Artificial Intelligence in Retail Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Artificial Intelligence in Retail Market was valued at USD 1.80 billion in 2020 and is expected to reach USD 10.90 billion by 2026, at a CAGR of 35% over the forecast period 2021 - 2026. AI will drive faster business decisions in marketing, e-commerce, product management, and other areas of the business by decreasing the gap from insights to action.

• The machine learning and deep learning technologies are expected to have the most significant market share during the forecast period. Organizations in the retail industry are using machine learning and deep learning technology to offer a more personalized experience to the end users as well as to provide an interactive environment to them. Moreover, the growing trend of rising technology adoption can be associated with the need for streamlining retail operations, minimizing efforts, and increasing revenue mostly for e-commerce retailers.
• The use of artificial intelligence in retail spans every aspect of the industry. Whether the goal is to optimize the supply chain, use existing data to increase conversion, or customize shopping experiences with predictive modeling and micro-targeting or pricing, AI can help meet these challenge in the retail space.
• The AI equipped retailers with sharper forecasting tools will help in making smarter business decisions. The use of algorithms increases visibility into ROI implications, translating to results like lower costs and higher sales. AI has brought real disruption to the retail sector by improving efficiency, as well as prediction.

Scope of the Report

The application of artificial intelligence (AI), Big Data, and analytics will push the business access toward a data-driven model by expanding the types of data that can be analyzed and raise the level of sophistication of the resulting insight. Artificial intelligence in the retail market is being divided as software, services with different applications like supply chain and logistics, product optimization, in-store navigation, payment and pricing analytics, inventory management, customer relationship management. All these applications are being deployed either in the cloud or on-premise.

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Key Market Trends

Product Optimization Segment is Expected to Hold Significant Share

• Product recommendation and planning will be the growing area for AI in the retail sector. The advancement in Big Data analytics will drive the growing adoption of artificial enabled devices and services across different industrial domains and verticals.
• There is a range of different technologies involved in AI and Big Data, including machine learning, natural language processing, deep learning, and more for the automated machine-driven decisions. 
• According to the Consumer Technology Association, AI has different benefits in the retail industry like cost saving, increased productivity, faster resolution of business problems, faster delivery of new products and services, increase in innovation which is rapidly making its way into many advanced solutions, including autonomous vehicles, smart bots, advanced predictive analytics, in the retail space. This factor is expected to improve customer analytics and behavior experience raising significance of product optimization.

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