Global Recommendation Engine Market
Recommendation Engine Market size is expected to cross USD 94.24 billion by the end of 2037, expanding at a CAGR of 24.67% during the forecast period, i.e., 2025-2037. In the year 2024, the industry size of recommendation engine is estimated at USD 5.49 billion.
The major factor influencing the market expansion is the growing demand for e-commerce owing to the growing adoption of the Internet. For instance, according to the prediction made by the International Telecommunication Union, over 5.4 billion people – or about 67 percent of the population across the globe were utilizing the Internet in 2023. As a result, the adoption of a recommendation engine is set to be adopted by e-commerce companies to boost the engagement of viewers.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
24.67% |
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Base Year Market Size (2024) |
USD 5.49 Billion |
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Forecast Year Market Size (2037) |
USD 94.24 Billion |
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Regional Scope |
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Type (Collaborative Filtering, Content-Based Filtering, Hybrid Recommendation Systems)
The hybrid recommendation systems segment in the recommendation engine market is expected to surpass USD 41.13 billion by the end of 2037, up from a revenue of USD 2.36 billion in the year 2024. This segment is also estimated to grow at the highest CAGR of 24.80% between the year 2025-2037.
This growth of the segment is poised to be influenced by a surge in the number of video-streamers. In 2023, there were over 2 billion video streamers, a high from the year 2020 when streamers totaled over 1 billion. Hence, the demand for hybrid recommendation systems is set to rise owing to its ability to offer more accurate recommendation.
For instance, in case of Netflix, makes an excellent example of a hybrid recommendation system. This is because Netflix provide recommendations by juxtaposing by understanding the watching and searching habits of users and exploring identical users on that platform.
Organization Size (SMEs, Large Enterprises)
The large enterprises segment is anticipated to gather notable revenue in the market over the coming years. Recommender systems have been used commonly to guarantee that the user discovers something new every time. By making sure that the user receives constant recommendations according to their taste, they are estimated to extend their subscription for another month. Hence, large organizations are set to significantly benefit from this solution since they are constantly aiming to expand their business.
Additionally, the SME segment is also set to have significant growth over the coming years. This growth of the segment is poised to be dominated by rising SME businesses. For instance, the Census Bureau’s Business Dynamics Statistics estimated in 2021 there were 5,358,600 SMEs, up from 5,322,155 in the year 2020 in the US.
Deployment (On-Premises, Cloud)
The cloud segment is estimated to have significant growth in the market over the coming years. Cloud services including Azure, AWS, and Google Cloud offer adaptable infrastructure that enables to regulation of resources based on demand.
Cloud providers offer a varied range of complementary services, which includes data analytics platforms, machine learning tools, and AI services. Users may efficiently adopt these services with the recommendation engine to improve insights, and functionality and drive better recommendations.
Our in-depth analysis of the global market includes the following segments:
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Deployment |
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Application
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End User
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North American Market Statistics
By the end of 2037, North America region in recommendation engine market is expected to cross USD 30.06 billion, up from a revenue of USD 1.7 billion in the year 2024. This growth of the market is set to be dominated by growing disposable income. According to the Bureau of Economic Analysis estimates that personal income in the US increased by USD 122.0 billion in March 2024. Hence, the demand for online shopping is expanding in this region further encouraging the market growth.
Amongst other areas in the North America region, the US is estimated to gather the highest revenue of USD 26.28 billion by the end of 2037. This growth is set to be encouraged by the rising presence of key video streaming companies.
The Canadian market for recommendation engines is also set to have notable growth in the market over the forecast period. The major element to influence the market expansion in this nation is the growing demand for game streaming.
APEJ Market Analysis
Asia Pacific excluding Japan region in recommendation engine market is estimated to grow at CAGR of around 25.93% between 2025 and 2037. This could be on account of the rising number of social media users. Asia-Pacific nations users make up over 2% of all worldwide social media users, the largest concentration across the globe. Furthermore, a growing number of online retail giants is also expected to dominate the market expansion in this region.
The China market for recommendation engines is estimated to generate the largest revenue of USD 4.53 billion between the years 2025 and 2037. This growth of revenue is owing to the surging penetration of smartphones.
The recommendation engine market in India is also set to have notable growth in the market over the forecast period. This rise is set to be influenced by the growing launch of novel recommendation engine solutions.
The South Korea market for recommendation engines is also set to grow on account of the surging emergence of tech-savvy startups.
The major players globally are estimated to have a great influence on the recommendation engine market. This is because these companies are significantly launching new products in the market. Some of these key players include:
Author Credits: Abhishek Verma
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