Artificial Intelligence - Central & Western Europe

Central & Western Europe

The market size in the Artificial Intelligence market is projected to reach US$28.16bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.40%, resulting in a market volume of US$126.20bn 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 Central & Western Europe is experiencing rapid growth, driven by factors such as increasing adoption of digital technologies, rising demand for AI solutions, and the convenience offered by online services. The elevated growth rate in this market can be attributed to the advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI. These sub-markets are constantly evolving and driving innovation, leading to the overall growth of the AI market in the region. Additionally, the growing investments in AI research and development, and the increasing adoption of AI in various industries such as healthcare, finance, and retail, are also contributing to the high growth rate in this market.

Customer preferences: Consumers in Central & Western Europe are increasingly embracing the use of artificial intelligence in various industries, such as banking, healthcare, and transportation. This is driven by the growing demand for personalized and efficient services, as well as the need for cost-cutting measures. Additionally, the rise of smart homes and connected devices is fueling the adoption of AI, as consumers prioritize convenience and seamless integration in their daily lives. The shift towards AI-powered solutions is also influenced by cultural values of innovation and efficiency, as well as the region's aging population and the need for advanced healthcare technologies.

Trends in the market: In Central & Western Europe, the Artificial Intelligence market is experiencing a surge in demand for AI-powered solutions in various industries, such as healthcare, finance, and manufacturing. This trend is driven by the need for improved efficiency and cost-effectiveness, as well as the growing availability of data and advanced technologies. As AI continues to evolve and become more sophisticated, industry stakeholders must stay updated on the latest developments to remain competitive and leverage the potential benefits of AI. Additionally, with the rise of AI, there are concerns about its impact on jobs and the need for ethical guidelines to ensure responsible use of AI.

Local special circumstances: In Central & Western Europe, the Artificial Intelligence market is influenced by the region's strong technological infrastructure and highly skilled workforce. Additionally, the diverse languages and cultures across different countries present a challenge for AI companies to develop localized solutions. The strict data privacy regulations, such as the General Data Protection Regulation (GDPR), also impact the development and adoption of AI technologies in the region. Furthermore, the presence of major global players and government initiatives towards AI development contribute to the market's growth in Central & Western Europe.

Underlying macroeconomic factors: The growth of the Artificial Intelligence Market is heavily influenced by 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. Additionally, the increasing digitization of industries and the need for efficient and accurate decision-making are driving the demand for AI solutions, particularly in the Central & Western Europe region.

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.