Generative AI - Europe

The Generative AI market in Europe is experiencing intense growth, fueled by the rising demand for digital technologies, growing health consciousness among consumers, and the ease of accessing online health services. Factors such as advancements in AI technology and increasing investments in the healthcare sector are also contributing to this rapid growth.

Customer preferences: Consumers in Europe are increasingly turning to Generative AI solutions for personalized and engaging experiences across various industries, including gaming, media, and retail. The rise of virtual and augmented reality technologies has further driven the demand for AI-powered content creation and customization. This trend is fueled by the growing preference for immersive and interactive experiences, especially among younger demographics. Additionally, the adoption of AI-powered chatbots for customer service and support is gaining traction in the region, as it offers 24/7 accessibility and efficiency for businesses.

Trends in the market: In Europe, the Generative AI market is experiencing a surge in demand for AI-powered chatbots in customer service and support. This trend is driven by the increasing use of digital channels for customer interactions and the need for personalized and efficient customer service. Additionally, there is a rising adoption of AI-powered virtual assistants in various industries, such as banking and retail. These developments highlight the potential of Generative AI in improving customer experience and streamlining business operations. As the technology continues to evolve, it is expected to have a significant impact on the European market, creating opportunities for AI solution providers and businesses alike.

Local special circumstances: In Europe, the Generative AI Market within the Artificial Intelligence Market is experiencing significant growth due to the region's strong digital infrastructure and high adoption of advanced technologies. Additionally, the EU's stringent data privacy regulations are driving the demand for AI solutions that prioritize data protection. Moreover, the region's cultural diversity and government support for innovation are fostering a competitive market landscape.

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 support, and investment in research and development. Countries with strong government support and investments in AI technologies are experiencing faster market growth compared to regions with limited government support and funding. Additionally, the increasing demand for automation and optimization across industries is driving the adoption of generative AI solutions, creating opportunities for market growth.

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.