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Vision-Language Models (VLM) Market Projected to Reach USD 41.75 Billion by 2035 | Hyperscale Infrastructure and Capital Investments Accelerate Multimodal AI Growth Says Astute Analytica

Vision-Language Models (VLM) Market Projected to Reach USD 41.75 Billion by 2035 | Hyperscale Infrastructure and Capital Investments Accelerate Multimodal AI Growth Says Astute Analytica

Vision-Language Models (VLM) market is defined by granularity and agency. It has transitioned from the novelty of “chatting with images” to the utility of “agents that see and act.” For stakeholders, the primary opportunity no longer lies in building foundational models, but in the last-mile integration of these intelligent systems into vertical-specific workflows.

Chicago, Feb. 11, 2026 (GLOBE NEWSWIRE) — The global vision-Language Models (VLM) market size was valued at USD 3.84 billion in 2025 and is projected to hit the market valuation of USD 41.75 billion by 2035 at a CAGR of 26.95% during the forecast period 2026–2035.

By 2027, standalone “Image” models will be effectively obsolete. The next generation of frontier models will be “Video-First” by default, treating static images merely as single-frame videos. This architectural shift is key to unlocking a true understanding of physics, causality, and object permanence in AI systems.

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Astute Analytica anticipate the rise of “World Models” that function as comprehensive simulators. These advanced VLMs will go beyond predicting text or pixels to predicting the next “state of the world.” This capability will serve as the precursor to Artificial General Intelligence (AGI) for robotics, enabling machines to simulate the outcomes of complex physical actions before executing them.

Key Takeaways for Stakeholders in Vision-Language Models (VLM) market

  • Shift to Action: 2026 marks the transition from seeing to doing. Models are now evaluated on their ability to actuate robotic arms or navigate software interfaces, not just describe pixels.
  • Edge Dominance: Over 40% of new VLM deployments are occurring at the edge (on-device), driven by privacy concerns and the latency demands of autonomous vehicles and industrial IoT.
  • Cost Inversion: For the first time, aggregate enterprise spending on VLM inference has surpassed training costs, signaling a mature operational market.
  • North America commanded the Vision-Language Models (VLM) market in 2025, capturing the biggest revenue portion at 45%.
  • Asia Pacific is forecasted to achieve the highest compound annual growth rate (CAGR) from 2026 through 2035.
  • Among model categories, image-text VLMs maintained market leadership with roughly 44.50% share in 2025.
  • For deployment options, cloud-based solutions generated the dominant revenue stream, accounting for about 62% of the total in 2025.
  • Within industry applications, IT & Telecom secured around 16% market share during 2025.

By Model, Image-Text VLMs Seize 44.50% Share Powering Vision-Language Models (VLM) market Dominance

Image-text VLMs dominate market with 44.50% share in 2025. Maturity drives their lead. They outperform in text-rich perception tasks. VISTA-Bench shows GLM-4.1V-9B-Thinking drops only 2.1 points on visualized text. Qwen2.5-VL-7B-Instruct matches with 2.0-point decline. LLaVA-OneVision-1.5-8B narrows gap to 10.4% via text-centric training.

Zhipu AI’s GLM-4.6V series excels in frontend automation December 2025. Apple’s ILuvUI processes mobile UI screenshots conversationally. Benchmarks reveal reliance on language priors boosts accuracy. Video VLMs lag in efficiency. Image-text handles long-context rendering seamlessly. Enterprise prefers proven OCR and captioning. This segment anchors multimodal reasoning infrastructure.

By Deployment, Cloud-Based Deployment Captures 62% Revenue Supremacy in Market Expansion

Cloud deployment rules Vision-Language Models (VLM) market with 62% revenue in 2025. Scalability secures advantage. Hyperscalers optimize VLM workloads. AWS SageMaker leads AI/ML platforms with 30% cloud share. Azure ML grows 33% YoY, seamless with DevOps. Google Vertex AI surges 32%, excels in open-source integration. Vertex supports Hugging Face deployments without lock-in.

Google Cloud API latency hits 70ms benchmark. Network management telecom cloud reaches $23.85B. Edge VLMs grow but cloud trains massive models. Real-time inference favors distributed compute. SMBs access via pay-per-token. Video analytics demand accelerates cloud migration. On-prem costs deter adoption.

By Industry, IT & Telecom Locks 16% Vertical Dominance Transforming Applications

IT & Telecom owns 16% share in Vision-Language Models (VLM) market verticals 2025. Network complexity propels growth. VLMs automate monitoring. Telecom AI valued $4.73B. Network software hits $2,863.1M. 5G drives 15.6% CAGR to 2033. RAN Intelligent Controller optimizes traffic. Cisco deployment saves $8M annually, cuts TTR 50%.

Edge AI enables real-time visual analysis. Fraud detection leverages image-text VLMs. Healthcare follows but telecom scales faster. 5G rollout demands proactive management. VLMs predict congestion patterns. Security applications boost reliability. Retail lags in infrastructure spend.

HyperScale Hardware Engineering Drives Massive Escalation In Raw Multimodal Inference Capabilities

The Vision-Language Models (VLM) market is currently defined by a sheer escalation in raw hardware capabilities, with 2024 and 2025 marking the era of hyper-scale engineering. NVIDIA has pushed physical limits with the Blackwell B200, packing 208 billion transistors per chip to handle complex multimodal inference. Cerebras has taken a different approach with its WSE-3, a wafer-scale engine integrating a staggering 4 trillion transistors and 900,000 AI-optimized cores. These architectural marvels are necessary to support models like Apple’s MM1, which utilizes 30 billion parameters, and Qwen2-VL, which scales up to 72 billion parameters to achieve visual reasoning parity with proprietary systems.

Infrastructure deployment in the Vision-Language Models (VLM) market has matched this architectural ambition with unprecedented speed. xAI constructed its Colossus cluster, housing 100,000 Nvidia H100 GPUs, in just 122 days, setting a new velocity benchmark for data center deployment. To future-proof these facilities, xAI plans to integrate 50,000 H200 GPUs, which feature 141 GB of memory and 4.8 TB/s bandwidth. Meanwhile, Meta has aggressively secured its position by targeting a stockpile of 350,000 H100 units, while Blackwell architectures promise to accelerate data transfer with chip-to-link speeds reaching 10 TB/s.

Massive Capital Injections Fuel Foundational Model Builders Pursuing Competitive Multimodal Reasoning

Financial movements within the Vision-Language Models (VLM) market demonstrate high conviction from institutional investors towards foundational model builders. xAI validated this trend by raising USD 6 billion in Series B funding, propelling its valuation to USD 24 billion in May 2024. This capital allows for massive infrastructure bets, essential for training next-generation multimodal systems. Concurrently, data infrastructure leader Scale AI secured USD 1 billion in Series F financing, reaching a USD 13.8 billion valuation and reporting USD 870 million in 2024 revenue, underscoring the immense value placed on high-quality training data.

Strategic partnerships are further solidifying the Vision-Language Models (VLM) market hierarchy. Amazon completed its USD 4 billion investment commitment to Anthropic, with a notable USD 2.75 billion tranche delivered in March 2024. In the robotics sector, Figure AI attracted USD 675 million in Series B funding, achieving a USD 2.6 billion valuation. These massive injections are not merely speculative; they are funding the high operational costs of training runs and the procurement of expensive compute clusters required to maintain competitive advantages in multimodal reasoning.

Extreme Inference Velocity Enables Seamless Real Time Conversational Experiences For Users

Speed has become a critical differentiator in the Vision-Language Models (VLM) market, as real-time applications demand near-instantaneous processing. Groq has emerged as a performance leader, clocking Llama 3.3 70B inference speeds at 276 tokens per second and Llama 2 70B at 241 tokens per second. This velocity enables seamless conversational AI experiences that feel natural to users. Comparatively, highly capable reasoning models like OpenAI’s o1-preview operate at 155 tokens per second, balancing deep cognitive processing with usable latency for complex tasks.

Legacy benchmarks in the Vision-Language Models (VLM) market are being rapidly surpassed by optimized hardware and model architectures. GPT-4o has demonstrated output speeds measured at approximately 188 tokens per second, setting a high bar for commercial APIs. On the extreme end of the performance spectrum, Cerebras systems deliver 125 petaflops of peak AI performance, enabling research institutions to train vast models in record time. These advancements ensure that multimodal AI can be deployed in time-sensitive environments, from autonomous driving to live video analysis.

Plummeting Token Economics Democratize Access To Powerful Visual Reasoning Specialized Tools

The Vision-Language Models (VLM) market is witnessing a fierce price war, drastically lowering the barrier to entry for developers and enterprises. GPT-4o mini has redefined affordability with input pricing at USD 0.15 per million tokens and output at USD 0.60 per million tokens. This aggressive pricing strategy forces competitors to adapt, as seen with Groq offering Llama 3.3 70B input processing at USD 0.59 per million tokens. Even premium models like GPT-4o have stabilized at USD 2.50 for inputs and USD 10.00 for outputs per million tokens.

High-reasoning capabilities in the Vision-Language Models (VLM) market still command a premium, reflecting their computational intensity. OpenAI’s o1-preview is priced at USD 15.00 for inputs and USD 60.00 for outputs per million tokens, targeting specialized use cases. Meanwhile, open-weight models like Mistral’s Pixtral 12B offer extreme value, with API inputs starting at USD 0.15 per million tokens. Groq’s output pricing of USD 0.79 per million tokens further illustrates how specialized inference hardware can drive down operational costs, democratizing access to powerful visual reasoning tools.

Massive Context Window Expansion Enables Deep Temporal Understanding Of Complex Long Content

Context window expansion is a defining trend in the Vision-Language Models (VLM) market, enabling models to “watch” and understand long-form content. Google’s Gemini 1.5 Pro shattered expectations with an initial 1 million token window, later expanded to 2 million tokens. This capacity allows for the ingestion of entire codebases or hours of video footage. Qwen2-VL utilizes this capability to process videos exceeding 20 minutes in duration, allowing for deep temporal understanding that was previously impossible for static image models.

Competing models in the Vision-Language Models (VLM) market have standardized around substantial context capacities to remain relevant. Meta’s Llama 3.2 and Mistral’s Pixtral both support 128,000 token windows, balancing performance with memory efficiency. On the generation side, OpenAI’s Sora creates video content up to 60 seconds long, while Google Veo 2 has advanced to support 4K resolution output. These capabilities signal a shift from simple image classification to comprehensive video production and analysis, opening new revenue streams in media and entertainment.

Strategic Data Infrastructure Investment Forms The Bedrock Of Modern AI Performance

The quality and scale of training data determine success in the Vision-Language Models (VLM) market. Hugging Face’s FineWeb dataset stands as a monumental resource, containing 15 trillion tokens derived from 96 CommonCrawl snapshots. This massive corpus occupies 44 TB of disk space and required 120,000 H100 GPU hours to process. The investment in such data infrastructure is significant, with compute costs alone estimated at USD 500,000, highlighting the resource intensity behind open-source data democratization.

Proprietary models in the Vision-Language Models (VLM) market push these numbers even further. Apple’s MM1 was trained on a diverse dataset including 1 billion images and 30 trillion words, ensuring robust multimodal understanding. To improve data quality, Hugging Face also released FineWeb-Edu, a refined subset containing 1.3 trillion tokens focused on educational content. These vast datasets are the fuel that allows models to generalize across languages, visual concepts, and complex reasoning tasks, forming the bedrock of modern AI performance.

Humanoid Robotics Specifications Transition Prototypes Into Functional Commercial Warehouse Labor Solutions

Robotics represents the physical frontier of the Vision-Language Models (VLM) market. Figure AI’s Figure 02 robot exemplifies this evolution, featuring 6 onboard RGB cameras that feed a Vision-Language Model for real-time perception. The robot is powered by a 2.25 kWh battery, providing a practical runtime of 5 hours for industrial labor. With a payload capacity of 20 kg and hands possessing 16 degrees of freedom, these machines are transitioning from research prototypes to functional warehouse laborers.

Tesla is also accelerating the integration of physical AI within the Vision-Language Models (VLM) market. The Optimus Gen 2 weighs 57 kg and stands 173 cm tall, a form factor optimized for human environments. It walks at 1.2 meters per second, representing a 30 percent speed increase over its predecessor. The Gen 3 hands have been further enhanced to 22 degrees of freedom, enabling the fine motor skills required for delicate assembly tasks. These specifications prove that VLMs are successfully bridging the gap between digital intelligence and physical actuation.

High Stakes Medical Diagnostics Accuracy Surpasses State Of The Art Performance Benchmarks

Healthcare remains the most high-stakes vertical for the Vision-Language Models (VLM) market. Google’s Med-Gemini has set a new standard, achieving 91.1 percent accuracy on the MedQA (USMLE) benchmark. This performance surpasses the previous state-of-the-art model, Med-PaLM 2, by 4.6 percentage points, demonstrating rapid year-over-year improvement. Med-PaLM 2 itself holds a formidable reference score of 86.5 percent, but the new generation’s ability to integrate web search and multimodal reasoning has widened the performance gap.

The utility of these models in the Vision-Language Models (VLM) market extends beyond text-based exams to complex diagnostics. Med-Gemini achieved state-of-the-art results on 10 out of 14 diverse medical benchmarks, proving its versatility. It enables 3D report generation from CT scans and outperforms generalist models like GPT-4V on multimodal tasks. These advancements suggest a future where AI acts as a reliable second opinion in radiology and pathology, significantly reducing diagnostic errors and improving patient outcomes globally.

Optimized Edge Architectures Ensure High Performance Multimodal Capabilities Ubiquitous Across Mobile Hardware

The Vision-Language Models (VLM) market is bifurcating into massive cloud models and efficient edge variants. Llama 3.2 Vision 11B is designed to run on consumer-grade hardware, requiring only 10 GB of GPU RAM in 4-bit mode. This accessibility allows developers to deploy powerful multimodal AI on local machines without expensive cloud contracts. Even the smallest Llama 3.2 1B model supports a 128,000 token context window, ensuring that mobile applications can maintain long conversation histories and process substantial data locally.

Specialized architectures are further optimizing the Vision-Language Models (VLM) market for diverse hardware constraints. Mistral’s Pixtral 12B, with its compact 12 billion total parameters and 400 million parameter vision adapter, delivers strong performance with a 52.5 score on the MMMU benchmark. Qwen2-VL offers a mobile-native variant at 2 billion parameters, while Apple’s MM1 excels with a coding score of 87.9. These efficient models ensure that vision-language capabilities are not restricted to data centers but are ubiquitous across laptops, smartphones, and embedded devices.

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Vehicle Control Unit Market Major Players:

  • Denso
  • Continental AG
  • Robert Bosch
  • Delphi Technologies
  • Dorleco
  • Infineon
  • NXP Semiconductors
  • ZF Friedrichshafen AG
  • ASI Robots
  • STMicroelectronics
  • Other Prominent Players

Key Market Segmentation:

By Vehicle

  • Commercial Vehicle
  • Passenger Car

By Propulsion

  • Bev
  • Hev
  • Phev

By Communication Technology

  • Controller Area Network
  • Local Interconnect Network
  • Flexray, Ethernet

By Function

  • Predictive Technology
  • Autonomous Driving/ADAS (Advanced Driver Assistance System)

By Application

  • Powertrain
  • Breaking System
  • Body Electronics
  • ADAS
  • Infotainment

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa
  • South America

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About Astute Analytica

Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.

With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace.

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CONTACT: Contact Us:
Astute Analytica
Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
For Sales Enquiries: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/ 

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