The global large-scale AI model market is set for significant growth, with projections indicating an increase from USD 13.53 billion in 2025 to USD 52.82 billion by 2035. This expansion is driven by the rising adoption of generative AI, advanced cloud infrastructure, and multimodal foundation models. The U.S. segment is anticipated to grow from USD 5.40 billion in 2025 to USD 19.20 billion by 2035, reflecting a compound annual growth rate (CAGR) of 10.36% during this period.
Key factors contributing to this market surge include the increasing integration of AI across various industries, a heightened demand for automation, and a growing reliance on data-driven decision-making. Businesses are increasingly embracing generative AI technologies, significantly accelerating their adoption within corporate frameworks. This trend underscores the pivotal role of AI in enhancing operational efficiency and decision-making precision.
Foundation models captured a dominant market share of 39% in 2025, owing to their versatility and scalability, which facilitate a range of downstream tasks. Meanwhile, multimodal models are identified as the fastest-growing segment, as they cater to the growing need for AI systems capable of processing text, images, audio, and video in a synergistic manner.
In terms of deployment, cloud-based solutions are expected to maintain a leading position, accounting for 63% of the market share in 2025 due to their inherent scalability, flexibility, and cost-effectiveness. The hybrid deployment mode is projected to be the fastest-growing segment, propelled by increasing concerns regarding data security and regulatory compliance.
Natural language processing (NLP) applications are projected to dominate the market with a 35% share in 2025, primarily due to their widespread use in chatbots, virtual assistants, and document processing. Generative AI is emerging as the fastest-growing application, driven by its rapid adoption across diverse fields such as content creation, code generation, and marketing automation.
The IT and telecom sectors led the end-use industry segment in 2025, accounting for 37% of the market share. This is driven by early AI adoption and substantial data availability within these sectors. However, healthcare and life sciences are poised for the fastest growth, reflecting an increasing reliance on large-scale AI models for diagnostics, medical imaging, and personalized treatment planning.
Regional dynamics indicate that North America will dominate the large-scale AI model market, projected to hold a 45% share by 2025. The drivers for this growth include the early adoption of generative AI technologies, advanced cloud infrastructure, and a robust base of hyperscalers and AI developers. Conversely, the Asia Pacific region is anticipated to exhibit the highest growth rate, with a CAGR of 17.34%, fueled by increasing cloud penetration and rapid digital transformation efforts.
As businesses globally accelerate their adoption of generative AI, the market for large-scale AI models continues to expand. This trend is not merely about technology adoption but signifies a transformation in operational paradigms. By 2025, more than 70% of major corporations are expected to be testing or implementing generative AI solutions across various domains, including operations, software development, and customer service. This adoption highlights AI’s critical role in corporate digital transformation.
Prominent players in this evolving market include major technology firms such as Microsoft Corporation, Google LLC (Alphabet Inc.), OpenAI, and Amazon Web Services (AWS), among others. These companies are at the forefront of developing and deploying large-scale AI models that meet diverse business needs.
Recent developments include Microsoft’s enhancement of its Azure AI Model Catalog announced in May 2025, which aims to improve governance and security features for enterprises deploying large-scale AI models. Additionally, in April 2025, Google unveiled new capabilities for its multimodal Gemini model within Google Cloud, focusing on enhanced reasoning and enterprise AI customization.
Looking ahead, the large-scale AI model market is positioned for transformative growth, driven by technological advancements and broader business acceptance of generative AI. The implications of this growth extend beyond mere market figures; they reflect a shift in how organizations will operate and innovate in a technology-driven future.
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