The AI in retail market is anticipated to reach $4,337.1 million by 2024, registering a CAGR of 35.4% during the forecast period. The factors contributing in the growth of market include, growing penetration of IT technologies in retail industry, increasing mobile internet penetration, growing e-retail industry, and increasing investments in AI by retail companies, according to P&S Intelligence.
Insights into the market segments
Based on offering, the market is bifurcated into solutions and services. Of these, solutions accounted for the larger share in the market in 2018. This can be mainly attributed to the increased adoption of AI solutions by e-commerce companies in North America to provide a better shopping experience for their customers. The region also has a larger number of established e-retail players such as Amazon.com Inc., eBay Inc., Walmart Inc., and Alibaba Group Holding Limited. Thus, due to the large number of e-commerce companies in North America, the demand for AI solutions is high in the region.
North America was the largest revenue generating region in the AI in retail market in 2018. The major factors driving the market growth include high internet and smartphone penetration and the factor of greater convenience associated with online shopping have led to the growth of the e-commerce industry in the region, which, in turn, has contributed to the growth of the AI in retail market.
APAC is expected to be the fastest-growing region in the AI in retail market, attributed to the growing adoption of machine learning technology by online retailers in the region, mainly in China. With the rising sales and market penetration of e-commerce companies, such as Alibaba Group Holding Limited, Amazon.com Inc., and JD.com Inc., AI-driven recommendation engines, price optimization solutions, and SCM solutions are increasingly being adopted for enhancing the shopping experience of customers.
Growing e-retail industry
Expansion in the e-retail industry is a major factor driving the growth of the AI in retail market globally. This growth in e-retailing can be mainly ascribed to the growing internet penetration, surging smartphone adoption, increasing alternate payment methods, and rising investments in logistics across the globe.
The retail market is rapidly evolving globally, more so because the incorporation of AI in operations has allowed retailers to predict consumer behavior and offer personalized services, thus enhancing customer experience and satisfaction. By leveraging AI technologies, such as accurate demand forecasting, real-time customer intelligence, and supply chain planning, retail firms greatly benefit from streamlined and automated operations, which are further helping them achieve organizational growth goals.
Growing adoption of AI-based image recognition technology
Facial recognition, a kind of computer vision technology, is gaining traction in the retail industry, as it facilitates increased customer satisfaction and improved staff management besides providing retailers with valuable insights related to customer preferences.
In the retail industry, image recognition technology enables brick-and-mortar stores to analyze in-store traffic, monitor stock, determine customer loyalty, and even map customer behavior as they walk around. Thus, retail stores are increasingly focusing on the implementation of AI-based image recognition technology to optimize their processes. For instance, in March 2018, 7-Eleven Inc., a convenience store chain in Thailand, entered a contract to adopt the AI-based facial recognition and behavior analysis technology developed by U.S.-based Remark Holdings Inc. to enhance customer support.
Browse Report Description With Detailed TOC on "AI in Retail Market Research Report: By Offering (Chatbot, CRM, SCM, Price optimization, Recommendation engine, Visual search), Technology (Machine Learning, NLP, Computer Vision), Regional Insight (U.S., Canada, U.K., Germany, France, Russia, Italy, China, Japan, South Korea, India, Australia, Brazil, Mexico, U.A.E., Saudi Arabia, Turkey, South Africa) – Global Industry Analysis and Growth Forecast to 2024" at:https://www.psmarketresearch.com/market-analysis/artificial-intelligence-in-retail-market
AI in Retail Market Competitive Landscape
The market is fragmented in nature and the competition is becoming intensive on account of the growing number of established players and regional players offering AI solutions and services. Presently, top companies like IBM Corporation, Salesforce.com Inc., Oracle Corporation, and Microsoft Corporation, are estimated to hold major market share.
The players were also engaged in product launches to fulfill the increasing demand of the brick and mortar stores as well as online retail stores and capture a larger customer base. For instance, in October 2018, Oracle Corporation launched AI-based Oracle Digital Assistant, which enables companies to build their personalized digital assistants. The system understands context, derives intent, and comprehend user behavior to automate routine tasks, such as rescheduling meetings and approving expenses, on behalf of the user.
Some of the key players in the market include International Business Machines Corporation, Microsoft Corporation, Google LLC, Accenture PLC, Infosys Limited, Intel Corporation, ViSenze Pte. Ltd., Evolv Technologies Inc., Numenta Inc., Salesforce.com Inc., Oracle Corporation, SAP SE, and Amazon Web Services Inc.
AI in Retail Market Segmentation
Market Segmentation by Offering
Market Segmentation by Technology