About Contact Us Careers

Image Recognition in Retail Market Size and Forecast, by Type (Code Recognition, Digital Image Processing, Facial Recognition, Object Recognition); Component (Hardware, Software, Services); Deployment (On-Premises, Cloud); Application (Scanning & Imaging, Image Search, Security & Surveillance, Augmented Reality, Marketing & Advertising) - Growth Trends, Key Players, Regional Analysis 2026-2035

  • Report ID: 4964
  • Published Date: May 09, 2025
  • Report Format: PDF, PPT

Image Recognition in Retail Market Outlook:

Image Recognition in Retail Market size was valued at USD 3.48 billion in 2025 and is likely to cross USD 26.05 billion by 2035, expanding at more than 22.3% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of image recognition in retail is assessed at USD 4.18 billion.

Image Recognition in Retail Market Size
Discover Market Trends & Growth Opportunities: Request Free Sample PDF

The market is projected to be influenced by the growing adoption of cloud in retail. About 77 percent of retailers globally in 2022 were mature or intermediates users of the cloud who were advancing their investment in the cloud.  Cloud computing makes data processing ability, and data storing capacity efficient which makes the operation of retail business effortless.

Additionally, the concern for fake logos, and designs is growing which will further drive the demand for image recognition. Image recognition technology basically makes it possible for e-Commerce sites to identify goods with false logos and designs trying to pass off as authentic brands by identifying inconsistencies between photos and information. When a fake is found, the system flags it and removes the sellers' products from the marketplace.

Key Image Recognition in Retail Market Insights Summary:

  • Regional Highlights:

    • North America image recognition in retail market exhibits rapid growth by 2035, driven by the growing adoption of Artificial Intelligence (AI) in digital shopping and e-commerce.
    • Asia Pacific market will secure significant revenue share by 2035, driven by rapid technical advancements and rising smartphone and tablet use.

  • Segment Insights:

    • The digital image processing type segment in the image recognition in retail market is projected to capture the largest share by 2035, driven by the surging use of digital images and improved image processing techniques.

  • Key Growth Trends:

    • Growing Focus on Customer Satisfaction
    • Rise in the Establishment of Physical Retail Stores

  • Major Challenges:

    • High Installation Cost
    • Quality Issues of the Image

  • Key Players: Amazon.com, Inc., Attrasoft, Inc., Blippar, Google LLC, Hitachi, Ltd., Honeywell International Inc., Huawei Technologies Co., Ltd., IBM Corp., Intelligent Retail, LTU Technologies.

Global Image Recognition in Retail Market Forecast and Regional Outlook:

  • Market Size & Growth Projections:

    • 2025 Market Size: USD 3.48 billion
    • 2026 Market Size: USD 4.18 billion
    • Projected Market Size: USD 26.05 billion by 2035
    • Growth Forecasts: 22.3% CAGR (2026-2035)

  • Key Regional Dynamics:

    • Largest Region: North America
    • Fastest Growing Region: Asia Pacific
    • Dominating Countries: United States, China, Germany, United Kingdom, Japan
    • Emerging Countries: China, India, Japan, South Korea, Singapore

    • Last updated on : 9 May, 2025

Growth Drivers

  • Growing Focus on Customer Satisfaction

Retail, both online and offline, has the potential to undergo a full transformation owing to image analytics. It entails classifying images based on features or objects in the image. In image analytics, image recognition software is crucial for identifying things such as faces, animals, objects, and colors which eventually increases the satisfaction level of the customers since it becomes easy to find products. Moreover, researchers are working on facial emotion detection in order to recognize the satisfaction level of the customers.

  • Rise in the Establishment of Physical Retail Stores

Even though of growing online retail, the presence of physical stores is estimated to sustain or grow in near future. For instance, while physical storefronts continue to account for about 86% of sales, e-commerce only makes up approximately 12% of all retail sales in the United States. However, to boost the growth of physical stores, a large number of retailers are adopting digitalization. Therefore, the adoption of image recognition in retail is rising.

  • Surge in Adoption of Smartphones

With the help of image recognition software that uses artificial intelligence, users deploy their smartphones every day to scan a variety of items and access a number of applications.

Challenges

  • High Installation Cost
  • Risk of Data Theft - The user receives the intended results as a result of the image recognition technology's processing of the image data. It also needs complementary technologies to improve its functionality, such as facial recognition, deep learning, natural language processing, machine learning, and natural language processing (NLP) to process the stored data and produce useful results. With the use of these technologies, organizations are able to extract valuable information from vast amounts of data and utilize it to inform important choices. Therefore, one of the major threats that many online customers currently face is data theft.
  • Quality Issues of the Image

Image Recognition in Retail Market Size and Forecast:

Report Attribute Details

Base Year

2025

Forecast Period

2026-2035

CAGR

22.3%

Base Year Market Size (2025)

USD 3.48 billion

Forecast Year Market Size (2035)

USD 26.05 billion

Regional Scope

  • North America (U.S. and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC, North Africa, South Africa, Rest of the Middle East and Africa)
Access Detailed Forecasts & Data-Driven Insights: Request Free Sample PDF

Image Recognition in Retail Market Segmentation:

Type Segment Analysis

The digital image processing segment is projected to garner the largest revenue by the end of 2035. This growth of the segment is poised to rise on account of the surging use of digital images. Digital image processing techniques guide in processing videos, further also boost the quality of the image such as boosting contrast, cutting noise, and eliminating artifacts from the image.

Application Segment Analysis

The marketing & advertising segment is poised to have lucrative growth rate during the forecast period. The adoption of image recognition is high in this application owing to the need to improve marketing activities, along with increasing customer interactions.

Also, the audience on social media is growing which could further attract more viewers. Over 5 billion individuals used social media as of 2021, and the typical user visited approximately 5 different social media platforms each month across the globe. Hence, for the purpose of enhancing user experience and enabling advertisers to position ads that are relevant to the context, the major social media platforms are utilizing AI in retail.

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

 

     Type
  • Code Recognition
  • Digital Image Processing
  • Facial Recognition
  • Object Recognition

 

     Component
  • Hardware
  • Software
  • Services

 

     Deployment
  • On-Premises
  • Cloud

 

 

     Application
  • Scanning & Imaging
  • Image Search
  • Security & Surveillance
  • Augmented Reality
  • Marketing & Advertising 
Vishnu Nair
Vishnu Nair
Head - Global Business Development

Customize this report to your requirements — connect with our consultant for personalized insights and options.

Image Recognition in Retail Market Regional Analysis:

North American Market Insights

The market share of image recognition in retail in North America, is anticipated to grow rapidly by 2035, backed by the growing adoption of Artificial Intelligence (AI) in the field of digital shopping and e-commerce.

Moreover, vendors have been compelled to concentrate on creating distinctive products in order to stay competitive due to the growing competition among image recognition solution suppliers.

APAC Market Insights

Asia Pacific market is estimated to account for significant revenue share through 2035. Rapid technical advancements, rising smartphone and tablet use, and the popularity of online streaming in developing nations such as China and India are all factors contributing to the industry expansion.

Image Recognition in Retail Market Share
Get Strategic Analysis by Region Now: Request Free Sample PDF

Image Recognition in Retail Market Players:

    • Amazon.com, Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Attrasoft, Inc.
    • Blippar
    • Google LLC
    • Hitachi, Ltd.
    • Honeywell International Inc.
    • Huawei Technologies Co., Ltd.
    • IBM Corp.
    • Intelligent Retail
    • LTU Technologies

Recent Developments

  • In order to recognize actions in videos when a person's face is obscured or there is a subtle fluctuation in motion that is challenging to discern, Hitachi, Ltd. has created a human action recognition AI technology. With this technique, it is feasible to capture tiny variations in activities in real time without the usage of extra sensors by having AI learn the video and sensor signal from numerous body-worn sensors in advance.
  • Honeywell International, Inc. announced. InbraTerrestre, a Brazilian company, has used its Spectra Shield technology to create lighter-weight helmets for the military and police enforcement. One of the Inbra Group's businesses, InbraTerrestre, would be the nation's first strategic defense provider to gain T&A certification for level III-A ballistic helmet.
  • Report ID: 4964
  • Published Date: May 09, 2025
  • Report Format: PDF, PPT
  • Get detailed insights on specific segments/region
  • Inquire about report customization for your industry
  • Learn about our special pricing for startups
  • Request a demo of the report’s key findings
  • Understand the report’s forecasting methodology
  • Inquire about post-purchase support and updates
  • Ask About Company-Level Intelligence Additions

Have specific data needs or budget constraints?

customer-service Inquiry Before Buying

Frequently Asked Questions (FAQ)

In the year 2026, the industry size of image recognition in retail is assessed at USD 4.18 billion.

The global image recognition in retail market size was valued at over USD 3.48 billion in 2025 and is expected to expand at a CAGR of over 22.3%, surpassing USD 26.05 billion revenue by 2035.

North America image recognition in retail market exhibits rapid growth by 2035, driven by the growing adoption of Artificial Intelligence (AI) in digital shopping and e-commerce.

Key players in the market include Amazon.com, Inc., Attrasoft, Inc., Blippar, Google LLC, Hitachi, Ltd., Honeywell International Inc., Huawei Technologies Co., Ltd., IBM Corp., Intelligent Retail, LTU Technologies.

Image Recognition in Retail Market Report Scope

GET A FREE SAMPLE

FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.

Connect with our Expert

Preeti Wani
Preeti Wani
Assistant Research Manager
Inquiry Before Buying Request Free Sample PDF

Copyright @ 2025 Research Nester. All Rights Reserved.

footer-bottom-logos