PUBLISHER: The Business Research Company | PRODUCT CODE: 1760230
PUBLISHER: The Business Research Company | PRODUCT CODE: 1760230
Prompt engineering is the practice of crafting and refining input prompts to effectively steer the output of artificial intelligence models, especially large language models. It involves formulating precise questions, statements, or commands to generate specific, targeted results. By doing so, it reduces the need for additional editing and increases the overall efficiency of AI-based processes.
The core components of prompt engineering include both software and services. Software encompasses tools, applications, or frameworks that support various functions such as data management, request processing, and algorithm execution. Techniques commonly used in prompt engineering include n-shot prompting, generated knowledge prompting, chain-of-thought prompting, among others. These tools can be implemented in on-premises, cloud-based, or hybrid environments. Prompt engineering is widely applied in content creation, conversational AI, recommendation systems, and software development, across a range of industries such as healthcare, banking and finance, insurance, automotive and transportation, media and entertainment, retail, IT, and telecommunications.
The prompt engineering market research report is one of a series of new reports from The Business Research Company that provides prompt engineering market statistics, including prompt engineering industry global market size, regional shares, competitors with a prompt engineering market share, detailed prompt engineering market segments, market trends and opportunities, and any further data you may need to thrive in the prompt engineering industry. This prompt engineering market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The prompt engineering market size has grown exponentially in recent years. It will grow from $0.85 billion in 2024 to $1.13 billion in 2025 at a compound annual growth rate (CAGR) of 32.7%. The growth during the historic period can be attributed to several factors, including the rising demand for AI customization, a surge in AI-driven content generation, the expanding use of AI in customer service, increased automation of business workflows, and the growing adoption of AI in education and e-learning.
The prompt engineering market size is expected to see exponential growth in the next few years. It will grow to $3.48 billion in 2029 at a compound annual growth rate (CAGR) of 32.4%. The growth in the forecast period can be attributed to the expansion of AI-powered healthcare solutions, the emergence of prompt libraries and repositories, rising investments in AI startups, the growth of prompt engineering education and training programs, and the increasing adoption of multi-modal AI models. Key trends expected during this period include the widespread use of AI assistants and chatbots, integration of AI in marketing and advertising technologies, a growing developer focus on fine-tuning techniques, increased open-source contributions to prompt engineering tools, and the development of dedicated prompt marketplaces.
The increasing trend of digitalization is expected to drive the expansion of the prompt engineering market in the coming years. Digitalization refers to the adoption of digital technologies to transform business operations, services, or activities by converting information and workflows into digital formats. This trend is accelerating because it greatly enhances efficiency by automating manual tasks, facilitating quicker decision-making, minimizing errors, and boosting productivity across various industries. In the context of prompt engineering, digitalization offers access to extensive digital datasets and tools that aid in developing, testing, and optimizing prompts at scale for a range of real-world applications. For example, in July 2024, a report from the Office for National Statistics, the UK's national statistical authority, stated that investment in digital infrastructure reached $12.0 billion (£9.2 billion) in 2022, reflecting a 22.9% increase from the previous year. Thus, the rise in digitalization is expected to fuel the growth of the prompt engineering market.
Leading companies in the prompt engineering market are prioritizing the creation of advanced technologies, such as prompt engineering development platforms, to effectively enhance AI outputs and adapt them to specific industry or user requirements. These platforms are specialized software environments equipped with tools and frameworks designed for creating, testing, and refining prompts to improve AI model performance across various use cases. For example, in November 2023, xAI Corp., a US-based artificial intelligence firm, introduced PromptIDE, a prompt engineering development platform. This platform includes features including SKK for applying complex prompting strategies, comprehensive analytics for visualizing network outputs, a Python code editor, automatic prompt saving, integrated version control, and storage capabilities for analytics generated during prompt execution. Additionally, users can upload small files such as CSVs and process them efficiently using the SDK's concurrency features.
In December 2023, Maitri Services, a US-based professional services provider, formed a partnership with Prompt Inversion to deliver exceptional value in natural language processing (NLP). Through this alliance, Maitri Services intends to advance healthcare solutions by integrating Prompt Inversion's AI-powered tools and NLP technologies. The collaboration is centered on enhancing data management, decision-making processes, and automation in the healthcare industry by leveraging Prompt Inversion's strengths in AI and prompt engineering. Prompt Inversion, based in the US, specializes in custom AI model development and strategies that utilize prompt engineering methodologies.
Major players in the prompt engineering market are Microsoft Corporation, Amazon Web Services Inc., Salesforce Inc., NVIDIA Corporation, Alibaba Group Holding Limited, OpenAI L.L.C., Anthropic PBC, Nitor Infotech Private Limited, A3Logics, LeewayHertz Technologies Private Limited, Hugging Face Inc., xAI Corp., Cohere Technologies Inc., Vellum Inc., AIPRM Corporation, ClickTake Technologies Private Limited, Curved Stone Limited, Promptmetheus, PromptBase, PromptHero, PromptLeo, and Promptitude.
North America was the largest region in the prompt engineering market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in prompt engineering report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the prompt engineering market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The prompt engineering market consists of revenues earned by entities by providing services such as prompt optimization, AI workflow integration, chatbot, and virtual assistant tuning. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
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.
Prompt Engineering Global Market Report 2025 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 prompt engineering 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 prompt engineering ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The prompt engineering 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 forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.