The European artificial intelligence (AI) market is expected to grow despite the global inflationary environment, geopolitical tensions in Ukraine, IT budget cuts, and macroeconomic uncertainty, based on projections by the International Data Corporation (IDC).

In its recently published report, AI software, hardware, and services are expected to post a compound annual growth rate (CAGR) of 25.5% in the 2022-2026 period to reach $191 billion in 2026.

The market intelligence report highlighted that growth will mainly be driven by AI-centric software (CAGR 32.4%), while growth will be significantly lower in AI services (CAGR 27.2%), non-AI-centric software (CAGR 16.7%), and AI hardware (CAGR 15.2%).

Source: IDC