Generative AI - Central & Western Europe

The market size in the Generative AI market is projected to reach US$7.09bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 46.47%, resulting in a market volume of US$70.07bn by 2030.
In global comparison, the largest market size will be United States (US$11.66bn in 2024).

Definition:
Generative artificial intelligence (AI) is a field of artificial intelligence that focuses on creating models and systems capable of generating new content, such as images, videos, music, or text. By training on large datasets, generative AI models learn patterns and structures within the data to produce novel and realistic outputs that mimic the original data distribution. Using techniques like generative adversarial networks (GANs) or variational autoencoders (VAEs), generative AI has the potential to enhance creativity, enable data synthesis, and revolutionize various industries including art, entertainment, and content creation.

Additional Information:

The market comprises two key performance indicators: market sizes, and market sizes by industry. Market sizes are generated by the funding amount of Generative Artificial Intelligence companies. Key players of the market include companies such as Open AI, NVIDIA DeepL Learning and Google (Magenta, DeepDream).

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Applications of generative artificial intelligence to create new content, such as images, music, and text, which is indistinguishable from human-generated content.

Non-artificial intelligence applications of generative systems, such as procedural content generation in video games, which do not involve machine learning or creativity.

The Generative AI market in Central & Western Europe is witnessing intense growth, fueled by factors such as the increasing adoption of artificial intelligence, growing awareness about its benefits, and the convenience of online services. This market is experiencing significant growth, driven by the rising demand for advanced AI technologies in various industries.

Customer preferences: The Central & Western Europe market for Generative AI is experiencing a shift towards personalized and intelligent solutions that cater to individual preferences and needs. This is driven by the growing demand for seamless and efficient customer experiences, as well as increasing awareness about the benefits of AI in various industries. Additionally, the rise of data-driven decision-making and the integration of AI in everyday devices is shaping consumer expectations and driving the adoption of Generative AI in the region.

Trends in the market: In Central & Western Europe, the Generative AI market is experiencing a surge in demand for AI-powered chatbots and virtual assistants. These technologies are increasingly being used in customer service, sales, and marketing to enhance the user experience and improve efficiency. Additionally, there is a growing trend of using AI for predictive maintenance and process automation in industries such as manufacturing and finance. This trajectory signals a shift towards a more AI-driven economy, with significant implications for businesses and consumers alike. As AI continues to evolve and become more sophisticated, it has the potential to revolutionize various industries and transform the way we live and work.

Local special circumstances: In Central & Western Europe, the Generative AI market is flourishing due to the region's strong focus on innovation and technological advancements. The presence of leading research institutes and government support for AI initiatives have propelled the growth of this market. Additionally, the region's strict data privacy laws have led to the development of robust data protection systems, making it a favorable environment for the adoption of AI technologies.

Underlying macroeconomic factors: The Generative AI Market within the Artificial Intelligence Market in Central & Western Europe is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in research and development. Countries with favorable economic conditions and strong support for AI technologies are seeing rapid growth in the market, while those with regulatory challenges and limited funding are experiencing slower growth. Moreover, the increasing demand for advanced AI solutions in various industries, coupled with the growing number of digital transformation initiatives, is further driving 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.

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Artificial intelligence evokes images of supercomputer assistants, machines that can think creatively, and, to some, scenes from their favorite sci-fi movie. The reality, despite not being as futuristic, is not far off from this. AI refers to the ability of a computer or machine to mimic the competencies of the human mind, which often learns from previous experiences to understand and respond to language, decisions, and problems. The market for AI technologies is vast, amounting to around 200 billion U.S. dollars in 2023 and is expected to grow well beyond that to over 1.8 trillion U.S. dollars by 2030.

Artificial intelligence (AI), the technology that allows digital computers or computer-controlled robots to perform tasks more commonly associated with intelligent beings, has been leaping into the limelight following the release of a wide variety of Generative AI models in 2023. The United States, being the largest economy in the world, has a natural advantage. Although human-like androids such as those portrayed in the science fiction movie Blade Runner are still far from reality, applications of AI such as smartphone virtual assistants and industrial robots are already widespread in U.S. society. The industry’s powerful ability to improve efficiency and increase productivity has made it of strategic importance to U.S. industries and government, both of which push the U.S. lead in the AI race.