Artificial Intelligence - Portugal

Portugal

The market size in the Artificial Intelligence market is projected to reach US$511.40m in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.35%, resulting in a market volume of US$2,286.00m 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 Portugal is witnessing rapid growth, driven by factors such as increasing adoption of AI technologies, growing awareness about their benefits, and the convenience of online services. The market's elevated growth rate can be attributed to advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI. These sub-markets are constantly evolving and are expected to have a significant impact on the overall market growth.

Customer preferences: As Portugal continues to invest in and embrace Artificial Intelligence, consumers are increasingly turning to AI-powered solutions for convenience and efficiency. From virtual assistants to personalized recommendations, AI is shaping how consumers interact with businesses and make purchasing decisions. This shift towards automation and data-driven technologies is driven by the desire for personalized and streamlined experiences in all aspects of life.

Trends in the market: In Portugal, the Artificial Intelligence Market is experiencing a surge in demand for AI-powered solutions across various industries. In the healthcare sector, there is a growing trend of using AI algorithms to analyze medical data and assist in diagnosis and treatment decisions. This trend is expected to continue as more healthcare providers adopt AI technologies to improve patient outcomes and reduce costs. In the retail sector, AI-powered chatbots are being used to enhance customer service and personalize shopping experiences. This trend is significant as it allows companies to better understand customer needs and preferences, leading to increased customer satisfaction and loyalty. For industry stakeholders, the trajectory of these trends suggests a need to invest in AI capabilities to remain competitive in the market. It also presents opportunities for collaboration and partnerships with AI companies to develop innovative solutions. However, there may also be potential implications for job displacement as AI automation becomes more prevalent.

Local special circumstances: In Portugal, the Artificial Intelligence market is thriving due to the country's highly skilled workforce, strong government support, and advanced technological infrastructure. Additionally, Portugal's strategic location as a gateway to Europe and its cultural emphasis on innovation and entrepreneurship have attracted global tech companies to establish a presence in the country. Furthermore, Portugal's regulatory environment, with its focus on data privacy and security, has created a favorable environment for the development and adoption of AI technology.

Underlying macroeconomic factors: The Artificial Intelligence market in Portugal is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investments in research and development. The country's strong focus on innovation and digital transformation has created a conducive environment for the growth of the AI market. Additionally, the increasing demand for AI-based solutions in various industries, such as healthcare, finance, and manufacturing, is driving the market's growth. Furthermore, Portugal's stable economy and supportive government initiatives, such as tax incentives and funding for startups, are also contributing to the growth of the AI market 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.