Artificial Intelligence in Retail Market by Technology, Type, Service, Solution, Deployment Mode, Application

Description

List of Tables

The Artificial Intelligence in Retail Market was valued at USD 4.01 billion in 2023, expected to reach USD 4.68 billion in 2024, and is projected to grow at a CAGR of 16.88%, to USD 11.97 billion by 2030.

The scope of artificial intelligence (AI) in retail is vast, encompassing a broad range of applications aimed at enhancing customer experience, streamlining operations, and optimizing inventory management. AI is becoming necessary in retail due to the increasing demand for personalized shopping experiences, efficiency in supply chain operations, and data-driven decision-making processes. Applications range from chatbots and virtual assistants that improve customer service, to predictive analytics that help in demand forecasting, and AI-driven inventory management systems that ensure optimal stock levels. The end-use scope of AI in retail spans across e-commerce platforms, traditional brick-and-mortar stores, logistics, and customer interaction channels.

KEY MARKET STATISTICS
Base Year [2023]	USD 4.01 billion
Estimated Year [2024]	USD 4.68 billion
Forecast Year [2030]	USD 11.97 billion
CAGR (%)	16.88%

Market insights reveal that AI's growth in retail is significantly influenced by technological advancements, increasing consumer expectations for personalized experiences, and the quest for operational efficiency. The latest potential opportunities lie in leveraging AI for developing omnichannel retail strategies, enhancing cybersecurity measures, and improving last-mile delivery processes. Retailers are recommended to integrate AI into their existing systems to harness these opportunities, particularly focusing on customer engagement tools and supply chain optimization.

However, limitations and challenges persist, including high implementation costs, data privacy concerns, and the need for technical expertise to develop and manage AI systems. Furthermore, integration issues with legacy systems can pose a significant barrier to entry for smaller retailers. Despite these challenges, the best areas of innovation and research include the development of AI tools for advanced customer analytics, the creation of adaptive and personalized marketing strategies, and the improvement of real-time inventory and supply chain management systems.

Given the transformative potential of AI, the retail market is characterized by rapid innovation and fierce competition. Retailers are compelled to adopt agile strategies and stay abreast of technological advancements to remain competitive. Continuous research and development, strategic partnerships, and investment in talent acquisition are crucial for leveraging AI effectively in this dynamic market environment.

Market Dynamics: Unveiling Key Market Insights in the Rapidly Evolving Artificial Intelligence in Retail Market

The Artificial Intelligence in Retail Market is undergoing transformative changes driven by a dynamic interplay of supply and demand factors. Understanding these evolving market dynamics prepares business organizations to make informed investment decisions, refine strategic decisions, and seize new opportunities. By gaining a comprehensive view of these trends, business organizations can mitigate various risks across political, geographic, technical, social, and economic domains while also gaining a clearer understanding of consumer behavior and its impact on manufacturing costs and purchasing trends.

Market Drivers
- Rising requirements for superior surveillance and monitoring in organized retails
- Increasing adoption for data analytics and business decision
- Improve productivity, reduce waste, and enhance customer experience
Market Restraints
- Compatibility issues with existing structure
Market Opportunities
- Smart mirror and smart displays with gesture recognition
- Growing organized retail sector in developing countries
Market Challenges
- Data privacy and security concern

Porter's Five Forces: A Strategic Tool for Navigating the Artificial Intelligence in Retail Market

Porter's five forces framework is a critical tool for understanding the competitive landscape of the Artificial Intelligence in Retail Market. It offers business organizations with a clear methodology for evaluating their competitive positioning and exploring strategic opportunities. This framework helps businesses assess the power dynamics within the market and determine the profitability of new ventures. With these insights, business organizations can leverage their strengths, address weaknesses, and avoid potential challenges, ensuring a more resilient market positioning.

PESTLE Analysis: Navigating External Influences in the Artificial Intelligence in Retail Market

External macro-environmental factors play a pivotal role in shaping the performance dynamics of the Artificial Intelligence in Retail Market. Political, Economic, Social, Technological, Legal, and Environmental factors analysis provides the necessary information to navigate these influences. By examining PESTLE factors, businesses can better understand potential risks and opportunities. This analysis enables business organizations to anticipate changes in regulations, consumer preferences, and economic trends, ensuring they are prepared to make proactive, forward-thinking decisions.

Market Share Analysis: Understanding the Competitive Landscape in the Artificial Intelligence in Retail Market

A detailed market share analysis in the Artificial Intelligence in Retail Market provides a comprehensive assessment of vendors' performance. Companies can identify their competitive positioning by comparing key metrics, including revenue, customer base, and growth rates. This analysis highlights market concentration, fragmentation, and trends in consolidation, offering vendors the insights required to make strategic decisions that enhance their position in an increasingly competitive landscape.

FPNV Positioning Matrix: Evaluating Vendors' Performance in the Artificial Intelligence in Retail Market

The Forefront, Pathfinder, Niche, Vital (FPNV) Positioning Matrix is a critical tool for evaluating vendors within the Artificial Intelligence in Retail Market. This matrix enables business organizations to make well-informed decisions that align with their goals by assessing vendors based on their business strategy and product satisfaction. The four quadrants provide a clear and precise segmentation of vendors, helping users identify the right partners and solutions that best fit their strategic objectives.

Strategy Analysis & Recommendation: Charting a Path to Success in the Artificial Intelligence in Retail Market

A strategic analysis of the Artificial Intelligence in Retail Market is essential for businesses looking to strengthen their global market presence. By reviewing key resources, capabilities, and performance indicators, business organizations can identify growth opportunities and work toward improvement. This approach helps businesses navigate challenges in the competitive landscape and ensures they are well-positioned to capitalize on newer opportunities and drive long-term success.

Key Company Profiles

The report delves into recent significant developments in the Artificial Intelligence in Retail Market, highlighting leading vendors and their innovative profiles. These include Algolia, Inc., Amazon.com, Inc., BloomReach, Inc., Bolt Financial, Inc., Forter, Ltd., Google LLC by Alphabet Inc., Intel Corporation, International Business Machines Corporation, Microsoft Corporation, NVIDIA Corporation, Oracle Corporation, Salesforce, Inc., SAP SE, Talkdesk, Inc., and ViSenze Pte. Ltd.

Market Segmentation & Coverage

This research report categorizes the Artificial Intelligence in Retail Market to forecast the revenues and analyze trends in each of the following sub-markets:

Based on Technology, market is studied across Machine Learning & Deep Learning and Natural Language Processing. The Machine Learning & Deep Learning is further studied across Emotion Detection and Facial Recognition.
Based on Type, market is studied across Offline Retail and Online Retail.
Based on Service, market is studied across Managed Services and Professional Services.
Based on Solution, market is studied across Customer Relationship Management, Payment Services Management, Price Optimization, Product Recommendation & Planning, Supply Chain Management & Demand Planning, Virtual Assistant, and Visual Search.
Based on Deployment Mode, market is studied across On-Cloud and On-Premises.
Based on Application, market is studied across In-Store Visual Monitoring & Surveillance, Location-Based Marketing, Market Forecasting, Predictive Merchandising, and Programmatic Advertising.
Based on Region, market is studied across Americas, Asia-Pacific, and Europe, Middle East & Africa. The Americas is further studied across Argentina, Brazil, Canada, Mexico, and United States. The United States is further studied across California, Florida, Illinois, New York, Ohio, Pennsylvania, and Texas. The Asia-Pacific is further studied across Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. The Europe, Middle East & Africa is further studied across Denmark, Egypt, Finland, France, Germany, Israel, Italy, Netherlands, Nigeria, Norway, Poland, Qatar, Russia, Saudi Arabia, South Africa, Spain, Sweden, Switzerland, Turkey, United Arab Emirates, and United Kingdom.

The report offers a comprehensive analysis of the market, covering key focus areas:

1. Market Penetration: A detailed review of the current market environment, including extensive data from top industry players, evaluating their market reach and overall influence.

2. Market Development: Identifies growth opportunities in emerging markets and assesses expansion potential in established sectors, providing a strategic roadmap for future growth.

3. Market Diversification: Analyzes recent product launches, untapped geographic regions, major industry advancements, and strategic investments reshaping the market.

4. Competitive Assessment & Intelligence: Provides a thorough analysis of the competitive landscape, examining market share, business strategies, product portfolios, certifications, regulatory approvals, patent trends, and technological advancements of key players.

5. Product Development & Innovation: Highlights cutting-edge technologies, R&D activities, and product innovations expected to drive future market growth.

The report also answers critical questions to aid stakeholders in making informed decisions:

1. What is the current market size, and what is the forecasted growth?

2. Which products, segments, and regions offer the best investment opportunities?

3. What are the key technology trends and regulatory influences shaping the market?

4. How do leading vendors rank in terms of market share and competitive positioning?

5. What revenue sources and strategic opportunities drive vendors' market entry or exit strategies?

Product Code: MRR-031BF22F9554

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Rising requirements for superior surveillance and monitoring in organized retails
  - 5.1.1.2. Increasing adoption for data analytics and business decision
  - 5.1.1.3. Improve productivity, reduce waste, and enhance customer experience
- 5.1.2. Restraints
  - 5.1.2.1. Compatibility issues with existing structure
- 5.1.3. Opportunities
  - 5.1.3.1. Smart mirror and smart displays with gesture recognition
  - 5.1.3.2. Growing organized retail sector in developing countries
- 5.1.4. Challenges
  - 5.1.4.1. Data privacy and security concern
5.2. Market Segmentation Analysis
5.3. Porter's Five Forces Analysis
- 5.3.1. Threat of New Entrants
- 5.3.2. Threat of Substitutes
- 5.3.3. Bargaining Power of Customers
- 5.3.4. Bargaining Power of Suppliers
- 5.3.5. Industry Rivalry
5.4. PESTLE Analysis
- 5.4.1. Political
- 5.4.2. Economic
- 5.4.3. Social
- 5.4.4. Technological
- 5.4.5. Legal
- 5.4.6. Environmental

6. Artificial Intelligence in Retail Market, by Technology

6.1. Introduction
6.2. Machine Learning & Deep Learning
- 6.2.1. Emotion Detection
- 6.2.2. Facial Recognition
6.3. Natural Language Processing

7. Artificial Intelligence in Retail Market, by Type

7.1. Introduction
7.2. Offline Retail
7.3. Online Retail

8. Artificial Intelligence in Retail Market, by Service

8.1. Introduction
8.2. Managed Services
8.3. Professional Services

9. Artificial Intelligence in Retail Market, by Solution

9.1. Introduction
9.2. Customer Relationship Management
9.3. Payment Services Management
9.4. Price Optimization
9.5. Product Recommendation & Planning
9.6. Supply Chain Management & Demand Planning
9.7. Virtual Assistant
9.8. Visual Search

10. Artificial Intelligence in Retail Market, by Deployment Mode

10.1. Introduction
10.2. On-Cloud
10.3. On-Premises

11. Artificial Intelligence in Retail Market, by Application

11.1. Introduction
11.2. In-Store Visual Monitoring & Surveillance
11.3. Location-Based Marketing
11.4. Market Forecasting
11.5. Predictive Merchandising
11.6. Programmatic Advertising

12. Americas Artificial Intelligence in Retail Market

12.1. Introduction
12.2. Argentina
12.3. Brazil
12.4. Canada
12.5. Mexico
12.6. United States

13. Asia-Pacific Artificial Intelligence in Retail Market

13.1. Introduction
13.2. Australia
13.3. China
13.4. India
13.5. Indonesia
13.6. Japan
13.7. Malaysia
13.8. Philippines
13.9. Singapore
13.10. South Korea
13.11. Taiwan
13.12. Thailand
13.13. Vietnam

14. Europe, Middle East & Africa Artificial Intelligence in Retail Market

14.1. Introduction
14.2. Denmark
14.3. Egypt
14.4. Finland
14.5. France
14.6. Germany
14.7. Israel
14.8. Italy
14.9. Netherlands
14.10. Nigeria
14.11. Norway
14.12. Poland
14.13. Qatar
14.14. Russia
14.15. Saudi Arabia
14.16. South Africa
14.17. Spain
14.18. Sweden
14.19. Switzerland
14.20. Turkey
14.21. United Arab Emirates
14.22. United Kingdom

15. Competitive Landscape

15.1. Market Share Analysis, 2023
15.2. FPNV Positioning Matrix, 2023
15.3. Competitive Scenario Analysis
15.4. Strategy Analysis & Recommendation

Companies Mentioned

1. Algolia, Inc.
2. Amazon.com, Inc.
3. BloomReach, Inc.
4. Bolt Financial, Inc.
5. Forter, Ltd.
6. Google LLC by Alphabet Inc.
7. Intel Corporation
8. International Business Machines Corporation
9. Microsoft Corporation
10. NVIDIA Corporation
11. Oracle Corporation
12. Salesforce, Inc.
13. SAP SE
14. Talkdesk, Inc.
15. ViSenze Pte. Ltd