Retrieval-augmented generation (RAG) is a technique that enhances the capabilities of large language models (LLMs) by incorporating external information retrieval methods. This approach allows LLMs to access authoritative information repositories, improving the accuracy and relevance of their generated responses.
The primary data types used in retrieval-augmented generation are structured and unstructured data. Structured data refers to information that is systematically organized within databases or data models, enabling efficient access, retrieval, and analysis. RAG is applied in various functions, including document retrieval, response generation, summarization and reporting, and recommendation engines. It is deployed through both cloud and on-premises solutions and is used in applications such as knowledge management, customer support and chatbots, legal and compliance, marketing and sales, research and development, and content generation. The technology serves a wide range of industries, including healthcare, financial services, retail and e-commerce, information technology and telecommunications, education, media and entertainment, and others.
The retrieval augmented generation market research report is one of a series of new reports from The Business Research Company that provides retrieval augmented generation market statistics, including retrieval augmented generation industry global market size, regional shares, competitors with a retrieval augmented generation market share, detailed retrieval augmented generation market segments, market trends and opportunities, and any further data you may need to thrive in the retrieval augmented generation industry. This retrieval augmented generation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The retrieval augmented generation market size has grown exponentially in recent years. It will grow from $1.50 billion in 2024 to $2.13 billion in 2025 at a compound annual growth rate (CAGR) of 41.6%. Growth during the historic period was driven by enterprise adoption, increasing demand for accurate AI-generated content, the rise in data generation, improvements in AI model accuracy, regulatory compliance requirements, and the adoption of retrieval-augmented generation in content creation and recommendation systems.
The retrieval augmented generation market size is expected to see exponential growth in the next few years. It will grow to $8.45 billion in 2029 at a compound annual growth rate (CAGR) of 41.2%. Growth in the forecast period is expected to be driven by the increasing personalization in retail and e-commerce, rising usage in document retrieval and summarization, contributions from the open-source community, and global digital transformation. Major trends include the adoption of advanced technologies, the emergence of AI-powered recommender systems, advancements in natural language processing (NLP), strategic partnerships and collaborations, and ongoing research and development initiatives.
The increasing demand for data security is expected to drive the growth of the retrieval-augmented generation market in the coming years. Data security involves protecting digital information from theft, corruption, unauthorized access, and disclosure throughout its lifecycle. The rising need for data security is driven by growing cyber threats, data breaches, regulatory compliance requirements, and the necessity to safeguard sensitive personal, financial, and business information in an increasingly digital environment. Retrieval-augmented generation (RAG) enhances data security by allowing AI systems to securely retrieve and access relevant information from trusted sources in real time. This ensures that sensitive data is processed only when necessary, reducing exposure to potential breaches while maintaining privacy and compliance standards. For example, in April 2024, Gov.UK, the UK government's official website, reported that the UK cybersecurity sector grew by 8% in 2023, with nearly 2,000 firms generating £10.5 billion in revenue, marking a 3% increase from 2022. This growing emphasis on data security is expected to fuel the expansion of the retrieval-augmented generation market.
Leading companies in the retrieval-augmented generation market are leveraging advanced technologies, such as decentralized AI operating systems, to enhance their product offerings and improve efficiency. A decentralized AI operating system distributes decision-making, data processing, and control across multiple nodes or devices instead of relying on a central server. For instance, in July 2024, Core42 - G42, a UAE-based digital transformation company, introduced the OnDemand AI Operating System (AIOS) to simplify AI application deployment. This system provides a comprehensive solution for developers, engineers, enterprises, and startups by supporting flexible deployment of both open-source and proprietary AI models, including integration with Hugging Face. AIOS also features a marketplace for developers to create, deploy, and sell AI tools, supports multi-step retrieval-augmented generation for complex API integrations, and offers a low-code solution, making AI development more accessible with minimal setup.
In June 2024, OpenAI, a US-based artificial intelligence company, acquired Rockset for an undisclosed amount. This acquisition is intended to strengthen OpenAI's data processing, analytics, and retrieval capabilities, allowing the development of more powerful AI applications that can utilize real-time data across various industries. Rockset is a US-based company specializing in real-time analytics databases and retrieval-augmented generation technology.
Major players in the retrieval augmented generation market are Apple Inc., Google LLC, Samsung Electronics Co. Ltd., Microsoft Corporation, Meta Platforms Inc., Dell Technologies Inc., Amazon Web Services Inc., Intel Corporation, Accenture Plc, IBM Corporation, Cisco Systems Inc., Qualcomm Incorporated, Oracle Corporation, SAP SE, Hewlett Packard Enterprise (HPE), NVIDIA Corporation, Salesforce Inc., Ericsson AB, Adobe Inc., Alibaba Cloud, OpenAI LLC, Informatica Inc., Databricks Inc., Clarifai Inc.
North America was the largest region in the retrieval augmented generation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in retrieval-augmented generation report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the Retrieval Augmented Generation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The retrieval-augmented generation market consists of revenues earned by entities by providing services such as content generation, and pipeline assessment retrieval. The market value includes the value of related goods sold by the service provider or included within the service offering. The retrieval-augmented generation market also includes sales of AI-enhanced cloud solutions, software solutions, data management tools and API and integration tools. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Retrieval Augmented Generation Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on retrieval augmented generation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Reasons to Purchase
Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
Assess the impact of key macro factors such as conflict, pandemic and recovery, inflation and interest rate environment and the 2nd Trump presidency.
Create regional and country strategies on the basis of local data and analysis.
Identify growth segments for investment.
Outperform competitors using forecast data and the drivers and trends shaping the market.
Understand customers based on the latest market shares.
Benchmark performance against key competitors.
Suitable for supporting your internal and external presentations with reliable high quality data and analysis
Report will be updated with the latest data and delivered to you within 2-3 working days of order along with an Excel data sheet for easy data extraction and analysis.
All data from the report will also be delivered in an excel dashboard format.
Where is the largest and fastest growing market for retrieval augmented generation ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The retrieval augmented generation market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The market characteristics section of the report defines and explains the market.
The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
The forecasts are made after considering the major factors currently impacting the market. These include:
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
Market segmentations break down the market into sub markets.
The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:1) By Data Type: Structured Data; Unstructured Data
2) By Function: Document Retrieval; Response Generation; Summarization And Reporting; Recommendation Engines
3) By Deployment: Cloud; On-Premises
4) By Application: Knowledge Management; Customer Support And Chatbots; Legal And Compliance; Marketing And Sales; Research And Development; Content Generation
5) By End-Use: Healthcare; Financial Services; Retail And E-Commerce; Information Technology And Telecommunications; Education; Media And Entertainment; Other End-Users
Subsegments:
1) By Structured Data: Relational Databases; Knowledge Graphs; Enterprise Data Warehouses; Metadata Repositories; Linked Data
2) By Unstructured Data: Text Documents; Audio And Video Transcripts; Web Content And Blogs; Emails And Customer Support Logs; Social Media Posts
Companies Mentioned: Apple Inc.; Google LLC; Samsung Electronics Co. Ltd.; Microsoft Corporation; Meta Platforms Inc.
3. Retrieval Augmented Generation Market Trends And Strategies
4. Retrieval Augmented Generation Market - Macro Economic Scenario Macro Economic Scenario Including The Impact Of Interest Rates, Inflation, Geopolitics And Covid And Recovery On The Market
5. Global Retrieval Augmented Generation Growth Analysis And Strategic Analysis Framework
5.1. Global Retrieval Augmented Generation PESTEL Analysis (Political, Social, Technological, Environmental and Legal Factors, Drivers and Restraints)
5.2. Analysis Of End Use Industries
5.3. Global Retrieval Augmented Generation Market Growth Rate Analysis
5.4. Global Retrieval Augmented Generation Historic Market Size and Growth, 2019 - 2024, Value ($ Billion)
5.5. Global Retrieval Augmented Generation Forecast Market Size and Growth, 2024 - 2029, 2034F, Value ($ Billion)
5.6. Global Retrieval Augmented Generation Total Addressable Market (TAM)
6.1. Global Retrieval Augmented Generation Market, Segmentation By Data Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Structured Data
Unstructured Data
6.2. Global Retrieval Augmented Generation Market, Segmentation By Function, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Document Retrieval
Response Generation
Summarization And Reporting
Recommendation Engines
6.3. Global Retrieval Augmented Generation Market, Segmentation By Deployment, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Cloud
On-Premises
6.4. Global Retrieval Augmented Generation Market, Segmentation By Application, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Knowledge Management
Customer Support And Chatbots
Legal And Compliance
Marketing And Sales
Research And Development
Content Generation
6.5. Global Retrieval Augmented Generation Market, Segmentation By End-User, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Healthcare
Financial Services
Retail And E-Commerce
Information Technology And Telecommunications
Education
Media And Entertainment
Other End-Users
6.6. Global Retrieval Augmented Generation Market, Sub-Segmentation Of Structured Data, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Relational Databases
Knowledge Graphs
Enterprise Data Warehouses
Metadata Repositories
Linked Data
6.7. Global Retrieval Augmented Generation Market, Sub-Segmentation Of Unstructured Data, By Type, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
Text Documents
Audio And Video Transcripts
Web Content And Blogs
Emails And Customer Support Logs
Social Media Posts
7. Retrieval Augmented Generation Market Regional And Country Analysis
7.1. Global Retrieval Augmented Generation Market, Split By Region, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion
7.2. Global Retrieval Augmented Generation Market, Split By Country, Historic and Forecast, 2019-2024, 2024-2029F, 2034F, $ Billion