No internet required. Use models anytime, anywhere, completely offline.
• Your data stays on your device. Nothing is uploaded or tracked.

Was this page helpful?

Thanks for your rating



Rated successfully!



You have already rated this article, please do not repeat scoring!

Share


Article by

Aaron Smith

Aaron brings over a decade of experience in crafting SEO-optimized content for tech-focused audiences. At Nut Studio, he leads the blog’s content strategy and focuses on the evolving intersection of AI and content creation. His work dives deep into topics like large language models (LLMs) and AI deployment frameworks, turning complex innovations into clear, actionable guides that resonate with both beginners and experts.

More Topics
• SLM vs LLM: Which Should Beginners Choose?

  SLM or LLM: which for beginners? Discover benefits of small local AI, lower cost, and data privacy, plus model comparison and how to run them locally.

  5 mins read
• [Full Beginner Guide] Why and How to Run a Local LLM

  What’s a local LLM and how do you use one? Discover key benefits, top models in 2025, hardware needs, and how to run AI locally with zero setup.

  15 mins read
• [2025 Guide] How to Run DeepSeek Locally Without Any Coding

  Run DeepSeek R1 offline on Windows, Mac, or Linux easily. No coding skills or setup stress required.

  10 mins read
Nut Studio
By iMyFone
• Explore
• Review
• Docs
• Pricing
• Blog
  Blog

  Most Popular

  • Best GPU for Local LLM[2026]: Complete Hardware Guide for Running Language Models Locally
  • Best AnythingLLM Alternatives: A Guide to Local LLMs
  • [Full Beginner Guide] Why and How to Run a Local LLM
  • Qwen3 Models Explained: 235B, 30B, 1.7B, and 0.6B Compared

  Read more

  What's New

  • 13+ Life like VEO 3 Video Prompts [2026 Guide]
  • Best Chinese Image to Video AI Generators in 2026: Top Models Compared
  • Best NotebookLM Alternatives[2025]: From Cloud to Open-Source Options
  • Best LLM for Translation in 2025 (Tested & Ranked)

  Read more

  Get Start Free
Get Start Free
• Get Start Free
• Sign in

Page Not Found
Oops! It seems the page you are looking for does not exist...
Go Home



Copyright © 2025 iMyFone. All rights reserved.