Generative AI - Portugal

The Generative AI market in Portugal is witnessing extraordinary growth, fueled by factors such as increasing adoption of AI technologies, growing awareness of its benefits in healthcare, and the convenience offered by online services. This market is experiencing rapid growth, driven by the country's thriving tech industry and government initiatives to promote digital health.

Customer preferences: The Generative AI Market within the Artificial Intelligence Market is witnessing a growing trend towards personalized and interactive experiences. Consumers are demanding AI-powered solutions that can cater to their specific needs and preferences, leading to the development of personalized recommendation systems and chatbots. Additionally, the increasing use of AI in the creative industries, such as music and art, is reflecting a shift towards more immersive and interactive forms of entertainment. This trend is driven by the desire for unique and engaging experiences that cater to individual interests and tastes.

Trends in the market: In Portugal, the Generative AI market within the Artificial Intelligence market is experiencing a surge in demand for AI-powered chatbots and virtual assistants. This trend is driven by the need for businesses to provide personalized and efficient customer service, as well as the increasing adoption of AI technology in various industries. As the market continues to grow, there is a shift towards more sophisticated AI solutions, such as natural language processing and deep learning algorithms. This trajectory highlights the potential for AI to revolutionize customer interactions and streamline business operations. Industry stakeholders must stay updated on these trends to remain competitive and meet the evolving demands of consumers.

Local special circumstances: In Portugal, the Generative AI market is heavily influenced by the country's strong focus on research and development in the field of Artificial Intelligence. This has led to a highly skilled workforce and a supportive environment for AI startups and companies. Additionally, Portugal's strategic location and membership in the EU provide unique opportunities for collaboration and access to a wider market. These factors, combined with the country's growing investment in AI technology, make it a promising market for the growth of Generative AI.

Underlying macroeconomic factors: The growth of the Generative AI Market within the Artificial Intelligence Market is also influenced by macroeconomic factors such as technological advancements, government initiatives, and investment in AI 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 adoption of AI in various industries and the growing need for advanced data analytics are driving the demand for Generative AI solutions to improve business efficiency and decision-making.

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.