Artificial Intelligence in Retail is used to preserve inventory accuracy, enhance customer service, and improve efficiency. It is primarily used by retailers to strengthen the decision-making process and automate business operations. AI in retail is widely applicable to facilitate trade decisions, predictive analysis, big data automation, and others. The simulation of human intelligence demonstrated by machines, particularly computers, is artificial intelligence (AI), often referred to as machine intelligence. Such procedures include learning, reasoning, and self-correction. In the retail sector, artificial intelligence is used to improve customer service also.
Artificial Intelligence in Retail Market is expected to project a notable CAGR of 37.5% in 2030.
Artificial Intelligence in Retail Market to surpass USD 20.5 Billion by 2030 from USD 1.35 Billion in 2019 in terms of value growing at a CAGR of 37.5% throughout the forecast period, i.e., 2020-30. Rising demand for artificial intelligence in the retail industry is a major factor expected to drive the growth of global artificial intelligence in the retail sector in years to come, due to increased investment and increasing business sales opportunities. In addition, growing knowledge of AI as it allows speed, security, and ease of transaction is another factor anticipated to promote artificial intelligence revenue growth in the retail industry. In addition, the rising need to optimize supply chain transactions and preserve inventory accuracy is among some of the other factors that are expected to significantly fuel the growth of artificial intelligence in the retail industry.
Artificial Intelligence in Retail Market: Segments
Customer Relationship Management segment to grow with the highest CAGR of XX.X% during 2020-30
Artificial Intelligence in the Retail Market is segmented by solutions as Visual Search, Virtual Assistant, Product Recommendation and Planning, Price Optimization, Customer Relationship Management, and Others. The product recommendation and planning segment is estimated to lead the market with a share of over XX.X% in 2019 whereas the CRM segment has the highest CAGR. A very powerful part of the overall shopping cycle for any shopper is product recommendation. AI is used by retailers to give their customers a customized experience and provide suggestions on items they would like to buy by showing specific products. In addition, the most critical technology leading to the highest sales relative to other innovations would remain machine learning and deep learning technology. As one of the artificial solutions in retail that could reshape their companies, many retailers around the world have begun to implement customer behavior monitoring. It enables retailers to engage both online and in-store consumers and provides personalized recommendations.
Predictive merchandising Segment to grow with the highest CAGR during 2020-30
Artificial Intelligence in the Retail Market is segmented Application into In-Store Visual Monitoring and Surveillance, Market Forecasting, Predictive Merchandising, Programmatic Advertising, and Others. The predictive merchandising segment accounted for the largest revenue share of XX.X% in 2019 which is mainly attributed to the growing need of retailers for gaining valuable insights regarding customer’s motives behind the purchase and their buying pattern behaviors which is enforcing them to adopt predictive merchandising solutions. In addition, in order to retain a competitive advantage in a fast-growing marketplace, these technologies are becoming increasingly important for retail businesses to search for proactive methods of harnessing new and comprehensive data sources. In addition, during the forecast era, the predictive merchandising segment is also expected to see rapid growth, as the technologies enable planners to accurately recognize leftover stock ahead of time. This, in turn, will help boost inventory management, resulting in fewer instances of items that are not sold, contributing to cost savings.
Artificial Intelligence in Retail Market: Market Dynamics
Growing Awareness Regarding AI and Big Data & Analytics
In the retail sector, artificial intelligence revolves around the way corporations have been run for the past few decades. The secret to digital business is artificial intelligence (AI) and big data & analytics, which have the ability to change anything from business processes to customer experience. The overall understanding and acceptance of AI and big data analytics in the retail industry have been growing due to the increasing penetration of smart devices and applications, the proliferation of IoT, the adoption of cloud services, and advances in technology. Various existing retailers around the world are struggling with rising costs, disgruntled customers, decreasing sales, and upstart competition. In order to increase operating performance and improve consumer interactions, this has led retailers to introduce technical instruments. Several areas in the retail industry, such as inventory management, supply chain management, marketing and branding, and management of customer relationships, provide considerable technological transformation opportunities and thus allow retailers to increase overall efficiency and profitability.
Growing concerns regarding security and privacy
A dearth of technical expertise and regulatory standards to minimize counterfeits and breaching of data are factors that may impede the growth of the target market. Failure of technical infrastructure and data breaches along with misuse of personal information can, however, pose a challenge to the growth of Artificial Intelligence in the Retail industry in the forthcoming years.
Artificial Intelligence in Retail Market: Key Players
Amazon Web Services Inc.
Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, and SWOT Analysis.
Versium Analytics Inc.
Sentient Technologies Holdings Limited
Focal Systems Inc.
ViSenze Pte Ltd
Artificial Intelligence in Retail Market: Regions
Artificial Intelligence in the Retail Market is segmented based on regional analysis into five major regions. These include North America, Latin America, Europe, Asia Pacific, and Middle East, and Africa.
Artificial Intelligence in Retail Market in North America led the market with a lion share of more than XX.X% in 2019 and is projected to maintain its lead over the forecast period in terms of revenue. North America is expected to dominate the market with the largest market share mainly because of the presence of several developed economies, such as the United States and Canada, focusing on enhancing the existing solutions in the retail space. North America is an early adopter of AI technology and hosts the major AI solution providers. The Asia Pacific region, however, is expected to develop rapidly during the forecast period, as the region is experiencing substantial growth on all fronts, including internet connectivity, economic growth, spending potential, and consumer product demand. The growth of e-commerce in countries like China and India and rising investments in AI technology for improved productivity and real-time inventory management are contributing to the growth of the AI market for the retail sector in this area as a result of government initiatives. In addition, the factors such as developing internet & connectivity infrastructure, growing adoption of AI-based solutions & services among retailers, and increasing digitalization are also helping the market growth in this region.
The Artificial Intelligence in Retail market, which is highly competitive, consists of several major players such as Amazon.com, Inc. (U.S.), Google LLC (U.S.), IBM Corporation (U.S.) hold a substantial market share in the Artificial Intelligence in Retail market. Other players analyzed in this report are Intel Corporation (U.S.), Microsoft Corporation (U.S.), Nvidia Corporation (U.S.), Oracle Corporation (U.S.), SAP SE (Germany), Salesforce.com, Inc. (U.S.), and Bloom Reach, Inc. (U.S.) among others.
Artificial Intelligence in Retail Market is further segmented by region into:
North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
APAC Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
MENA Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA
Artificial Intelligence in Retail Market report also contains analysis on:
Artificial Intelligence in Retail Market Segments:
Natural Language Processing
Machine Learning and Deep Learning
Product Recommendation and Planning
Customer Relationship Management
In-Store Visual Monitoring and Surveillance
Artificial Intelligence in Retail Market Dynamics
Artificial Intelligence in Retail Market Size
Supply & Demand
Competition & Companies Involved in the Market
Value Chain of the Market
Market Drivers and Restraints
FAQs on Artificial Intelligence in Retail Market
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