| Status : Published | Published On : Feb, 2024 | Report Code : VRICT5129 | Industry : ICT & Media | Available Format :
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Page : 142 |
Global AI in Retail Market – Analysis and Forecast (2025-2030)
Industry Insights by Offering (Solution [Chatbot, CRM, SCM, Price Optimization, Recommendation Engine, Visual Search, Others], Service [Managed, Professional]), by Technology (Machine Learning, NLP, Computer Vision, Others)
Industry Overview
The global Artificial Intelligence (AI) in retail market is expected to reach USD 40.49 billion by 2030 from USD 9.85 billion in 2023, registering a CAGR of 32.68% during the forecast period.
Artificial Intelligence refers to a set of algorithms that harness huge amounts of data. Adoption of this technology helps in personalizing the shopping experience by tailoring product recommendations and leveraging customer preferences.
The growth of global Artificial Intelligence (AI) in the retail market is mainly attributed to the rise in the e-retail industry, mobile internet penetration, and investments by retail companies in AI technology. This particular digital transformation helps in integrating progressive data analytics and predicting systems.
Moreover, the convenience of IoT and AI has enabled retailers to gain useful insights that help in optimizing business operations to tap lucrative opportunities. So, businesses are moving to AI-based solutions to handle significant challenges like labor constraints, disruption in the supply chain, increasing costs, and changing consumer behavior.
Such adoption allows cost reduction, increases operational efficiency, reshapes customer service using AI-powered chatbots for better interactions, allows an infusion of digital elements into sales, merchandising, and support, and enhances finance operations.
As a result, there is a significant surge in global Artificial Intelligence (AI) in the retail market, mainly due to the initiatives taken by SMBs and tech giants. The growing inclination of consumers towards online retailers after COVID has also propelled digital transformation which has fortified operations.
Market Segmentation
Insight by Offering
According to the offerings, the global Artificial Intelligence (AI) in retail market is divided into two categories namely, solution and service. The service sector is further divided into professional and managed services, while the solutions segment is divided further into CRM, chatbot, SCM, price optimization, recommendation engine, visual search, and more.
The solution segment is expected to grow at a higher rate during the forecast period due to the growing adoption of AI technology by e-commerce companies. Out of all its subdivisions, the recommendation engine category will contribute a larger share of the market during the forecast period.
Insight by Technology
According to the diverse technology, the global AI in retail market is divided into machine learning, computer vision, NLP, and others. Out of these categories, the machine learning category will account for the larger share during the forecast period and will grow at a much faster rate than others. This is because eCommerce businesses will adopt machine learning solutions more to offer customized services and higher customer experiences.
Global AI in Retail Market Report Coverage
|
Report Metric |
Details |
|
Historical Period |
2018 - 2023 |
|
Base Year Considered |
2024 |
|
Forecast Period |
2025 - 2030 |
|
Market Size in 2023 |
U.S.D. 9.85 Billion |
|
Revenue Forecast in 2030 |
U.S.D. 40.49 Billion |
|
Growth Rate |
32.68% |
|
Segments Covered in the Report |
By Offering and By Technology |
|
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
|
Regions Covered in the Report |
North America, Europe, Asia-Pacific, Middle East, and Rest of the World |
Industry Dynamics
Growth Drivers
Several factors influence the growth of global Artificial Intelligence (AI) in retail market, such as higher investments in AI technology by retail companies, increasing mobile internet penetration, and higher adoption of AI solutions by e-commerce companies.
Other factors that drive e-commerce companies to adopt this technology and influence market growth include the ability of retailers to understand customer behavior patterns and deliver customized services to target customers.
The AI-powered virtual assistants and chatbots help in handling customer queries and provide product information in a quicker and much more efficient way and help them throughout the buying process.
The technology also helps in forecasting demands by analyzing market trends and historical sales data. This, in turn, helps in effective inventory management, reduces stockouts, improves the efficiency of the supply chain, and minimizes overstocking.
This in turn helps in optimizing pricing strategies based on market dynamics, customer demand, competitor pricing, and other real-time factors such as demand-supply conditions. Product procurement and shipping can be streamlined based on logistics and transportation data, including traffic patterns, weather conditions, and delivery routes.
Overall, the technology offers several benefits such as inventory optimization, cost reduction, supply chain efficiency improvement, and better advertising.
Geography Insight
North America is the largest contributor to the global Artificial Intelligence (AI) in retail market due to its developed economy and improved retail space arrangements. There is also a large number of AI solution suppliers in this region, which is an early adopter of such solutions.
All these help in offering better service, overseeing their operations more effectively according to the buying patterns of the consumers and connecting with them effectively to improve turnover.
Competitive Insight
AI in the retail market is fragmented in nature. The increasing adoption of IoT, Big Data analytics, and online business promotion give rewarding chances to AI in the retail market. In general, the focused competition among existing players is high. Market players in the global AI in the retail industry are majorly focusing on mergers & acquisitions, product launches, and partnerships to expand their market share.
Some of the key players operating in the global AI in the retail market are Infosys Limited, Intel Corporation, Amazon Web Services Inc., ViSenze Pte. Ltd., Evolv Technologies Inc., Numenta Inc., SAP SE, Accenture PLC, Microsoft Corporation, Google LLC, Salesforce.com Inc., Oracle Corporation, and IBM Corporation.
Recent Developments by Key Players
Infosys has collaborated with Ireland’s leading food retail, wholesale and foodservice company, Musgrave for seven years.
Evolv Technologyjoined hands with Footprint Center to use its state-of-the-art Evolv Express® screening solution. By this collaboration, Infosys shall help automate Musgrave’s IT operations by leveraging its industry leading AI and Cloud offerings, Infosys Topaz, an AI-first set of services, solutions and platforms using generative AI technologies, and Infosys Cobalt, a set of services, solutions and platforms for enterprises to accelerate their cloud journey. These offerings from Infosys will enable Musgrave in transforming its IT operations, build technical expertise, and help to accelerate towards its goals of enhancing the experiences of its customers and retail partners.
Primary Research
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from industry experts. The key profiles approached within the industry include CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads, and Others. Also, end-user surveys comprising of consumers are also conducted to understand consumer behavior.
The AI in Retail Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
- By Offering
- Solution
- Chatbot
- Customer Relationship Management (CRM)
- Supply Chain Management (SCM)
- Price Optimization
- Recommendation Engine
- Visual Search
- Others
- Service
- Managed
- Professional
- Solution
- By Technology
- Machine Learning
- Natural Language Processing (NLP)
- Computer Vision
- Others
Region Covered in the Report
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
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Source: VynZ Research
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Source: VynZ Research
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AI in Retail Market