PUBLISHER: The Business Research Company | PRODUCT CODE: 1681780
PUBLISHER: The Business Research Company | PRODUCT CODE: 1681780
Artificial Intelligence (AI) In Retail Global Market Report 2025
Artificial intelligence (AI) in retail refers to the application of advanced computing technologies that simulate human intelligence to enhance and automate various aspects of the retail industry. This includes leveraging AI algorithms and machine learning techniques to analyze vast amounts of data, predict consumer behavior, optimize inventory management, personalize customer experiences, and streamline operational processes.
The main components of artificial intelligence (AI) in retail are solutions and services. A solution refers to a comprehensive set of technologies, applications, or services that leverage AI to address specific challenges or enhance specific aspects of retail operations. It uses various technologies such as machine learning, natural language processing, chatbots, image and video analytics, and swarm intelligence, with multiple deployment mode include cloud and on-premise. The channels used are omnichannel, brick and mortar, pure-play online retailers, and used for customer relationship management, supply chain and logistics, in-store navigation, and inventory management product optimization.
The main components of artificial intelligence (AI) in retail are solutions and services. A solution refers to a comprehensive set of technologies, applications, or services that leverage AI to address specific challenges or enhance specific aspects of retail operations. It uses various technologies such as machine learning, natural language processing, chatbots, image and video analytics, and swarm intelligence, with multiple deployment mode include cloud and on-premise. The channels used are omnichannel, brick and mortar, pure-play online retailers, and used for customer relationship management, supply chain and logistics, in-store navigation, and inventory management product optimization.
The artificial intelligence (AI) in retail market size has grown exponentially in recent years. It will grow from $11.9 billion in 2024 to $15.51 billion in 2025 at a compound annual growth rate (CAGR) of 30.3%. The growth in the historic period can be attributed to growth of AI in retail, increased necessity for surveillance and monitoring, rapid implementation of AI solutions, advancements in computer vision, growing demand for efficient operations.
The artificial intelligence (AI) in retail market size is expected to see exponential growth in the next few years. It will grow to $44.43 billion in 2029 at a compound annual growth rate (CAGR) of 30.1%. The growth in the forecast period can be attributed to projected market growth, AI's transformative power, demand-side trends, favorable global market outlook, increasing competition. Major trends in the forecast period include adoption of machine learning, growing demand for ai services, enhanced user experience and productivity, regional market expansion.
The digital transformation in the retail industry is expected to propel the growth of artificial intelligence (AI) in the retail market going forward. Digital transformation refers to the comprehensive and strategic integration of digital technologies, processes, and capabilities across various aspects of an organization. Retailers globally are adopting digital processes and enhancing customer experiences, resulting in an increased demand for AI solutions. This integration of AI in retail, driven by the imperative of digital transformation, fosters innovation in tasks such as automation, personalized marketing, and trend prediction, improving operational efficiency and providing insights into customer behavior. For instance, in January 2024, according to a survey of 400 respondents conducted by NVIDIA Corporation, a US-based manufacturing and technology company, 69% of retailers reported increased annual revenue with AI adoption, 72% experienced lower operating costs, and over 60% plan to boost AI investments in the next 18 months. Therefore, the digital transformation in the retail industry is driving the growth of artificial intelligence (AI) in the retail market.
Major companies operating in the artificial intelligence (AI) retail market are developing advanced technologies, such as cloud-based solutions, to drive innovation and enhance efficiency in the retail sector. Cloud-based solutions refer to computing services, including storage, processing, and software applications, that are delivered over the internet (cloud) instead of relying on local servers or traditional computing infrastructure. For instance, in October 2023, Flipkart Private Limited, an India-based e-commerce company, launched Flipkart Commerce Cloud, which aims to help retailers across the world grow their businesses and solve business needs through intelligent and AI-driven solutions. This platform offers retail technology solutions for international retailers, marketplaces, and e-commerce platforms. The suite of solutions includes a complete marketplace technology stack, retail media solution, pricing solution, inventory management, and forecasting solutions, all built using artificial intelligence and machine learning
In July 2023, ServiceNow Inc., a US-based provider of digital workflow solutions, acquired G2k Group Gmbh for approximately $0.5 billion. This acquisition is aimed at boosting ServiceNow's AI capabilities and broadening its footprint in the retail IoT sector, enabling the development of an AI-powered end-to-end workflow solution on the ServiceNow platform that connects real-time data and intelligence, ultimately transforming retail experiences and creating opportunities across diverse industries. G2k Group Gmbh is a Germany-based cutting-edge technology company specializing in artificial intelligence (AI) and IoT solutions for the retail industry.
Major companies operating in the artificial intelligence (AI) in retail market are Google LLC, Microsoft Corporation, Amazon Web Services, Intel Corporation, International Business Machines Corporation, Oracle Corporation, SAP SE, Presto, NVIDIA Corporation, Salesforce Inc., Baidu Inc., ViSenze, Travelport, Databricks, DATAIKU, Symbotic, BloomReach Inc., Trax, Interactions LLC, Featurespace, RetailNext Inc., Trigo, Standard Cognition, CognitiveScale Inc., BrainBox AI, Inbenta Technologies, Next IT Corp., Infinite Analytics, Lexalytics Inc., Sentient Technologies
North America was the largest region in the artificial intelligence (AI) in retail market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in retail market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the artificial intelligence (AI) in retail market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The artificial intelligence (AI) in retail market includes revenues earned by entities by predictive analytics, personalized marketing, recommendation engines, fraud detection, visual search and recognition. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) in retail market consists of sales of computer vision, voice commerce, dynamic pricing systems, and augmented reality (AR) systems. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Artificial Intelligence (AI) In Retail Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on artificial intelligence (ai) in retail market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Table of Contents
1. Executive Summary
2. Artificial Intelligence (AI) In Retail Market Characteristics
3. Artificial Intelligence (AI) In Retail Market Trends And Strategies
4. Artificial Intelligence (AI) In Retail Market - Macro Economic Scenario Including The Impact Of Interest Rates, Inflation, Geopolitics, Covid And Recovery On The Market
5. Global Artificial Intelligence (AI) In Retail Growth Analysis And Strategic Analysis Framework
- 5.1. Global Artificial Intelligence (AI) In Retail PESTEL Analysis (Political, Social, Technological, Environmental and Legal Factors, Drivers and Restraints)
- 5.2. Analysis Of End Use Industries
- 5.3. Global Artificial Intelligence (AI) In Retail Market Growth Rate Analysis
- 5.4. Global Artificial Intelligence (AI) In Retail Historic Market Size and Growth, 2019 - 2024, Value ($ Billion)
- 5.5. Global Artificial Intelligence (AI) In Retail Forecast Market Size and Growth, 2024 - 2029, 2034F, Value ($ Billion)
- 5.6. Global Artificial Intelligence (AI) In Retail Total Addressable Market (TAM)
6. Artificial Intelligence (AI) In Retail Market Segmentation
7. Artificial Intelligence (AI) In Retail Market Regional And Country Analysis
8. Asia-Pacific Artificial Intelligence (AI) In Retail Market
9. China Artificial Intelligence (AI) In Retail Market
10. India Artificial Intelligence (AI) In Retail Market
11. Japan Artificial Intelligence (AI) In Retail Market
12. Australia Artificial Intelligence (AI) In Retail Market
13. Indonesia Artificial Intelligence (AI) In Retail Market
14. South Korea Artificial Intelligence (AI) In Retail Market
15. Western Europe Artificial Intelligence (AI) In Retail Market
16. UK Artificial Intelligence (AI) In Retail Market
17. Germany Artificial Intelligence (AI) In Retail Market
18. France Artificial Intelligence (AI) In Retail Market
19. Italy Artificial Intelligence (AI) In Retail Market
20. Spain Artificial Intelligence (AI) In Retail Market
21. Eastern Europe Artificial Intelligence (AI) In Retail Market
22. Russia Artificial Intelligence (AI) In Retail Market
23. North America Artificial Intelligence (AI) In Retail Market
24. USA Artificial Intelligence (AI) In Retail Market
25. Canada Artificial Intelligence (AI) In Retail Market
26. South America Artificial Intelligence (AI) In Retail Market
27. Brazil Artificial Intelligence (AI) In Retail Market
28. Middle East Artificial Intelligence (AI) In Retail Market
29. Africa Artificial Intelligence (AI) In Retail Market
30. Artificial Intelligence (AI) In Retail Market Competitive Landscape And Company Profiles
31. Artificial Intelligence (AI) In Retail Market Other Major And Innovative Companies
32. Global Artificial Intelligence (AI) In Retail Market Competitive Benchmarking And Dashboard
33. Key Mergers And Acquisitions In The Artificial Intelligence (AI) In Retail Market
34. Recent Developments In The Artificial Intelligence (AI) In Retail Market
35. Artificial Intelligence (AI) In Retail Market High Potential Countries, Segments and Strategies
36. Appendix
