AI is the theory and development of computer systems capable of performing tasks that require human intelligence. AI combines the power of various technologies such as machine learning, deep learning, and Natural Language Processing (NLP) along with many more supporting technologies. Thereby, leveraging the AI technology to perform numerous functions, such as product planning, sales management, Customer Relationship Management (CRM), visual search, web content optimization, Supply Chain Management (SCM), price optimization, and payment services management.
The Artificial Intelligence (AI) in retail market is expected to grow from USD 993.6 Million in 2017 to USD 5,034.0 Million by 2022, at a Compound Annual Growth Rate (CAGR) of 38.3%. Factors such as increasing necessity for surveillance and monitoring at a physical store, growing awareness, and application of AI, enhanced user-experience, improved productivity, Return on Investment (RoI), maintaining inventory accuracy, and supply chain optimization are driving the global Artificial Intelligence in retail market.
The report provides detailed insights into the global Artificial Intelligence in retail market, which is segmented by type, technology, solution, service, deployment mode, application, and region. In the types, the online (eCommerce) retail market will have the largest market share during the forecast period. The online retailing includes buying and selling of FMCG, CPG, apparels, electronics goods, and other forms of life essentials. It excludes entertainment and travel services offered online. Contrary to the brick-and-mortar stores, customers no longer have to stand in long queues to buy their preferred goods. They can purchase them easily through mobile applications and websites, sitting comfortably in their homes or offices. The AI-based solution are majorly adopted by the online retailers to target the customer, who want to shop from the comfort of their homes.
Among solutions, product recommendation and planning is expected to hold the largest market share and is expected to continue its dominating position during the forecast period. Product recommendation is a very powerful aspect of the overall shopping cycle for any shopper. eRetailers are using AI to give a personalized experience to their customers and give recommendations on products they would like to purchase by showing relevant products. Moreover, machine learning and deep learning technology will remain the most significant technology contributing highest revenue compared to other technologies.
Whereas, the in-store visual monitoring and surveillance application is expected to have the highest growth rate during the forecast period. AI for video surveillance analyze the images in order to recognize humans, vehicles, or objects by using computer software programs. This can help in curbing the issue of shoplifting which is one of the major reasons to incur financial loss in stores. The cloud deployment model is expected to exhibit a higher market share, due to the rising demand for 24*7 availability of accessible information and low-cost maintenance services.
The report covers all the major aspects of the Artificial Intelligence in retail market and provides an in-depth analysis for major countries across the regions of North America, Europe, Asia Pacific (APAC), Latin America, and the Middle East and Africa (MEA). North America, owing to the early adoption of new and emerging technologies and the presence of the major industry players, is expected to dominate the market in terms of market size, throughout the forecast period. The APAC region is expected to grow at the highest CAGR during the forecast period, owing to the growing adoption of AI-based solutions and services among retailers.
The issues related to diverse development framework, models, mechanisms in AI, privacy concern, and lack of skilled staff are some major challenges faced by the retail users deploying AI, which needs to be enhanced to improve the growth of the Artificial Intelligence in retail market.
The AI in retail ecosystem comprises vendors such as 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). Other stakeholders of the Artificial Intelligence in retail market include vendors, research organizations, network and system integrators, AI managed service providers, Business Intelligence (BI) solution providers, marketing analytics executives, third-party providers, and technology providers.
Vendors who fall into this category receive high scores for most of the evaluation criteria. They have a strong and established product portfolio, and a very strong market presence. They provide mature and reputable Artificial Intelligence in Retail solutions. They also have strong business strategies. Microsoft, IBM, Google, Salesforce.com, Intel, SAP, Oracle, and Amazon Web Services are some of the vendors who fall into the visionary leaders’ category.
Innovators in the MicroQuadrant are vendors that have demonstrated substantial product innovations as compared to their competitors. They have a much-focused product portfolio. However, they do not have a very strong growth strategy for their overall business. Inbenta Technologies, Narrative Science, Sentinent Technologies, Manthan Software Services, Appier.com, and Dynamic Yield are some of the vendors who fall into the innovators category.
They are established vendors with very strong business strategies. However, they are low in their product portfolios. They focus on a specific type of technology related to the product. SAMSUNG, Infosys, Wipro, NVIDIA, Nuance Communications, MicroStrategy, IPsoft, and Happiest Minds are some of the vendors who fall into the dynamic differentiators’ category.
They are vendors with niche product offerings and are starting to gain their position in the market. They do not have much strong business strategies, as compared to other established vendors. They might be new entrants in the market and require some more time before getting significant traction in the market. Optoro, Daisy Intelligence, and ViSenze are some of the vendors who fall into the emerging companies’ category.
Artificial Intelligence in Retail Quadrant
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- Product Offerings
- Product Features and Functionality
- Customer Satisfaction
- Customers Satisfaction
- License Used
- Solutions/Services offered
- Software Tools
- Consulting & Training
- Support & Maintenance
- End User
- Small Enterprise (Revenue< 100 Million)
- Medium Enterprises (100 Million<Revenue<500 Million)
- Large Enterprises (Revenue> 500 Million)
- Core features
- Supply chain management
- Pricing and Promotion
- Customer Intelligence
- Demand forecasting
- Product Differentiation
- Product Enhancement
- Product Quality and Reliability
- Levels of support (such as silver, gold, and platinum)
- The customer redressal mechanism/program in case of customer complaints/grievances.
- Types of Product Innovation
- Customer feedback/ project upgradation
- Type of Retail Support
- On-Site Support
- Remote Support
- Support Services
- Technical Support
- Customer Support
- Sales Support
- Others (Please specify)
- Product Enhancement Development
- Product Upgradation
- New Product Launches
- Pre-sales Activities
- Software Requirement Specification (SRS)
- Product Demos
- Proof of Concept
- Dedicated Account Manager (DAM)