Artificial Intelligence in Retail Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis

Coverage: Artificial Intelligence in Retail Market covers analysis by Retail Format (E-Commerce, and Brick and Mortar), Technology (Chat-Bot, Recommendation Engine, and Audio-Visual Analytics), and Application (Sales & Marketing, Consumer Experience & Management, Supply Chain & Logistics, Shelf Analytics, Pricing, In-Store Navigation, and Auto-Checkout), and Geography (North America, Europe, Asia Pacific, and South and Central America)

Publication Month : Sep 2023

  • Report Code : TIPTE100000703
  • Category : Technology, Media and Telecommunications
  • Status : Upcoming
  • No. of Pages : 170
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The artificial intelligence in retail market was valued at US$ 5,195.94 million in 2022 and is expected to grow at a CAGR of 30.6% during the forecast period of 2022 to 2028 to reach US$ 25,830.55 million by 2028.

Market Insights – Artificial Intelligence in Retail Market

The proliferation of enhanced technological awareness and varied product choices among consumers has resulted in a noteworthy shift in the global retail industry landscape. Artificial intelligence has empowered retail businesses with high-level data and information to improve retail operations and explore new business opportunities. AI tools in the retail forecast industry shift and proactively change an organization's marketing, merchandising, and business strategies. Artificial intelligence in retail includes functions such as inventory management, adaptive homepage, interactive chat, visual curation, conversational support, and customer engagement. The growth of the artificial intelligence in retail market is fueled by factors such as increasing number of internet users and smart devices, rising need for surveillance and monitoring at physical stores, and increasing digitization in the retail industry.

The huge growth in the e-commerce industry during the pandemic has significantly contributed to the growth of the artificial intelligence in retail market. The pandemic accelerated digital adoption and digital service delivery around the world. In the scenarios of lockdown where physical stores were temporarily shut down, business providers and customers rapidly moved toward e-commerce platforms. AI was widely used as a strategy in the retail sector in COVID-19-related initiatives to impact positively on business operations and to go digital. AI plays an important role in helping retailers automate repetitive tasks and improving online stores' functioning. For instance, in July 2022, according to PwC, 76% of business leaders implemented artificial intelligence into company operations. IBM surveyed 1,900 retail and consumer product companies between July and September of 2018 across 23 countries, out of which 85% of retail firms were planning to implement intelligent automation in the supply chain by 2021. Retailers believe that implementing AI can lead to a 10% annual growth. IBM Watson, Google Inc., ViSenze, Salesforce, and Microsoft Corp are the five key companies contributing to the growth of artificial intelligence in retail market.


Strategic Insights

Customer experience and management are projected to gain maximum attraction, followed by sales & marketing and supply chain & inventory management in the application segment in the artificial intelligence in retail market. Retailers are increasingly focusing on the enhancement of complete customer experience from purchase through to the after-sales service to drive loyalty as well as repeat customers, thereby contributing to the growth of customer experience and management segment in the artificial intelligence in retail market.

The global artificial intelligence in retail market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America (SAM). North America is estimated to dominate the artificial intelligence in retail market as the region is the early adopter of technology. The retail industry in North America is undergoing a massive transformation under the influence of the internet and accessibility to various devices such as tablets, laptops, and smartphones. The North America artificial intelligence in retail market is majorly driven by the increasing penetration of big data analytics and other technologies. Also, as the region is the origin of major retailers, including Wal-Mart, Costco, Kroger, The Home Depot, and Target, penetration of artificial intelligence in North America is the highest. Moreover, North America has a vast presence of major artificial intelligence in retail market players who have been increasingly focusing on developing innovative solutions, contributing to the growth of the artificial intelligence in retail market growth in North America.

Asia Pacific is expected to be the fastest-growing region in the global artificial intelligence in retail market owing to the increasing investment in advanced technologies such as AI. Asia Pacific is witnessing a hiring boom in the retail industry for AI roles. Moreover, according to Shopify, China leads in e-commerce sales, accounting for 52.1% of all retail e-commerce sales worldwide in 2021. It also has the highest number of digital buyers worldwide, representing 38.5% of the global total. Rising penetration of smartphones, strengthening internet infrastructure, and immense government support are some of the other factors that are expected to bolster the growth of artificial intelligence in retail in the Asia Pacific during the forecast period.

Lucrative Regions for Artificial Intelligence in Retail Market

Lucrative Regions for Artificial Intelligence in Retail Market

Technology-Based Market Insights

Based on technology, the global artificial intelligence in retail market is segmented into chatbots, recommendation engines, and audiovisual analytics. Chatbots are the new emerging trend in the retail industry, where not only online retailers but brick-and-mortar retailers are also anticipated to invest extensively. This technology enables retailers to expand their growth opportunities by interacting with their customers. At present, this technology is majorly implemented by e-commerce retailers. The rising adoption of chatbots is majorly attributed to the several benefits offered by the technology, which include lower cost, consistent customer service, and prompt responses. Chatbots currently being used by retailers include Slackbot and Kik. Slackbot is among the most well-known chatbots used by companies like Taco Bell. KiK is the chatbot used by H&M.

To meet consumers' expectations, leading service providers in the artificial intelligence in retail market are expanding their investments in new services. Mergers and acquisitions and partnerships with service providers are being considered by service providers as ways to diversify their offerings and grow their presence in other areas.

  • In April 2021, IBM announced the launch of new Watson capabilities to help businesses build trustworthy AI. The newly launched capabilities include data privacy management module, planning analytics, federated learning, and time series capabilities.
  • In February 2021, Microsoft Corporation announced the availability of Microsoft cloud for retailers to bring together stores, products, and marketing systems. Microsoft Cloud for retail businesses connects experiences across the shopper journey to deliver more relevant personalized experiences and operational excellence.

Company Profiled:

  • IBM Watson
  • Amazon
  • Google Inc.
  • Plexure
  • Focal Systems
  • Sentient Technologies Holdings Limited
  • ViSenze
  • Salesforce
  • Microsoft Corporation
  • Tata Consultancy Services

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  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
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  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
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Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Retail Format, Technology, and Application

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

The List of companies

1. Sentient Technologies Holdings Limited
2. Manthan Software Services Pvt. Ltd
3. Focal Systems Inc
4. Microsoft Corporation
5. ViSenze
6. Tata Consultancy Services Limited
7., Inc
8. Plexure Ltd.
9. Google,Inc
10. IBM Watson Group

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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