The Artificial Intelligence in retail Industry is growing significantly, owing to the increasing awareness and applications of AI in the retail industry. The global Artificial Intelligence in retail Industry size is estimated to be USD 993.6 Million in 2017 and is projected to reach USD 5,034.0 Million by 2022, growing at a Compound Annual Growth Rate (CAGR) of 38.3% during the forecast period.
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The major vendors providing AI in retail solutions and services include Microsoft (US), Google (US), IBM (US), NVIDIA (US), Intel (US), Oracle (US), Sentient Technologies (US), Salesforce (US), Amazon Web Services (US), SAP (Germany), Inbenta Technologies (US), Nuance Communications (US), SAMSUNG (South Korea), Narrative Science (US), Daisy Intelligence (Canada), Infosys (India), Wipro (India), Happiest Minds (India), MicroStrategy (US), Dynamic Yield (US), IPsoft (US), Appier.com (Taiwan), ViSenze (Singapore), Manthan Software Services (India), and Optoro (US).
The players in the Artificial Intelligence in retail Industry have adopted various strategies to expand their global presence and enhance their market shares. Partnerships, collaborations, new product launches, and acquisitions are some of the significant strategies adopted by the market players in the recent years. Top players such as SAP, IBM, and Microsoft have adopted these strategies to expand their product portfolios.
IBM has followed the product development strategy to create a leading market edge. For instance, the IBM Watson Tone Analyzer service provides the textual emotion detection capability to understand users’ emotional state and improve interaction. In July 2017, Tone Analyzer for customer engagement was added as a feature to the IBM Watson Tone Analyzer service. This feature enables the detection of communication tones in chatbot and customer service conversations to understand 7 emotions of the users. These emotions are politeness, satisfaction, sadness, frustration, excitement, impoliteness, and sympathy.
Microsoft has also introduced various product enhancements to maintain a competitive position in the AI in retail market. In May 2017, Microsoft launched new Azure data and cloud services that help developers update the existing apps and design new intelligent apps with the inherent power of AI services.
In terms of market share, North America is expected to continue to dominate the market with the highest market share among all regions during the forecast period. This is mainly because of the presence of various developed economies like Canada and the US, and focus over innovating the existing solutions. North America hosts the major AI solution providers as well as the early adopter for this technology. Many retailers in this region have deployed AI based solutions to optimize their supply chain operations and inventory. AI is helping the retailers to manage and maintain customer base as well as understand their customers well. To engage customers well and to increase sales turnover, AI technologies are being accepted among both online and offline retail businesses and this is driving the growth of this market in this region. Whereas, Asia Pacific (APAC) region is expected to grow at the highest CAGR during the forecast period. Increasing technology spend in countries such as China and India and the demand for cost-effective advanced solution and services among retail industry are expected to drive the market growth during the forecast period.