Western Europe Generative AI Market | Analysis 2019-2032

WESTERN EUROPE GENERATIVE AI MARKET SNAPSHOT

• In 2023, the Western Europe generative AI market was valued at US$ 18.11 billion, which is estimated to increase to US$ 29.80 billion in 2024 reflecting a year-on-year growth rate of 64.58%.
• By the end of 2032, the Western Europe generative AI market is forecast to reach US$ 165.73 billion, registering a CAGR of 23.92% during the forecast period.
• In 2024, the hardware is likely to be the largest segment, with 64.18% market share and to be valued at US$ 19.12 billion.
• In terms of spending on generative AI market solutions and services, IT and Telecom sector dominated the Western Europe generative AI market in 2023.

WESTERN EUROPE GENERATIVE AI MARKET OUTLOOK

The recent emergence of generative artificial intelligence (GenAI) tools capable of producing human-like content has sparked a significant shift in digital markets and initiated a new technological race. GenAI relies on foundation models, large and intricate AI models trained on extensive datasets. Western European competition authorities have taken a proactive stance in understanding the emerging market dynamics of GenAI and ensuring that competition and innovation are preserved in both the short and long term. Western Europe possesses a unique blend of diverse languages and cultures, abundant scientific and technological talent, and well-established strengths in manufacturing and services. These regional advantages make the transformative potential of generative AI particularly compelling across various industries throughout the entire value chain and for society. According to the industry experts, Generative AI has the potential to support Western Europe's aspirations to lead the green business building (GBB) revolution of the future. With numerous advanced industries operating in traditional sectors such as defense, automotive, and machinery, Western Europe can leverage generative AI to innovate, lower costs, and offer environmentally sustainable products. This transformation can be achieved while capitalizing on Western Europe's world-class talent and intellectual property.

WESTERN EUROPE GENERATIVE AI MARKET TRENDS AND DEVELOPMENTS

Collaborations between major digital companies and GenAI startups are shaping the landscape of the AI industry. These partnerships offer startups access to specialized hardware, computing power, and crucial investments, accelerating their growth and innovation. However, there's a growing concern regarding the potential for larger partners to wield their market influence to control or gain exclusive access to startup technologies. Such actions is projected to hinder competition within the value chain and limit the emergence of new players in the GenAI market. The competitive implications of these collaborations hinge on various factors, including the assets involved and the terms of the agreements. To mitigate competition concerns, partnerships should prioritize transparency, avoid exclusivity clauses, and ensure limited privileged access to the startup's technological assets. This trend underscores the importance of fostering fair and equitable collaborations to sustain innovation and competition in the GenAI ecosystem.

WESTERN EUROPE GENERATIVE AI MARKET COMPETITIVE LANDSCAPE

Major companies operating in the Western Europe generative market are Adobe, Alphabet (Google), Amazon (AWS), Anthropic, C3.ai, Cohere, Databricks, Glean, Hugging Face, IBM, Inflection AI, OpenAI, Stability AI, and Synthesia. These players in the market are focused towards investing substantial amount on research and development activities to come up with advanced product. Also, below recent developments are observed in Western Europe generative AI industry:
 

• Synthesia: Headquartered in London, Synthesia offers an AI-powered video creation platform that enables users to generate talking head videos using text inputs and actor samples. With approximately $153 million in funding, including a recent $90 million Series C round in June 2023, the company has reached a valuation exceeding $1 billion, making it a unicorn. Clients include prominent companies like Reuters, Accenture, Amazon, and the BBC, with applications ranging from staff training content to converting presentations into videos.
   
• Poolside AI: Originally based in the US, Poolside AI is transitioning to Paris following a significant $126 million seed round in August 2023, supported by French billionaire Xavier Niel and US VC Felicis. The company focuses on developing a ChatGPT-like tool capable of writing software code, bringing its total funding to $152 million.
   
• Aleph Alpha: Based in Germany, Aleph Alpha provides a platform to assist businesses and governments in creating generative AI tools and conducting research. Its offerings include large language models trained in multiple languages and adaptable systems for specialized environments. The company raised €100 million in funding in June 2023, with support from investors such as Earlybird Venture Capital, SAP SE, and Nvidia, bringing its total funding to €128.3 million.
   

This research report on Western Europe generative AI market would be produced using first-hand market information gathered from industry experts and major participants across the value chain, during primary research. It would provide broad view of current market trends, growth factors and competitive analysis.

WESTERN EUROPE GENERATIVE AI MARKET COVERAGE