(Yicai) Oct. 18 -- The value of China’s artificial intelligence market is likely to more than quadruple by 2030 from 2023 to USD154.8 billion, as Chinese developers enter lucrative fields such as education, entertainment and work productivity, according to a report released by German app analytics company Adjust and UK market research firm Sensor Tower yesterday.

Chinese developers are at the forefront of the AI revolution and the sweeping changes it is bringing, said Chris Rupp, head of Adjust's China business.

"The uniqueness of Chinese developers lies in their overseas-first strategy," Rupp said. Unlike most of their competitors, Chinese companies tend to prioritize international market from the start. This approach has enabled many Chinese applications to quickly soar to the top of global download charts.

Chinese AI firms, though, face challenges to global expansion such as data privacy, regulatory frameworks and cultural barriers, especially in the US and European markets, Rupp said.

Despite this, two Chinese apps ranked in the top 10 on the AI app downloads and revenue rankings in the first eight months, the report said. ByteDance's chatbot Doubao placed 10th for downloads, and Meitu ranked sixth in terms of revenue.

Thanks to the growth of popular applications, global AI application revenue surged 51 percent in the first eight months year-on-year to USD2 billion and is expected to reach USD3.3 billion by the end of the year. By 2028, global AI app revenue should hit USD18.8 billion, the report said.

Chinese short drama apps have also rapidly expanded overseas. Over 40 Chinese short drama apps were downloaded more than 55 million times worldwide, raking in USD170 million in in-app consumption. Revenue from the US market accounted for between 60 percent and 70 percent of total revenue, indicating that such applications have great potential in markets outside of China.

China’s ReelShort, DramaBox and DreameShort platforms are driving the growth of short drama applications. By the end of last year, ReelShort, which is owned by digital publisher COL Group, had even outranked Netflix in the US entertainment app rankings. Industry insiders estimate that the long-term value of the short drama market could reach USD36 billion.

Editor: Kim Taylor