Artificial Intelligence - EU-27

The Artificial Intelligence market in EU-27 is experiencing rapid growth, fueled by factors such as increasing adoption of digital technologies, growing demand for AI-driven solutions, and the convenience and efficiency offered by AI-powered 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, which are driving innovation and creating new opportunities for businesses. Additionally, the growing awareness and understanding of AI's potential to transform industries and improve decision-making processes are also contributing to the market's growth in EU-27.

Customer preferences: Consumers in the EU-27 are increasingly embracing Artificial Intelligence (AI) solutions in various industries, leading to a growing demand for AI-enabled products and services. This trend is driven by the need for efficiency and automation in daily tasks, as well as the desire for personalized and predictive experiences. Additionally, with the rise of smart homes and connected devices, there is a growing preference for AI-powered home assistants that can control and optimize household functions. This shift towards AI integration reflects the region's tech-savvy and forward-thinking culture, as well as its aging population and the need for assistance in daily activities.

Trends in the market: In the EU-27, the Artificial Intelligence market is witnessing a surge in the adoption of AI-powered chatbots and virtual assistants by businesses, with the aim of improving customer service and enhancing operational efficiency. Additionally, there is a growing trend of using AI-driven analytics to gain insights and make data-driven decisions. These developments have significant implications for industry stakeholders, as they provide opportunities for cost savings, increased productivity, and improved customer satisfaction. However, there are also concerns about the ethical use of AI and the potential impact on jobs. The trajectory of these trends is expected to continue, as AI continues to evolve and revolutionize various industries.

Local special circumstances: In EU-27, the Artificial Intelligence market is seeing accelerated growth due to the region's strong emphasis on digital transformation and innovation. With a diverse landscape of countries, each with their own distinct cultures and regulations, the market is influenced by unique local factors. For example, countries such as Germany and France have strict data privacy laws that impact the development and adoption of AI solutions, while countries like Estonia and Finland have been early adopters of AI in public services. Additionally, the EU's focus on ethical and responsible AI has led to the development of AI standards and guidelines, shaping the market dynamics in the region.

Underlying macroeconomic factors: The growth of the Artificial Intelligence market in the EU-27 is heavily influenced by macroeconomic factors such as advancements in technology, government initiatives, and private investments. Countries with favorable regulatory environments and strong investments in AI technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing demand for automation and efficiency in various industries, coupled with the rise of big data and the need for data-driven decision making, are driving the demand for AI solutions. Furthermore, the EU's focus on promoting innovation and competitiveness through initiatives such as the European AI Strategy is expected to further boost the market growth in the region.

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.