AI in Retail Market Overview
Digital transformation in retail industry and increasing focus on enhancing customer experience are the major factors driving AI in retail market. The market growth is buoyed by increased adoption of AI by retailers to provide enhanced customer experience, and to offer them a personalized shopping experience.
Additionally, growing e-commerce and mobile shopping intensified competition among retailers leading to investments in digital technologies particularly AI. Moreover, the emergence of various start-ups in the retail-space proliferated the demand for AI in retail. AI is quickly gaining adoption among retailers in the market, predominantly due to the seismic shift in shopping patterns of customers and their preferences, as well as growth of e-commerce industry.
Based on offering, AI in retail market has been categorized into solution and service. Further, the solution category can be segmented into chatbot, customer behavior tracking, CRM, inventory management, price optimization, recommended engine, supply chain management, visual search, and others, and the service category has been further segmented into professional and managed.
On the basis of technology, AI in retail market is categorized into machine learning, NLP, and computer vision. Of these, the market for machine learning category is expected to continue holding the largest market share during the forecast period as well. This can be attributed to the increasing adoption of the technology by the retail industry in order to provide a personalized experience and interactive environment to the customers. In addition, machine learning and deep learning are registering huge adoption owing to the increasing need for streamlining retail operations, and to automate processes.
APAC is expected to register fastest growth in AI in retail market, during the forecast period. This can be attributed to disrupting e-commerce industry in the region. Moreover, increasing investments by the Chinese technology giants such as Alibaba and Baidu in AI is another factor propelling the market growth in the region.
AI in Retail Market Dynamics
The major factor driving the demand for AI in retail has been the rapid emergence of e-commerce worldwide. It has been encouraging companies to offer enhanced customer experience. Retailers are reaching out to their customers at personal level, while engaging with them through deeper interactions and enhancing their brand value. Personalized online shopping, demand for better digital customer experience, optimization of the supply chain, and improvement in inventory management are some of the key driving the global AI in retail market.
In addition, major advancements in computer vision technology is also fueling the growth of the AI in retail market. AI allows retail outlets to examine and analyze various customer behavior through video recording and assist retailers in taking necessary actions to streamline their sales and increase profit.
Through AI, retailers can optimize key strategic areas such as pricing and replenishment and automate their business decisions through machine learning. This enables them to combine their quick decisions with their key performance indicators (KPIs) such as margins and volumes to take competitive advantage of dynamic market change and stay ahead of the competition. Therefore, the AI in retail has a huge scope for rapid growth in the coming years.
AI in retail market poses huge opportunities for market players, with constant leverage of AI by both e-commerce and brick-and-mortar retailers. Start-ups and new entrants in the retail industry leverage AI to compete with large players for market share, and large players adopt the technology profoundly for improving customer experience and strengthen their position in the industry. Moreover, consumers are increasingly becoming comfortable with AI technologies, and demand personalized experiences while shopping. Hence, these factors pose huge opportunity for market players.
AI in Retail Market Competitive Landscape
Competition in AI in retail market is increasing with the presence of major players and start-ups, where larger players are focusing on merger and acquisition strategies to expand their product portfolio, and the new entrants are adopting product development strategies to gain market share. Gap between the online and offline retailers expected to continue to blur in coming years, with retail organizations constantly evolving to cater to the growing consumer needs.
Some of the key players operating in the AI in retail market include IBM Corporation, Microsoft Corporation, Google Inc., NVIDIA Corporation, Intel Corporation, Sentient Technologies, Salesforce.com Inc., Oracle Corporation, SAP SE, Accenture, Amazon Web Services Inc., Infosys Limited, ViSenze Pte Ltd., and Numenta Inc.
The report will also provide a country-wise analysis. Some of the major countries that are covered in the report include U.S., Canada, France, U.K., Spain, Italy, Germany, Russia, China, Japan, India, Indonesia, Singapore, Malaysia, South Korea, Australia, Saudi Arabia, Turkey, U.A.E., South Africa, Brazil, and Mexico.