Cold Start Recommendation Artificial Intelligence (AI) Market Report 2026

Cold Start Recommendation Artificial Intelligence (AI) Market Overview

• Cold Start Recommendation Artificial Intelligence (AI) market size has reached to $1.55 billion in 2025 • Expected to grow to $5.25 billion in 2030 at a compound annual growth rate (CAGR) of 27.7% • Growth Driver: Surge In Rising Demand For Personalized User Experiences Fueling The Growth Of The Market Due To Enhanced Consumer Expectations • Market Trend: Adoption Of Real-Time Context-Aware Recommendation Engines To Address Cold-Start Challenges • North America was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Cold Start Recommendation Artificial Intelligence (AI) Market?

Cold start recommendation artificial intelligence refers to techniques used to generate relevant recommendations when there is little or no historical data about users, items, or interactions. It relies on alternative signals such as user demographics, item attributes, contextual data, or hybrid recommendation models. It is used to deliver meaningful and accurate recommendations despite limited initial information. The main components of cold start recommendation artificial intelligence (AI) are software, hardware, and services. Software refers to AI-based solutions that generate personalized recommendations for new users or items with little to no historical data, leveraging algorithms and machine learning models. These solutions are deployed through various deployment modes, including cloud-based, on-premises, hybrid cloud, and other deployment modes, and are designed for organizations of different enterprise sizes, such as small and medium enterprises (SMEs) and large enterprises. They are applied across multiple application industries, including e-commerce and retail, media and entertainment (streaming), social media, travel and hospitality, and other application industries, and cater to diverse end users, such as retailers, online platforms, content providers, financial institutions, and other end users.

What Is The Cold Start Recommendation Artificial Intelligence (AI) Market Growth Forecast?

The cold start recommendation artificial intelligence (AI) market size is expected to see exponential growth in the next few years. It will grow to $5.25 billion in 2030 at a compound annual growth rate (CAGR) of 27.7%. The growth in the forecast period can be attributed to increasing deployment of AI-driven personalization systems, growing demand for real-time recommendation accuracy, expansion of cross-platform data utilization, rising adoption of privacy-preserving recommendation models, increasing investments in advanced AI model optimization. Major trends in the forecast period include increasing adoption of hybrid recommendation models, rising use of context-aware onboarding techniques, growing integration of transfer learning across domains, expansion of user and item profiling solutions, enhanced focus on cold start performance optimization.

Global Cold Start Recommendation Artificial Intelligence (AI) Market Segmentation

1) By Component: Software; Hardware; Services 2) By Deployment Mode: Cloud Based; On Premises; Hybrid Cloud; Other Deployment Modes 3) By Enterprise Size: Small And Medium Enterprises (SMEs); Large Enterprises 4) By Application Industry: E Commerce And Retail; Media And Entertainment (Streaming); Social Media; Travel And Hospitality; Other Application Industries 5) By End User: Retailers; Online Platforms; Content Providers; Financial Institutions; Other End Users Subsegments: 1) By Software: Content Based Recommendation Software; Hybrid Recommendation Software; Context Aware Recommendation Software; User Profiling And Segmentation Software; Model Training And Evaluation Software 2) By Hardware: Central Processing Units (CPU); Graphics Processing Units (GPU); High Performance Computing Servers; Edge Computing Devices 3) By Services: Integration And Deployment Services; Consulting And Strategy Services; Maintenance And Support Services; Training And Education Services; Managed Recommendation Services

What Is The Driver Of The Cold Start Recommendation Artificial Intelligence (AI) Market?

The rising demand for personalized user experiences is expected to propel the growth of the cold start recommendation artificial intelligence (AI) market going forward. Personalized user experiences refer to tailoring interactions, content, or recommendations to an individual user’s preferences and behavior. Personalized user experiences are increasing due to widespread adoption of AI and data analytics that enable real-time understanding of individual user preferences and behaviors. Cold start recommendation AI helps deliver personalized user experiences by accurately predicting relevant suggestions for new users with limited interaction history. For instance, in February 2025, according to SAP SE, a Germany-based software company, in 2024, 64% of U.S. shoppers reported that AI has improved their retail experiences, marking a 25% increase in positive sentiment compared to 2023. Therefore, a rising demand for personalized user experiences is expected to drive the growth of the cold start recommendation artificial intelligence (AI) industry.

Key Players In The Global Cold Start Recommendation Artificial Intelligence (AI) Market

Major companies operating in the cold start recommendation artificial intelligence (AI) market are Amazon Web Services Inc., Microsoft Corporation, Meta Platforms Inc., Alibaba Group Holding Limited, Tencent Holdings Limited, Accenture plc, International Business Machines Corporation (IBM), Oracle Corporation, SAP SE, Salesforce Inc., Adobe Inc., Databricks Inc., Outbrain Inc., Itransition Group, DataRobot Inc., Bloomreach Inc., Algolia SAS, Coveo Solutions Inc., H2O.AI Inc., DevCom Software Ltd., Qloo Inc., Algoscale Technologies Inc., Zactra Technologies Inc., Personyze Inc.

Global Cold Start Recommendation Artificial Intelligence (AI) Market Trends and Insights

Major companies operating in the cold start recommendation artificial intelligence (AI) market are focusing on deploying real-time, context-aware recommendation engines, such as semantic search and embedding-based recommendation models, to deliver relevant personalization for new users and new content without relying on historical interaction data. Context-aware recommendation engines are AI systems that generate personalized recommendations by using real-time contextual signals such as user intent, location, device, session behavior, and content attributes instead of relying solely on historical interaction data. For instance, in November 2023, Google LLC, a US-based technology company, launched new Vertex AI Search capabilities for media and entertainment companies. The solution uses generative AI to understand video, audio, and text content, supports semantic search across large media catalogs, and delivers personalized content recommendations in data-sparse scenarios. These capabilities help media platforms improve viewer engagement and content discovery during onboarding, though recommendation accuracy may evolve as richer user interaction data accumulates.

What Are Latest Mergers And Acquisitions In The Cold Start Recommendation Artificial Intelligence (AI) Market?

In June 2025, OpenAI Inc., a US‑based provider of advanced generative AI models and AI platform services, acquired the team from Crossing Minds for an undisclosed amount. With this acquisition, OpenAI aimed to strengthen its personalization and recommendation system capabilities, including improving cold start recommendation performance by integrating Crossing Minds’ specialized expertise in AI‑driven user intent understanding and recommendation technologies into its products and research efforts. Crossing Minds Inc. is a US‑based provider of AI‑powered recommendation systems designed to analyze user behavior data and deliver personalized product suggestions for e‑commerce and digital platforms.

Regional Insights

North America was the largest region in the cold start recommendation artificial intelligence (AI) market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Cold Start Recommendation Artificial Intelligence (AI) Market?

The cold start recommendation artificial intelligence (AI) consists of revenues earned by entities by providing solutions such as hybrid and context-aware recommendation design services, onboarding and preference elicitation services, similarity modeling and clustering services, transfer learning and cross-domain recommendation services, and model training and optimization services. The market value includes the value of related goods sold by the service provider or included within the service offering. The cold start recommendation artificial intelligence (AI) includes sales of knowledge-based recommendation tools, user and item profiling products, data enrichment and feature engineering tools, similarity modeling and clustering products, and transfer learning–based recommendation products. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in the Cold Start Recommendation Artificial Intelligence (AI) Market Report 2026?

The cold start recommendation artificial intelligence (ai) market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the cold start recommendation artificial intelligence (ai) industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.