Global Image Recognition in Retail Market Size Study & Forecast, by Technology (Code Recognition, Digital Image Processing), Component (Software, Services), Application (Visual Product Search, Security Surveillance), Deployment Type and Regional Forecasts

The Global Image Recognition in Retail Market is valued at approximately USD 3.1 billion in 2024 and is projected to expand at a CAGR of 22.0% over the forecast period of 2025-2035. Image recognition in retail leverages artificial intelligence, computer vision, and machine learning algorithms to enable machines to interpret, analyze, and process visual data for driving business efficiency. Within the retail environment, it transforms customer experience by streamlining operations such as automated checkout, visual product searches, personalized recommendations, inventory monitoring, and security surveillance. As retailers embrace digitalization and integrate AI into physical stores, the market for image recognition continues to accelerate, fueled by rising e-commerce penetration, demand for advanced analytics, and the growing need to enhance consumer engagement while reducing operational inefficiencies.

The sharp rise in digital shopping ecosystems and the consumer shift toward convenience-driven purchasing has dramatically elevated the demand for image recognition technologies across global retail chains. With visual product search applications becoming a core enabler of frictionless shopping, retailers are investing in next-generation solutions that blend digital and physical store experiences seamlessly. According to recent industry studies, more than 70% of global retailers plan to implement AI-based recognition tools by the end of this decade to meet rising consumer expectations for speed, personalization, and accuracy. Meanwhile, security surveillance powered by image analytics is gaining traction in both developed and emerging economies as retail outlets strive to minimize theft, monitor crowd behavior, and ensure customer safety. Despite these promising drivers, challenges such as high deployment costs and privacy-related regulatory scrutiny could temper growth over the coming years.

The detailed segments and sub-segments included in the report are:

By Technology:
• Code Recognition
• Digital Image Processing

By Component:
• Software
• Services

By Application:
• Visual Product Search
• Security Surveillance

By Deployment Type:
• Cloud-Based
• On-Premises

By Region:

North America
• U.S.
• Canada

Europe
• UK
• Germany
• France
• Spain
• Italy
• Rest of Europe

Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• Rest of Asia Pacific

Latin America
• Brazil
• Mexico

Middle East & Africa
• UAE
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Software Solutions are Expected to Dominate the Market

Software is anticipated to remain the leading component in the global image recognition in retail market, accounting for the largest market share throughout the forecast period. As retailers increasingly rely on advanced AI-powered platforms for analyzing consumer data and enabling real-time decision-making, software solutions emerge as indispensable for integrating image recognition into day-to-day operations. From facial recognition at checkouts to visual search algorithms for online and offline commerce, software underpins the transformative adoption of these technologies. Service providers, however, are poised to grow rapidly as enterprises require consulting, customization, and managed solutions to fully harness the potential of recognition platforms.

Visual Product Search is Currently Driving Revenue Contribution

Among applications, visual product search continues to generate the lion’s share of revenue within the market. Consumers are increasingly turning to image-based searches to discover products instantly, compare prices, and make informed purchase decisions, pushing retailers to adopt visual search-enabled applications. This technology not only enhances user engagement but also shortens the path to purchase, creating significant value for retailers in both online and physical formats. Security surveillance, though comparatively smaller in revenue today, is projected to accelerate swiftly as retail establishments tighten their focus on loss prevention, real-time monitoring, and predictive threat detection using AI-powered recognition tools.

The key regions considered for the Global Image Recognition in Retail Market study include North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America dominates the market in 2025 with the largest share, supported by an advanced retail ecosystem, robust adoption of AI technologies, and the presence of global retail giants integrating image recognition into their operations. Meanwhile, Asia Pacific is forecasted to emerge as the fastest-growing region due to rapid urbanization, booming e-commerce, and a surge in smart retail initiatives across China, India, and Japan. Europe also maintains strong growth momentum, with major retailers investing heavily in digital transformation to deliver highly personalized shopping experiences.

Major market players included in this report are:
• IBM Corporation
• Amazon Web Services, Inc.
• Google LLC
• Microsoft Corporation
• NEC Corporation
• Cogniac Corporation
• Cortexica Vision Systems Ltd.
• Clarifai, Inc.
• Snap Inc.
• Cogito Tech LLC
• Qualcomm Technologies, Inc.
• Cisco Systems, Inc.
• Samsung Electronics Co., Ltd.
• Honeywell International Inc.
• Vispera Information Technologies

Global Image Recognition in Retail Market Report Scope:
• Historical Data – 2023, 2024
• Base Year for Estimation – 2024
• Forecast period – 2025-2035
• Report Coverage – Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
• Regional Scope – North America; Europe; Asia Pacific; Latin America; Middle East & Africa

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained below:

Key Takeaways:
• Market Estimates & Forecast for 10 years from 2025 to 2035.
• Annualized revenues and regional-level analysis for each market segment.
• Detailed analysis of the geographical landscape with country-level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of the competitive structure of the market.
• Demand side and supply side analysis of the market. Show more