How Has the Large Language Model (LLM) Market Size Evolved in Recent Years?
The large language model (llm) market has seen considerable growth due to a variety of factors.
• The large language model (LLM) market has seen exponential growth, projected to increase from $3.92 billion in 2024 to $5.03 billion in 2025, at a CAGR of 28.3%.
This rapid growth is driven by the expansion of natural language processing applications, increased digital content creation, the rise of conversational AI, greater emphasis on personalization, and a surge in demand for intelligent automation.
What Are The Predictions for The Large Language Model (LLM) Market in the Coming Years?
The large language model (llm) market is expected to maintain its strong growth trajectory in upcoming years.
• The large language model (LLM) market is projected to grow to $13.52 billion by 2029, with a CAGR of 28.0%.
This growth is fueled by the rise of artificial intelligence, the expansion of IoT devices, and the increasing demand for cloud computing and cybersecurity solutions. Key trends include AI and machine learning advancements, the rise of low-code platforms, and strategic collaborations in AI technologies.
Which Drivers Are Accelerating Growth In The Large Language Model (LLM) Market?
The rising demand for chatbots and virtual assistants is anticipated to propel the growth of the large language model (LLM) market. LLMs, which have enhanced chatbot capabilities, enable more human-like interactions, benefiting businesses across industries. According to WorldMetrics.org, in May 2024, chatbots helped businesses save over $8 billion annually in 2022, and the banking sector alone is expected to save $7.3 billion by 2023 due to chatbot adoption.
What Are The Core Segments Of The Global Large Language Model (LLM) Market?
The large language model (LLM) market covered in this report is segmented –
1) By Model Size: Below 100 Billion Parameters, 100 Billion To 500 Billion Parameters, Above 500 Billion Parameters, Other Parameters
2) By Architecture: Autoregressive Language Models, Autoencoding Language Models, Hybrid Language Models, Other Architectures
3) By Deployment: Cloud, On-Premises
4) By Industry: Healthcare, Finance, Retail And E-Commerce, Media And Entertainment, Other Industries
Subsegments:
1) By Below 100 Billion Parameters: Small-Scale LLMs, Domain-Specific LLMs, Lightweight Models For Embedded Systems
2) By 100 Billion To 500 Billion Parameters: Mid-Scale General-Purpose LLMs, Multi-Modal Models (Text, Image), Customizable Enterprise LLMs
3) By Above 500 Billion Parameters: Large-Scale General-Purpose LLMs, Cutting-Edge Models For NLP And AI Research, Highly Complex And Scalable Models For Industry Applications
4) By Other Parameters: Hybrid Models (Combining Different Parameter Scales), Adaptive LLMs, Specialized Or Custom-Developed Models
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What Trends Are Reshaping The Future Of The Large Language Model (LLM) Market?
Leading firms in the large language model market are introducing inventive solutions like open and enterprise-grade LLMs, which provide customers with enhanced capabilities. This type of large language model is modified to handle intricate enterprise tasks and is accessible under a non-restrictive usage license. For example, in April 2024, Snowflake, a US company specializing in cloud-based data platforms, unveiled Snowflake Arctic. This is an advanced large language model aimed at being the most accessible and enterprise-ready LLM in the market. Arctic showcases a unique Mixture-of-Experts (MoE) architecture, offering exceptional intelligence and efficiency on a large scale. A key element of this model is its commitment to openness. Snowflake is releasing the Arctic's weights under an Apache 2.0 license, permitting unrestricted use for personal, research, and commercial purposes. Moreover, Snowflake is also making the research behind its creation available, setting a fresh standard for openness and cooperative efforts in the enterprise AI technology space.
Who Are the Key Players In The Large Language Model (LLM) Market?
Major companies operating in the large language model (LLM) market are:
• Apple Inc.
• Google LLC
• Microsoft Corporation
• Alibaba Group
• Meta Platforms Inc.
• Huawei Technologies Co. Ltd.
• Tencent Holdings Ltd.
• Amazon Web Services
• Intel Corporation
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Salesforce.com Inc.
• BaiduInc.
• NIIT Ltd.
• OpenAI
• Mozilla Foundation
• The Apache Software Foundation
• Nokia Bell Labs
• JetBrains s.r.o.
• Linux Foundation
• edX Inc.
• Udacity Inc.
• Julia Computing Inc.
• Zig Software Foundation
• Haxe Foundation
What Are The Regional Insights Into The Large Language Model (LLM) Market?
North America was the largest region in the large language model (LLM) market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the large language model (LLM) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
