AI in e-commerce market - Forecasts from 2024 to 2029

AI in e-commerce market - Forecasts from 2024 to 2029

The AI in e-commerce market is expected to grow at a CAGR of 15.70%, reaching a market size of US$14.520 billion in 2029 from US$7.886 billion in 2024.

Artificial intelligence in e-commerce refers to the use of AI technologies and techniques to enhance the online shopping experience, process, and outcomes for individuals or organizations. Key features of AI e-commerce include customer centricity, chatbots and virtual assistants, prediction, and dynamic pricing. It also ensures better customer engagement, providing e-commerce firms with specialized recommendations based on content, commercials, and marketing mediums oriented to customers’ preferences and behavioral patterns.

Intelligent virtual agents are chatbots and voice self-assist devices that perform many of the functions of a customer care executive, such as addressing customer queries, conducting product searches, and enhancing cross-communication throughout the customer journey. This enhances the customer journey, reduces turnaround times, and lowers costs for e-commerce businesses. Graphics and Predictive Analysis in Artificial Intelligence (AI) is accompanied by predicting financial and human resource management accounting demand, involved supply chain process control and risk management in e-commerce industries, and sales-related statistics collection and analysis.

Moreover, drawing on historical data and trends in the given industry, business enterprises in e-commerce would be able to avoid losses by stocking out products. E-commerce AI solutions streamline processes within the organization, enhance the experience of the clients, and speed up development in the very competitive web environment. Thus, e-commerce revolutionizes the ways of doing business and encourages creativity.

AI in e-commerce market drivers
Rising personalized shopping experiences is contributing to the AI in e-commerce market growth

AI recommendation engines can use the data and behavior of the user and other people to recommend products to the users. This leads to increased user interaction and purchase rates. Inordinate shopping experiences play a major part in AI in e-commerce market growth, enhancing customer engagement, conversion, and loyalty for a particular brand. For instance, ZBrain is one of the industry's most significant and differentiating offerings, being a comprehensive generative AI system for building enterprise LLM-based applications from scratch. ZBrain’s real-life implementations of solutions can ease processes by carrying out some tasks, enhancing interactions with customers, and making strategic decisions.

Moreover, AI in e-commerce brings higher customer satisfaction, purchase rates, and the industry’s expansion as a whole due to enhanced targeted and personalized shopping experience. With technological changes, personalization in e-commerce will become more tactical as online shoppers expect more dedicated and relevant services.

AI in the e-commerce market geographical outlook
North America is witnessing exponential growth during the forecast period

North American market is expected to hold the largest share, as it is known for its technology-oriented creative business culture. It is home to some of the most rapidly expanding and existing tech giants, such as IBM, Salesforce, Meta, and Google, to mention a few. Such an environment promotes the growth and utilization of technology, including AI, in various industries such as e-commerce. The continent of North America possesses a well-developed digital infrastructure, such as high-speed internet. Still, a majority of the population is challenged with using smartphones and advanced means of payment. All these factors encourage both businesses and individuals to embrace AI-driven e-commerce systems.

Additionally, North America has a huge chunk of the e-commerce business globally, thanks to the large population that adheres to online shopping and the rapidly growing digital space. This allows several opportunities for AI e-commerce solution providers to enter the region and conquer the market.

Reasons for buying this report:

Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, other sub- segments.
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 e-commerce market is analyzed into the following segments:

By Application

Personalization
Customer Service
Supply Chain Optimization
Fraud Prevention

By Offering

B2B
B2C
C2C
Omnichannel

By End-Users

Food and Beverages
Fashion & Apparel
Retail
Healthcare
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