Hyper Personalization Market Report 2024

This Hyper Personalization market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The hyper personalization market size has grown rapidly in recent years. It will grow from $18.49 billion in 2023 to $21.79 billion in 2024 at a compound annual growth rate (CAGR) of 17.8%. The growth in the historic period can be attributed to the rise in internet usage, the expansion of e-commerce, increasing consumer expectations for personalized experiences, advancements in mobile technology, and the growing availability of big data from diverse sources.

The hyper personalization market size is expected to see rapid growth in the next few years. It will grow to $42.14 billion in 2028 at a compound annual growth rate (CAGR) of 17.9%. The growth in the forecast period can be attributed to the rising demand for personalized customer experiences, the increasing volume of consumer data, the expansion of digital and e-commerce platforms, the need for enhanced customer engagement and retention, and a growing emphasis on customer-centric business models. Major trends include the integration of AI and machine learning, the adoption of omnichannel strategies, advancements in data privacy technologies, the use of predictive analytics, and the development of advanced recommendation systems.

The growth of the hyper-personalization market is expected to be fueled by the expanding e-commerce landscape. The e-commerce landscape encompasses the intricate and evolving network of entities, processes, and technologies that facilitate online commercial activities. Key factors driving this growth include increased internet access, widespread smartphone use, advancements in logistics and supply chain management, a shift toward online shopping, and the convenience of digital payments. Hyper-personalization enhances the e-commerce experience by offering tailored shopping experiences, boosting customer engagement, and increasing conversion rates through personalized product recommendations and targeted marketing efforts. For example, the United States Census Bureau reported in August 2024 that e-commerce sales in the second quarter of 2024 rose by 6.7% compared to the same period in 2023, while total retail sales grew by 2.1%. Thus, the expanding e-commerce landscape is propelling the hyper-personalization market forward.

Leading companies in the hyper-personalization market are focusing on developing generative AI-powered platforms to deliver highly customized customer experiences. These platforms utilize AI algorithms to process extensive data on user behavior, preferences, and interactions to create personalized content, product recommendations, and marketing messages in real-time. For instance, in May 2024, Newgen Software, an India-based software firm, launched LumYn, a generative AI-powered hyper-personalization platform designed specifically for the banking sector. LumYn enhances profitability and customer experiences by employing predictive intelligence and conversational AI. Its features include behavioral segmentation, pre-built AI models for quick insights, and a focus on data privacy, thereby improving customer engagement and cross-selling opportunities.

In April 2022, Mastercard Inc., a US-based credit card company, acquired Dynamic Yield Ltd. from McDonald's Corp. for an undisclosed amount. This acquisition enables businesses to gain actionable insights from real-time consumer behavior, allowing for more effective personalization of offers and recommendations. Dynamic Yield Ltd. is a US-based company specializing in personalization platforms and decision engines.

Major companies operating in the hyper personalization market are Google LLC, Microsoft Corporation, PepsiCo Inc., Amazon Web Sevices Inc., Accenture plc, International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce Inc., Cognizant Technology Solutions Corporation, Adobe Inc., Infosys Limited, Experian PLC, SAS Institute Inc., HubSpot, Klaviyo, Algolia, emarsys eMarketing Systems, MoEngage, Dynamic Yield Ltd., Velocify, Clearbit, Sailthru Inc., Taplytics Inc., RichRelevance.

Asia-Pacific was the largest region in the hyper personalization market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the hyper personalization market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the hyper personalization market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Hyper personalization refers to an advanced marketing approach that utilizes artificial intelligence and real-time data to deliver highly customized content, products, and services tailored to individual users based on their specific behaviors and preferences. This strategy enhances customer engagement, improves conversion rates, boosts customer satisfaction, allows for more effective targeting, reduces marketing costs, and provides a more personalized user experience.

The main types of hyper personalization solutions are cloud-based and on-premise. Cloud-based hyper-personalization employs internet-based platforms and services to deliver personalized experiences. This includes various components such as software solutions and services. Key end-user industries for these solutions encompass banking, financial services, and insurance (BFSI), retail, e-commerce, healthcare and life sciences, media and entertainment, education, and others.

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

The hyper personalization market consists of revenues earned by entities by providing services such as consulting and strategy development, custom AI model development, data integration and management services, implementation and support, and analytics and optimization services. The market value includes the value of related goods sold by the service provider or included within the service offering. Hyper personalization also includes sales of computing hardware, data collection devices, and display and interaction devices. 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.

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