ARTIFICIAL INTELLIGENCE IN RETAIL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Regional Analysis

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North America has established itself as the dominant region in the global artificial intelligence in retail market with an estimated 38.9% share in 2024. This can be attributed to heavy investments being made by major tech companies like Microsoft, IBM, Nvidia, C3.ai, etc. as well as retailers based in the U.S. and Canada to integrate AI-based technologies across their operations. Moreover, the presence of several AI startup incubators and accelerators in the region has fostered innovation.

Furthermore, retailers in North America are among the early adopters of AI globally. Applications around predictive analytics, demand forecasting, customer service, and dynamic pricing are being widely used. The promotion of technology adoption through government initiatives has also propelled the artificial intelligence in retail market in the region. High disposable income levels provide retailers with abundant opportunities to experiment with personalized and customized shopping experiences powered by AI. This has significantly boosted demand.

On the other hand, the Asia Pacific region has emerged as the fastest growing market for artificial intelligence in retail. Rapid digitalization of the retail sector and growing penetration of internet and smartphones are driving regions growth. Countries like China, India, and Japan house a massive consumer base that is highly receptive to innovative AI-enabled technologies.

According to SAP SE's analysis from 2020, China secured a 23.4% share of AI investments in its commerce and retail industry. SAP SE, a global leader in enterprise application software, provides innovative solutions that help businesses transform their operations and leverage technology effectively.

E-commerce is booming in the region which has prompted retailers to deploy AI for applications such as product recommendations, process automation, and supply chain optimization. Domestic players are aggressively focusing on developing AI capabilities in-house to gain a competitive advantage in this digital era.