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What fueled the previous growth in the large language model (llm) market?

In recent times, the comprehensive language model (LLM) market has seen an overwhelming surge in size. This market is projected to expand from its current size of $3.92 billion in 2024 to a higher figure of $5.03 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 28.3%. Factors that contributed to this impressive growth within the historic period include the broader adoption of natural language processing (NLP) applications, enhanced digital content production, prominence of conversational AI, a shift towards personalized services, and the inherent need for smart automation.

What will be the large language model (llm) market size in the future?

Anticipated to see a significant surge over the coming years, the large language model (LLM) market size is predicted to expand to a value of $13.52 billion by 2029. This impressive growth, calculated at a compound annual growth rate (CAGR) of 28.0%, can be ascribed to several factors. These include the widespread use of artificial intelligence, an increase in Internet of Things (IoT) devices, the extend of cloud computing services, greater demand for cybersecurity measures, and the emergence of blockchain technology. Key trends for the projected period involve progressions in AI and machine learning, a marked increase in demand for low-code and no-code platforms, a focus on functional programming languages, and technological evolution coupled with strategic partnerships.

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What main drivers are fueling expansion in the large language model (llm) market?

The large language model (LLM) market is likely to experience significant growth due to the escalating demand for chatbots and virtual assistants. These are AI-driven software tools designed for interaction with humans, each offering unique functionalities, purposes, and levels of user engagement. The adoption rate of chatbots and virtual assistants is surging because they can optimize processes, improve user experience, and facilitate business expansion in the digital realm. Large language models have revolutionized the efficiency of chatbots, enabling them to understand and generate human-like text with impressive accuracy, thanks to extensive training using a wealth of unlabeled data. As stated by WorldMetrics.org, a platform that provides updated worldwide data and trends, businesses in May 2024 were reported to have saved above $8 billion on an annual basis in 2022 through the utilization of chatbots, with the greatest savings recorded in the healthcare and banking industries. In fact, the global banking sector is projected to save $7.3 billion by 2023 owing to the adoption of chatbots. Furthermore, it is anticipated that by 2025, chatbots and AI will manage 95% of customer interactions. This reinforces the prediction of a bright future for the large language model market, spurred by the ever-increasing demand for chatbots and virtual assistants.

What key areas define the segmentation 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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Who are the dominant players expanding their reach 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., Baidu, Inc., 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 key trends shaping the future of the large language model (llm) market?

Noteworthy enterprises in the expansive language model market are venturing towards generating novel solutions, such as open and enterprise-grade LLM, with the aim to equip customers with sophisticated features. The open and enterprise-grade LLM is specially optimized for intricate enterprise operations and is unveiled under a license that permits unrestricted usage. For instance, in April 2024, Snowflake, a renowned cloud data platform provider from the US, introduced Snowflake Arctic, a next-generation large language model (LLM) envisaged to be the most open and enterprise-oriented LLM on the market. The Arctic exhibits a unique Mixture-of-Experts (MoE) architecture that offers exceptional efficiency at a large scale, along with superior intelligence. The stand out aspect of this model is its heavy emphasis on openness. Snowflake has made the Arctic’s weights accessible under an Apache 2.0 license, facilitating unlimited personal, research, and commercial usage. Moreover, the company is also disclosing the research processes that went into its creation, setting an unprecedented standard for transparency and cooperation in the enterprise AI industry.

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Which regions are emerging as leaders in 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.

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