According to the latest market research study published by P&S Intelligence, the global artificial intelligence in retail market is set to reach USD 36,462.5 million by 2030, with a compound annual growth rate of 32.6%. This growth is driven by increasing online retail sales, a stronger reliance on digital marketing, rising investment in AI, supportive government policies, and a heightened focus on enhancing the customer shopping experience.
The expanding e-retail sector plays a major role in the industry's global growth, driven by increasing internet access, the adoption of alternative payment methods, rising investment in logistics, and widespread smartphone usage. AI integration is helping retailers predict customer behavior and offer personalized services, significantly enhancing consumer satisfaction.
A notable trend in the market is the use of AI in multichannel marketing. By analyzing data on in-store customer behavior, email marketing, and online campaigns, retailers can identify patterns and design customized campaigns for better decision-making.
Among AI solutions, retail-focused offerings have gained significant traction in developed countries such as the U.S., Japan, Germany, and Canada, helping retailers provide an enhanced shopping experience. In terms of technology, natural language processing (NLP) is expected to grow the fastest, as it allows machines to understand and process human language, helping retailers better understand customer preferences.
North America has been the largest contributor to the market, owing to a growing e-commerce sector and the widespread adoption of digital marketing strategies in the U.S. and Canada. High smartphone and internet penetration, combined with the convenience of online shopping, have driven growth in this region.
Meanwhile, the Asia-Pacific region is expected to witness the fastest growth in the coming years, primarily due to the steady adoption of machine learning by online retailers, especially in China, and significant investments in AI by retail companies. This growth trajectory is anticipated to continue as retailers increasingly invest in AI technologies to meet evolving customer expectations.
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