Artificial Intelligence (AI) in Retail Market Size By Component (Solution [Chatbot, Customer Behavior Tracking, Customer Relationship Management (CRM), Inventory Management, Price Optimization, Recommendation Engine, Supply Chain Management, Visual Search], Service [Professional Service, Managed Service]), By Technology (Machine Learning, Natural Language Processing (NLP), Computer Vision), By Application (Automated Merchandising, Programmatic Advertising, Market Forecasting, In-Store AI & Location Optimization, Data Science), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Published Date: Jan 2021  |  Report ID: GMI2568  |  Authors: Ankita Bhutani, Preeti Wadhwani

Report Format: PDF   |   Pages: 280   |   Base Year: 2020




Summary Table of Contents Industry Coverage Methodology

Industry Trends

AI in Retail Market size exceeded USD 2 billion in 2020 and is expected to grow at more than 30% CAGR between 2021 and 2027. Growing investments in AI technology to develop innovative applications for improving retail customer experience is driving the industry growth. The increasing investments are attributed to the widespread applications of AI technology, which include advanced analytics, machine learning, deep learning, object recognition, and other cognitive solutions. Investments in AI in retail technology are driven by key tech giants such as Google, Microsoft, IBM, AWS, and Baidu. The evolution in customer demand along with transformative technology innovations will also foster market outlook.
 

Artificial intelligence (AI) can enable retailers to fix product prices, manage pricing strategies and develop personalized recommendations. AI systems can collect sales data, demographic data and customer behavior to help improve shopping experience. AI in retail market will grow with high demand for market forecasting.
 

AI in Retail Market

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The recent COVID-19 outbreak has enforced strict lockdown across several parts of the world. This lockdown also forced temporary shutdown of many retail stores across the globe. The ecommerce become the more popular platform for shopping during the pandemic. The retail companies integrated AI technology into their shopping portals to improve the customer experience during pandemic.
 

Artificial Intelligence (AI) in Retail Market Report Coverage
Report Coverage Details
Base Year: 2020 Market Size in 2020: USD 2 Billion
Historical Data for: 2016 to 2019 Forecast Period: 2021 to 2027
Forecast Period 2021 to 2027 CAGR: 30% 2027 Value Projection: USD 20 Billion
Pages: 280 Tables, Charts & Figures: 377
Geographies covered (19): U.S., Canada, UK, Germany, France, Spain, Sweden, Switzerland, China, India, Japan, Australia, South Korea, Singapore, Brazil, Mexico, South Africa, Israel, UAE
Segments covered: Component, Technology, Application and Region
Companies covered (19): Amazon Web Services, Baidu Inc., BloomReach Inc., CognitiveScale Inc., Google Inc., IBM Corporation, Inbenta Technologies, Intel Corporation, Interactions LLC, Lexalytics Inc., Microsoft Corporation, NEXT IT Corp., Nvidia Corporation, Oracle Corporation, RetailNext Inc., Salesforce.com Inc., SAPSE, Sentient Technologies, and Visenze.
Growth Drivers:
  • Growing investment in AI
  • Increasingly empowered consumer
  • Rising disruptive technologies
  • Advent of new business models
  • Advancement in data science
Pitfalls & Challenges:
  • Limited public-private partnership to address social implications directly
  • Privacy issues associated with the use of AI Growth potential analysis

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Recommendation engines solution is likely to dominate the UK AI in retail market

The UK recommendation engines solution segment held a market share of over 30% in 2020. The increasing competition among e-commerce companies along with the growing need to provide personalized shopping experience to customers is fueling the market demand.  E-commerce companies are utilizing the capabilities of the AI in retail solutions to personalize the users’ shopping experience by analyzing the browsing pattern and on-site content. The AI in retail solution works on machine learning and deep learning algorithms to understand the customers’ requirement and recommend them with relevant products.
 

Increasing market demand for the intelligent algorithms among the retailers in China

China AI in Retail By Technology

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In China, machine learning technology is projected to register growth rate of around 40% through 2027. The growing adoption of intelligent algorithms among retailers to analyze customer behavior and provide personalized shopping experience is the primary factor driving the market trends. These AI in retail solutions allow retailers to automatically recommend products to customers by analyzing their purchase behavior and historical data. It also assists retailers in interacting with customers via virtual assistance and chatbots to provide personalized shopping experience.
 

Rapid digitalization of retail industry in Brazil

In Brazil, automated merchandising is forecast to capture over 30% of the AI in retail market share in 2027 propel by increasing digitalization in the retail sector. As the merchandising in retail is evolving rapidly and customers are becoming more empowered, retailers are embracing new technologies to provide the better customer experience and meet customer requirements. This is promoting the acceptance of automated merchandising in the retail sector. Automated merchandising captures critical information during the online shopping process to create a custom shopping experience for individual users through online product suggestions, thus increasing vendor revenue.
 

Rising investment in AI technology is supporting the North America AI in retail market

North America AI in Retail Market By Country

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North America accounted for above 50% market share in 2020 owing to the early adoption of the technology and presence of prominent industry players such as Google, Microsoft, IBM, Apple, and Facebook. Increasing investments in AI in retail technology through strategic alliances and funding to startups will further propel the market growth. These acquired firms provide AI technology for object recognition, audio transcription, natural language processing, and computer vision.
 

The presence of high proportion of affluent consumers and millennial consumers across the country has changed the consumer preference in the retail sector. Key market players, such as Walmart, are deploying AI technology to enhance customer experience, cater to the changing customer preference, improve ROI, and reduce retail shrinkage.
 

Enhancing the capabilities of their AI in retail solutions is the key strategy adopted by the leading market players

Major AI in retail companies are emphasizing on integrating advanced capabilities into their AI solutions to gain a competitive advantage in the market. For instance, in April 2019, SAP SE integrated AI-driven enhancements such as incident solution matching and real-time support resources such as the Schedule an Expert and Expert Chat services into its Next-Generation Support concept. This integration helped the company to help retailers in automating the customer support experience through innovative AI in retail solutions.
 

Some of the AI in retail market players are Amazon Web Services, Baidu Inc., BloomReach Inc., CognitiveScale Inc., Google Inc., IBM Corporation, Inbenta Technologies, Intel Corporation, Interactions LLC, Lexalytics Inc., Microsoft Corporation, NEXT IT Corp., Nvidia Corporation, Oracle Corporation, RetailNext Inc., Salesforce.com Inc., SAPSE, Sentient Technologies, and Visenze.
 

This market research report on AI in retail includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2027 for the following segments:
 

Market, By Component

  • Solution
    • Chatbots
    • Customer Behavior Tracking
    • CRM
    • Inventory Management
    • Price Optimization
    • Recommendation Engines
    • Supply Chain Management
    • Visual Search & Visual Listen
    • Others
  • Service
    • Professional Service
    • Managed Service

Market, By Technology

  • Machine Learning
  • Natural Language Processing
  • Computer Vision
  • Others

Market, By Application

  • Automated Merchandising
  • Programmatic Advertising
  • Market Forecasting
  • In Store AI & location optimization
  • Data Science
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Sweden
    • Switzerland
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Singapore
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • South Africa
    • UAE
    • Israel
       

Frequently Asked Questions (FAQ) :

Artificial Intelligence in retail industry size was valued at more than USD 2 billion in 2020 and is likely to expand at a CAGR of over 30% through 2027.
Recommendation engines solution in UK accounted for over 30% of AI in retail market share in 2020 owing to the growing competition among e-commerce companies.
China machine learning segment is poised to grow at nearly 40% rate through 2027 driven by the increasing adoption of intelligent algorithms among retailers to provide a personalized customer experience.
Automated merchandising in Brazil is set to hold 30% of the overall market share through 2027 due to the soaring digitization in retail sector.
North America captured more than 50% of Ai in retail market share in 2020 and is anticipated to witness exponential growth propelled by the presence of key industry players and early adoption of technology.

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Premium Report Details

  • Published Date: Jan 2021
  • Pages: 280
  • Tables: 349
  • Charts / Figures: 28
  • Companies covered: 19
  • Countries covered: 19

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