AI In Retail Market - Forecasts from 2024 to 2029

AI In Retail Market - Forecasts from 2024 to 2029

The AI in the retail market is expected to grow at a CAGR of 36.60%, reaching a market size of US$53.271 billion in 2029 from US$19.508 billion in 2024.

The emergence of surveillance and monitoring at a physical retail location, the constant rise of internet users and smart gadgets, and the government's stance toward digitization are contributing to AI in the retail industry’s growth.

Moreover, the way companies have operated in the past few decades lies at the heart of artificial intelligence in the retail industry. AI and big data analytics are the core components of any digitalized business, as they can enhance services, processes, and even the entire business. The growing awareness and adoption of big data analytics and AI applications in retail is also driven by the advancement of technology such as IoT, machine learning services, and increased usage of applications and smart devices, among others.

AI in retail market drivers
E-commerce growth is contributing to the AI in retail market growth

With the boom of e-commerce and digital experiences, there has been a call for using Artificial Intelligence in the retail sector. Most online retailers use AI-based recommendation systems, chatbots, and virtual assistants to enhance the online shopping experience while engaging consumers to drive conversations. Additionally, even physical stores are enhancing their operations with artificial intelligence to bridge the gap left in the customers' shopping trips.

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The growth of e-commerce also promotes the use of artificial intelligence in the retail sector. New markets are accompanied by a wealth of data, leading to expectations for improved service, greater operational efficiency, and enhanced security. This business environment creates opportunities for more effective use of AI in retail.

AI in the retail market geographical outlook
North America is witnessing exponential growth during the forecast period

North America is home to many leading technology companies and research institutions driving innovation in AI and retail, like Intel, Nvidia, and Accenture. These improvements aid in creating and using artificial intelligence in the retail industry.

Retailers in North America are employing AI technology to improve operations such as personalized advertising, customer service, inventory management, and price optimization. As this region is characterized by a buoyant retail industry, the presence of traditional retailers, e-commerce players, and brick-and-mortar shops, it offers a perfect ground for adopting AI to stay ahead of the competition in an ever-dynamic environment.

North America's vast customer data is critical for AI algorithms and predictive analytics, allowing merchants to create more personalized shopping experiences. The region's enabling environment, which includes venture capital investment, government initiatives, university research, and a trained workforce, fosters innovation and growth in the AI and retail industries.

Reasons for buying this report:

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Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape up future market developments.
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Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence

Report Coverage:

Historical data & forecasts from 2022 to 2029
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

The AI in retail market is analyzed into the following segments:

By Deployment Type

Cloud
On-Premise

By Technology

Large language model
Machine Learning
Chatbots
Others

By Application

Demand forecasting
Recommendations
Inventory management
Sentiment analysis
Others

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
UK
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Indonesia
Taiwan
Others