Artificial Intelligence (AI) in Retail Market size worth $20 Bn by 2027
Published Date: February 1, 2021 Authors: Ankita Bhutani, Preeti Wadhwani
Artificial Intelligence (AI) in Retail Market size is set to surpass USD 20 billion by 2027, according to a new research report by Global Market Insights, Inc.
The retail industry has witnessed an expansive transition toward digital infrastructure along with the adoption of advanced technologies. Enterprises are leveraging the advanced capabilities of IoT, big data, and other mobile technologies. As these components generate a large volume of data, companies are leveraging advanced analytics, machine learning, deep learning, object recognition, and other cognitive solutions. The rising uptake of these technology solutions is supporting the AI in retail market growth.
Expansive investment in technology from both public & private enterprises
Rising investments in AI technology is one of the major factors contributing to market growth. According to the International Finance Corporation, the Chinese government is taking initiatives and proactively focusing on initiatives for the development of the AI sector. In addition, government agencies are aiming to develop the sector, accounting for more than USD 150 billion by 2030. Similarly, technology investments from private enterprises will fuel the market growth.
Enterprise-wide demand to cater to the changing customer buying trends to propel the uptake of visual search solutions
The Ai in retail market from visual search solution segment is projected to witness growth rate of around 40% through 2027. The rapidly increasing mobile commerce and online shopping trends are driving enterprises to offer visual search solutions to their customers. The solution allows customers to search products using images instead of text or speech. The image recognition technology is used to analyze the visual data and provide relevant recommendations, enabling an improved shopping experience. Thus, companies across the retail & e-commerce sector are expected to drive the demand for visual search solutions.
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Increasing digitization across the retail sector and the growing e-commerce sector are likely to spur NLP technology adoption
The Natural Language Processing (NLP) technology is set to grow significantly from 2021 to 2027. Functional capabilities including virtual assistance & concierges, social media analysis, foreign language translation, and improving search results are contributing to the technology adoption. Enterprises are benefiting from these capabilities and are offering an enhanced shopping experience by catering to specific customer requirements. The growing penetration of the e-commerce sector is expected to contribute to technology adoption.
Browse key industry insights spread across 280 pages with 349 market data tables and 28 figures & charts from the report, “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” in detail along with the table of contents:
Rising demand to improve in-store experience and cater to customer preferences are fueling the uptake of AI
The in-store AI & location optimization segment is anticipated to account for more than 8% of the AI in retail market revenue share in 2027. Rising competition from e-commerce companies and growing demand for retail store optimization is poised to boost the segment growth. Companies are using AI technology to analyze consumer data to provide a better customer and in-store experience. This is also helping technologies to cater to the consistently changing customer preferences.
Expansive digitization and growth across the retail sector to augment market growth in Asia Pacific
The APAC AI in retail market is projected to capture above 25% share in 2027. The extensive digitization and growth in retail transactions followed by industrial investments are boosting the regional market growth. For instance, in 2019, China’s online retail transaction value was roughly USD 1.5 trillion, accounting for 25% of the worldwide transactions.
Focus on inorganic growth strategies by key players to expand market share
The AI in retail industry has witnessed several new product developments and portfolio innovation to strengthen market presence. For instance, in April 2019, Next IT Corporation launched an AI Blueprint, a conversation analysis system to accelerate automation and identification of use cases related to virtual assistants. AI Blueprint is capable of leveraging AI and machine learning for analysis, classification, and labeling of any company’s structured and unstructured conversational data. This helped the company to serve enterprises operating in the retail industry with advanced communication solutions.
Some of the key AI in retail market players include Amazon Web Services, Baidu, Inc., Bloom Reach, Inc., Cognitive Scale, 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., SAP SE, Sentient Technologies, and Visenze.