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AI in Retail Market Analysis
- Report ID: GMI2568
- Published Date: Jan 2023
- Report Format: PDF
AI in Retail Market Analysis
According to the report, the computer vision technology segment held more than a 15% share of the AI in retail market in 2022. The prevalent utilization of computer vision technology by merchants for several in-store applications to compete with their online rivals is driving the market demand. For instance, in September 2022, Kroger Co., an American retailer, rolled out its visual AI-based self-checkout solution that uses Nvidia’s computer vision and AI capabilities with Evergreen’s Visual AI.
With respect to components, the solution segment is expected to grow at 30% CAGR through 2032. The widespread adoption of analytics solutions by online retailers to widen their client base and offer better customer experience is set to facilitate the industry expansion. For instance, in October 2022, Wayfair, a store-commerce firm, completed a full digital transformation by migrating its data center applications and services to Google Cloud Foundation.
In terms of application, the programmatic advertising segment is projected to cross USD 25 billion by 2032. Today's omnichannel consumers can be more effectively reached through programmatic advertising that delivers continually tailored messaging at a massive scale, which is foreseen to propel segment development. According to the Journal of Service Management, consumer preference for programmatic advertising is directly related to their attitude toward the retailer and perceived ad relevance, which generates real-time ads that match their interests.
Under solution, the AI in retail market size from the price optimization segment is poised to amass substantial gains by 2032, as firms are becoming increasingly competitive to extend their customer reach due to declining product differentiation resulting from the rising use of e-commerce platforms. Moreover, with the e-commerce boom, firms are leveraging AI to determine optimal prices in order to bolster their sales, which is foreseen to drive price optimization solutions uptake.
Regionally, the Europe Artificial Intelligence in retail market is estimated to hold more than 15% revenue share by 2032, attributed to rapid digitalization, shifting customer preferences, and product innovation efforts by industry participants operating in the region. For instance, French retail behemoth Carrefour unveiled its first AI-powered store in Paris – the Flash 10/10 (10 seconds to shop & 10 seconds to pay).
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Artificial Intelligence (AI) in Retail Market Scope
