How Has the Product Recommendation Engine Market Size Evolved in Recent Years?
The product recommendation engine market has seen considerable growth due to a variety of factors.
• The market size of the product recommendation engine has seen a rapid expansion in the past few years. It is set to surge from $7.42 billion in 2024 to $10.13 billion in 2025, with a compound annual growth rate (CAGR) of 36.5%.
The upward trend in the historical period is largely due to factors such as increased digitalization, a surge in demand for personalization, the boom in e-commerce, improved customer engagement, expansion in mobile commerce, and an increase in subscription services.
What are the Market Size and Expected Growth Rates for the Product Recommendation Engine Market?
The product recommendation engine market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations for the market size of the product recommendation engine to significantly surge in the upcoming years are high. It's projected to escalate to a worth of $34.77 billion by 2029, with a compound annual growth rate (CAGR) of 36.1%.
This anticipated growth within the forecast duration is due to several factors such as an increased average order value (AOV), enhanced competitive edge, better customer retention, a surge in demand for immediate recommendations, and escalated expectations for customer support. Noteworthy trends during the forecast era comprise of technological progress, mixed recommendation systems, integration of artificial intelligence, a spotlight on customer experience, and cross-platform assimilation.
Which Key Drivers Are Propelling The Product Recommendation Engine Market's Growth?
The surge in online shopping is predicted to drive the expansion of the product recommendation engine market. Online shopping or e-commerce, which involves the digital exchange of goods and services, has seen rapid growth due to the ease it provides in shopping from any location, any time, and the ubiquity of mobile devices, which offer easy access to online platforms. Product recommendation engines enhance online shopping by providing a personalized experience. They suggest goods based on a customer's historic shopping behaviors and preferences, thereby boosting customer engagement. For example, an IAB Australia report from September 2023 stated that 73% of online shoppers bought non-grocery retail items online at least once a month, a trend that has persisted since 2022. Therefore, the e-commerce boom is contributing to the growth of the product recommendation engine market.
What Are The Key Segments Within The Global Product Recommendation Engine Market?
The product recommendation engine market covered in this report is segmented –
1) By Type: Collaborative Filtering, Content-Based Filtering, Hybrid Recommendation Systems, Other Types
2) By Deployment Mode: On-Premise, Cloud
3) By End-User Industry: Information Technology And Telecommunication, Banking, Financial Services, And Insurance (BFSI), Retail, Media And Entertainment, Healthcare, Other End-User Industries
Subsegments:
1) By Collaborative Filtering: User-Based Collaborative Filtering, Item-Based Collaborative Filtering, Matrix Factorization Techniques
2) By Content-Based Filtering: Profile-Based Recommendations, Textual Content Analysis, Keyword-Based Recommendations
3) By Hybrid Recommendation Systems: Combining Collaborative and Content-Based Approaches, Weighted Hybrid Methods, Model-Based Hybrid Systems
4) By Other Types: Knowledge-Based Recommendation Systems, Demographic-Based Recommendations, Context-Aware Recommendation Systems
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What Emerging Trends Are Influencing The Growth Of The Product Recommendation Engine Market?
Prominent enterprises in the product recommendation engine market are prioritizing the creation of technologically sophisticated solutions such as AI-led intelligent product recommendation engines, with the aim to enrich user experience and facilitate personalized shopping encounters. AI-led product recommendation engines are highly-developed systems exploiting artificial intelligence and machine learning methodologies to examine user information and cater tailored product recommendations. As an example, SAP SE, a software corporation based in Germany, unrolled an AI-powered solution known as SAP Intelligent Product Recommendation in June 2023 to fortify the sales program and amplify customer experiences. This apparatus applies machine learning and past data to deliver personalized product recommendations specifically adapted for customer requirements, simplifying the quote procedure for adaptable products. The introduction forms part of SAP's intent to assimilate AI proficiencies throughout its software, enabling organizations to utilize sophisticated mechanisms for superior decision-making and operational efficacy.
Who Are the Key Players In The Product Recommendation Engine Market?
Major companies operating in the product recommendation engine market are:
• Amazon.com Inc.
• Google plc
• Microsoft Corporation
• Alibaba Group Holding Limited
• Intel Corporation
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Salesforce Inc.
• Adobe Inc.
• Outbrain Inc.
• Cloudera Inc.
• Bloomreach Inc.
• Emarsys eMarketing Systems AG
• Piano Software Inc.
• Coveo Solutions Inc.
• Dynamic Yield Ltd.
• Muvi LLC
• Nosto Solutions Oy
• Unbxd Inc.
• Certona Corporation
• Recombee s.r.o.
What Are The Regional Insights Into The Product Recommendation Engine Market?
Asia-Pacific was the largest region in the product recommendation engine market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the product recommendation engine market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
