Generative AI - EU-27

The Generative AI market in the Artificial Intelligence market in EU-27 nan is experiencing intense growth, driven by factors such as increasing demand for digital solutions, growing awareness about the benefits of AI in healthcare, and the convenience of online services.

Customer preferences: As the adoption of Generative AI technology continues to grow in the EU-27, there is a noticeable trend towards personalized and customized solutions. Consumers are increasingly looking for AI-powered products and services that can cater to their specific needs and preferences. This is driven by a desire for more efficient and effective decision-making, as well as a growing interest in self-expression and creativity. Furthermore, the rise of digital platforms and social media has created a demand for AI-generated content, leading to the integration of Generative AI in various industries such as marketing and entertainment.

Trends in the market: In EU-27, the Generative AI market is experiencing a surge in demand for AI-powered chatbots and virtual assistants, particularly in the retail and customer service sectors. This trend is driven by the need for businesses to streamline operations and improve customer engagement. Additionally, there is a growing focus on ethical and responsible use of AI, leading to the development of regulations and guidelines for AI implementation. As AI continues to evolve and become more sophisticated, it is expected to have a significant impact on various industries, disrupting traditional business models and creating new opportunities for growth. This trend presents both challenges and opportunities for industry stakeholders, who must navigate the rapidly changing landscape and stay ahead of the curve to remain competitive.

Local special circumstances: In EU-27, the Generative AI market is experiencing significant growth due to the region's strong focus on research and development in the field of Artificial Intelligence. With a highly educated population and favorable regulatory environment, EU-27 has become a hub for AI startups and innovation. Additionally, the region's diverse cultures and languages have created a demand for AI solutions that can adapt and cater to specific local needs. This has led to the development of specialized Generative AI tools for various industries, such as healthcare and finance, tailored to the unique requirements of each country within the EU-27.

Underlying macroeconomic factors: The Generative AI Market within the Artificial Intelligence Market is heavily influenced by macroeconomic factors such as technological advancements, government policies, 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 adoption of AI in various industries and the growing demand for advanced data analytics are driving the market growth in the EU-27.

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.