According to the UnivDatos, as per their “AI Watermarking Market” report, the global market was valued at USD 434.47 million in 2024, growing at a CAGR of about 24.96% during the forecast period from 2025 - 2033 to reach USD million by 2033.

AI watermarking is a technique that integrates a unique and recognizable tag or pattern in AI-generated content, images, audio, videos, and text to prevent plagiarism. That tag or pattern is called a watermark, which can be scanned by algorithms. With the emergence of generative AI tools such as ChatGPT and Midjourney, anyone can create images, videos, or content that looks genuine and real, which can spread misinformation among people. AI watermarking techniques combat all these issues. User can label their content using visible water and invisible watermarks. Visible watermarks can be seen by humans, such as a logo on an image or video. While invisible cannot be seen by humans, they can only be detected by algorithms. Due to this, they are becoming popular. Furthermore, these watermarks cannot be tampered with by common techniques such as cropping of the image, compression, or conversion of one file format to another. Ensuring authentication without damaging the original image. For instance, in July 2024, a South Korea-based company, SNAPTAG, which provides invisible watermark technology through LAB-GUARD, raised a total funding of approximately USD 8 million in Series B Round Funding, with investors including Kimwoo Investment, Kakao Investment, and Stonebridge Ventures. Additionally, the EU has mandated the use of watermarks in AI content to ensure safety and authenticity.

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Latest Trends in the AI Watermarking Market

Integration of AI Watermarking Tools into Cloud Platforms

Among the major trends in the AI Watermarking market, the integration of AI watermarking tools into cloud platforms is the most prominent one. Cloud platforms provide on-demand computational resources such as servers, software, and storage to organizations. Due to their scalability, accessibility, and integration with the workflow, organizations prefer them. The cloud platform provides services through the Software-as-a-Service (SaaS) model, Platform-as-a-Service (PaaS) model, and Infrastructure-as-a-Service (IaaS) model. Moreover, cloud platforms now offer watermarking techniques or tools on their platform. For example, in Google Cloud Vertex AI, users can now embed watermarks in their content by using its watermarking tool. Further, in Tencent Cloud, users can now label their multimedia files by using its watermarking tool. With the growth of SaaS based watermark tools, such as Google DeepMind SynthID, developers can now label and monitor their content without interrupting the user experience. In PaaS, the APIs and SDKs for watermarks are integrated into the current AI pipeline, ensuring that during model training or content creation, the watermark is embedded automatically. Meanwhile, IaaS watermark services are used by streaming platforms or gaming platforms that need high performance. For instance, in August 2023, Adobe, a US-based tech giant, embedded Content Credentials through Adobe Creative Cloud in its Firefly platform, ensuring that every AI-generated image had a watermark integrated in it, satisfying C2PA standards.

Investments Lead the Growth of the AI Watermarking Market

The growth of AI-generated content has led to an increase in the rise of deepfakes and piracy. To resist that piracy and deepfakes, various investments have been made by industries and governments to empower AI startups and to develop AI safety tools such as watermarks. In July 2024, SNAPTAG, a Korean-based company that specializes in providing watermark technology solutions catering to a wide range of customers through LAB-GUARD, accepted a total funding of ~USD 8 million in a series B round funding. Utilizing that fund to develop strong forensic AI watermarking tools. Additionally, in 2023, steg.ai also raised a fund of USD 5 million, utilizing it in developing tamper-proof and strong watermarks for audio, video, and text. Echo Mark has also secured a fund of USD 10 million and will utilize that fund for the development of email watermarks. Moreover, Cisco has also provided a fund of USD 1 million for the enhancement of AI tools and startups. Such investments highlight the importance of AI watermarking solutions. Therefore, the hefty investment in the sector drives the AI Watermarking Market.

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Investment and Cloud Integration Boosted the Growth of the AI-Watermarking Market

The growth of AI-generated content has increased, the rise of deepfakes and piracy, hence the need for watermarking has also increased. The demand for scalable and flexible platforms is increasing as they easily get integrated into the AI workflow; therefore, cloud platform offers all these qualities. Moreover, ChatGPT, Midjourney, and DALL-E are cloud-based tools. Cloud platforms also provide integrated watermarking tools. For example, Google Cloud Vertex AI provides watermarking tools, allowing users to label and monitor their respective content. Moreover, increasing investments in the AI ecosystem are also playing an important role. Such as funding provided by Cisco for the empowerment of AI startups and the development of AI security tools. These factors highlight the importance of watermarking tools in the upcoming digital era.

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