Omdia: It is projected that the GenAI market size will grow by 5.5 times in the next five years, reaching $9.8 billion by 2029.

According to Omdia's estimate, after two years of rapid development, the software revenue of Generative Artificial Intelligence (GenAI) in China has reached 1.8 billion US dollars in 2024. Given that the technology is still in its early stages, the market size is expected to grow 5.5 times over the next five years, reaching 9.8 billion US dollars by 2029. Importantly, this revenue does not include other key GenAI technologies, such as AI training and inference chips and servers, building and site acquisition costs for AI data centers, and revenue from GenAI development platforms. Undoubtedly, DeepSeek is one of the hottest topics of the 2025 Chinese New Year. This startup company, which just started in 2024, has propelled Chinese Generative Artificial Intelligence (GenAI) into the global spotlight with its deep understanding and excellent optimization capabilities of large models and GPU architectures. Looking ahead, the leading vertical sectors of GenAI will be retail, media and entertainment, information technology, healthcare, and professional services. Dialogue-based AI applications based on GenAI remain the most common way for consumers to interact with GenAI. In addition, GenAI is gradually being integrated into content recommendations on e-commerce platforms, social media, and various virtual assistant interfaces. Other horizontal use cases include dialogue tools, visualization analytics, development tools, customer experience, and recommendation engines. In short, the Jeven's Paradox triggered by DeepSeek will make large models more popular and lead to increased demand. GenAI vendors cannot survive solely on the consumer market. Market leaders in GenAI such as OpenAI cannot sustain revenue solely from consumer-facing conversational AI. Chinese GenAI solution providers are turning to enterprise applications as a more commercially viable path forward. Among them, intelligent bodies targeting the enterprise market have become a new track. Major vendors such as Alibaba, Baidu, Huawei, and Tencent are providing intelligent body development platforms, ready-made templates, and intelligent bodies for specific applications to enterprises, while significantly reducing the price of large model inference. By 2025, Omdia expects these vendors to further develop capabilities related to intelligent bodies, including multimodal large models, multi-intelligent body collaboration and coordination frameworks, retrieval-enhanced generation (RAG) supporting other data types, and smaller, more efficient industry models and small models supporting edge-side and end-side applications. The standout performer is DeepSeek. Enterprises can deploy large models in resource-constrained operational environments using their reinforcement learning and distillation technologies. Meanwhile, Chinese companies also need to deploy GenAI in environments with severe resource constraints and strict regulatory environments, so their scrutiny of the return on investment (ROI) of GenAI will become increasingly stringent. Looking at the development of the GenAI "Six Little Tigers," it is expected that the development threshold for new large models in 2025 will significantly increase. Not all vendors can transition from tens of thousands of cards to hundreds of thousands of cards, from single large-scale data centers to interconnected multiple data centers. Therefore, frequent market consolidations and player exits are likely to occur this year. Omdia predicts that several large model vendors will transition to GenAI platforms or GenAI application vendors, with a focus on overseas markets. With the momentum of AI PCs and AI smartphones, large models are also gradually expanding to more devices. Human-like Siasun Robot&Automation is considered the next frontier of technological advancement, fully experiencing the capabilities and advantages of embodied intelligence. Currently, early adopters come from the automotive industry, such as NIO and Xiaopeng, so the initial use cases are mainly concentrated in the automotive manufacturing sector. Other suppliers focusing on Human-like Siasun Robot&Automation include Fourier, UBTECH ROBOTICS, and Yushu. Moreover, IoT module manufacturers are also actively testing large models, hoping to leverage the AI computing capabilities of AI modules to empower various IoT applications. The "War of the Giants" is a thing of the past, but the GenAI market in 2025 continues to be vibrant with many players and a variety of developments.