Artificial Intelligence in Retail Market Report 2024 (Global Edition)

Global Artificial Intelligence in Retail Market Report 2024 Market Size Split by Type (Online, Offline), by Application (Predictive Merchandising, Programmatic Advertising, Market Forecasting, In-Stor...

Artificial Intelligence in Retail Market Report Description

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Artificial Intelligence in Retail Market Insights Video

Competitive Landscape Of Artificial Intelligence in the Retail market

In the fiercely competitive landscape of Artificial Intelligence in the Retail market, key players are engaged in intense innovation and strategic maneuvers to gain a stronghold in this rapidly evolving industry.

January 2023 - Perfect partnered with Valmont, a luxury cosmetics brand, for its latest Al-focused beauty partnership. The collaboration brings Valmont's background in skincare with Perfect's artificial intelligence solution to offer consumers a detailed skin analysis.

Source-www.businesswire.com/news/home/20230123005226/en/Perfect-Corp.-Partners-with-Valmont-to-Launch-Brand-New-Interactive-AI-Powered-Skin-Analysis-Experience

Top Companies Market Share in Artificial Intelligence in Retail Industry: (In no particular order of Rank)

• Amazon.com Inc. (U.S.)
• Google LLC (U.S.)
• IBM Corporation (U.S.)
• Intel Corporation (U.S.)
• Microsoft Corporation (U.S.)
• Nvidia Corporation (U.S.)
• Oracle Corporation (U.S.)
• SAP SE (Germany)
• Salesforce.com
• Inc. (U.S.)
• Talkdesk Inc. (U.S.)
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

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In terms of revenue, the North America Artificial Intelligence In Retail Market share was 40% of the total market

According to Cognitive Market Research, the global Artificial Intelligence In Retail market size was estimated at USD 4951.2 Million out of which North America held the major market of more than 40% of the global revenue with a market size of USD 1980.48 million in 2023 and will grow at a compound annual growth rate (CAGR) of 37.7% from 2023 to 2030. In terms of regional analysis, North America boasts a thriving retail sector, advanced technological infrastructure, and a robust appetite for innovation. One significant segment driving this dominance is the adoption of A.I. for predictive merchandising, enabling retailers to optimize inventory, forecast consumer trends, and enhance overall merchandising strategies. In conclusion, North America's prominent market share underscores its pivotal role in shaping the trajectory of global A.I. in the Retail market, reflecting the region's embrace of cutting-edge technologies and its significant contribution to the continual evolution of AI-driven retail solutions.

According to Cognitive Market Research, the global Artificial Intelligence In Retail market size was estimated at USD 4951.2 Million out of which Asia Pacific held the major market of more than 23% of the global revenue with a market size of USD 1138.78 million in 2023 and will grow at a compound annual growth rate (CAGR) of 41.5% from 2023 to 2030. The regional analysis highlights Asia-Pacific's burgeoning retail sector, characterized by a rapidly expanding middle class, technological advancements, and a growing appetite for digital transformation. One notable segment driving this growth is the adoption of A.I. for in-store visual monitoring and surveillance, leveraging advanced technologies to enhance security and optimize the in-store shopping experience. In conclusion, Asia-Pacific's remarkable market share and rapid expansion underscore its pivotal role in shaping the future of A.I. in Retail, reflecting the region's dynamic market dA.I.amics and the integration of cutting-edge technologies into the retail landscape.

The current report Scope analyzes Artificial Intelligence in Retail Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Artificial Intelligence in Retail

According to Cognitive Market Research, the global Artificial Intelligence In Retail market size was estimated at USD 4951.2 Million out of which North America held the major market of more than 40% of the global revenue with a market size of USD 1980.48 million in 2023 and will grow at a compound annual growth rate (CAGR) of 37.7% from 2023 to 2030. In terms of regional analysis, North America boasts a thriving retail sector, advanced technological infrastructure, and a robust appetite for innovation. One significant segment driving this dominance is the adoption of A.I. for predictive merchandising, enabling retailers to optimize inventory, forecast consumer trends, and enhance overall merchandising strategies. In conclusion, North America's prominent market share underscores its pivotal role in shaping the trajectory of global A.I. in the Retail market, reflecting the region's embrace of cutting-edge technologies and its significant contribution to the continual evolution of AI-driven retail solutions.

• According to Cognitive Market Research, the U.S. had a major share of artificial intelligence in the retail market, with a market size of USD 1562.60 million in 2023, which is projected to grow at a CAGR of 37.5% during the forecast period. This is majorly due to the growingadvanced technological infrastructure, and inclusivity also plays key roles in sustaining market growth and demU.S.d. 
• The Canada Artificial Intelligence in Retail market had a market share of USD 237.66 million in 2023 and is projected to grow at a CAGR of 38.5% during the forecast period. This is due to theadoption of A.I. for predictive merchandising, enabling retailers to optimize inventory, forecast consumer trends, and enhance overall merchandising strategies. 
• The Mexico Artificial Intelligence In Retail market is projected to witness growth at a CAGR of 38.2% during the forecast period, with a market size of USD 180.22 million in 2023.

Europe Artificial Intelligence in Retail

According to Cognitive Market Research, the global Artificial Intelligence In Retail market size was estimated at USD 4951.2 Million, out of which the European market held more than 30% of the global revenue with a market size of USD 1485.36 million in 2023 and will grow at a compound annual growth rate (CAGR) of 38.0% from 2023 to 2030. The regional analysis underscores Europe's mature retail landscape, characterized by a sophisticated consumer base and a strong emphasis on technological integration. One notable segment contributing to this market share is the adoption of AI for customer relationship management, enhancing personalized interactions, and fostering customer loyalty. In conclusion, Europe's commanding market share exemplifies its pivotal role in shaping the trajectory of global AI in the Retail market, reflecting the region's commitment to technological advancements and its influence in AI innovative solutions that cater to the evolving needs of the retail industry. 

• According to Cognitive Market Research, Germany's artificial intelligence in retail market size was valued at USD 294.10 million in 2023 and is projected to grow at a CAGR of 38.2% during the forecast period. This is majorly due to the growingsophisticated consumer base and a strong emphasis on technological integration and inclusivity, which also play key roles in sustaining market growth and demand. 
• The United Kingdom's Artificial Intelligence In Retail market had a market share of USD 249.54 million in 2023 and is projected to grow at a CAGR of 38.8% during the forecast period. This is due to the increasedtechnological advancements and their influence in driving innovative solutions that cater to the evolving needs of the retail industry. 
• France's Artificial Intelligence in Retail market is projected to witness growth at a CAGR of 37.2% during the forecast period, with a market size of USD 136.65 million in 2023.
• Italy's Artificial Intelligence in Retail market is projected to witness growth at a CAGR of 37.4% during the forecast period, with a market size of USD 127.74 million in 2023.
• The RussiaArtificial Intelligence in Retail market is projected to witness growth at a CAGR of 37.0% during the forecast period, with a market size of USD 230.23 million in 2023.
• Spain's Artificial Intelligence in Retail market is projected to witness growth at a CAGR of 37.1% during the forecast period, with a market size of USD 121.80 million in 2023.
• Portugal's Artificial Intelligence in Retail market is projected to witness growth at a CAGR of 37.8% during the forecast period, with a market size of USD 31.19 million in 2023.
• The LuxembourgArtificial Intelligence in Retail market is projected to witness growth at a CAGR of 38.1% during the forecast period, with a market size of USD 46.05 million in 2023.
• The GreeceArtificial Intelligence in Retail market is projected to witness growth at a CAGR of 38.3% during the forecast period with a market size of USD 17.82 million in 2023.
• The Rest of Europe's Artificial Intelligence in Retail market is projected to witness growth at a CAGR of 36.7% during the forecast period, with a market size of USD 230.23 million in 2023.

Asia Pacific Artificial Intelligence in Retail

According to Cognitive Market Research, the global Artificial Intelligence In Retail market size was estimated at USD 4951.2 Million out of which Asia Pacific held the major market of more than 23% of the global revenue with a market size of USD 1138.78 million in 2023 and will grow at a compound annual growth rate (CAGR) of 41.5% from 2023 to 2030. The regional analysis highlights Asia-Pacific's burgeoning retail sector, characterized by a rapidly expanding middle class, technological advancements, and a growing appetite for digital transformation. One notable segment driving this growth is the adoption of A.I. for in-store visual monitoring and surveillance, leveraging advanced technologies to enhance security and optimize the in-store shopping experience. In conclusion, Asia-Pacific's remarkable market share and rapid expansion underscore its pivotal role in shaping the future of A.I. in Retail, reflecting the region's dynamic market dynamics and the integration of cutting-edge technologies into the retail landscape.

• According to Cognitive Market Research, China's Artificial Intelligence In Retail market size was valued at USD 512.45 million in 2023 and is projected to grow at a CAGR of 41.0% during the forecast period. This is majorly due to therapidly expanding middle class; technological advancements and inclusivity also play key roles in sustaining market growth and demand. 
• India's Artificial Intelligence in the Retail market had a market share of USD 136.65 million in 2023 and is projected to grow at a CAGR of 43.3% during the forecast period. This is due to thegrowing appetite for digital transformation. 
• Japan's Artificial Intelligence in Retail market is projected to witness growth at a CAGR of 40.0% during the forecast period, with a market size of USD 157.15 million in 2023.
• The South KoreaArtificial Intelligence in Retail market is projected to witness growth at a CAGR of 40.6% during the forecast period with a market size of USD 113.88 million in 2023.
• The AustraliaArtificial Intelligence in Retail market is projected to witness growth at a CAGR of 41.2% during the forecast period with a market size of USD 59.22 million in 2023.
• The South East AsiaArtificial Intelligence in Retail market is projected to witness growth at a CAGR of 42.5% during the forecast period, with a market size of USD 78.58 million in 2023.
• The Rest of the Asia PacificArtificial Intelligence in Retail market is projected to witness growth at a CAGR of 41.3% during the forecast period, with a market size of USD 80.85 million in

South America Artificial Intelligence in Retail

According to Cognitive Market Research, the global Artificial Intelligence In Retail market size was estimated at USD 4951.2 Million, out of which the Latin America market held more than 5% of the global revenue with a market size of USD 247.56 million in 2023 and will grow at a compound annual growth rate (CAGR) of 38.9% from 2023 to 2030. The regional analysis reveals Latin America's growing interest in adopting A.I. technologies within the retail sector, driven by an expanding middle class and a shift towards digital commerce. One notable segment contributing to this market share is the implementation of A.I. for market forecasting, enabling retailers to navigate unpredictable market conditions. In conclusion, Latin America's market share underscores its potential and influence in the global A.I. in the Retail market, signifying an increasing recognition of the transformative power of A.I. solutions in addressing the unique challenges and opportunities within the region's retail landscape.

According to Cognitive Market Research, the Brazil Artificial A.I.intelligence In Retail market size was valued at USD 105.96 million in 2023 and is projected to grow at a CAGR of 39.5% during the forecast period. This is majorly due to the growing demand for adopting A.I. technologies within the retail sector; product innovation and inclusivity also play key roles in sustaining market growth and demand. 

• Argentina's Artificial Intelligence In Retail market had a market share of USD 41.59 million in 2023 and is projected to grow at a CAGR of 39.8% during the forecast period. This is due to the increased demand forincreasing recognition of the transformative power of AI solutions. 
• The ColombiaArtificial Intelligence In Retail market is projected to witness growth at a CAGR of 38.7% during the forecast period, with a market size of USD 22.03 million in 2023.
• The PeruArtificial Intelligence In Retail market is projected to witness growth at a CAGR of 39.1% during the forecast period, with an AI size of USD 20.30 million in 2023.
• The ChileArtificial Intelligence In Retail market is projected to witness growth at a CAGR of 39.2% during the forecast period, with a market size of USD 17.82 million in 2023.
• The Rest of Latin America's Artificial Intelligence In the Retail market is projected to witness growth at a CAGR of 38.0% during the forecast period, with a market size of USD 39.86 million in 2023.

Middle East and Africa Artificial Intelligence in Retail

According to Cognitive Market Research, the global Artificial Intelligence In Retail market size was estimated at USD 4951.2 Million, out of which the Middle East and Africa market held more than 2.00% of the global revenue with a market size of USD 99.02 million in 2023 and will grow at a compound annual growth rate (CAGR) of 39.2% from 2023 to 2030. The regional analysis unveils a growing interest in A.I. adoption within the retail sector, driven by economic diversification efforts and an increasingly tech-savvy consumer base. One notable segment contributing to this market share is the integration of A.I. for supply chain management and demand planning, enhancing operational efficiency. In conclusion, the Middle East and Africa's moA.I.st market share signals a burgeoning momentum in embracing A.I. solutions, highlighting the region's potential to leverage Technology for reshaping the retail landscape and addressing unique market dynaA.I.cs.

According to Cognitive Market Research, the GCC Countries Artificial Intelligence In Retail market size was valued at USD 42.38 million in 2023 and is projected to grow at a CAGR of 40.0% during the forecast period. This is majorly due to thegrowing interest in A.I. adoption within the retail sector, and inclusivity also plays a key role in sustaining market growth and demand. 

• The South AfricaArtificial Intelligence In Retail market had a market share of USD 015.65 million in 2023 and is projected to grow at a CAGR of 40.2% during the forecast period. This is due to theeconomic diversification efforts and an increasingly tech-savvy consumer base. 
• TheEgyptArtificial Intelligence In Retail market is projected to witness growth at a CAGR of 39.5% during the forecast period, with a market size of USD 10.40 million in 2023.
• TheTurkish artificial intelligence in retail market is projected to witness growth at a CAGR of 38.7% during the forecast period with a market size of USD 8.52 million in 2023.
• TheNigeriaArtificial Intelligence In Retail market is projected to witness growth at a CAGR of 38.3% during the forecast period with a market size of USD 10.40 million in 2023.
• The Rest of the MEAArtificial Intelligence In the Retail market is projected to witness growth at a CAGR of 38.2% during the forecast period, with a market size of USD 11.68 million in 2023.

Artificial Intelligence in Retail Market Analysis

Artificial Intelligence In Retail Market Type Segment Analysis

According to Cognitive Market Research, the dominant category is online retail with A.I. integration. The surge in e-commerce and online shopping has propelled the adoption of A.I. technologies to enhance the digital retail experience. AI-driven applications, such as personalized recommendations, virtual try-ons, and Chabot for customer support, have become integral to online retail strategies. The dominance of this category is fuelled by the continuous growth of online shopping platforms, emphasizing the importance of A.I. in providing a seamless and personalized online shopping experience for consumers.

The fastest-growing category in artificial intelligence in the retail market is the transformation of offline retail with A.I. integration. While online retail dominates, traditional brick-and-mortar stores are increasingly embracing A.I. technology to stay competitive. AI-driven solutions, including smart shelves, cashier-less checkout, and in-store analytics, are reshaping the offline retail landscape. This transformation addresses the demand for a moA.I. tech-savvy and streamlined in-store experience. The rapid growth in adopting AI to enhance offline retail operations signifies the industry's commitment to leveraging technology for an omnichannel retail approach and meeting the evolving expectations of modern consumers.

• Online
• Offline

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Artificial Intelligence in Retail Industry. Request a Free Sample PDF!

The dominant category is predictive merchandising applications. Leveraging A.I. algorithms, predictive merchandising analyses historical and real-time data to forecast consumer trends, optimize inventory, and enhance product assortments. This category's dominance is attributed to its pivotal role in empowering retailers to proactively meet customer demands, minimize stockouts, and maximize sales. By accurately predicting consumer preferences and buying patterns, retailers can strategically position their products, improving overall merchandising effectiveness and contributing to increased customer satisfaction.

The fastest-growing category in Artificial Intelligence in the Retail market is Location-Based Marketing Solutions. AI-driven location-based marketing utilizes geospatial data to deliver personalized and context-aware promotions to customers within specific physical locations. The rapid growth of this category is fuelled by the increasing importance of providing hyper-targeted and relevant marketing messages to consumers based on their real-time locations. This Technology enhances customer engagement, encourages foot traffic to physical stores, and contributes to a more personalized shopping experience. The fastest growth in location-based marketing solutions reflects the industry's recognition of the significance of context-aware promotions in driving footfall and sales in the retail landscape.

• Predictive Merchandising
• Programmatic Advertising
• Market Forecasting
• In-Store Visual Monitoring and Surveillance
• Location-Based Marketing
• Other

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Artificial Intelligence in Retail Technology Segment Analysis

According to Cognitive Market Research, the dominant category is Machine Learning and Deep Learning applications. These technologies play a pivotal role in driving predictive analytics, demand forecasting, and personalized recommendations for retailers. Machine Learning algorithms analyze vast datasets to identify patterns, optimize pricing strategies, and enhance customer segmentation, while Deep Learning algorithms excel in image and speech recognition, crucial for applications like visual search and voice-activated shopping. The dominance of Machine Learning and Deep Learning underscores their versatility in addressing various retail challenges and their pivotal role in reshaping the industry's operational landscape.

The fastest-growing category in Artificial Intelligence in the Retail market is Natural Language Processing (NLP) solutions. NLP technologies empower retailers to understand and respond to customer queries, reviews, and feedback in a more human-like manner. Chabot, virtual assistants, and sentiment analysis tools, driven by NLP, enhance customer interactions, providing personalized assistance and improving overall satisfaction. As the demand for seamless customer experiences grows, the adoption of NLP solutions in retail is rapidly expanding, making it the fastest-growing category. NLP's ability to decipher and respond to natural language contributes significantly to elevating customer engagement and communication in the retail sector.

• Machine Learning and Deep Learning
• Natural Language Processing
• Others

Artificial Intelligence in Retail Solution Segment Analysis

According to Cognitive Market Research, the dominant category is Product Recommendation and Planning Solutions. These solutions utilize A.I. algorithms to analyze customer preferences, behaviors, and historical data to deliver personalized product recommendations. The dominance of this category is rooted in its ability to enhance the customer shopping experience, increase average transaction values, and drive customer loyalty. Retailers prioritize these solutions to provide tailored suggestions, improving customer satisfaction and ultimately boosting sales.

The fastest-growing category in Artificial Intelligence in the Retail market is Virtual Assistant Solutions. AI-powered virtual assistants, including Chabot and voice-activated assistants, are witnessing rapid adoption to enhance customer engagement and support. These virtual assistants provide real-time assistance, answer customer queries, and offer personalized recommendations, contributing to an improved overall shopping experience. As retailers increasingly prioritize seamless customer interactions, the adoption of virtual assistant solutions is accelerating, making it the fastest-growing category in the A.I. in the Retail market. The versatility of virtual assistants in addressing customer needs positions them as a pivotal tool for retailers aiming to stay competitive in the evolving retail landscape.

• Product Recommendation and Planning
• Customer Relationship Management
• Visual Search
• Virtual Assistant
• Price Optimization
• Payment Services management
• Supply chain management and Demand Planning
• Others

Artificial Intelligence in Retail Services Segment Analysis

According to Cognitive Market Research, the dominant category is Professional Services. These services include A.I. consultancy, implementation, customization, and training to help retailers effectively integrate and optimize A.I. solutions within their operations. With the complexity of A.I. adoption in retail, professional services play a crucial role in ensuring a seamless and tailored implementation. The dominance of professional services highlights the demand for specialized expertise to navigate the intricacies of A.I. technology, guiding retailers through the strategic deployment of A.I. solutions to maximize their impact on business operations and customer experiences.

The fastest-growing category in Artificial Intelligence in the Retail market is Managed Services. As retailers increasingly seek end-to-end solutions for A.I. integration, manage A.I. services providers offer ongoing support, maintenance, and optimization of A.I. systems. This category is witnessing rapid growth due to the evolving nature of A.I. technology and the need for retailers to stay updated with the latest advancements. Managed services provide a holistic approach, ensuring that A.I. sA.I.utions remain efficient, secure, and aligned with changing business requirements. The fastest growth in managed services signifies the rising demand for continuous support in maintaining and enhancing A.I. capabilities within the dynamic landscape of the retail industry.

• Professional Services
• Managed Services

Artificial Intelligence in Retail Deployment Mode Segment Analysis

According to CognitiveA.I.arket Research, the dominant category in Artificial Intelligence in the Retail market is Cloud Deployment. Cloud-based solutions offer scalability, flexibility, and accessibility, making them the preferred A.I. solution for retailers seeking seamless integration of A.I. technologies. Cloud deployment facilitates the efficient processing of vast datasets, enables real-time analytics, and supports the dynamic needs of retail operations. Its dominance is rooted in the ability to provide retailers with cost-effective and easily scalable A.I. solutions, allowing them to swiftly adapt to changing conditions, customer preferences, and emerging technologies, ultimately enhancing the agility and competitiveness of retail businesses.

The fastest-growing category in Artificial Intelligence in the Retail market is On-Premises Deployment. At the same time, cloud deployment dominA.I.es and on-premises solutions are experiencing rapid growth due to the increasing emphasis on data security and privacy in the retail sector. Some retailers, especially those with specific regulatory requirements or a preference for maintaining control over their infrastructure, opt for on-premises deployment. The fastest growth in on-premises deployment reflects the diverse preferences and priorities of retailers in the A.I. in the Retail market, emphasizing the importance of providing flexibility in deployment models to meet varied business needs.

• Cloud
• On-Premises

Author's Detail

Kalyani Raje

Senior Research Analyst at Cognitive Market Research

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ResearchGate Profile: https://www.researchgate.net/profile/Kalyani-Raje

An optimistic Senior Research Analyst with years of experience in competitive assessment and business consulting. A seasoned professional and subject-matter expert (SME) in the Automobile and transportation vertical.

Author's Conclusion