The AI in retail market is forecasted to grow at a high rate owing to the rapid adoption of technological advancements in AI technology across retail chain
The Global AI in Retail Market was valued at USD 1.98 Bn in 2020 and is expected to reach USD 12.5 Bn by 2027, with a growing CAGR of 29.60% during the forecast period.
Artificial intelligence (AI) technology is growing rapidly with advantages in technological infrastructure in various industries. AI can be applied in the retail industry for various features such as payment and pricing analytics, product optimization, Customer Relationship Management (CRM), and supply chain & logistics, among others. AI assists retailers to optimize product placement, make pricing decisions, and enhance demand forecasting. AI can also help in tracking data from online channels, informing better e-commerce strategies.
The global AI in retail market is anticipated to grow at a significant rate during the forecast period owing to extensive advanced technological innovations and an increase in the implementation of artificial intelligence in retail industry. According to an IBM Corporation report, the implementation of AI in the retail consumer product industry is expected to boost from 40% of companies currently to more than 80% in the next three years. This increase in attributed to the advantages provided by AI technology such as enhanced customer experience, fastening of customer support process, improved payment method and many more.
Moreover, according to the United Nations Conference on Trade and Development (UNCTAD), October 2020, the covid-19 outbreak has fuelled the e-commerce and online shopping sector significantly. This gives retailers and consumer goods organizations a good opportunity to adopt sustainability initiatives that are integrated with digital beings. Thus, the growth is accounted for the shift of the market to online shopping owing to the covid-19 outbreak, and increasing benefits of shopping online methods such as discounts, offers, and effortless shopping experience.
Global AI in Retail Market by Region Outlook (Revenue, USD Billion, 2021-2027)
In terms of geography, the North American region held the dominating segment and is anticipated to continue the growth during the forecast period owing to well-developed technological infrastructure coupled with growing number of market players in the North American region. The market players are focused to bring new and advanced versions of AI technology solutions in the market. For instance, in August 2020, Kenco Logistics, a North America based third-party logistics provider, has launched the DaVinci AI, a product that provides advanced analytics across the supply chain. Using this innovative product, solutions can guide prescription measures and generate predictive insights that change the supply chain. The DaVinci AI is expected to boost the adoption of artificial intelligence in the retail and consumer products market during the forecast period.
The Global AI in Retail Market Segmentation:
Company Profiles and Competitive Intelligence
The key players operating in the AI in retail market are: