Artificial Intelligence (AI) in Retail Global Market Report 2024

The artificial intelligence (AI) in the retail market size has grown exponentially in recent years. It will grow from $9.12 billion in 2023 to $11.9 billion in 2024 at a compound annual growth rate (CAGR) of 30.4%. The growth observed in the historical period can be attributed to several factors, including the expansion of AI in retail applications, a heightened need for surveillance and monitoring capabilities, the rapid implementation of AI solutions within the industry, advancements in computer vision technology, and a growing demand for more efficient retail operations.

The artificial intelligence (AI) in the retail market size is expected to see exponential growth in the next few years. It will grow to $34.09 billion in 2028 at a compound annual growth rate (CAGR) of 30.1%. The anticipated growth in the forecast period can be attributed to several factors, including projected market expansion, the transformative capabilities of AI, evolving demand-side trends, a favorable global market outlook, and heightened competition within the industry. Major trends expected during this period include the increased adoption of machine learning technologies, growing demand for AI services, efforts to enhance user experiences and productivity, and expansion into new regional markets.

The ongoing digital transformation sweeping through the retail industry is poised to drive substantial growth within the artificial intelligence (AI) in the retail market in the foreseeable future. Digital transformation entails the strategic and comprehensive integration of digital technologies, processes, and capabilities across various facets of organizational operations. As retailers worldwide embrace digital processes and prioritize enhancing customer experiences, there is a surging demand for AI solutions to address evolving business needs. This increasing integration of AI within the retail sector, fueled by the imperative of digital transformation, catalyzes innovation in areas such as automation, personalized marketing, and trend prediction, thereby enhancing operational efficiency and providing valuable insights into customer behavior. A survey conducted by NVIDIA Corporation, a US-based manufacturing and technology company, in January 2024, revealed compelling statistics indicating the transformative impact of AI adoption in retail - 69% of retailers reported increased annual revenue, 72% experienced lower operating costs, and over 60% planned to ramp up AI investments in the next 18 months. Consequently, the ongoing digital transformation within the retail industry emerges as a primary driver propelling the growth of the artificial intelligence (AI) in the retail market.

Key players within the artificial intelligence retail market are actively innovating and developing advanced technologies, particularly cloud-based solutions, to drive efficiency and foster innovation within the retail sector. Cloud-based solutions encompass computing services delivered over the internet, including storage, processing, and software applications, offering flexibility and scalability compared to traditional computing infrastructure. For instance, in October 2023, Flipkart Private Limited, an India-based e-commerce company, unveiled the Flipkart Commerce Cloud - a transformative platform aimed at empowering retailers globally to expand their businesses and address various business needs through intelligent and AI-driven solutions. This comprehensive platform offers retail technology solutions tailored for international retailers, marketplaces, and e-commerce platforms, including a complete marketplace technology stack, retail media solution, pricing solution, inventory management, and forecasting solutions - all meticulously crafted leveraging artificial intelligence and machine learning technologies. By harnessing the power of AI and cloud computing, Flipkart Commerce Cloud exemplifies the transformative potential of advanced technologies in driving innovation, efficiency, and growth within the retail landscape, thereby solidifying its position as a leader in the artificial intelligence retail market.

In July 2023, ServiceNow Inc., a leading provider of digital workflow solutions headquartered in the United States, completed the acquisition of G2k Group Gmbh for approximately $0.5 billion. This strategic move is aimed at enhancing ServiceNow's AI capabilities and expanding its presence in the retail Internet of Things (IoT) sector. The acquisition enables the development of an AI-powered end-to-end workflow solution on the ServiceNow platform, facilitating the seamless integration of real-time data and intelligence. This transformative initiative is expected to revolutionize retail experiences and unlock new opportunities across diverse industries. G2k Group Gmbh, based in Germany, is a pioneering technology company specializing in artificial intelligence (AI) and IoT solutions tailored for the retail industry.

Major companies operating in the artificial intelligence (AI) in retail market report 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 2023. 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.

Artificial intelligence (AI) in retail refers to the utilization of advanced computing technologies that mimic human intelligence to improve and automate various facets of the retail sector. This involves employing AI algorithms and machine learning techniques to analyze extensive data sets, forecast consumer behavior, optimize inventory management, customize customer experiences, and streamline operational processes.

The primary components of AI in retail encompass solutions and services. A solution encompasses a comprehensive array of technologies, applications, or services leveraging AI to address specific challenges or enhance particular aspects of retail operations. These solutions utilize various technologies such as machine learning, natural language processing, chatbots, image and video analytics, and swarm intelligence, with deployment options including cloud-based and on-premise. Retail channels encompass omnichannel, brick-and-mortar, and pure-play online retail, with applications spanning customer relationship management, supply chain and logistics, in-store navigation, inventory management, and product optimization.

The artificial intelligence (AI) in retail market research report is one of a series of new reports that provides artificial intelligence (AI) in retail market statistics, including artificial intelligence (AI) in retail industry global market size, regional shares, competitors with artificial intelligence (AI) in retail market share, detailed artificial intelligence (AI) in retail market segments, market trends, and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in retail industry. This artificial intelligence (AI) in retail market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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 goods and/or services sold within the specified market and geography through sales, grants, or donations in terms of currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values - that is, they are revenues generated by organizations in the specified geography within the specified market, irrespective of where they are produced. It does not include revenues from resales either further along the supply chain or as part of other products.


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