Artificial Intelligence - Finland

Finland

The market size in the Artificial Intelligence market is projected to reach US$653.50m in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 27.90%, resulting in a market volume of US$2,861.00m 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 Finland has been rapidly growing, attributed to the increasing adoption of digital technologies, rising awareness of the benefits of AI, and the convenience of 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 impacting this growth rate include government support, investments in research and development, and the presence of leading AI companies in Finland.

Customer preferences: As Finland continues to invest in and promote the development of artificial intelligence, consumers are increasingly interested in AI-powered solutions for everyday tasks. This includes the adoption of virtual assistants and smart home devices. Additionally, there is a growing demand for AI-powered customer service and chatbot solutions, as businesses look to streamline their operations and improve customer satisfaction. This trend is driven by the country's tech-savvy and digitally connected population, as well as a desire for more efficient and personalized services.

Trends in the market: In Finland, the Artificial Intelligence market is experiencing a surge in demand for AI-powered solutions in various industries, including healthcare, finance, and manufacturing. This trend is expected to continue, with the market projected to grow at a CAGR of 41.2% between 2021 and 2026. This growth is driven by the country's strong focus on research and development, as well as its highly skilled workforce. Furthermore, the government's support for AI initiatives, such as the Finnish Center for Artificial Intelligence, is also contributing to the market's trajectory. This trend is significant as it highlights Finland's potential to become a leading player in the global AI market. Industry stakeholders should take note of this trend and invest in AI technology to stay competitive in the rapidly evolving market. Additionally, they should also consider the ethical implications of AI and ensure responsible use of this technology.

Local special circumstances: In Finland, the Artificial Intelligence market is thriving due to the country's strong focus on technological innovation and research. This can be attributed to the country's highly educated population and government support for AI initiatives. Additionally, Finland's geographic location and proximity to other European countries make it an ideal testing ground for new AI technologies. Furthermore, the country's strict data privacy laws and ethical guidelines for AI development set it apart from other markets, shaping the direction and growth of the industry.

Underlying macroeconomic factors: The growth of the Artificial Intelligence market in Finland is also influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. 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 demand for automation and efficiency in various industries, along with a highly skilled workforce in Finland, are driving the adoption of AI solutions in the country.

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.