Image Recognition in Retail Market size is set to reach USD 14 billion by the end of 2035, growing at 23% CAGR from 2023 to 2035. The image recognition in retail sector was USD 3 billion in 2022. 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.
Growth Drivers
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.
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.
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
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~ 23% |
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Base Year Market Size (2022) |
~ USD 3 Billion |
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Forecast Year Market Size (2035) |
~ USD 14 Billion |
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Regional Scope |
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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.
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:
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Component |
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Deployment |
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Application |
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North American Market Forecast
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 Statistics
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.
Author Credits: Abhishek Verma, Hetal Singh
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