Artificial Intelligence - D-A-CH

The AI market in D-A-CH is experiencing rapid growth, fueled by factors such as increasing adoption of digital technologies, growing health awareness, and the convenience of online services. The elevated growth rate can be attributed to advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI.

Customer preferences: As the use of artificial intelligence continues to expand in the D-A-CH region, consumers are increasingly turning to AI-powered solutions for personalized shopping experiences and customized recommendations. This trend is driven by a growing desire for convenience and efficiency, particularly among younger demographics. Additionally, the incorporation of AI in customer service and chatbot technology is becoming increasingly prevalent, providing round-the-clock support for consumers.

Trends in the market: In the D-A-CH region, the Artificial Intelligence market is experiencing a surge in adoption by various industries. In Germany, there is a growing trend of using AI-powered chatbots for customer service and support, while in Austria, AI is being leveraged for predictive maintenance in manufacturing. In Switzerland, there is an increasing use of AI in financial services for fraud detection and risk management. These trends are significant as they demonstrate the potential of AI to streamline processes and improve efficiency. However, they also raise concerns about job displacement and the need for regulations to ensure ethical use of AI.

Local special circumstances: In D-A-CH, the Artificial Intelligence market is heavily influenced by the region's strong focus on innovation and technological advancements. Germany, in particular, has a robust startup ecosystem and a highly skilled workforce, making it a hub for AI development. In Austria, the government has implemented favorable policies and investments to support AI research and development, leading to the country's emergence as a leading AI player in Europe. Switzerland, known for its precision engineering, has also made significant strides in AI technology, with companies using it to enhance their traditional industries, such as banking and manufacturing.

Underlying macroeconomic factors: The growth of the Artificial Intelligence market in D-A-CH is heavily influenced by macroeconomic factors such as advancements in technology, government support, and investments in digital infrastructure. Countries with favorable regulatory environments and strong investments in AI technology are experiencing rapid market growth, while regions with regulatory challenges and limited funding are facing slower growth. Furthermore, the increasing demand for AI solutions in various industries such as healthcare, finance, and manufacturing is driven by the need for improved efficiency and productivity. Additionally, the rising adoption of AI technologies in the region is also fueled by the growing awareness and acceptance of its potential benefits and capabilities.

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.