Artificial Intelligence - Europe

Europe

The market size in the Artificial Intelligence market is projected to reach US$46.67bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.44%, resulting in a market volume of US$209.50bn by 2030.
In global comparison, the largest market size will be in the United States (US$50.16bn in 2024).

Definition:
Artificial intelligence (AI) is a branch of computer science that focuses on creating machines able to perform tasks traditionally requiring human intelligence, such as perception, reasoning, and learning. The Artificial Intelligence (AI) market includes a wide range of applications, such as speech recognition, image processing, and autonomous vehicles and has seen rapid growth in recent years due to advancements in technology and increased investment. The Artificial Intelligence (AI) market includes software, hardware, and services that enable organizations to develop and deploy AI applications.

Structure:

The Artificial Intelligence (AI) market is structured into six markets based on the technology:

The Computer Vision market covers applications that enable computers to interpret and understand digital images and video data.
The Machine Learning market covers the use of algorithms to enable computer systems to learn from data.
The Natural Language Processing market covers applications that enable computers to understand, interpret, and generate human language.
The Artificial Intelligence Robotics market covers the combination of AI, machine learning, and engineering to create intelligent machines that can perform tasks autonomously.
The Autonomous & Sensor Technology market covers machines and systems that operate independently by using sensors, AI, and machine learning to respond to changes in their environment.
The Generative AI market covers artificial intelligence that involves creating models capable of generating new content, such as images, videos, and text, which are indistinguishable from content created by humans.

Additional Information:

The Artificial Intelligence (AI) market comprises three key performance indicators: market sizes, market sizes by industry, and users of AI tools. Market sizes are generated by the funding amount of Artificial Intelligence (AI) companies. Key players of the Artificial Intelligence (AI) market include companies such as Google, Open AI, IBM, and Microsoft.

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Analyst Opinion

The Artificial Intelligence market in Europe is experiencing rapid growth, fueled by the increasing adoption of digital technologies, growing awareness of the potential of AI, and the convenience offered by online services. The market's elevated growth rate can be attributed to the advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI. Factors such as government initiatives, investments in research and development, and the availability of skilled workforce are also impacting the market's growth rate.

Customer preferences: As more businesses across various industries look to adopt AI solutions, there has been a rise in demand for personalized and tailored services. This includes chatbots and virtual assistants that can deliver a more efficient and seamless customer experience. Additionally, there is a growing interest in the ethical and responsible use of AI, with consumers increasingly prioritizing transparency and accountability from companies. This shift is being driven by cultural values that prioritize fairness and accountability, as well as a growing awareness of the potential negative impacts of AI on society.

Trends in the market: In Europe, the Artificial Intelligence market is experiencing a surge in demand for AI-powered business solutions, with a focus on data analytics and automation. This trend is expected to continue as companies seek to improve efficiency and gain a competitive edge. Additionally, there is a growing adoption of AI in healthcare, with the development of AI-based medical devices and diagnostic tools. This presents opportunities for industry stakeholders, but also raises concerns about data privacy and ethics. Going forward, regulations and guidelines around AI usage will be crucial in shaping the market and ensuring responsible and ethical implementation of AI technologies.

Local special circumstances: In Europe, the Artificial Intelligence Market is heavily influenced by the continent's strong focus on data privacy and protection. The region has strict regulations such as the General Data Protection Regulation (GDPR) which governs the collection, use, and storage of personal data. This has led to the development of AI solutions that prioritize privacy and security, making them attractive to businesses and consumers alike. Additionally, Europe's diverse cultural landscape has resulted in AI being applied in various industries such as healthcare, finance, and manufacturing, catering to the unique needs of each market.

Underlying macroeconomic factors: The Artificial Intelligence Market in Europe is influenced by various macroeconomic factors such as technological advancements, government support, and investment in research and development. Countries with favorable regulatory environments and strong investment in AI technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding for research. Additionally, the increasing digitization of industries and the need for automation to improve efficiency and productivity are driving the demand for AI solutions in Europe. The region's strong economic growth and stable political climate also contribute to the growth of the Artificial Intelligence Market in Europe.

Methodology

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.