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AI Video Generation & Editing

Sora shut down ($15M/day costs vs $2.1M lifetime revenue). Runway launched $10M Builder Fund. Kling 3.0 costs 65% less. Market at $2.4B.

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Growth Overview

32.8%

CAGR

+52%

YoY Growth

+280%

Search Growth

$18.6B

by 2030

12-Month Trend

Growth Rate

0%25%50%

Market Size Projection

$2.4B

Current (2025)

$18.6B

by 2030

Overview

AI tools that generate, edit, and transform video content from text prompts, images, or existing footage. The AI video generation market competes for a $2.4B opportunity, projected to reach $18.6B by 2030 at 32.8% CAGR. OpenAI shut down Sora, which was hemorrhaging $15M/day in compute costs against $2.1M total lifetime revenue. Runway launched a $10M Builder Fund for AI/media startups and Gen-4 Turbo delivers the best temporal consistency. Kling 3.0 offers production-quality output at 65% less than Sora. Google Veo 3 innovates with native synchronized audio-visual generation.

What's Driving This Growth?

▸Cost per minute of AI video dropped 65% from 2024 to 2025, making it accessible to SMBs and creators
▸Large enterprises capture 50.9% of market share; SMEs growing at highest CAGR of 21.1%
▸Simultaneous audio-visual generation (Kling 2.6) eliminating post-production for voiceovers and sound design
▸Marketing teams replacing stock footage and expensive shoots with AI-generated custom video content

Market Signals

✓OpenAI shut down Sora (Mar 2026): $15M/day compute vs $2.1M lifetime revenue; Kling, Runway, Vidu now competing for the vacuum
✓Runway Gen-4 Turbo leads temporal consistency but capped at 16s; Veo 3.1 offers 60s, Kling delivers 2 minutes; duration is key differentiator
✓Kling 3.0 at $0.07/sec (65% less than Sora, 44% less than Runway); Google Veo 3 innovates with native synchronized audio-visual generation