USD 5.59 Billion
Artificial Intelligence (AI) in Retail Market Size, Share, Growth Analysis, By Type, Technology(ML & Deep Learning, NLP, Others), Solution(Product Recommendation, CRM, Visual Search, Virtual Assistant, SCM, Others), Service, Deployment Mode, Application, and Region - Industry Forecast 2024-2031
Report ID:
SQMIG45C2052 |
Region:
Global |
Published Date: June, 2024
Pages:
252
|Tables:
180
|Figures:
79
Artificial Intelligence (AI) in Retail Market Insights
Global Artificial Intelligence (AI) in Retail Market is valued at USD 5.59 Billion in 2022 and is expected to grow from USD 7.42 Billion in 2023 to reach USD 71.23 Billion by 2031, at a CAGR of 32.68% during the forecast period (2024-2031).
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 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 - 2024-2031
Global Market Size
Largest Segment
Offline Retail
Fastest Growth
Online Retail
Growth Rate
32.68% CAGR
Global Artificial Intelligence (AI) in Retail Market ($ Bn)
Country Share for North America Region (%)
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Artificial Intelligence (AI) in Retail Market Segmental Analysis
Global Artificial Intelligence (AI) in Retail Market is segmented based on Type, Technology, Solution, Service, Deployment Mode, Application and Region. Based on Type, the market is segmented into Online Retail, and Offline Retail. Based on Technology, the market is segmented into Machine Learning and Deep Learning, Natural Language Processing, Chatbots, Image and Video Analytics, And Swarm Intelligence. Based on Solution, the market is segmented into Product Recommendation and Planning, Customer Relationship Management, Visual Search, Virtual Assistant, Chatbots, Price Optimization, Payment Services Management, Supply Chain Management and Demand Planning, and Others. Based on Service, the market is segmented into Professional Services and Managed Services. Based on Deployment Mode, the market is segmented into Cloud and On-premises. Based on Application, the market is segmented into Predictive Merchandising, Predictive Merchandising, Market Forecasting, In-store Visual Monitoring and Surveillance, Location-based Marketing, and Others. Based on the region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
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.
Analysis by Solution
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.
Global Artificial Intelligence (AI) in Retail Market By Deployment Mode
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Artificial Intelligence (AI) in Retail Market Regional Insights
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.
Global Artificial Intelligence (AI) in Retail Market By Region
- Largest
- Fastest
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Artificial Intelligence (AI) in Retail Market Dynamics
Drivers
Emphasis on Efficiency and Productivity
- 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.
Global e-Commerce Boom
- The e-commerce industry experienced a major boom around the world and resulted in a more complex and expansive global retail world. Use of advanced technologies to optimize operations and automate e-commerce activity from product sales to delivery is slated to drive artificial intelligence (AI) in retail market growth in the future.
Restraints
Challenges in Integration
- Artificial intelligence is a highly advanced technology and integrating it with the traditional retail infrastructure is a major challenge that slows down market growth. Companies are expected to focus on development of AI solutions that are compliant with legacy infrastructure and systems.
Concerns Regarding Consumer Acceptance and Trust
- Machine-like interaction and bias are some key concerns that arise when use of AI in the retail industry is discussed. These issues result in poor consumer acceptance and trust along with other complications such as information misuse thereby impeding the adoption of AI solutions in the retail space.
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Artificial Intelligence (AI) in Retail Market Competitive Landscape
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
- 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
Artificial Intelligence In Retail Market Recent Developments
- In March 2024, a company focusing on decoding the data behind physical retail experiences called Standard AI launched a new analytics platform to help retailers understand their business better with improved insights. The new Vision Analytics platform uses machine vision and artificial intelligence to function efficiently.
- x-hoppers, a renowned name in the retail communications business, launched its new AI-enabled retail communication platform in the United States and United Kingdom in April 2024. The new solution is intended to enhance retail operations and customer experience by blending AI with different communication solutions.
Artificial Intelligence (AI) in Retail Key Market Trends
- 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.
Artificial Intelligence (AI) in Retail Market SkyQuest Analysis
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 5.59 Billion |
| Market size value in 2031 | USD 71.23 Billion |
| Growth Rate | 32.68% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| 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 |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Artificial Intelligence (AI) in Retail Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Artificial Intelligence (AI) in Retail Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
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 Report Snapshots
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