AI Search Engine Market Size To Reach USD 51.48 Billion In 2032

2025-09-14 01:04:08

(MENAFN- Market Press Release) September 13, 2025 3:54 am - The AI Search Engine market was valued at USD 15.23 Billion in 2024 and is expected to register a revenue CAGR of 16.8%.

September 13, 2025 - Exponential growth of digital content is a major driver of revenue growth in the AI Search Engine market. The rapid increase in online articles, videos, images, social media content, and enterprise data makes it difficult for traditional search methods to deliver accurate and relevant results. AI-powered search engines leverage natural language processing, machine learning, and semantic understanding to process vast amounts of unstructured data and provide more precise, context-aware responses. This capability not only improves user experience but also supports businesses in content discovery, personalization, and decision-making.

To remain visible and credible in AI-driven search results, companies and content creators need to embrace "Generative Engine Optimization" (GEO), which emphasizes producing fact-based content in diverse formats and redefining how success is evaluated. In July 2024, OpenAI launched SearchGPT, its much-anticipated AI-powered search engine designed to provide real-time access to online information. The platform delivers up-to-date web content with links to reliable sources and enables users to ask follow-up questions for more detailed insights. Competitors such as Perplexity and Goolge have also released generative AI–driven search tools. By merging the strengths of chatbots with traditional search functions, these solutions are quickly gaining adoption and contributing to revenue growth of the market.

Data privacy and compliance challenges are significantly restraining the revenue growth of the market by creating barriers to data access and usage. AI-powered search engines rely heavily on vast amounts of user data to deliver personalized, accurate, and context-aware results. However, stringent regulations such as GDPR in Europe, CCPA in California, and other regional data protection laws limit how companies can collect, process, and store personal information. Concerns over user consent, data security, and ethical usage also force providers to invest heavily in compliance frameworks, which increases operational costs and slows innovation. These restrictions limit revenue growth of the market.

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Segments Market Overview and Growth Insights:
Based on technology, the AI search engine market is segmented into Natural Language Processing (NLP), Machine Learning (ML), generative AI, computer vision, semantic search & vector embeddings, Retrieval-Augmented Generation (RAG) and others.
The generative AI segment is expected to experience rapid revenue growth over the forecast period due to its ability to deliver interactive, conversational, and highly personalized search experiences. By generating summaries, drafting responses, and providing real-time, context-aware insights, generative AI enhances user satisfaction and engagement. In May 2025, Google unveiled its AI Mode for search, built on the Gemini large language model, which offers chat-like conversational answers instead of traditional link lists. Similarly, companies like Perplexity and OpenAI have also introduced generative AI–driven search tools, further accelerating adoption in the market.

Regional Market Overview And Growth Insights:
North America held the largest revenue share in the market in 2024, due to the high levels of technological adoption, a well-established digital ecosystem, and significant investments in artificial intelligence from major players such as Google, Microsoft, Amazon, and OpenAI. In April 2025, Amazon introduced Nova Act, a new AI model designed to handle browser-based tasks, including online shopping, web searches, and on-screen queries. Currently available only to developers in a limited“research preview,” the company is also expanding access to its broader Nova family of AI models through a dedicated web portal aimed at improving usability and accessibility.

Competitive Landscape and Key Competitors
The AI Search Engine market is characterized by a fragmented structure, with many competitors holding a significant share of the market. List of major players included in the market report are:

oMicrosoft Corporation
oGoogle
oOpenAI
oPerplexity AI
oAmazon Web Services (AWS)
oYou
oClaude AI
oBaidu
oYandex
oExa AI
oPhind
oAndi Search
oKomo
oAlgolia
oLucidworks
oCoveo

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Major Strategic Developments By Leading Competitors:
Matter Communications: Matter Communications, a firm specializing in PR, marketing, and creative solutions, has announced the rollout of its Generative Engine Optimization (GEO) service to help businesses strengthen their visibility in the fast-changing landscape of AI-driven search results. As AI platforms reshape how buyers find and assess brands, this new service places Matter among the early agencies providing customized GEO support.

Apple: On September 04, 2025, Apple is developing an AI-driven web search tool, expected to launch in 2026, to compete against OpenAI and Perplexity AI. The initiative, known internally as World Knowledge Answers, will initially be integrated into Siri. Over time, Apple plans to extend this AI search capability to the Safari browser and Spotlight, the iPhone's home screen search feature.

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Navistrat Analytics has segmented global AI Search Engine market on the basis of component, organization size, technology, deployment, user type, end-use and region:

.Component (Revenue, USD Billion; 2022-2032)
oSoftware
a platforms
b Databases
c Development Kits Others

oServices
a Services
b and Integration
c and Maintenance

.Organization Size Outlook (Revenue, USD Billion; 2022-2032)
oLarge Enterprises
oSmall and Medium-sized Enterprises (SMEs)

.Technology Outlook (Revenue, USD Billion; 2022-2032)
oNatural Language Processing (NLP)
oMachine Learning (ML)
oGenerative AI
oComputer Vision
oSemantic Search & Vector Embeddings
oRetrieval-Augmented Generation (RAG)
oOthers

.Deployment (Revenue, USD Billion; 2022-2032)
oOn-Premises
oCloud
oHybrid

.User Type (Revenue, USD Billion; 2022-2032)
oConsumer Search
oEnterprise Search
oDeveloper Search

.End-Use (Revenue, USD Billion; 2022-2032)
oRetail & E-commerce
oHealthcare & Life Sciences
oBFSI
oIT & Telecommunications
oMedia & Entertainment
oManufacturing
oEducation
oOthers

.Regional Outlook (Revenue, USD Billion; 2022-2032)
oNorth America
oEurope
oAsia Pacific
oLatin America
oMiddle East & Africa

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