Artificial Intelligence In Retail Market To Reach $40.74 Billion By 2030

Artificial Intelligence In Retail Market Growth & Trends

The global artificial intelligence in retail market size is expected to reach USD 40.74 billion by 2030, registering a CAGR of 23.0% from 2025 to 2030, according to a new report by Grand View Research, Inc. The rising prominence of advanced technologies, such as chatbots and voice recognition programs, has furthered the growth potential. Moreover, the emerging online retail sales, increasing focus of retailers on improving customers’ shopping experience, rising reliance on digital marketing, and growing investments in AI, accompanied by supportive government regulations, are the crucial factors contributing to the progress of the industry worldwide.

AI algorithms play a pivotal role in assessing a considerable amount of data collated from consumers’ online behavior. Moreover, AI-driven image and video analytics have become trendier to help filter out and classify images and less important visual content, expediting investments across developed and developing economies.

Adopting AI in retail helps provide better outcomes and engage customers in the virtual world, which is expected to increase demand for AI in retail in the coming years. For instance, in January 2021, Google LLC launched Product Discovery Solutions for Retail. This product is a suite of services created to improve retailers’ e-commerce potential and aid them in delivering personalized consumer experiences.

The image and video analytics segment is poised to gain a significant share in the AI in retail market during the assessment period, partly due to the growing prominence of in-store promotional strategies and image search. To illustrate, eBay uses AI to streamline image searches, enhance buyer-seller trust, and boost shipping and delivery times. Meanwhile, Amazon prioritizes AI to expand visual search and facial recognition, among others.

Stakeholders anticipate the virtual assistant segment to contribute significantly to the global market. The trend is mainly attributed to the growing prominence of voice-powered search queries and personalized shopping experiences. Prominently, intelligent virtual assistants have reshaped the industry dynamics, helping retailers handle customer queries seamlessly.

Major players in the market are consistently investing in advanced technologies and introducing customer targeting and tailored solutions to stay ahead of the competition. For instance, in August 2020, Kenco, a company that provides logistics services based in the U.S., launched DaVinci AI to create predictive insights, boosting supply chain and prescriptive actions.

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Artificial Intelligence In Retail Market Report Highlights

• The solution segment dominated the market with a revenue share of more than 62% in 2024. The emerging challenges in managing several retail operations are said to boost the retail sector's innovative and new automated technologies.

• The machine learning segment led the market with the largest revenue share in 2024. Machine learning serves fast and is suitable for delivering personalized experiences to consumers. To fuel efficiency, it aids retail vendors in enhancing supply chain systems and demand forecasts.

• The omnichannel segment dominated the market with a significant revenue share in 2024. Omnichannel strategies have gained immense popularity due to the expansion of digitization across developing and developed countries.

• The Customer Relationship Management (CRM) segment dominated the market in 2024. The CRM segment will gain prominence with strong demand to boost customer retention and customer service.

• North America artificial intelligence in the retail market dominated the global industry with a revenue share of 33.4% in 2024.

Artificial Intelligence In Retail Market Segmentation

Grand View Research has segmented global artificial intelligence in retail market reports based on components, technology, sales channel, application, and region:

Artificial Intelligence In Retail Component Outlook (Revenue, USD Million; 2018 - 2030)

• Solution

• Service

Artificial Intelligence In Retail Technology Outlook (Revenue, USD Million; 2018 - 2030)

• Machine Learning

• Natural Language Processing

• Chatbots

• Image and Video Analytics

• Swarm Intelligence

Artificial Intelligence In Retail Sales Channel Outlook (Revenue, USD Million; 2018 - 2030)

• Omnichannel

• Brick and Mortar

• Pure-play Online Retailers

Artificial Intelligence In Retail Application Outlook (Revenue, USD Million; 2018 - 2030)

• Customer Relationship Management (CRM)

• Supply Chain and Logistics

• Inventory Management

• Product Optimization

• In-Store Navigation

• Payment and Pricing Analytics

• Virtual Assistant

• Others

Artificial Intelligence In Retail Regional Outlook (Revenue, USD Million; 2018 - 2030) 

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

• Asia Pacific

  • China

  • India

  • Japan

• South America

  • Brazil

• Middle East & Africa

List of Key Players of Artificial Intelligence In Retail Market

• NVIDIA Corporation

• Microsoft Corporation

• Google LLC

• IBM Corporation

• SAP SE

• Oracle Corporation

• Sentient technologies

• Intel Corporation

• Salesforce, Inc.