AI in Retail Market Size

AI in Retail Market size was valued at USD 7.25 billion in 2023 and is set to cross USD 237.81 billion by 2036, registering more than 30.8% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of AI in retail is evaluated at USD 9.04 billion. The growth of the market can be attributed largely to the increasing investments in AI technology for developing innovative applications centered at improving retail customer experience. Along with this, growing funding in several applications of artificial intelligence including machine learning, deep learning, advanced analytics and object recognition, is also expected to drive market growth in the upcoming years. In 2019, the total funding allocated to machine learning around the world was approximately USD 30 billion. The budgets for ML programs are calculated to grow by more than 25 percent as of now. Furthermore, benefits of AI in retail such as enhanced customer experience, effective promotion and merchandising, and lower cost-to-serve are projected to offer lucrative opportunities to the market in the near future. Rising advent of new business models and advancements in data science are also predicted to result in furthering the expansion of market.