In terms of revenue, the Global Artificial Intelligence in Retail Market is expected to reach 17,086.54 USD Million by 2028, growing at a CAGR of 34.10% from 2022 to 2028. Increasing necessity for superior surveillance and monitoring at a physical store along with growing awareness and application of AI in the retail industry are the driving factors for Artificial Intelligence in Retail Market.
- Under the offering segment, the solution sub-segment is anticipated to dominate the segment for the Artificial Intelligence in Retail Market and grow at a substantial CAGR. The growth is attributed to growing challenges in managing various retail operations.
- Operation-focused solutions sub-segment held a market significant share in 2021 for function segment for Artificial Intelligence in Retail Market. The growth is attributed to efficiencies of the operation, such as merchandising, logistics, supply chain, on-time delivery, and more.
- North America is the largest regional segment. This is due to the presence of major players in the region. Additionally, the early adoption of new and emerging technologies is further fueling the market growth in the region.
Some of key players in Artificial Intelligence in Retail Market include, IBM (US), Microsoft (US), Amazon Web Services (US), Oracle (US), SAP (Germany), Intel (US), NVIDIA (US), Google (US), Sentient technologies (US), Salesforce (US), and ViSenze (Singapore)".
Nowadays, AI-powered chatbots for improved customer experience is witnessing to be gaining acceptance across the retail industry owing to highly efficient customer service. Artificial Intelligence (AI) has several benefits in the retail industry such as faster delivery of new products and services, increased productivity, cost-saving. Thus, these are some of the factors that may improve customer analytics and behavior experience which further nurturing the significance of product optimization. Additionally, increasing funding from the government as well as major players is further propelling the market growth. Moreover, the developments in technology are further fueling the market growth over the forecast period. For instance, In February 2020, Baker Hughes and C3.ai has announced the launch of BH3 Production Optimization, an AI-based application that allows well operators to view real-time production data, better project future production, and help optimize operations for improved oil and gas production rates.
North America is expected to emerge as potential market for Artificial Intelligence in Retail Market. The market growth in the region is attributed to factors such as the early adoption of new and emerging technologies in the region. However, Asia Pacific is expected to grow at the fastest Compound Annual Growth Rate (CAGR) owing to the growing adoption of AI-based solutions and services among retailers. Additionally, increasing digitalization in the region is further propelling the market growth over the forecast period.