PUBLISHER: The Business Research Company | PRODUCT CODE: 1527007
PUBLISHER: The Business Research Company | PRODUCT CODE: 1527007
A large language model (LLM) is an artificial intelligence algorithm that utilizes deep learning techniques and neural networks containing numerous parameters to analyze and comprehend human language or text. Due to their ability to generate, interpret, and modify human language, they are employed for various natural language processing (NLP) tasks and applications.
The primary model sizes of large language models (LLMs) include those with fewer than 100 billion parameters, between 100 billion and 500 billion parameters, above 500 billion parameters, and other configurations. Large language models with parameter sizes below 100 billion cater to applications that require moderate computational resources and efficient processing and understanding of language data. These models encompass various architectures such as autoregressive language models, autoencoding language models, hybrid language models, and other configurations, which are deployed through various modes including cloud and on-premises. These models find applications across diverse industries including healthcare, finance, retail and e-commerce, media and entertainment, and others.
The large language model (LLM) market research report is one of a series of new reports from The Business Research Company that provides large language model (LLM) market statistics, including large language model (LLM) industry global market size, regional shares, competitors with a large language model (LLM) market share, detailed large language model (LLM) market segments, market trends, and opportunities, and any further data you may need to thrive in the large language model (LLM) industry. This large language model (LLM) research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The large language model (LLM) market size has grown exponentially in recent years. It will grow from $3.06 billion in 2023 to $3.92 billion in 2024 at a compound annual growth rate (CAGR) of 28.0%. The growth observed during the historic period can be attributed to the expansion of natural language processing (NLP) applications, the increase in digital content creation, the emergence of conversational AI, a heightened emphasis on personalization, and the demand for intelligent automation.
The large language model (LLM) market size is expected to see exponential growth in the next few years. It will grow to $10.57 billion in 2028 at a compound annual growth rate (CAGR) of 28.1%. The anticipated growth in the forecast period can be attributed to the widespread adoption of artificial intelligence, the expansion of Internet of Things (IoT) devices, the increasing availability of cloud computing services, the growing demand for cybersecurity solutions, and the emergence of blockchain technology. Major trends expected in the forecast period include advancements in artificial intelligence (AI) and machine learning, the rising popularity of low-code and no-code platforms, a focus on functional programming languages, technological advancements, and strategic collaborations.
The increasing demand for chatbots and virtual assistants is poised to drive the expansion of the large language model (LLM) market in the foreseeable future. Chatbots and virtual assistants, AI-driven software programs designed for human interaction, are distinct in their functionalities, purposes, and levels of user engagement. Their growing adoption is attributed to their capacity to streamline processes, enhance user experiences, and foster business growth in the digital realm. Large language models (LLMs) have revolutionized chatbot capabilities, empowering them to understand and generate human-like text with exceptional accuracy, thanks to extensive training on vast amounts of unlabeled data. For example, in May 2024, WorldMetrics.org, a US-based platform providing current global data and trends, reported that businesses saved over $8 billion annually in 2022 through chatbot usage, with the healthcare and banking sectors benefiting the most, and the global banking industry projected to save $7.3 billion by 2023 due to chatbot adoption. Moreover, it is anticipated that chatbots and artificial intelligence (AI) will handle 95% of customer interactions by 2025. Thus, the increasing demand for chatbots and virtual assistants is poised to drive the growth of the large language model (LLM) market.
Leading companies in the large language model market are focused on developing innovative solutions, such as open and enterprise-grade LLMs, to cater to customers with advanced functionalities. The open and enterprise-grade LLM is a large language model optimized for complex enterprise tasks and released under a license for unrestricted usage. For instance, in April 2024, Snowflake, a US-based cloud-based data platform company, unveiled Snowflake Arctic, a cutting-edge large language model (LLM) engineered to be the most open and enterprise-grade LLM on the market. Arctic boasts a unique Mixture-of-Experts (MoE) architecture, delivering superior intelligence with exceptional scalability and efficiency. Its standout feature lies in its commitment to openness, as Snowflake has made Arctic's weights accessible under an Apache 2.0 license, allowing for unrestricted personal, research, and commercial utilization. Additionally, they are sharing the research insights behind its development, setting a new standard for transparency and collaboration in enterprise AI technology.
In January 2024, Protect AI, a US-based cybersecurity platform provider, acquired Laiyer AI for an undisclosed sum. This acquisition aims to bolster Protect AI's capabilities in the Large Language Model (LLM) market by integrating Laiyer AI's innovative technologies into its advanced AI-driven solutions. Laiyer AI is a US-based provider of large language models and model-training software.
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
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.
The countries covered in the large language model (LLM) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The large language model (LLM) market consists of revenues earned by entities by providing services such as natural language processing and chatbots, content generation and automation, language translation and localization, search and recommendation, and sentiment analysis. The market value includes the value of related goods sold by the service provider or included within the service offering. The large language model (LLM) market also includes sales of language translation tools, content generation platforms, code generation tools, and email response assistants. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Large Language Model (LLM) Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on large language model (LLM) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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 from the Business Research Company 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 historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.