The global AI in retail market is set to achieve a valuation of $85 billion by 2033, expanding at a noteworthy 30.3% CAGR from 2023 to 2033.
AI in retail is ushering in a new era of how businesses track their operations to improve business strategies, give better outcomes, and communicate with customers in the digital world. Many established retailers around the world are dealing with rising costs, dissatisfied consumers, dwindling sales, and growing competition. As a result, retailers are implementing technology solutions to boost operational efficiency and improve customer interactions.
Numerous aspects of the retail industry, including supply chain management, inventory management, customer relationship management, and marketing and branding, have tremendous technology transformation potential, allowing retailers to enhance overall efficiency and profitability.
The global AI in retail market is rising rapidly due to factors such as greater knowledge of AI and big data analytics, increasing smart devices and internet users, growing amount of data in the retail industry, and strong government digitisation programmes. Moreover, the acceptance of an omnichannel or multichannel retailing strategy, enterprise requirements for streamlining business processes, untapped possibilities to boost sales efficiency, and the expanding need to improve end-user experience and capitalise on market dynamics are all contributing to global market growth.
North America controls the majority of global revenue. To improve customer service efficiency, retailers in the region are concentrating on extracting accessible data on customer preferences. The United States is the leading market in North America. The country is currently investing heavily in AI technology. Due to the increased demand for technology, the United States is also seeing the emergence of new small businesses and startups.
Asia Pacific and Europe are following North America in terms of development. The retail industry in Asia Pacific is undergoing a fast transformation. As a result, there is a greater demand for modern technologies to enhance operations and the customer experience.
Key takeaways from market study:
- The global AI in retail market stands at $6 billion in 2023
- Worldwide demand for AI technology in retail is anticipated to increase at a CAGR of 30.3% from 2023 to 2033
- The global AI in retail market is forecasted to reach $85 billion by 2033
- North America captured 38.5% share of the global market in 2022
- Machine learning accounted for 30% of the global market share in 2022
“AI is rapidly altering the retail industry by enabling businesses to personalise customer experiences, streamline supply chains, and boost operational efficiency. AI is also helping businesses obtain important insights into customer behaviour and preferences, which can then be utilised to build more targeted and efficient marketing efforts,” says a Fact.MR analyst.