Prompt Engineering Market Size, Share, and Industry Analysis, By Component (Software and Services), By Technique (Generated Knowledge Prompting, n-Shot Prompting, and Others), By Application (Conversational AI, Content Generation, Recommendation Systems, and Others), By Industry (Healthcare, BFSI, Media and Entertainment, Retail, and Others), and Regional Forecast, 2025-2032

Prompt engineering helps end users in guiding generative AI tools to produce the desired outcomes. In the pursuit of providing instructions, end users can choose the most appropriate phrases, formats, symbols, and words that guide AI (artificial intelligence) to interact more effectively with users. Prompt engineers creatively use trial and error methods to develop a package of input texts to ensure the best usage of the application's generative AI.

The wave of gen AI has substantially surged the demand for prompt engineering jobs. These engineers are necessary to fill the gap between the large language model and the client’s customers. They detect templates and scripts that users can change to get the best results from language models. The chart below showcases the areas of business that would require AI skills in a substantial amount over the next years.

The above chart represents responses from an online survey that was conducted from July to September 2023. Over 45% of respondents indicated that gen AI and prompt engineering will require most AI skills in the coming years. Given that it helps in making AI applications more effective and efficient, the demand for prompt engineering services is anticipated to grow at a strong pace over coming years.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by Key Players


• Impact of Generative AI on the Prompt Engineering Market


• Consolidated SWOT Analysis of Key Players

Analysis By Component

By component, the global prompt engineering market is categorized into software and services. The services segment comprises market-related services and training services, among others.

Currently, as the market is still growing and expanding, the software segment is showcasing a positive response. Several market players are launching solutions that specifically cater to users’ requirements and heavy R&D investments driving segmental growth.

In the coming years, the services segment is expected to showcase exponential growth owing to the increasing inclination of end users toward the adoption of an effective service model. Several market players are developing services that cater to the end user’s prompt engineering needs. For instance, in March 2024, TrainAI by RWS introduced a comprehensive suite of AI data services, intending to help companies develop accurate, reliable, and ethical gen AI use cases. These services also eliminate the risk of hallucinations or bias in generative AI projects. The new set of services includes domain expertise, prompt engineering, and reinforcement learning from human feedback (RLHF), red teaming, and jailbreaking, among others.

Regional Analysis

The global prompt engineering market has been studied across five key regions: South America, Asia Pacific, Europe, North America, and the Middle East & Africa.

In 2023, North America dominated the global market and is expected to grow at a healthy growth rate in the coming years. This growth rate is attributed to the presence of several market players, technological leadership, and a huge demand for prompt engineering services across several industries.

However, in the coming years, it is expected that the Asia Pacific region will showcase an exponential growth rate. Strong government backing, emerging economies contributing to growth, and companies’ priority of enhanced customer services drive the regional growth.

According to a report published by Nutanix, over 90% of firms in Japan and the Asia Pacific region prioritize AI tools to drive infrastructure and data modernization. The only setback these firms face is the skills gap related to gen AI and prompt engineering. The report also indicated that the region requires more data science-related skills and scientists.

Moreover, according to industry experts, cloud hyperscalers are anticipated to introduce either the general availability or a preview of prompt engineering in the coming years. These findings highlight that the regional growth will skyrocket in the coming years subject to recovery of the skill gap.

Distribution of the Global Prompt Engineering Market, By Region of Origin:

• North America – 34%


• South America – 8%


• Europe – 25%


• Middle East & Africa – 12%


• Asia Pacific – 21%

Key Players Covered

The key players in this market include A3Logics, LeewayHertz, Nitor Infotech, ClickTake Technologies, Curved Stone Limited, PromptHero, PromptLeo, Amazon Web Services, Inc., AIPRM, and Prompt Genie.

Key Industry Developments

• March 2024: Nitor Infotech introduced Prompt Engineering, its service offering. With this new launch, the company expects to transform the way enterprises approach prompt deployment and generation.


• February 2024: Salesforce announced that the company has been working on bringing two new prompt engineering enhancements to its Einstein 1 platform. With this update, the company expects to bolster the development of gen AI applications.