Social media AI market to hit $10.3bn by 2029

The global market for artificial intelligence in social media is projected to grow rapidly, reaching $10.33 billion by 2029 from $2.20 billion in 2024, according to research from MarketsandMarkets.

The report forecasts a compound annual growth rate of 36.2 percent over the period, driven by increasing demand for automation, personalised content, and data-led decision-making across digital marketing teams.

Drivers behind market expansion

Growth in the sector is linked to rising adoption of AI-powered tools that support content creation, audience engagement, and performance analysis. Brands are investing in these technologies to manage social media activity more efficiently and maintain relevance across platforms.

The use of augmented reality features in social media is also contributing to increased engagement and visibility, particularly for consumer-facing brands seeking more interactive formats.

Enterprise demand and evolving use cases

Companies across sectors including retail, eCommerce, and marketing services are adopting AI tools to deliver tailored content and recommendations based on user behaviour. This shift is enabling more targeted campaigns and improving customer engagement.

At the same time, collaboration between brands and influencers is evolving, supported by generative AI tools that assist in producing content aligned with audience preferences and platform trends.

Key segments driving adoption

Social media management tools are expected to account for the largest share of the market. These platforms support tasks such as scheduling posts, managing brand presence, responding to users, and analysing performance metrics.

Content idea generation is projected to be one of the fastest-growing use cases. AI systems can analyse large volumes of data to identify trends and generate concepts designed to resonate with specific audiences, helping brands maintain consistent output.

Competitive landscape and innovation focus

Major technology companies including Google, Meta, IBM, Microsoft, Adobe, HubSpot, Sprout Social, Sprinklr, Amazon Web Services, and LivePerson are active in the market, leveraging research and development capabilities to expand their product portfolios.

These companies are focusing on partnerships, acquisitions, and product development to strengthen their position and respond to emerging demand for brand protection, authentication, and advanced analytics solutions within social media environments.

www.marketsandmarkets.com

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