Growth of Artificial intelligence (AI) in Retail Market as the Industry Rapidly Adopting New Technologies

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)

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

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:

  • Global AI in Retail Market by Offering Outlook (Revenue, USD Billion, 2021-2027)
    • Services
    • Software
  • Global AI in Retail Market by Deployment Outlook (Revenue, USD Billion, 2021-2027)
    • On-Premise
    • Cloud
  • Global AI in Retail Market by Technology Outlook (Revenue, USD Billion, 2021-2027)
    • NLP
    • Machine learning
    • Predictive Maintenance/Self Diagnostics
    • Predictive Analytics
    • Deep learning
    • Computer Vision
    • Others
  • Global AI in Retail Market by Application Outlook (Revenue, USD Billion, 2021-2027)
    • Payment and Pricing Analytics
    • Product Optimization
    • Customer Relationship Management (CRM)
    • Supply chain & logistics
    • In-Store Navigation
    • Inventory Management

Key Findings:

  • Based on the offering, the software segment held the largest market share in 2020
  • Cloud deployment based on the deployment mode is anticipated to grow at a highest growth rate during the forecast period
  • Based on technology, machine learning segment accounted for the largest market share in 2020 followed by natural language processing technology
  • Based on applications, the payment and pricing analytics segment was accounted to hold the largest market share in the year 2020
  • Based on regions, the North America region is anticipated to hold the dominating market share in the year 2027 in the AI in retail market analysis

Company Profiles and Competitive Intelligence

The key players operating in the AI in retail market are:

  1. Microsoft Corporation
  2. Cisco Corporation
  3. Oracle Systems Corporation
  4. International Business Machines Corporation (IBM)
  5. Alibaba Cloud
  6. SAP SE
  7. Iflytek Co. Ltd.
  8. Facebook, Inc.
  9. Intel Corporation
  10. Baidu, Inc.
  11. Samsung Electronics
  12. SAS Institute
  13. AI chipmaker Graphcore
  14., Inc.
  15. Aibrain 
  16. NVIDIA Corporation
  17. Amazon Web Services
  18. Descartes Labs
  19. Sentient Technologies
  20. Zephyr Health
  21. Cylance Inc.
  22. Didi Chuxing Technology Co.
  23. Koniku Inc.
  24. Butterfly Network
  25. Adapteva
  26. Siemens Aktiengesellschaft
  27. Wave Computing Inc.
  28. Hewlett Packard Enterprise
  29. Vicarious
  30. Mellanox Technologies
  31. Inbenta
  32. Mythic
  33. Atomwise
  34. Face++ Corporation
  35. Darktrace
  36. General Vision Inc.

Recent News:

  • In December 2020, Cisco Systems Inc. has announced its successful acquisition over IMImobile Plc, a UK-based customer service software maker company. The acquisition took place for a deal value of USD 721 million. The acquisition is aimed to enhance tools to help companies keep track of and interacting with users.
  • In October 2018, Oracle Systems Corporation acquired DataFox, a San Francisco based company intelligence platform, whose cloud-based Artificial Intelligence (AI) data engine and derived business content render the most current, accurate, and extensive set of insightful data and company-level information to optimize business decisions.

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