A brand new report by the EU-funded Innovation Radar bridge challenge has simply been printed, and it explores funding and startup exercise in 10 industrial verticals of the EU’s Apply AI technique, introduced in October 2025.

Europe is staking its declare within the world AI race, with startups on the forefront of this transformation. The second data-driven report from the Innovation Radar Bridge challenge pinpoints ten industrial verticals the place European innovation is prospering, the place funding is flowing quickest, and which verticals stay underfunded.

The brand new report is about in opposition to the backdrop of the ‘Apply AI Technique’ which goals  to speed up AI adoption throughout Europe’s strategic verticals and within the public sector. The technique recognises the necessity to assist SMEs, foster innovation, and cut back reliance on overseas applied sciences.

As signalled on this report, Europe at the moment accounts for round 5% of world AI computing capability, prompting important investments within the EU’s AI Factories and a €20 billion dedication by the European Fee in AI gigafactories. On the similar time, Europe has a reputable alternative to steer with open-source AI options, and with trade particular AI functions, providing a differentiated path in contrast with US closed fashions. It’s on this context that the EU Apply AI Technique outlines flagship actions to advance AI adoption throughout 10 industrial verticals and by the general public sector (see separate EU report on use of AI by the Public Sector) .

Key takeaways from the report:

The report delivers important insights as to the present standing throughout these 10 industrial verticals.

• 4,100+ Apply AI startups within the EU (roughly 6% of all VC-backed startups)
• Mixed enterprise worth (EV): €161 billion in 2025, a 16-times enhance over ten years
• Complete VC raised since 2020: €20 billion (17% of all EU VC, almost half of EU AI VC)
• 250+ new Apply AI startups elevate their first VC spherical annually

Industrial verticals which are booming: 

• Main by each enterprise worth (EV) and enterprise capital (VC) funding are Well being & Pharma (€43 billion EV, €4.7 billion VC since 2020) and Defence, Safety & House (€38 billion EV, €4.6 billion VC). Additionally they account for 18 Unicorns and Thoroughbreds.
• They’re adopted by Cultural & Inventive Industries (€29 billion EV) and Robotics (€2.4 billion VC). 
• Surroundings & Local weather (€6 billion EV, €0.7 billion VC), Vitality (€7 billion EV, €1.6 billion VC), and Agri-food (€5 billion EV, €1.1 billion VC) are comparatively smaller. However, they stand out globally as areas the place Europe captures the next share of world AI VC.
• The verticals that present the quickest EV development since 2015 are Surroundings & Local weather (1,725% development), Mobility, Transport & Automotive (64% development), and Safety & Defence (62% development) 

This report exhibits that Europe’s third means for AI includes accountable regulation, provision of AI compute as a ‘public good’, embracing open-source, and leveraging its world industrial leaders.

This well timed new report offers startups, traders and policymakers with very important data-driven intelligence about the place AI innovation is prospering in Europe, the place gaps stay, and the way the EU can strengthen the competitiveness of its AI ecosystem.

Obtain the full report right here to discover data-driven insights shaping Europe’s AI future.