Global Artificial Intelligence in Retail Market - Growth, Trend and Forecasts (2018 - 2023)
The artificial intelligence in retail market is expected to grow at a CAGR of over 35 %, during the forecast period (2018 - 2023). The scope of the report is limited to solutions offered by various market players from various application including supply chain & logistics, product optimization, in-store navigation, payment & pricing analytics, inventory management, and customer relationship management. The regions considered under the scope of the report include North America, Asia-Pacific, Europe, Latin America, and Middle East & Africa.
The global revenue from AI is expected to take a massive jump, which has been estimated, due to the rising application of AI technology across multiple industries. In fact, within the same timeframe, the advances in the cognitive technologies, including AI and automation will replace 7% of US jobs. These imply that retail companies could significantly reduce the costs of labor and make their shopping processes far more efficient depending on the customer persona. 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. Based on a recent survey, by Walmart 70% of U.S. millennial and 62% of millennial in the UK would appreciate a brand or retailer using AI technology to show exciting products.
Inventory Management to Dominate the Retail Market over the Forecast Period
The use of AI systems in inventory management reduces the uncertainty of maintaining stock levels by monitoring supply chain, market, and consumer demand variables. Since inaccurate inventory management is a high risk for retailers as having too much of inventory is a costly affair, while commodities being out-of-stock leads to loss of sales as well as customer disappointment. Artificial intelligence market in retail has immense growth opportunities with improvement in inventory management. Through the monitoring of weather patterns, dynamic consumer behaviors, and different purchasing rates, artificial intelligence can help retail owners to make informed decisions to manage their inventory and understand consumer needs.
North America to Appear as one of the Leading Region in the Artificial Intelligence in Retail Market
North America is expected to dominate the market with the largest market share mainly because of the presence of several developed economies, such as the United States and Canada, focusing on enhancing the existing solutions in the retail space. North America hosts the primary AI solution providers and is an early adopter of the AI technology. Many retailers in this region have deployed AI-based solutions to optimize their supply chain operations and inventory. AI is helping the retailers in managing and maintaining their customers, and understanding the buying patterns of the consumers. To engage customers and improve the sales turnover, AI technologies are being adopted by both online and offline retail businesses.
Notable Developments in Artificial Intelligence in Retail Market
February 2018: Flipkart is eyeing deep-technology investments in the Silicon Valley to ramp up its technology infrastructure by investing over $25 million in an artificial intelligence startup to bring the technology over to India in order to play catch up with rival Amazon India.
January 2018: Manthan Software Services has launched an intuitive and context relevant in-store personalization solution for retailers. The in-store, marketing solution is powered by ‘Manthan’s TargetOne’ personalized marketing engine and is delivered to customers through the retailer’s mobile app.
Major Players: AMAZON WEB SERVICES, INC., NVIDIA CORPORATION, GOOGLE LLC, WALMART INC., IBM WATSON GROUP, MICROSOFT CORPORATION, PLEXURE LTD., INTEL CORPORATION, QUALCOMM INC., SAP SE, SALESFORCE.COM INC, ORACLE CORPORATION, MANTHAN SOFTWARE SERVICES PVT. LTD, SENTIENT TECHNOLOGIES HOLDINGS LIMITED, FOCAL SYSTEMS INC., and VISENZE PTE LTD, amongst others.
Reasons to Purchase Artificial Intelligence in Retail Market Report
To understand the impact of AI in the retail (e-commerce) sector.
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
To understand the dominating technology in the market
The region that is expected to witness the fastest growth during the forecast period
Identify the latest developments, market shares and strategies employed by the major market players
3 months analyst support along with the Market Estimate sheet (in Excel)
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