Rising E-Commerce Industry Along With Growing Adoption of Artificial Intelligence Solutions in Retail Sector Are Driving the Market During the Forecast Period 2021-2026

The Commerce Artificial Intelligence Market was valued at $1,524.3 Million in 2020 and is estimated to generate $3,639.8 Million in revenue by the end of 2023 and $10,164.7 Million by 2026. The market is estimated to grow at a CAGR of 40.10% from 2021 to 2026. Commerce Artificial Intelligence market is driven by the factor such as increasing use of Artificial Intelligence in Customer Relationship Management (CRM), Increasing use of AI in Retail Industry and Ecommerce industry is driving the growth during the forecast period 2021-2026. However, High Cost of Technology, Lack of Skilled Specialist and Impact of COVID-19 are restraining the growth during the forecast period 2021-2026. Key players in the Commerce Artificial Intelligence Market are Amazon Web Service, Microsoft Corporation, Google Inc (Alphabet Inc), IBM Corporation, SAP, among others. The market is consolidated with many companies and the major development strategies adopted by companies are Product Launch, Agreement, Acquisition, Product Expansion, among others.

Advanced analytics with insights to support decision-making process, autonomous business process, and elimination of manual process to achieve faster time to market are the three major innovations that flourish the Consumer Electronics Industry. Artificial intelligence will fill almost every aspect of the Consumer Electronics industry. Certain challenges such as having customer data but not able to deliver a personalized experience across a huge number of products and services, Artificial Intelligence can overcome the challenges and tap opportunities to grow in the market. The demand of consumers is changing in terms of usage of consumer electronics products. People largely interact with many devices that are made with AI and the same requirement people demand in the consumer electronics products in terms of interfaces and generation of better and user centric technology. This is set to create better growth opportunities for players to generate such kind of technology and a better way to enter in the huge consumer electronics market.

With the use of Artificial Intelligence retail brands can efficiently and intelligently scan through petabytes of data to predict customer behavior and offer relevant and helpful recommendations to consumers. This level of intelligence is vital in delivering a personalized shopping experience for consumers. The growing need for Artificial Intelligence among the retail enterprise to provide enhanced customer experience, maintain their inventory accuracy, and improved productivity is driving the demand for Commerce AI Market in Retail Industry. Moreover, for retailers to adapt and thrive in the forecast period 2021-2026 they will need to undertake changes in how they do business, and this may include the involvement of Artificial Intelligence and Robotics technologies. At global level, Artificial intelligence have gained prominence as almost every industry is at the threshold of digital and data transformation. Companies are using artificial intelligence, robotics, machine learning and other advanced technologies to enhance operating efficiencies, reduce production costs and better serve customer needs. With the advent of electronic communications, companies are shifting their spending mostly on AI based services to grab more audience. Artificial intelligence give companies an opportunity to streamline their target and match the preferences of potential customers.  Global market are finding alternatives to cut down cost in production and value chain too using the AI and is expanding its scope to further push use of artificial intelligence in merchandising, warehouse automation, customer service and others. The prototype development cost varies according to the specific business requirement, project scope, technologies involved, and tools required for development. Predominantly, a prototype may cost as low as $5000 to $20,000 and more.

Business Models that are used by online retailers require customers to place order post which online retailer ships the products. However, with Artificial Intelligence, online retailers may be able to predict what customers want, and assuming these predictions achieve high accuracy retailers might transition to shipping -then -shopping business model. Online Retailers will use AI to identify customers’ preferences and ship items to customers without a formal order with customers have the option to return what they do not need to have. This in turn would transform retailers marketing strategies their business model and customer behaviors. Brand and Retailers are adopting AI-powered intelligent automation at an accelerated pace. There is a potential for using AI in the retail sector and it is estimated by end of 2021 approximately 80% of executives in the Retail and Consumer products industries will be using advanced AI solutions. This is set to create opportunities during the forecast period 2021-2026.