Artificial Intelligence (AI) in Retail Market Size & Trend Report, 2023-2032
The global artificial intelligence (AI) in retail market size was exhibited at USD 8.41 billion in 2022 and is projected to hit around USD 45.74 billion by 2032, growing at a CAGR of 18.45% during the forecast period 2023 to 2032.
Key Pointers:
Artificial Intelligence (AI) in Retail Market Report Scope
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Report Coverage |
Details |
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Market Size in 2023 |
USD 8.41 Billion |
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Market Size by 2032 |
USD 45.74 Billion |
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Growth Rate From 2023 to 2032 |
CAGR of 18.45% |
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Base Year |
2022 |
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Forecast Period |
2023 to 2032 |
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Segments Covered |
By Component, By Technology, By Sales Channel, By Application |
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Market Analysis (Terms Used) |
Value (US$ Million/Billion) or (Volume/Units) |
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Regional Scope |
North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa |
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Key Companies Profiled |
IBM Corporation, Microsoft, SAP SE, Amazon Web Services, Oracle, Salesforce Inc., Intel, NVIDIA, Google LLC, Sentient Technology, ViSenze and Others. |
The global artificial intelligence market in the retail sector is expected to register a CAGR of 18.45% in the forecast period. The sector is changing due to the introduction of artificial intelligence in retail. Businesses are now tracking their operations to support corporate plans, deliver better results, and communicate with customers online. A growing number of smart devices and internet users, rising awareness of AI and big data and analytics, and government initiatives toward digitalization are fueling the expansion of global artificial intelligence in the retail market.
Digital transformation in retail is about more than just connecting things.It involves turning data into insights that guide decisions and lead to improved business results. AI largely produces these insights in retail, specifically machine learning and deep learning. For retailers, this results in fantastic customer experiences, chances to increase revenue, rapid innovation, and intelligent operations—all of which help set you apart from your rivals.
The most commonly used AI technologies are machine learning and deep learning.Organizations in the retail industry use machine learning and deep learning technology to offer a more personalized experience to end-users and provide an interactive environment for them. Brick-and-mortar stores are embracing computer vision, a subset of deep learning in artificial intelligence used in retail. Computer vision "sees" and decodes visual information, giving you eyes in the right places. New retail use cases in customer experience, demand forecasting, inventory management, and other areas are becoming possible.
Further, businesses can discern client intent thanks to new varieties of AI at the retail edge and tailor the shopper's journey accordingly. Heat mapping in the store is one illustration. Cameras and computer vision work together to reveal which items are taken, which are returned, and where customers go after leaving the shelf. Retailers can utilize this information to develop experiences that encourage product engagement and aid in product education.
Additionally, for retailers, keeping an accurate inventory is a huge concern. Retailers may improve inventory management by understanding their stores, customers, and items by linking more aspects of their operations and implementing AI.
According to a study by IBM Corporation, the adoption of AI in retail and consumer products is expected to leap from 40% of companies currently to more than 80% in three years. Additionally, the retail industry's investment in artificial intelligence (AI) technology is growing. Investments in AI-powered predictive and prescriptive analytics would double in that time frame.
The COVID-19 outbreak accelerated the significance of online shopping channels, as consumers considered online platforms their primary shopping channel. This had given retailers and consumer goods organizations a great opportunity to adopt sustainability initiatives that were integrated with their digital presence. Therefore, retailers used the e-commerce platform and online marketplaces to capitalize on this changing trend.
North America dominated with a revenue share of 39.5% in 2022. The opportunities for industry expansion are strong, as significant investments are being made in AI projects and related research and development activities. Furthermore, regional retail vendors are concentrating on extracting available data on customer preferences to improve customer service efficiency.
The leading companies, such as Google Inc.; Microsoft; IBM Corporation; Salesforce; and Amazon Web Services adopt organic and inorganic strategies. For instance, in January 2021, Google Cloud rolled out Product Discovery Solutions for retail to foster personalized online shopping.
Asia Pacific is expected to witness the fastest CAGR of 31.7% from 2023 to 2032. The region's expansion can be attributed to technological advancements in countries such as China, Japan, and India. The rapid adoption of smart devices, and the widespread use of 5G technology in the retail sector, are the primary factors driving the growth of Asia Pacific AI in retail market.
Some of the prominent players in the Artificial Intelligence (AI) in Retail Market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Artificial Intelligence (AI) in Retail market.
By Component
By Technology
By Sales Channel
By Application
By Region
Cross-segment Market Size and Analysis for Mentioned Segments
Additional Company Profiles
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Additional Countries (Apart
From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers