Global Artificial Intelligence in Retail Market

Global Artificial Intelligence In Retail Market Size, Share, Growth Analysis, By Offering(Solutions, Services), By Function(Operation-focused, customer-facing), By Type(Online, Offline), By Application(Predictive analytics, in-store visual monitoring & surveillance), By Technology(Computer vision, machine learning) - Industry Forecast 2022-2028


Report ID: SQSG45C2004 | Region: Global | Published Date: December, 2022 | Pages: 252 | Tables: 141 | Figures: 68

Global Artificial Intelligence In Retail Market Insights

Global Artificial Intelligence in Retail Market was valued at USD 3.12 billion in 2021 and it is expected to reach at USD 19.57 billion by 2028, with CAGR of 30% over the forecast period (2022–2028).

Artificial intelligence (AI) is being used in the retail sector as a result of the industry's upheaval, which is being driven by digital transformation in technology. Brands and merchants from all around the world are collaborating to improve intelligent automation techniques and deploy AI in retail outlets. Technology aids retailers in driving automation in both the physical and online service area, as well as customer-facing components. According to the IBM Institute of Business Study 2020, the industry's use of AI in intelligent automation is expected to reach 80% by 2023.

Covid-19 allowed for quick changes in client purchasing habits all across the world. As a result, AI use has exploded in order to better understand client purchase trends. The pandemic and lockdown have had a profound impact on customer behavior, product demand, and in-store operations. According to TATA communication, US expenditure fell by around 7.5 percent in March 2020, according to a study provided by TATA. The impact of this decline is then amplified by the company's use of AI technology to boost online sales and improve user experience.

Market snapshot

Global Market Size

USD 3.12 billion

Largest Segment

Solutions

Fastest Growth

Solutions

Growth Rate

30% CAGR

Global artificial intelligence in retail market 2021-2028 ($ Mn)
Country Share for North America Region- 2021 (%)
Global artificial intelligence in retail market Size by Offering 2021-2028 ($ Mn)
Global artificial intelligence in retail market Size by Offering 2021-2028 (%)

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Global Artificial Intelligence In Retail Market Segmental Analysis

Global artificial intelligence in retail market is segmented based on offerings, function, application, type, technology, and region. Based on offering, it is categorized into solutions, services. Based on function, it is categorized into operation-focused, and customer-facing. Based on type, it is categorized into Online and offline. Based on application, it is categorized into predictive analysis, in-store visual monitoring and surveillance, customer relationship management, and market forecasting. Based on technology, it is categorized into computer vision and machine learning. Based on region, it is categorized into: North America, Europe, Asia-Pacific, South America, and MEA.

Analysis by Offerings

The automation-based solution segment is dominating the artificial intelligence in retail market. AI divides the artificial intelligence in retail market into two types of offerings: solutions and service-based offerings. Smart shops, e-commerce, intelligent customer insights, smart delivery, intelligent supply chain, and other services leverage the other offering. Many causes are pushing the development of new novel automation solutions for a variety of difficulties, including managing retail outlets in various locations, logistics, warehouse management, and increasing customer experience. As a result, AI deployment in the retail industry will accelerate.

The store will require further assistance in the form of services to handle the AI module's installation, management, and server maintenance, among other things. As a result, major expansion in the service will be aided as well.

Analysis by Application

To read quick changes in consumer behavior, predictive analysis is performed. In the retail industry, AI applications include predictive analytics, in-store visual monitoring and surveillance, customer relationship management, and artificial intelligence in retail market forecasting. Predictive analysis, demographic segmentation, shelf management, labor optimization, and many other tasks are accomplished utilizing solution-based AI approaches. AI activities are conducted based on region, geography, culture, gender, and age to understand future retail demand and profit on such chances.

Chatbots, virtual assistants, search engines, and other AI-based apps help shops maintain a good customer connection, which leads to increased brand loyalty. Another popular market use right now is market forecasting, which anticipates price and volume based on previous market patterns. Continuous surveillance employing AI applications provides fraud control, consumer insight tracking, and shelf replenishment warnings.

Global artificial intelligence in retail market By Offering, 2021 (%)

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Global Artificial Intelligence In Retail Market Regional Insights

North America holds the majority of the global revenue. To improve customer service efficiency, retailers in the region are focusing on extracting available data on customer preferences. The United States is the early adopter of AI technology and is currently investing heavily in AI technology. Owing to increased demand for technology, the country is also seeing the emergence of new startups and small businesses. This is expected to boost the growth of artificial intelligence (AI) in the retail industry.

During the projection period, the Asia Pacific market is expected to grow at a fastest CAGR due to increased digitization and acceptance of new technologies in the region. According to SAP data, China has won a 23.4 percent share of Artificial Intelligence investments in the retail business through the use of new technologies for better customer experience and enhanced operations. India is predicted to have the highest CAGR during the forecast period.

Europe is likely to come in second in terms of market share dominance. The region's current big retailers in the cosmetics, fashion, and apparel sectors, among others, are actively investing in advanced technologies to improve customer experience.

Global artificial intelligence in retail market By Geography, 2021 - 2028
  • Largest
  • Fastest

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Global Artificial Intelligence In Retail Market Dynamics

Drivers

  • Artificial intelligence-powered chatbot assistance is gaining widespread popularity in the retail industry owing to its highly efficient customer service. To improve the customer experience, the chatbot provides dedicated and personalized responses. According to Accenture insights, 91% of customers were more interested in shopping for brands that provided personalized recommendations and services in 2018. Natural language processing (NLP) and machine learning technologies are used to power the AI chatbots. These technologies provide real-time information about customer preferences. It also assists the chatbot in understanding the customers' sentiments and behavioral patterns, which aids in responding to customer queries and building relationships. Levis, for example, has implemented a chatbot platform, Levi's Virtual Stylist, to provide customer recommendations. To provide quick suggestions, the bot asks users for basic information such as size, fit, material, and even preferred brands. As a result, the AI-powered chatbot is expected to propel artificial intelligence in the retail industry sector.

Restraint

  • Well-known retail brands are constantly investing in innovative technologies to improve customer engagement; however, a variety of factors are likely to limit market growth. Large enterprises and global retailers, such as Walmart, have already implemented artificial intelligence technology for in-store operations and online portal management. However, due to a lack of infrastructure and technical expertise, new start-ups, small and medium-sized enterprises face challenges in adopting the technology today. According to IBM cloud-data service insights, 37% of respondents said that lack of AI expertise is a barrier to implementing such technology. The high implementation cost of the intelligent retail solution is also a significant barrier for small retailers, limiting implementation. These factors are expected to stifle market growth.

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Global Artificial Intelligence In Retail Market Competitive Landscape

Global artificial intelligence in retail market is fairly concentrated, with a few big and medium-sized market participants accounting for a large portion of market revenue. Major players are implementing numerous tactics, including mergers and acquisitions, strategic agreements and contracts, and the development and testing of artificial intelligence in retail market platforms.

Top Players in the Global Artificial Intelligence in Retail Market

Recent Developments

  • In July 2021, Retailers and customer product sellers received an AI modelling studio from Antuit.ai. This helped read customer behavior understanding along with forecasting sold merchandise.
  • In June 2021, a service that offers automated self–service to the customer was launched by Talkdest Inc. It provides Specified personal recommendations and customer engagement to help retailers.
  • In March 2021, a new solution-based AI was launched by Inbenta Technologies, AI search, revenue generation by customer engagement. NLP is the technology used in the new search tool for providing the right product to the customer.

Global Artificial Intelligence In Retail Key Market Trends

  • Artificial Intelligence is driving quick business decisions in marketing, e-commerce, product management, and different business areas by lowering the gap from insights to action. According to the United States Department of Commerce, retail sales in the United States are expected to reach USD 5,990,000 million in 2023.
  • Adoption of AI in retail and customer products industries is anticipated to jump from 40% of companies presently to greater than 80% in three years. Additionally, funding for artificial intelligence (AI) technology by retail enterprises is growing. Furthermore, international retail spending on AI might reach USD 7,300 Million annually by 2023, up from an expected USD 2,000 Million in 2020.

Global Artificial Intelligence In Retail Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analysis, growing product launches in artificial intelligence in retail market through regulatory government and key players, are predicted to boost the market growth over the forecast period. Furthermore, growing R&D sports in artificial intelligence in retail market is anticipated to useful resource in driving the global artificial intelligence in retail market, over the forecast period.

Report Metric Details
Market size value in Retail USD 3.12 billion
Market size value in 2028 USD 19.57 billion
Growth Rate 30%
Base year Retail
Forecast period 2022–2028
Forecast Unit (Value) USD Billion
Segments covered
  • Offering
    • Solutions, Services
  • Function
    • Operation-focused, customer-facing
  • Type
    • Online, Offline
  • Application
    • Predictive analytics, in-store visual monitoring & surveillance, customer relationship management, market forecasting
  • Technology
    • Computer vision, machine learning
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Global Artificial Intelligence In Retail Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Global Artificial Intelligence In Retail Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Global Artificial Intelligence In Retail Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Artificial Intelligence In Retail Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Artificial Intelligence In Retail Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Global Artificial Intelligence In Retail Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQ's

Global Artificial Intelligence in Retail Market was valued at USD 3.12 billion in 2021 and it is expected to reach at USD 19.57 billion by 2028, with CAGR of 30% over the forecast period (2022–2028).

Global artificial intelligence in retail market is fairly concentrated, with a few big and medium-sized market participants accounting for a large portion of market revenue. Major players are implementing numerous tactics, including mergers and acquisitions, strategic agreements and contracts, and the development and testing of artificial intelligence in retail market platforms. 'Amazon.com Inc. (US)', 'Google LLC (US)', 'IBM Corporation (US)', 'Intel Corporation (US)', 'Microsoft Corporation (US)', 'Nvidia Corporation (US)', 'Oracle Corporation (US)', 'SAP SE (Germany)', 'Salesforce.com, Inc. (US)', 'Talkdesk, Inc. (US)'

Artificial intelligence-powered chatbot assistance is gaining widespread popularity in the retail industry owing to its highly efficient customer service. To improve the customer experience, the chatbot provides dedicated and personalized responses. According to Accenture insights, 91% of customers were more interested in shopping for brands that provided personalized recommendations and services in 2018. Natural language processing (NLP) and machine learning technologies are used to power the AI chatbots. These technologies provide real-time information about customer preferences. It also assists the chatbot in understanding the customers' sentiments and behavioral patterns, which aids in responding to customer queries and building relationships. Levis, for example, has implemented a chatbot platform, Levi's Virtual Stylist, to provide customer recommendations. To provide quick suggestions, the bot asks users for basic information such as size, fit, material, and even preferred brands. As a result, the AI-powered chatbot is expected to propel artificial intelligence in the retail industry sector.

Artificial Intelligence is driving quick business decisions in marketing, e-commerce, product management, and different business areas by lowering the gap from insights to action. According to the United States Department of Commerce, retail sales in the United States are expected to reach USD 5,990,000 million in 2023.

North America holds the majority of the global revenue. To improve customer service efficiency, retailers in the region are focusing on extracting available data on customer preferences. The United States is the early adopter of AI technology and is currently investing heavily in AI technology. Owing to increased demand for technology, the country is also seeing the emergence of new startups and small businesses. This is expected to boost the growth of artificial intelligence (AI) in the retail industry.

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