AI In Retail Market Size, Share & Trends Analysis Report By Component, By Technology (Chatbots, Natural Language Processing), By Sales Channel, By Application, By Region, And Segment- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The global AI in retail market size was exhibited at USD 7.2 billion in 2022 and is projected to hit around USD 57.59 billion by 2032, growing at a CAGR of 23.11% during the forecast period 2023 to 2032.

Key Pointers:

• The solution segment dominated with a revenue share of more than 72.2% in 2022. 
• The machine learning segment led the market with a revenue share of 31.2% in 2022.
• The Omni channel segment held the largest revenue share of 44.3% in 2022. 
• The Customer relationship management (CRM) segment held a revenue share of more than 20.7% in 2022. 
• The virtual assistance segment is anticipated to witness the fastest CAGR of 25.8% from 2023 to 2032.
• North America dominated with a revenue share of 39.5% in 2022.
• Asia Pacific is expected to witness the fastest CAGR of 31.9% from 2023 to 2032.

The growth is fueled by factors such as the constantly rising number of internet users, smart devices, the need for surveillance and monitoring at a physical store, and government policies toward digitization. AI in the retail industry revolves around how corporations have operated over the past few decades. Big data analytics and AI are crucial to digital business; they have the capabilities to transform everything from customer experience to business operations.

The adoption of big data analytics and AI in the retail industry has been growing due to technological advancements, increasing penetration of applications and smart devices, adoption of cloud services, and proliferation of IoT. For instance, in February 2022, Baker Hughes, a provider of oil field services, partnered with C3.ai and announced the release of an AI-based application, BH3 Production optimization, that enables operators to observe real-time production statistics and optimize operations, and better forecast future production, for increased gas and oil production rates

The rising prominence of advanced technologies, such as chatbots and voice recognition programs, has furthered the growth potential. Moreover, the emerging online retail sales, increasing focus of retailers on improving customers’ shopping experience, rising reliance on digital marketing, and growing investments in AI, accompanied by supportive government regulations, are the crucial factors contributing to the progress of the industry worldwide.

AI algorithms play a pivotal role in assessing a considerable amount of data collated from consumers’ online behavior. Moreover, AI-driven image and video analytics have become trendier to help filter out and classify images and less important visual content, expediting investments across developed and developing economies.

Adopting AI in retail helps provide better outcomes and engage customers in the virtual world, which is expected to increase demand for AI in retail in the coming years. For instance, in January 2021, Google LLC launched Product Discovery Solutions for Retail. This product is a suite of services created to improve retailers’ e-commerce potential and aid them in delivering personalized consumer experiences.

The image and video analytics segment is poised to gain a significant share in the AI in retail market during the assessment period, partly due to the growing prominence of in-store promotional strategies and image search. To illustrate, eBay uses AI to streamline image searches, enhance buyer-seller trust, and boost shipping and delivery times. Meanwhile, Amazon prioritizes AI to expand visual search and facial recognition, among others.

Stakeholders anticipate the virtual assistant segment to contribute significantly to the global market. The trend is mainly attributed to the growing prominence of voice-powered search queries and personalized shopping experiences. Prominently, intelligent virtual assistants have reshaped the industry dynamics, helping retailers handle customer queries seamlessly.

Major players in the market are consistently investing in advanced technologies and introducing customer targeting and tailored solutions to stay ahead of the competition. For instance, in August 2021, Kenco, a company that provides logistics services based in the U.S., launched DaVinci AI to create predictive insights, boosting supply chain and prescriptive actions.

AI in retail Market Segmentation

AI in retail Market Key Players And Regions