Europe's AI market is poised to expand at a five-year compound annual growth rate of 25.5%, reaching $191B in 2026, according to an International Data Corporation (IDC) forecast.
IDC predicts AI-centric software will see the biggest jump in growth of 32.4%, followed by AI services with a 27.2% CAGR.
IDC predicts non-AI-centric software will see a 16.7% CAGR, followed by AI hardware at 15.2% growth.
- The next five years are a "crucial" time period for the commercial adoption of software with AI capabilities, according to IDC senior research manager Martin Nuska.
- AI models, including GANs and large language models, could fuel "significant business value," the agency found.
- Nuska also noted that the AI market is expected to continue to perform strongly, despite a potential recession in Europe, due to AI's potential for long-term cost optimization and as a possible solution to the skills gap."
- IDC shared the data in the latest update to its Worldwide Semiannual Artificial Intelligence Tracker.
