European AI market set to grow despite geopolitical tensions and economic uncertainty, says IDC.
The European artificial intelligence (AI) market is expected to continue its growth trajectory despite challenging global conditions, according to a new report from the International Data Corporation (IDC).
The report projects that the AI market in Europe, including software, hardware, and services, will grow at a compound annual growth rate (CAGR) of 25.5% between 2022 and 2026, reaching $191 billion in 2026.
The study suggests that the primary drivers of this growth will be AI-centric software, with a projected CAGR of 32.4%. However, the report also notes that growth in other sectors such as AI services, non-AI-centric software, and AI hardware will be lower, with projected CAGRs ranging from 15.2% to 27.2%.
Despite geopolitical tensions and macroeconomic uncertainty, the IDC report suggests that the European AI market remains a promising area for investment and growth in the coming years.