European AI PC market grows, driven by chip makers

The AI PC market in Europe is currently experiencing significant growth, primarily driven by chip manufacturers' initiatives rather than direct consumer interest.

Recent analysis by market intelligence firm CONTEXT highlights that AI PCs, defined as notebooks equipped with system-on-chips (SOCs) featuring AI accelerators such as neural processing units (NPUs), made up nearly 40% of notebook sales through major European distributors at the beginning of the year. This marks a considerable increase from 10% a year earlier, indicating a strong uptick in supply integration rather than consumer-led demand.

"Manufacturers are embedding AI functionality into more devices, making AI PCs an inevitability rather than a choice for many buyers," Marie-Christine Pygott, Senior Analyst at CONTEXT, commented. "But this doesn't mean consumers are actively seeking these features."

However, within the AI PC segment, high-performance devices such as those classified under Microsoft's Copilot+ category, which sport NPUs of 40 TOPS or more, are not experiencing the same level of acceptance. Despite their release in mid-2024, these premium machines account for just 5% of AI PC sales. Factors such as higher pricing, unclear real-world benefits, and compatibility challenges with ARM-based processors in the commercial sector have contributed to their slower uptake.

"Copilot+ PCs still face an uphill battle," stated Pygott. "Until businesses and consumers see clear, tangible advantages, these high-performance devices will remain a niche product."

Nonetheless, CONTEXT forecasts a gradual increase in adoption rates as the market progresses. Anticipated reductions in prices, improvements in software compatibility, and the maturation of AI applications are expected to spur this growth. Chip manufacturers such as Qualcomm, Intel, and AMD are developing new AI-capable processors aimed at overcoming these barriers in the commercial market.

"The AI PC market is evolving, but it has yet to reach its defining moment," Pygott concluded. "By 2026, we expect a shift from passive adoption to genuine demand, as businesses and consumers begin to realize AI's impact on productivity and collaboration."