Artificial Intelligence (AI) Market in Retail Sector Market by Application and Geography - Forecast and Analysis 2022-2026

The artificial intelligence (AI) market share in retail sector is expected to increase by USD 29.57 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 35.69%.

This AI market in retail sector research report extensively covers the market segmentation in retail sector by application (sales and marketing, in-store, PPP, and logistics management) and geography (North America, APAC, Europe, Middle East and Africa, and South America). The artificial intelligence (AI) market in retail sector report also offers information on several market vendors, including Accenture Plc, Amazon.com Inc., BloomReach Inc., Capgemini SE, Daisy Intelligence Corp., Element AI Inc., Evolv Technology Solutions Inc., Inbenta Technologies Inc., Infosys Ltd., Intel Corp., International Business Machines Corp., Mad Street Den Inc., Microsoft Corp., NVIDIA Corp., Oracle Corp., Plexure Group Ltd., Salesforce.com Inc., SAP SE, Symphony Retail Solutions, and Trax Technology Solutions Pte. Ltd. among others.

What will the Artificial Intelligence (AI) Market Size in Retail Sector be During the Forecast Period?

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Artificial Intelligence (AI) Market in Retail Sector: Key Drivers, Trends, and Challenges

The rise in investments and R&D in ai startups is notably driving the artificial intelligence (AI) market growth in retail sector, although factors such as privacy issues associated with ai deployment may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the artificial intelligence (AI) industry in retail sector. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Artificial Intelligence (AI) Market Driver in Retail Sector 

One of the key factors driving the global artificial intelligence (AI) market growth in retail sector is the rise in investments and R&D in AI startups. Many governments have come up with formal AI frameworks and strategies, such as the US executive order on American leadership in AI, China's Next Generation Artificial Intelligence Development Plan, and AI Made in Germany, all of which are aimed at driving economic and technological growth. In addition, some major vendors such as SoftBank made investments in many firms, including biotech firm Zymergen (USD 400 million) and Automation Anywhere (USD 300 million), a robotics process automation (RPA) company. Microsoft invested approximately USD 33 million to develop an AI R and D hub in Taiwan. Many companies, such as Google, increased their RD workforce to expand their research in AI. Such factors will drive artificial intelligence (AI) in retail market during the forecast period.

Key Artificial Intelligence (AI) Market Trend in Retail Sector

Increased applications in e-commerce is one of the key artificial intelligence (AI) market trends that is expected to impact the industry positively in the forecast period. E-commerce providers and retailers are integrating AI with various applications, such as planning and procurement, supply chain management, in-store operations, CRM, and marketing. Amazon is using AI/ML algorithms, which can handle statistical programming, deep learning, and predictive analysis of a huge volume of data to forecast demand and drive stock efficiencies across the warehouses for dynamic pricing by analyzing how much consumers are willing to spend on certain products. Such factors are expected to further support the market growth  

Key Artificial Intelligence (AI) Market Challenge in Retail Sector

One of the key challenges to the global artificial intelligence market growth in retail sector is the privacy issues associated with AI deployment. By using advanced data mining techniques, data is gathered on several parameters such as the customer's buying habits, customers' online behavior, and payment information. E-commerce giants like Amazon use ML in a combination of collaborative filtering and next-in-sequence models to make predictions on the customer buying behavior and recommend products to the individual based on their previous purchases. Amazon is privy to a huge database of consumer purchase behavior to optimize its predictions. The probable impact of AI on individual privacy is huge, which is why privacy issues are expected to challenge artificial intelligence in retail market in the coming years.

This artificial intelligence (AI) market in retail sector market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global artificial intelligence (AI) market in the retail sector as a part of the global information technology spending market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the artificial intelligence (AI) market in the retail sector during the forecast period.

Who are the Major Artificial Intelligence (AI) Market Vendors in Retail Sector?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• Accenture Plc
• Amazon.com Inc.
• BloomReach Inc.
• Capgemini SE
• Daisy Intelligence Corp.
• Element AI Inc.
• Evolv Technology Solutions Inc.
• Inbenta Technologies Inc.
• Infosys Ltd.
• Intel Corp.
• International Business Machines Corp.
• Mad Street Den Inc.
• Microsoft Corp.
• NVIDIA Corp.
• Oracle Corp.
• Plexure Group Ltd.
• Salesforce.com Inc.
• SAP SE
• Symphony Retail Solutions
• Trax Technology Solutions Pte. Ltd.

 

This statistical study of the artificial intelligence (AI) market in retail sector market encompasses successful business strategies deployed by the key vendors. The artificial intelligence (AI) market in retail sector market is fragmented and the vendors are deploying growth strategies such as pricing and marketing strategies and product differentiation to compete in the market.

Product Insights and News

• Accenture Plc - The company offers retail Artificial Intelligence solutions for customer profit and revenue, dynamic merchandising and assortment, supply network, analytics, and profitability. 
• Accenture Plc -  In 2021, the company acquired Wolox, a leading Argentinean cloud-native and agile development company that provides digital solutions to help clients achieve successful business outcomes. 

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The artificial intelligence (AI) market in retail sector market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Artificial Intelligence (AI) Market in Retail Sector Value Chain Analysis

Our report provides extensive information on the value chain analysis for the artificial intelligence (AI) market in retail sector, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Artificial Intelligence (AI) Market in Retail Sector?

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40% of the market's growth will originate from North America during the forecast period. US and Canada are the key markets for artificial intelligence (AI) in retail sector in North America. Market growth in this region will be faster than the growth of the market in South America and MEA.

The significant increase in the investments in the technology and the early adoption of AI will facilitate the artificial intelligence (AI) market growth in retail sector in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The COVID-19 pandemic had a devastating effect on the regional economy, as well as on large enterprises and SMEs, in 2020 and early 2021. The revenues of SMEs declined, and many employees were laid off due to the losses incurred. The investments by large and small enterprises in the retail and e-commerce sector for adopting new technologies were low, which hampered the demand for AI solutions in 2020. Furthermore, the closure of stores and companies led to the increasing adoption of remote working, and employees were asked to work from home. Such factors led to the increased adoption of cloud-based analytics platform solutions, such as AI-based CRM, in the retail and e-commerce sector. In addition, the implementation of vaccination drives in the US and other North American countries has led to a decline in the number of COVID-19 cases and the resumption of retail stores, which is expected to significantly drive the demand for AI in retail market during the forecast period.

What are the Revenue-generating Application Segments in the Artificial Intelligence (AI) Market in Retail Sector?

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The artificial intelligence (AI) market share growth in retail sector by the sales and marketing segment will be significant during the forecast period. The increase in focus on customer preferences and personalization is leading to the adoption of AI-powered CRM to drive sales and marketing through better product recommendations.

This report provides an accurate prediction of the contribution of all the segments to the growth of the artificial intelligence (AI) market size in retail sector and actionable market insights on post COVID-19 impact on each segment.

 

Artificial Intelligence (AI) Market Scope in Retail Sector
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 35.69%
Market growth 2022-2026	$ 29.57 billion
Market structure	Fragmented
YoY growth (%)	31.45
Regional analysis	North America, APAC, Europe, Middle East and Africa, and South America
Performing market contribution	North America at 40%
Key consumer countries	US, Canada, China, Japan, and UK
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Accenture Plc, Amazon.com Inc., BloomReach Inc., Capgemini SE, Daisy Intelligence Corp., Element AI Inc., Evolv Technology Solutions Inc., Inbenta Technologies Inc., Infosys Ltd., Intel Corp., International Business Machines Corp., Mad Street Den Inc., Microsoft Corp., NVIDIA Corp., Oracle Corp., Plexure Group Ltd., Salesforce.com Inc., SAP SE, Symphony Retail Solutions, and Trax Technology Solutions Pte. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Artificial Intelligence (AI) Market in Retail Sector Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive artificial intelligence (AI) market growth in retail sector during the next five years
• Precise estimation of the artificial intelligence (AI) market size in retail sector and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the artificial intelligence (AI) industry in retail sector across North America, APAC, Europe, Middle East and Africa, and South America
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of artificial intelligence (AI) market vendors in retail sector  

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