IDC has released a fresh forecast for the European AI market, including generative services. Analysts say the industry is expanding rapidly: by the end of 2024, total costs are expected to be $47–$48 billion.
As of mid-2024, about 40% of European companies are investing heavily in generative AI, with plans to invest in training, advanced software and consulting services over the next 18 months. In addition, 30% of companies in Europe have already deployed applications and services with generative AI capabilities in their operational environments.
In 2024, approximately 15.7% of total AI spending in Europe was in the banking sector. Another 9.5% was provided by retail, 8.3% by software and information services. The telecommunications segment accounted for 5.5% of expenses, and the professional and personal services segment accounted for 5.1%.
Image source: IDC
When looking at the industry by the type of tasks performed using AI, advanced fraud analysis and investigation accounted for 8.7% of all spending in 2024. Intelligence and threat prevention tools accounted for 8.5% of revenue. The share of costs for preparing the AI infrastructure is 6.6%. AI-powered customer service and self-service platforms contributed 5.9%.
IDC analysts predict that in the future the CAGR (compound annual growth rate) in the European AI market will be 30.3%: as a result, by 2028 the industry volume will reach $133 billion. At the same time, in the generative AI segment the CAGR will be even higher higher – approximately 55%.
«Generative AI adoption is rapidly moving from early testing and experimentation to more integrated business solutions. The segment’s CAGR is expected to be significantly higher than more traditional AI technologies,” said Carla La Croce, research manager at IDC.