Europe Artificial Intelligence Market Size and Forecast (2021–2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Software, Hardware, and Services), Organization Size (Large Enterprises and SMEs), Industry Vertical (IT and Telecom, BFSI, Healthcare, Manufacturing, Retail and E-Commerce, Automotive, and Others), and Country

January 2025 | 119 pages | ID: EAB55805EEB5EN
The Insight Partners

US$ 3,450.00

E-mail Delivery (PDF)

Download PDF Leaflet

Accepted cards
Wire Transfer
Checkout Later
Need Help? Ask a Question
The Europe artificial intelligence market size was valued at US$ 42.64 billion in 2023 and is expected to reach US$ 545.48 billion by 2031; it is estimated to record a CAGR of 37.5% from 2023 to 2031.

The Europe artificial intelligence market is segmented into six major countries—Germany, France, UK, Italy, Spain, and rest of Europe. UK dominated the market in 2023, followed by Germany and France, respectively. According to Bank of England data from November 2024, 75% of businesses in the UK have already employed AI in their operations, while another 10% of businesses are planning to adopt it within the next 3 years. These stats indicate an increase from the source's 2022 study, which found that 58% of businesses were utilizing AI, and an additional 14% had plans of utilizing it. AI-based solutions enable businesses to automate data management processes by eliminating inconsistencies and duplication. According to GOV.UK data of November 2024, approximately 524 enterprises in the UK have deployed AI, which employs over 12,000 people and generates more than ?1 billion (~US$ 1.04 billion) to be invested in the adoption of AI technology. These enterprises provide customers with the tools they need to build or deploy AI responsibly. The increased demand for AI encourages market players to develop AI infrastructure and advance AI software to meet their customer's demands. In June 2024, Salesforce, Inc. chose London for building its first AI Center. The center will stimulate collaboration by bringing together industry experts, partners, and customers to accelerate AI innovation while providing crucial skill development opportunities. Hence, the rising awareness and significant benefits provided by AI solutions would create further opportunities for the artificial intelligence market in the UK during the forecast period

The artificial intelligence market in Germany is projected to expand at a significant rate in the future due to the rising demand for AI technology to automate business processes. According to the International Trade Administration data, the number of new AI firms in Germany is steadily increasing. The country's artificial intelligence sector grew by 67% in 2023, with 508 new companies. Germany is at the forefront of AI implementation in Europe. Artificial intelligence serves as a key driver of innovation and efficiency in the German economy, streamlining operations while lowering costs. AI can also help overcome worker shortages. According to an IFO Institute survey of 2023, 17% of German manufacturing enterprises propelled AI use in early 2024, and over 40% are planning to incorporate it in their operations in coming years. The burgeoning demand for AI encourages market players to boost their investments in its development. For instance, in May 2024, Amazon Web Services (AWS) announced its plan to invest Ђ7.8 billion (~US$ 8.12 billion) in the AWS European Sovereign Cloud. The company also has plans to launch the first AWS Region in Brandenburg in 2025. Similarly, in early 2024, Microsoft Corp announced plans to invest Ђ3.3 billion (~US$ 3.44 billion) in Germany over the following 2 years. The primary focus is on investing in data centers in North Rhine-Westphalia and Frankfurt, which will boost Germany's position as an AI hub. An upsurge in investments and the presence of strong IT industries engaged in developing existing AI software and systems drive artificial intelligence market growth in Germany.

In terms of industry vertical, the Europe artificial intelligence market is segmented into automotive, healthcare, manufacturing, retail and e-commerce, IT and telecommunications, BFSI, and others. The IT and telecom segment held the largest share in the Europe artificial intelligence market in 2023. In the rapidly evolving digital era, the IT & telecommunication industry is increasingly adopting AI in a variety of applications, including.
  • Customer smart segmentation: Telecommunication companies are extending beyond traditional demographic divisions and increasingly using AI-powered algorithms for client segmentation. This enhanced segmentation enables more complex categorization based on behaviour, preferences, and usage patterns. AI allows telecommunication firms to understand clients and better personalize their offers and services to meet varying customer expectations.
  • IT support and helpdesk automation: AI-powered chatbots and virtual assistants improve IT assistance by efficiently managing user inquiries and technical challenges, such as password resets and complex device installations. Such automation maximizes customer pleasure, frees up IT personnel to focus on strategic objectives, and helps generate valuable data for improving IT service delivery operations.
  • Software development and testing: AI eliminates tedious work that is usually involved in software development, speeds up coding processes, and improves code quality via automated reviews. AI-powered testing solutions automate test case generation, execution, and result analysis, resulting in greater software quality by mimicking user interactions and identifying potential faults.
IT and telecommunication industries are increasingly harnessing the capabilities of AI technology to improve the efficiency of operations such as data analytics and business intelligence, IT asset management, documentation, predictive maintenance, event correlation and noise reduction, automated report generation, and root cause analysis.

Accenture Plc, Advanced Micro Devices Inc, Google LLC, International Business Machines Corp, Intel Corp, Microsoft Corp, NVIDIA Corp, Amazon Web Services Inc, SAP SE, and SAS Institute Inc are among the key Europe artificial intelligence market players that are profiled in this market study.

The overall Europe artificial intelligence market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the Europe artificial intelligence market size. The process also helps obtain an overview and forecast of the market with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain analytical insights. This process includes industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Europe artificial intelligence market.
1. INTRODUCTION

1.1 The Insight Partners Research Report Guidance
1.2 Market Segmentation

2. EXECUTIVE SUMMARY

2.1 Key Insights
2.2 Market Attractiveness

3. RESEARCH METHODOLOGY

3.1 Secondary Research
3.2 Primary Research
  3.2.1 Hypothesis formulation:
  3.2.2 Macro-economic factor analysis:
  3.2.3 Developing base number:
  3.2.4 Data Triangulation:
  3.2.5 Country level data:

4. EUROPE ARTIFICIAL INTELLIGENCE MARKET LANDSCAPE

4.1 Overview
4.2 PEST Analysis
4.3 Ecosystem Analysis
  4.3.1 List of Vendors in the Value Chain

5. EUROPE ARTIFICIAL INTELLIGENCE MARKET – KEY MARKET DYNAMICS

5.1 Europe Artificial Intelligence Market – Key Market Dynamics
5.2 Market Drivers
  5.2.1 Rising Adoption in Various Industries
  5.2.2 Government Initiatives and Investments to Support Adoption of AI
  5.2.3 Growing Demand for Multimodal Al
5.3 Market Restraints
  5.3.1 High Cost Associated with Operations
5.4 Market Opportunities
  5.4.1 Demand for Generative Al
5.5 Future Trends
  5.5.1 Burgeoning Popularity of Agentic Al
5.6 Impact of Drivers and Restraints:

6. EUROPE ARTIFICIAL INTELLIGENCE MARKET ANALYSIS

6.1 Europe Artificial Intelligence Market Revenue (US$ Billion), 2021–2031
6.2 Europe Artificial Intelligence Market Forecast and Analysis

7. EUROPE ARTIFICIAL INTELLIGENCE MARKET ANALYSIS – BY COMPONENT

7.1 Software
  7.1.1 Overview
  7.1.2 Software: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
    7.1.2.1 Cloud
      7.1.2.1.1 Overview
      7.1.2.1.2 Cloud: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
    7.1.2.2 On Premises
      7.1.2.2.1 Overview
      7.1.2.2.2 On Premises: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
7.2 Hardware
  7.2.1 Overview
  7.2.2 Hardware: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
7.3 Services
  7.3.1 Overview
  7.3.2 Services: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)

8. EUROPE ARTIFICIAL INTELLIGENCE MARKET ANALYSIS – BY ORGANIZATION SIZE

8.1 Large Enterprises
  8.1.1 Overview
  8.1.2 Large Enterprises: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
8.2 SMEs
  8.2.1 Overview
  8.2.2 SMEs: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)

9. EUROPE ARTIFICIAL INTELLIGENCE MARKET ANALYSIS – BY INDUSTRY VERTICAL

9.1 IT and Telecom
  9.1.1 Overview
  9.1.2 IT and Telecom: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
9.2 BFSI
  9.2.1 Overview
  9.2.2 BFSI: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
9.3 Healthcare
  9.3.1 Overview
  9.3.2 Healthcare: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
9.4 Manufacturing
  9.4.1 Overview
  9.4.2 Manufacturing: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
9.5 Retail and E-Commerce
  9.5.1 Overview
  9.5.2 Retail and E-Commerce: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
9.6 Automotive
  9.6.1 Overview
  9.6.2 Automotive: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
9.7 Others
  9.7.1 Overview
  9.7.2 Others: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)

10. EUROPE ARTIFICIAL INTELLIGENCE MARKET – COUNTRY ANALYSIS

10.1 Europe
  10.1.1 Europe Artificial Intelligence Market Breakdown by Countries
  10.1.2 Europe Artificial Intelligence Market Revenue and Forecast and Analysis – by Country
    10.1.2.1 Europe Artificial Intelligence Market Revenue and Forecast and Analysis – by Country
    10.1.2.2 United Kingdom: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
      10.1.2.2.1 United Kingdom: Europe Artificial Intelligence Market Breakdown by Component
      10.1.2.2.2 United Kingdom: Europe Artificial Intelligence Market Breakdown by Deployment
      10.1.2.2.3 United Kingdom: Europe Artificial Intelligence Market Breakdown by Organization Size
      10.1.2.2.4 United Kingdom: Europe Artificial Intelligence Market Breakdown by Industry Vertical
    10.1.2.3 Germany: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
      10.1.2.3.1 Germany: Europe Artificial Intelligence Market Breakdown by Component
      10.1.2.3.2 Germany: Europe Artificial Intelligence Market Breakdown by Deployment
      10.1.2.3.3 Germany: Europe Artificial Intelligence Market Breakdown by Organization Size
      10.1.2.3.4 Germany: Europe Artificial Intelligence Market Breakdown by Industry Vertical
    10.1.2.4 France: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
      10.1.2.4.1 France: Europe Artificial Intelligence Market Breakdown by Component
      10.1.2.4.2 France: Europe Artificial Intelligence Market Breakdown by Deployment
      10.1.2.4.3 France: Europe Artificial Intelligence Market Breakdown by Organization Size
      10.1.2.4.4 France: Europe Artificial Intelligence Market Breakdown by Industry Vertical
    10.1.2.5 Italy: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
      10.1.2.5.1 Italy: Europe Artificial Intelligence Market Breakdown by Component
      10.1.2.5.2 Italy: Europe Artificial Intelligence Market Breakdown by Deployment
      10.1.2.5.3 Italy: Europe Artificial Intelligence Market Breakdown by Organization Size
      10.1.2.5.4 Italy: Europe Artificial Intelligence Market Breakdown by Industry Vertical
    10.1.2.6 Russia: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
      10.1.2.6.1 Russia: Europe Artificial Intelligence Market Breakdown by Component
      10.1.2.6.2 Russia: Europe Artificial Intelligence Market Breakdown by Deployment
      10.1.2.6.3 Russia: Europe Artificial Intelligence Market Breakdown by Organization Size
      10.1.2.6.4 Russia: Europe Artificial Intelligence Market Breakdown by Industry Vertical
    10.1.2.7 Rest of Europe: Europe Artificial Intelligence Market – Revenue and Forecast to 2031 (US$ Billion)
      10.1.2.7.1 Rest of Europe: Europe Artificial Intelligence Market Breakdown by Component
      10.1.2.7.2 Rest of Europe: Europe Artificial Intelligence Market Breakdown by Deployment
      10.1.2.7.3 Rest of Europe: Europe Artificial Intelligence Market Breakdown by Organization Size
      10.1.2.7.4 Rest of Europe: Europe Artificial Intelligence Market Breakdown by Industry Vertical

11. COMPETITIVE LANDSCAPE

11.1 Heat Map Analysis by Key Players
11.2 Company Positioning & Concentration

12. INDUSTRY LANDSCAPE

12.1 Overview
12.2 Market Initiative
12.3 Product Development
12.4 Mergers & Acquisitions

13. COMPANY PROFILES

13.1 Accenture Plc
  13.1.1 Key Facts
  13.1.2 Business Description
  13.1.3 Products and Services
  13.1.4 Financial Overview
  13.1.5 SWOT Analysis
  13.1.6 Key Developments
13.2 Advanced Micro Devices Inc
  13.2.1 Key Facts
  13.2.2 Business Description
  13.2.3 Products and Services
  13.2.4 Financial Overview
  13.2.5 SWOT Analysis
  13.2.6 Key Developments
13.3 Google LLC
  13.3.1 Key Facts
  13.3.2 Business Description
  13.3.3 Products and Services
  13.3.4 Financial Overview
  13.3.5 SWOT Analysis
  13.3.6 Key Developments
13.4 International Business Machines Corp
  13.4.1 Key Facts
  13.4.2 Business Description
  13.4.3 Products and Services
  13.4.4 Financial Overview
  13.4.5 SWOT Analysis
  13.4.6 Key Developments
13.5 Intel Corp
  13.5.1 Key Facts
  13.5.2 Business Description
  13.5.3 Products and Services
  13.5.4 Financial Overview
  13.5.5 SWOT Analysis
  13.5.6 Key Developments
13.6 Microsoft Corp
  13.6.1 Key Facts
  13.6.2 Business Description
  13.6.3 Products and Services
  13.6.4 Financial Overview
  13.6.5 SWOT Analysis
  13.6.6 Key Developments
13.7 NVIDIA Corp
  13.7.1 Key Facts
  13.7.2 Business Description
  13.7.3 Products and Services
  13.7.4 Financial Overview
  13.7.5 SWOT Analysis
  13.7.6 Key Developments
13.8 Amazon Web Services Inc
  13.8.1 Key Facts
  13.8.2 Business Description
  13.8.3 Products and Services
  13.8.4 Financial Overview
  13.8.5 SWOT Analysis
  13.8.6 Key Developments
13.9 SAP SE
  13.9.1 Key Facts
  13.9.2 Business Description
  13.9.3 Products and Services
  13.9.4 Financial Overview
  13.9.5 SWOT Analysis
  13.9.6 Key Developments
13.10 SAS Institute Inc
  13.10.1 Key Facts
  13.10.2 Business Description
  13.10.3 Products and Services
  13.10.4 Financial Overview
  13.10.5 SWOT Analysis
  13.10.6 Key Developments

14. APPENDIX

14.1 Word Index
14.2 About the Insight Partners


More Publications