TL;DR:
- The global AI in the retail market is projected to reach US$10.76 billion by 2023 and exceed US$127.09 billion by 2033.
- AI is revolutionizing the retail industry, transforming cost elements and shopping participation.
- The integration of AI with technology and company strategy is crucial for sellers, especially in the wake of the COVID-19 pandemic and the growth of eCommerce.
- AI automates repetitive tasks, enhances productivity, and improves the shopping experience with features like cashier-less checkouts.
- Despite challenges, such as infrastructure and high implementation costs, the benefits of AI in retail are significant.
- Machine learning (ML) is the leading revenue-generating AI technology, accounting for over 32% of the market share.
- The solutions category holds a substantial portion of the global AI in the retail market, with a 73% market share.
- The United States dominates AI revenue in the retail market, contributing over 39% in 2022.
- The UK is expected to grow at a CAGR of 4.66%, driven by IoT and Machine-to-Machine technologies.
- Japan’s AI in the retail industry is projected to grow at a CAGR of 5.6% and reach a market value of US$6.3 billion.
- The Asia Pacific region shows great potential for AI in the retail market due to rapid digitalization.
- Leading market players are investing in cutting-edge technologies and utilizing partnerships, mergers, and acquisitions.
- Microsoft and Infosys are collaborating to enhance consumer experiences, systems, and processes.
- Intel’s reference kits simplify AI implementation for data scientists and engineers across industries.
- Businesses must embrace AI and innovative technologies to maintain a competitive advantage in the evolving retail landscape.
Main AI News:
The global artificial intelligence in the retail market is on track to reach US$10.76 billion by 2023. According to Future Market Insights, demand for AI in retail is predicted to grow at a CAGR of 28% and surpass US$127.09 billion by 2033. The integration of AI with both technology and company strategy is necessary for sellers to plan for eCommerce growth, as recent events such as the coronavirus outbreak have boosted online shopping.
AI is poised to take over tedious, repetitive tasks, helping consumers and increasing productivity, just as it has done in the workplace. With AI-driven logistics and robots assisting with order selection and packing, employees can focus on more important tasks. AI has become a game-changer in the retail industry, revolutionizing the shopping experience with cashier-less checkouts powered by computer vision and big data analytics.
Despite some challenges, such as infrastructure and technological know-how for small and medium-sized businesses and high implementation costs for small retailers, the benefits of AI in the retail market cannot be ignored. Advancements in computer vision and other technologies are creating new retail opportunities, and the growth of AI products and services is fueled by big data analytics.
Key Takeaways from the Artificial Intelligence in Retail Market:
- The solutions category is anticipated to account for a substantial portion of the global AI in the retail market, with a 73% market share.
- Among the various AI technologies, machine learning (ML) has reportedly amassed the leading revenue share of over 32%.
- The pure-play market category obtained a sizeable revenue share based on sales channels.
- The customer relationship management sector accounted for about 21.50% of total revenue in 2022.
- More than 39% of revenue in 2022 came from the United States region.
- During the forecast period, the UK is expected to grow at a CAGR of 4.66%, driven by the emergence of IoT and Machine-to-Machine technologies, as well as rising demand for research and industrial capacity in the region.
- During the forecast period, Japan’s AI in the retail industry is expected to grow at a CAGR of 5.6% and reach a market value of US$6.3 billion.
- The Asia Pacific region is poised for rapid growth in AI in the retail market, owing to the retail industry’s rapid digitalization.
To increase the market share of artificial intelligence in retail, key firms are also employing partnership, merger, and acquisition tactics. Microsoft and Infosys will partner in September 2022 to enable businesses to quickly reinvent consumer experiences, bolster systems with cloud and data, and update processes. Meanwhile, Intel’s novel reference kits aim to simplify the understanding of AI implementation for data scientists and engineers in various industries, including retail.
In the race to stay ahead of the competition, leading market participants are investing in cutting-edge technologies to easily implement new services into their operations. By utilizing innovative technologies, businesses are enhancing their product portfolio, which supports important players in maintaining an advantage over rivals in the market. With the retail industry rapidly embracing digitalization, the Asia Pacific region is poised for rapid growth in AI in the retail market.
As AI continues to transform the retail industry, it is clear that businesses must adapt and embrace the latest technologies to remain competitive.
Conlcusion:
The rapid growth of artificial intelligence (AI) in the retail market presents significant opportunities for businesses. With the projected market value of over US$10.76 billion by 2023 and the potential to exceed US$127.09 billion by 2033, AI is reshaping the retail industry. By leveraging AI technologies such as machine learning, retailers can automate tasks, enhance productivity, and provide personalized shopping experiences. The dominance of the solutions category and the revenue share of machine learning highlights the importance of innovative AI solutions.
However, challenges such as infrastructure limitations and implementation costs for small retailers need to be addressed. Strategic partnerships, mergers, and acquisitions are key strategies employed by market players to gain a competitive edge. Embracing cutting-edge technologies and adopting AI-driven strategies will be crucial for businesses to thrive in this evolving retail landscape.
