What are the Historical Developments and Current Growth Metrics of the Artificial Intelligence AI In Retail Market?
The artificial intelligence ai in retail market has seen considerable growth due to a variety of factors.
• The retail sector's usage of artificial intelligence (AI) has seen a significant surge recently, escalating the market size dramatically. The market is projected to evolve from $11.9 billion in 2024 to $15.51 billion in 2025, registering a compound annual growth rate (CAGR) of 30.3%.
The swelling rate in the historical phase can be attributed to several factors, including AI's expanded role in retail, the heightened need for surveillance and monitoring, swift adoption of AI solutions, advancements in computer vision, and an increasing demand for operative efficiency.
What Does Future Hold for The Artificial Intelligence AI In Retail Market By 2029?
The artificial intelligence ai in retail market is expected to maintain its strong growth trajectory in upcoming years.
• The retail sector's artificial intelligence (AI) market size is projected to undergo a substantial increase in the coming years, expecting to reach a value of $44.43 billion by 2029, growing at a compound annual growth rate (CAGR) of 30.1%.
The predicted growth for this period is due to factors such as anticipated market expansion, AI's potential for major transformations, demand influences trends, a positive global market overview, and heightening competition. Key trends during the forecast period include adoption of machine learning, a rising demand for AI services, improved user experience and productivity, and geographical market development.
What Are The Primary Growth Drivers In The Artificial Intelligence AI In Retail Market?
The predicted surge of artificial intelligence (AI) in the retail sector can be attributed to the ongoing digital transformation within the industry. Digital transformation denotes a strategic, all-encompassing implementation of technology and various digital processes and capabilities within a business setting. Global retailers are increasingly incorporating these digital methods and working to enhance consumer interaction, fueling the demand for AI-enabled services. This assimilation of AI in retail, spurred on by the critical nature of digital transformation, promotes advancements in projects such as automation, personalised marketing and forecasting trends, thus enhancing operational effectiveness and granting insight into shopper behaviour. For example, in a study conducted by NVIDIA Corporation, a US-based technology and manufacturing firm, in January 2024, 69% of retailers noticed a rise in annual revenue following AI implementation, while 72% reported reduced operating expenses and over 60% plan to augment their investment in AI over the following 18 months. Therefore, the digital transformation in the retail industry contributes significantly to the expansion of artificial intelligence (AI) in the retail market.
What Is The Segmentation Of The Global Artificial Intelligence AI In Retail Market?
The artificial intelligence (AI) in retail market covered in this report is segmented –
1) By Component: Solution, Service
2) By Technology: Machine Learning, Natural Language Processing, Chatbots, Image And Video Analytics, Swarm Intelligence
3) By Deployment: Cloud, On-Premise
4) By Channel: Omnichannel, Brick And Mortar, Pure-Play Online Retailers
5) By Application: Customer Relationship Management, Supply Chain And Logistics In-Store, Navigation Inventory Management, Product Optimization, Payment And Pricing Analytics
Subsegments:
1) By Solution: Predictive Analytics, Customer Relationship Management (CRM), Inventory Management, Visual Search, Personalization Engines, Fraud Detection
2) By Service: Consulting Services, Implementation Services, Support And Maintenance, Managed Services
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What New Trends Are Influencing The Artificial Intelligence AI In Retail Market?
Leading enterprises in the AI retail market are pioneering new technologies like cloud-based solutions to foster innovation and boost efficiency in retail. Cloud-based solutions are computing services encompassing storage, processing, and software applications delivered through the internet, eschewing the need for local servers or conventional computing infrastructure. As an example, Flipkart Private Limited, an e-commerce entity from India, unveiled the Flipkart Commerce Cloud in Oct 2023. Its goal is to assist global retailers in expanding their businesses and addressing their business needs by leveraging intelligent, AI-powered solutions. This platform provides retail technology solutions tailored for international retailers, marketplaces, and e-commerce platforms. The solutions comprise a complete marketplace technology stack, retail media solution, pricing solution, inventory management, and forecasting solutions, wholly powered by artificial intelligence and machine learning.
Who Are the Key Players In The Artificial Intelligence AI In Retail Market?
Major companies operating in the artificial intelligence (AI) in retail market are:
• Google LLC
• Microsoft Corporation
• Amazon Web Services
• Intel Corporation
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Presto
• NVIDIA Corporation
• Salesforce Inc.
• Baidu Inc.
• ViSenze
• Travelport
• Databricks
• DATAIKU
• Symbotic
• BloomReach Inc.
• Trax
• Interactions LLC
• Featurespace
• RetailNext Inc.
• Trigo
• Standard Cognition
• CognitiveScale Inc.
• BrainBox AI
• Inbenta Technologies
• Next IT Corp.
• Infinite Analytics
• Lexalytics Inc.
• Sentient Technologies
What Are The Regional Insights Into The Artificial Intelligence AI In Retail Market?
North America was the largest region in the artificial intelligence (AI) in retail market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in retail market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
