This report describes and explains the large language model (LLM) market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.
The global large language model (LLM) market reached a value of nearly $6.33 billion in 2024, having grown at a compound annual growth rate (CAGR) of 29.85% since 2019. The market is expected to grow from $6.33 billion in 2024 to $25.22 billion in 2029 at a rate of 31.83%. The market is then expected to grow at a CAGR of 30.49% from 2029 and reach $95.45 billion in 2034.
Growth in the historic period resulted from the rise in adoption of ai in healthcare and life sciences, increased cloud computing adoption, surge in remote work, increased investments in digital transformation and rise in use of AI in financial services. Factors that negatively affected growth in the historic period were security and data protection challenges.
Going forward, rising investment in AI startups, rising demand for automation in industries, rising adoption of ai in retail and e-commerce, expansion of digital marketing and content creation, growing demand for chatbots and virtual assistants and favorable government initiatives will drive the growth. Factor that could hinder the large language model (LLM) market in the future include shortage of AI professionals and data scientists.
The global large language model (LLM) markets are fragmented, with a large number of players operating in the market. The top 3 competitors in the market made up 8.92% of the total market in 2023. OpenAI was the largest competitor with a 1.56% share of the market, followed by Google LLC with 1.42%, Microsoft Corporation with 1.36%, Meta Platforms Inc. with 1.05%, Amazon.com Inc. with 0.89%, International Business Machines (IBM) Corporation with 0.82%, Baidu Inc. with 0.59%, Alibaba Group Holding Limited with 0.59%, Databricks Inc. with 0.33% and DataRobot Inc. with 0.31%.
North America was the largest region in the large language model (LLM) market, accounting for 36.79% or $2.33 billion of the total in 2024. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the large language model (LLM) market will be Asia-Pacific and South America where growth will be at CAGRs of 35.82% and 32.65% respectively. These will be followed by North America and Eastern Europe where the markets are expected to grow at CAGRs of 30.78% and 30.35% respectively.
The large language model (LLM) market is segmented by model size into below 100 billion parameters, 100 billion to 500 billion parameters and above 500 billion parameters. The below 100 billion parameters market was the largest segment of the large language model (LLM) market segmented by model size, accounting for 59.08% or $3.74 billion of the total in 2024. Going forward, the above 500 billion parameters segment is expected to be the fastest growing segment in the large language model (LLM) market segmented by model size, at a CAGR of 33.62% during 2024-2029.
The large language model (LLM) market is segmented by architecture into autoregressive language models, autoencoding language models, hybrid language models and other architectures. The autoregressive language models market was the largest segment of the large language model (LLM) market segmented by architecture, accounting for 53.32% or $3.37 billion of the total in 2024. Going forward, the hybrid language model segment is expected to be the fastest growing segment in the large language model (LLM) market segmented by architecture, at a CAGR of 33.48% during 2024-2029.
The large language model (LLM) market is segmented by deployment into cloud and on-premises. The on-premises market was the largest segment of the large language model (LLM) market segmented by deployment, accounting for 57.87% or $3.66 billion of the total in 2024. Going forward, the cloud segment is expected to be the fastest growing segment in the large language model (LLM) market segmented by deployment, at a CAGR of 32.44% during 2024-2029.
The large language model (LLM) market is segmented by industry into healthcare, finance, retail and e-commerce, media and entertainment and other industries. The retail and e-commerce market was the largest segment of the large language model (LLM) market segmented by industry, accounting for 27.16% or $1.72 billion of the total in 2024. Going forward, the media and entertainment segment is expected to be the fastest growing segment in the large language model (LLM) market segmented by industry, at a CAGR of 35.21% during 2024-2029.
The top opportunities in the large language model (LLM) markets segmented by model size will arise in the below 100 billion parameters segment, which will gain $11.86 billion of global annual sales by 2029. The top opportunities in the large language model (LLM) markets segmented by architecture will arise in the autoregressive language models segment, which will gain $10.21 billion of global annual sales by 2029. The top opportunities in the large language model (LLM) markets segmented by deployment will arise in the on-premises segment, which will gain $10.68 billion of global annual sales by 2029. The top opportunities in the large language model (LLM) markets segmented by industry will arise in the retail and e-commerce segment, which will gain $5.21 billion of global annual sales by 2029. The large language model (LLM) market size will gain the most in the USA at $5.61 billion.
Market-trend-based strategies for the large language model (LLM) market include strategic partnerships and collaborations among major players in the market, revolutionizing large language model development with accelerated training and cost efficiency, advanced AI integration powering secure and scalable business applications, generative AI integration transforming asset and wealth management efficiency and AI cloud innovation empowering businesses with seamless large language model integration.
Player-adopted strategies in the large language model (LLM) market include focus on expanding its business capabilities through advanced large language models and business capabilities through a new product launch.
To take advantage of the opportunities, the analyst recommends the large language model (LLM) market companies to focus on strategic partnerships to accelerate adoption and innovation, focus on efficient scaling and cost-optimized training, focus on enterprise integration through secure and scalable ai solutions, focus on generative ai to improve wealth management efficiency, focus on regional language capabilities to drive adoption and scale, focus on ai-powered search to improve data accessibility and user experience, focus on lightweight models to enhance efficiency and expand enterprise adoption, focus on ai cloud solutions to scale deployment and lower costs, focus on above 500 billion parameters to capture high-growth opportunities, focus on hybrid language models to maximize growth potential, focus on cloud deployment to capture fastest growth in LLM market, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, continue to use B2B promotions, focus on media and entertainment to capitalize on highest growth potential.
The global large language model (LLM) market reached a value of nearly $6.33 billion in 2024, having grown at a compound annual growth rate (CAGR) of 29.85% since 2019. The market is expected to grow from $6.33 billion in 2024 to $25.22 billion in 2029 at a rate of 31.83%. The market is then expected to grow at a CAGR of 30.49% from 2029 and reach $95.45 billion in 2034.
Growth in the historic period resulted from the rise in adoption of ai in healthcare and life sciences, increased cloud computing adoption, surge in remote work, increased investments in digital transformation and rise in use of AI in financial services. Factors that negatively affected growth in the historic period were security and data protection challenges.
Going forward, rising investment in AI startups, rising demand for automation in industries, rising adoption of ai in retail and e-commerce, expansion of digital marketing and content creation, growing demand for chatbots and virtual assistants and favorable government initiatives will drive the growth. Factor that could hinder the large language model (LLM) market in the future include shortage of AI professionals and data scientists.
The global large language model (LLM) markets are fragmented, with a large number of players operating in the market. The top 3 competitors in the market made up 8.92% of the total market in 2023. OpenAI was the largest competitor with a 1.56% share of the market, followed by Google LLC with 1.42%, Microsoft Corporation with 1.36%, Meta Platforms Inc. with 1.05%, Amazon.com Inc. with 0.89%, International Business Machines (IBM) Corporation with 0.82%, Baidu Inc. with 0.59%, Alibaba Group Holding Limited with 0.59%, Databricks Inc. with 0.33% and DataRobot Inc. with 0.31%.
North America was the largest region in the large language model (LLM) market, accounting for 36.79% or $2.33 billion of the total in 2024. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the large language model (LLM) market will be Asia-Pacific and South America where growth will be at CAGRs of 35.82% and 32.65% respectively. These will be followed by North America and Eastern Europe where the markets are expected to grow at CAGRs of 30.78% and 30.35% respectively.
The large language model (LLM) market is segmented by model size into below 100 billion parameters, 100 billion to 500 billion parameters and above 500 billion parameters. The below 100 billion parameters market was the largest segment of the large language model (LLM) market segmented by model size, accounting for 59.08% or $3.74 billion of the total in 2024. Going forward, the above 500 billion parameters segment is expected to be the fastest growing segment in the large language model (LLM) market segmented by model size, at a CAGR of 33.62% during 2024-2029.
The large language model (LLM) market is segmented by architecture into autoregressive language models, autoencoding language models, hybrid language models and other architectures. The autoregressive language models market was the largest segment of the large language model (LLM) market segmented by architecture, accounting for 53.32% or $3.37 billion of the total in 2024. Going forward, the hybrid language model segment is expected to be the fastest growing segment in the large language model (LLM) market segmented by architecture, at a CAGR of 33.48% during 2024-2029.
The large language model (LLM) market is segmented by deployment into cloud and on-premises. The on-premises market was the largest segment of the large language model (LLM) market segmented by deployment, accounting for 57.87% or $3.66 billion of the total in 2024. Going forward, the cloud segment is expected to be the fastest growing segment in the large language model (LLM) market segmented by deployment, at a CAGR of 32.44% during 2024-2029.
The large language model (LLM) market is segmented by industry into healthcare, finance, retail and e-commerce, media and entertainment and other industries. The retail and e-commerce market was the largest segment of the large language model (LLM) market segmented by industry, accounting for 27.16% or $1.72 billion of the total in 2024. Going forward, the media and entertainment segment is expected to be the fastest growing segment in the large language model (LLM) market segmented by industry, at a CAGR of 35.21% during 2024-2029.
The top opportunities in the large language model (LLM) markets segmented by model size will arise in the below 100 billion parameters segment, which will gain $11.86 billion of global annual sales by 2029. The top opportunities in the large language model (LLM) markets segmented by architecture will arise in the autoregressive language models segment, which will gain $10.21 billion of global annual sales by 2029. The top opportunities in the large language model (LLM) markets segmented by deployment will arise in the on-premises segment, which will gain $10.68 billion of global annual sales by 2029. The top opportunities in the large language model (LLM) markets segmented by industry will arise in the retail and e-commerce segment, which will gain $5.21 billion of global annual sales by 2029. The large language model (LLM) market size will gain the most in the USA at $5.61 billion.
Market-trend-based strategies for the large language model (LLM) market include strategic partnerships and collaborations among major players in the market, revolutionizing large language model development with accelerated training and cost efficiency, advanced AI integration powering secure and scalable business applications, generative AI integration transforming asset and wealth management efficiency and AI cloud innovation empowering businesses with seamless large language model integration.
Player-adopted strategies in the large language model (LLM) market include focus on expanding its business capabilities through advanced large language models and business capabilities through a new product launch.
To take advantage of the opportunities, the analyst recommends the large language model (LLM) market companies to focus on strategic partnerships to accelerate adoption and innovation, focus on efficient scaling and cost-optimized training, focus on enterprise integration through secure and scalable ai solutions, focus on generative ai to improve wealth management efficiency, focus on regional language capabilities to drive adoption and scale, focus on ai-powered search to improve data accessibility and user experience, focus on lightweight models to enhance efficiency and expand enterprise adoption, focus on ai cloud solutions to scale deployment and lower costs, focus on above 500 billion parameters to capture high-growth opportunities, focus on hybrid language models to maximize growth potential, focus on cloud deployment to capture fastest growth in LLM market, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, continue to use B2B promotions, focus on media and entertainment to capitalize on highest growth potential.
Major Market Trends
- Strategic Partnerships and Collaborations Among Major Players in the Market
- Revolutionizing Large Language Model Development With Accelerated Training and Cost Efficiency
- Advanced AI Integration Powering Secure and Scalable Business Applications
- Generative AI Integration Transforming Asset and Wealth Management Efficiency
- Large Language Model Supporting Hindi and Multiple Regional Dialects
- Next-Generation AI Search Feature Elevating User Experience and Data Discovery Efficiency
- Next-Generation Lightweight Large Language Model Enhancing Enterprise AI Capabilities
- AI Cloud Innovation Empowering Businesses With Seamless Large Language Model Integration
Table of Contents
1 Executive Summary
6 Market Characteristics
7 Major Market Trends
8 Large Language Model (LLM) Market - Macro Economic Scenario
9 Global Large Language Model (LLM) Growth Analysis and Strategic Analysis Framework
10 Global Large Language Model (LLM) Market Segmentation
11 Large Language Model (LLM) Market, Regional and Country Analysis
12 Asia-Pacific Market
13 Western Europe Market
14 Eastern Europe Market
15 North America Market
16 South America Market
17 Middle East Market
18 Africa Market
19 Competitive Landscape and Company Profiles
20 Other Major and Innovative Companies
23 Key Mergers and Acquisitions
24 Recent Developments in Large Language Model (LLM) Market
25 Opportunities and Strategies to 2034
26 Large Language Model (LLM) Market, Conclusions and Recommendations
27 Appendix
Executive Summary
Large Language Model (LLM) Global Market Opportunities and Strategies to 2034 provides the strategists; marketers and senior management with the critical information they need to assess the global large language model (LLM) market as it emerges from the COVID-19 shut down.Reasons to Purchase:
- Gain a truly global perspective with the most comprehensive report available on this market covering 15 geographies.
- Understand how the market is being affected by the coronavirus and how it is likely to emerge and grow as the impact of the virus abates.
- 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 research findings.
- Benchmark performance against key competitors.
- Utilize the relationships between key data sets for superior strategizing.
- Suitable for supporting your internal and external presentations with reliable high-quality data and analysis.
Description
Where is the largest and fastest-growing market for large language model (LLM)? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The large language model (LLM) market global report 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 history and forecasts market growth by geography. It places the market within the context of the wider large language model (LLM) market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by model size, by architecture, by deployment and by industry.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Macro-Economic Scenario- the report provides an analysis of the impact of the COVID-19 pandemic, impact of the Russia-Ukraine war and impact of rising inflation on global and regional markets, providing strategic insights for businesses in the large language model (LLM) market.
- Growth Analysis and Strategic Analysis Framework Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Regional and Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by architecture, by deployment and by industry in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major and Innovative Companies Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Recent Developments Information on recent developments in the market covered in the report.
- Market Opportunities and Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions and Recommendations- This section includes recommendations for large language model (LLM) providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
1) by Model Size: Below 100 Billion Parameters; 100 Billion to 500 Billion Parameters; Above 500 Billion Parameters2) 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
Key Companies Profiled: OpenAI; Google LLC; Microsoft Corporation; Meta Platforms Inc.; Amazon.com Inc.
Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa.
Time Series: Five years historic and ten years forecast..
Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; large language model (LLM) indicators comparison..
Data Segmentation: Country and regional historic and forecast data; market share of competitors; market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Companies Mentioned
The companies featured in this Large Language Model (LLM) market report include:- OpenAI
- Google LLC
- Microsoft Corporation
- Meta Platforms Inc.
- Amazon.com Inc.
- International Business Machines (IBM) Corporation
- Baidu Inc.
- Alibaba Group Holding Limited
- Databricks Inc.
- DataRobot Inc.
- DeepSeek
- Tech Mahindra
- WIZ.AI
- NTT DATA Group
- DTGO Corporation Limited
- Huawei Technologies Co. Ltd
- Tencent Holdings Ltd
- XTransfer
- SenseTime
- Mesolitica
- Indosat Ooredoo Hutchison
- Fujitsu
- Cohere
- KDDI Corporation
- Elyza
- Rakuten Group, Inc.
- SK Telecom
- Upstage AI
- Dnotitia
- Hugging Face
- Expert.AI
- Mistral AI
- Stability AI
- Aleph Alpha
- DeepL
- iGenius
- Pixis
- IGEL Technology
- Everseen
- Tilde.ai
- Zfort Group
- Yandex LLC
- DataRoot Labs
- Tooploox
- Laiyer AI
- Snowflake
- Protect AI
- Nvidia Corporation
- ExlService Holdings, Inc.
- ZappiStore Limited
- Hewlett Packard Enterprise
- Arqgen
- Waverley Software
- HatchWorks
- Blip
- Prezent.ai
- WideLabs
- Gupshup
- Lexter.ai
- Saudi Data and Artificial Intelligence Authority (SDAIA)
- AI71
- TAMM
- Naver Corporation
- Huawei Technologies Co. Ltd.
- Tencent Holdings Limited
- Lelapa AI
- Interswitch
- Aerobotics
- DXwand
- DataProphet
- Flutterwave
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 364 |
| Published | May 2025 |
| Forecast Period | 2024 - 2034 |
| Estimated Market Value ( USD | $ 6.33 Billion |
| Forecasted Market Value ( USD | $ 95.45 Billion |
| Compound Annual Growth Rate | 31.2% |
| Regions Covered | Global |
| No. of Companies Mentioned | 72 |
