AI in Retail Market Analysis

Component Segment Analysis

The solution segment is expected to hold a commanding 60% market share throughout the forecast period, stimulated by the intense requirement for end-to-end, comprehensive AI solutions focused on alleviating critical retail pain points. One of the main drivers is the necessity of holistic solutions that put AI-driven merchandising, logistics, and customer experience capabilities together on a single platform. A pertinent advancement is the increasing number of specialist AI assistants available to the retail industry. In April 2024, Amazon Web Services (AWS) released the general availability of new retail AI services, such as Amazon Q, a generative AI assistant that can handle sales data analysis and offer supply chain performance insights. This movement towards solutions that offer everything in one is driving the growth of this category as retailers want to streamline their technology stack and achieve high ROI.

Technology Segment Analysis

The machine learning category is predicted to account for a 40% share of the market by 2035 because it is the underlying technology behind most of the most significant AI uses in retail, from predictive analytics to personalization. The capacity of machine learning algorithms to process large data sets and determine patterns is key to optimizing everything from demand forecasting to customer segmentation. One of the major developments is leveraging machine learning to drive in-store operational effectiveness. In April 2024, Zebra Technologies introduced new AI-driven software for its mobile computers and scanners, utilizing machine learning to deliver real-time visibility to store associates on activities such as stocking shelves. As retailers continue to invest more in data-informed decision-making, the machine learning segment will continue to be a pillar of the AI in Retail market. 

Sales Channel Segment Analysis

The omnichannel segment is projected to account for a 45% market share during the forecast period, as retailers increasingly emphasize delivering seamless, unified experiences across both digital and physical channels. AI is a key driver of this trend, enabling the integration of data and operations from e-commerce sites, mobile applications, and physical stores. One key driver is the application of AI to fuel integrated logistics and fulfillment networks. In August 2023, Shopify released a broadened partnership with Amazon, permitting its merchants to utilize the Buy with Prime service directly from their Shopify stores. This omnichannel integration, based on Amazon's AI-based logistics network, exhibits the increased significance of a singular solution to retail and also the central function that AI serves in making this possible.

 Our in-depth analysis of the global AI in retail market includes the following segments: