The AI market in Europe is primed for growth despite inflation, recession, and labour shortages, with a predicted 25.5% CAGR over the 2022-2026 period, according to IDC's AI Tracker.
AI-centric software will be the main driver behind this growth at an estimated CAGR of 32.4%. Non-AI-centric software, services and AI hardware are expected to grow more moderately, with CAGRs of 16.7%, 27.2%, and 15.2%, respectively.
By 2026, the total addressable market for AI is estimated to reach $191bn.
Martin Nuska, Senior Research Manager at IDC, said: “The next five years will be a crucial period in the commercial adoption of AI software, as many companies and governments are now investing more to make their processes more agile, efficient, and resilient.”
