USD 8.0 billion
Report ID:
SQMIG45C2052 |
Region:
Global |
Published Date: March, 2025
Pages:
252
|Tables:
181
|Figures:
79
Artificial Intelligence (AI) in Retail Market size was valued at USD 8.0 billion in 2023 and is poised to grow from USD 10.66 billion in 2024 to USD 105.59 billion by 2032, growing at a CAGR of 33.2% during the forecast period (2025-2032).
The world is an oyster for Artificial Intelligence companies these days and this is why the use of AI in the retail industry comes up as a no-brainer. Growing emphasis on improving the user shopping experience and increasing digitization of the retail space are primarily boosting the adoption of AI in the retail industry. Emphasis on improving the efficiency and profitability of retail organizations will also create new opportunities for AI in retail providers going forward. Retail companies can also analyze their raw data using AI to generate meaningful insights that will help them make informed and data-based decisions for their business. However, challenges in integration with legacy infrastructure, data privacy software concerns, and high costs are estimated to impede the overall artificial intelligence (AI) in retail market growth going forward.
US Artificial Intelligence In Retail Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
USD 8.0 billion
Largest Segment
Cloud
Fastest Growth
On-premises
Growth Rate
33.2% CAGR
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Global Artificial Intelligence (AI) in Retail Market is segmented by Component, Technology, Sales Channel, Application and region. Based on Component, the market is segmented into Solution and Service. Based on Technology, the market is segmented into Machine Learning, Natural Language Processing, Chatbots, Image and Video Analytics and Swarm Intelligence. Based on Sales Channel, the market is segmented into Omnichannel, Brick and Mortar and Pure-play Online Retailers. Based on Application, the market is segmented into Customer Relationship Management (CRM), Supply Chain and Logistics, Inventory Management, Product Optimization, In-Store Navigation, Payment and Pricing Analytics, Virtual Assistant and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Artificial Intelligence (AI) in Retail Market Analysis by Deployment Mode
Cloud-based AI in retail solutions are projected to account for a dominant share of the global market. Easy deployment and low costs are key benefits that help this segment maintain a high market share. Growing advancements in cloud technologies and rising use of cloud platforms by organizations will also work in favor of this segment. Small and medium enterprises and large enterprises are expected to benefit from this segment's growth.
On the other hand, the demand for on-premises deployment of AI solutions for retail applications is slated to witness a steady increase in the future. Established retail organizations willing to invest heavily on developing on-premises infrastructure to support their AI retail solutions will drive market growth via this segment. This is not a viable option for SMEs hence, leading companies such as Walmart, Amazon, etc. will play a crucial role in this segment.
Customer relationship management (CRM) solutions are projected to spearhead global market growth in terms of share. Increasing competition in the retail space is pushing companies to opt for new CRM solutions to retain their customers and build meaningful relationships with them. Growing emphasis on creating brand loyalty to reduce new customer acquisition costs and generate recurring revenue streams will also foster high demand for AI-powered CRM solutions in the future.
On the other hand, the demand for product planning and recommendation solutions is expected to surge at an impressive pace over the coming years. Retail organizations are targeting their customers with personalized shopping experiences and AI plays a crucial role in gathering raw data about customers and creating personalized product recommendations for them.
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Presence of key AI and retail organizations in the North American region allows it to hold a dominant stance in the global AI in retail landscape. Retail companies in this region have been quick to integrate AI in their business to enhance their operations and improve customer experience as well. Rising acceptance of AI technologies in the retail landscape of countries such as the United States and Canada will also contribute to the high market share of this region. High investments in AI research and development in this region will also foster new opportunities for artificial intelligence (AI) in retail companies in the future.
The extensive retail landscape of the European region makes it the second-largest market for artificial intelligence (AI) in retail providers. Increasing penetration of digital technology in the retail landscape and growing awareness regarding benefits of AI adoption among retail business owners in this region will also bolster market growth potential over the coming years. The United Kingdom and Germany are projected to be the most lucrative markets for AI in retail organizations through 2031 and beyond.
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Emphasis on Efficiency and Productivity
Global e-Commerce Boom
Challenges in Integration
Concerns Regarding Consumer Acceptance and Trust
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Artificial Intelligence (AI) in Retail Market providers is expected to focus on the development and launch of new solutions and platforms to enhance the shopping experience for retail customers. Purchasing patterns, consumer behavior, and checkout patterns can also be analyzed using AI to gain a better insight into the retail landscape and facilitate informed decision-making. Partnerships and collaborations to create better AI-based solutions will also offer new opportunities for all artificial intelligence (AI) in the retail market players in the long run.
Top Players in the Artificial Intelligence in Retail Market
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the growing popularity of AI solutions and rising emphasis on improving the productivity and profitability of retail businesses is driving artificial intelligence (AI) in retail market growth. Rising demand for enhanced customer experience and high investments in the development of novel AI solutions for retail applications will also create new business scope going forward. In contrast, high costs of deployment, issues in integration, and low consumer acceptance are key issues that slow down the global artificial intelligence (AI) in retail market development. Quick adoption of AI technology by retail organizations helps North America remain the top market for artificial intelligence (AI) in retail companies. Personalization of user experience will be the top priority for all market players in the future.
Report Metric | Details |
---|---|
Market size value in Retail | USD 8.0 billion |
Market size value in 2032 | USD 105.59 billion |
Growth Rate | 33.2% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Artificial Intelligence (AI) in Retail Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Artificial Intelligence (AI) in Retail Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Artificial Intelligence (AI) in Retail Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Artificial Intelligence (AI) in Retail Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Artificial Intelligence (AI) in Retail Market size was valued at USD 7.42 Billion in 2023 and is poised to grow from USD 9.84 Billion in 2024 to USD 94.51 Billion by 2032, growing at a CAGR of 32.68% during the forecast period (2025-2032).
Artificial Intelligence (AI) in Retail Market providers is expected to focus on the development and launch of new solutions and platforms to enhance the shopping experience for retail customers. Purchasing patterns, consumer behavior, and checkout patterns can also be analyzed using AI to gain a better insight into the retail landscape and facilitate informed decision-making. Partnerships and collaborations to create better AI-based solutions will also offer new opportunities for all artificial intelligence (AI) in the retail market players in the long run. 'Amazon Web Services (AWS) ', 'Google LLC ', 'Microsoft Corporation ', 'IBM Corporation ', 'SAP SE ', 'Oracle Corporation ', 'Salesforce.com, Inc. ', 'Infosys Limited ', 'Capgemini SE ', 'Alibaba Group Holding Limited ', 'Baidu, Inc. ', 'HCL Technologies Limited ', 'Wipro Limited ', 'Tata Consultancy Services Limited (TCS) ', 'Accenture plc ', 'Intel Corporation ', 'NVIDIA Corporation ', 'Cognizant Technology Solutions ', 'Fujitsu Limited ', 'Symphony RetailAI'
Retail organizations around the world are focusing on improving their operational efficiency and boosting productivity to stay competitive. Use of AI tools and solutions brings retail companies closer to their goal by providing meaningful insights in every business aspect and through automation for retail operations.
Personalization of Retail Experience: consumer experience is everything in this rapidly evolving world of changing consumer preferences. AI in retail companies should target personalization of shopping experience for retail customers to promote engagement and build brand loyalty. Offering personalized discounts, product recommendations, and other things through AI can help retail organizations take their business to the next level.
Presence of key AI and retail organizations in the North American region allows it to hold a dominant stance in the global AI in retail landscape. Retail companies in this region have been quick to integrate AI in their business to enhance their operations and improve customer experience as well. Rising acceptance of AI technologies in the retail landscape of countries such as the United States and Canada will also contribute to the high market share of this region. High investments in AI research and development in this region will also foster new opportunities for artificial intelligence (AI) in retail companies in the future.
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Report ID: SQMIG45C2052
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