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Generative AI in Retail Market By Technology (Variational Autoencoders, Generative Adversarial Networks, Deep Reinforcement Learning, Recurrent Neural Networks, Transformer Networks, and Others), By Deployment, By Application, By End User - Global Industry Outlook, Key Companies (IBM, Adobe, Amazon Web Services, and others), Trends and Forecast 2024-2033

Published on : April-2024  Report Code : RC-907  Pages Count : 276  Report Format : PDF
Overview Table of Content Download Report's Excerpt Request Free Sample

Market Overview

The Global Generative AI in Retail Market is expected to reach a value of USD 801.3 million by the end of 2024, and it is further anticipated to reach a market value of USD 14,619.7 million by 2033 at a CAGR of 38.1%.

Generative AI in Retail Market Growth Analysis

Generative AI in the retail market provides customized services by looking into consumer preferences obtained from many platforms like social media. Using advanced algorithms, it adapts consumer behaviors and preferences, providing customized recommendations to meet individual needs. Moreover, Generative AI plays a major role in optimizing logistics and supply chain operations, helping retailers reduce unnecessary expenditures.

Further, in industries like retail, automotive, communication, and healthcare, Generative AI is making significant steps. The retail sector, in particular, comes out as one of the fastest-growing industries, driven by higher disposable incomes and different consumer needs across the world. Generative AI's emergence in retail highlights its importance in furnishing retailers with crucial consumer insights, allowing them to personalize products and improve customer satisfaction.

Key Takeaways

  • Market Growth: The Generative AI in Retail Market size is expected to grow by 13,543.9 million, at a CAGR of 38.1% during the forecasted period of 2025 to 2033.
  • By Technology: Variational Autoencoders is expected to lead in 2024 with a major & is anticipated to dominate throughout the forecasted period.
  • By Deployment: Cloud Deployment is expected to get the largest revenue share in 2024 in the Generative AI in Retail market.
  • By Application: Product Design & Development is expected to lead Generative AI in Retail market in 2024
  • By End User: The fashion and apparel industries are expected to get the largest revenue share in 2024 in the Generative AI in Retail market.
  • Regional Insight: North America is expected to hold a 44.3% share of revenue in the Global Generative AI in Retail Market in 2024.
  • Use Cases: Some of the use cases of Generative AI in Retail include personalized product recommendations, content generation & marketing, and more.

Use Cases

  • Personalized Product Recommendations: Generative AI can analyze customer choices, purchase history, and browsing behavior to create personalized product recommendations. By understanding individual tastes and trends, retailers can improve the shopping experience and increase sales conversion rates.
  • Virtual Try-On and Visual Merchandising: Retailers can use generative AI to develop virtual try-on experiences, enabling customers to visualize how products will look on themselves before making a purchase. In addition, AI-generated visual merchandising can optimize store layouts and product placements for better appeal and sales.
  • Content Generation and Marketing: Generative AI can automate the development of compelling marketing content, like product descriptions, social media posts, and email campaigns. By creating engaging and relevant content at scale, retailers can attract and retain customers more easily.
  • Inventory Management and Forecasting: Generative AI algorithms can analyze historical sales data, market trends, and external factors to generate accurate demand forecasts, which allow retailers to optimize inventory levels, lower stockouts, and reduce overstocking, creating better operational efficiency and cost savings.

Market Dynamic

Driving Factors

Generative AI models transform online shopping by providing digital shelves for fashion items, virtual trials, predictive styles, and even generating product reviews. These innovations simplify the shopping experience, allowing customers to quickly find the perfect outfit. Beyond online platforms, physical stores are also combining generative AI through robotics and interactive touchscreen panels.
 
These AI-powered assistants improve customer service, lower operational costs, and attract new clients. By providing important information and personalized assistance, like product locations, and recommendations, these AI solutions boost the in-store experience while optimizing staff efficiency, which is expected to drive market growth, promising better customer satisfaction and increased profitability for businesses embracing these developments.

Opportunities

Industries across the world are noticing a transformative switch with the integration of AI-driven robots. Majorly in retail, the partnership between AI robots and generative AI solutions is revolutionizing back-office tasks, in-store operations, and sales and marketing processes. The use of generative AI models strengthens robots with advanced learning capabilities and supports supervised training without human intervention. As the retail sector largely adopts robotic automation and collaborative robots, several opportunities emerge for market expansion in the coming future, which not only enhances operational efficiency but also promises to redefine customer experiences, positioning the industry for better growth and innovation.

Restraint Factors

Even though there are many benefits generative AI offers to the retail sector, its adoption is affected by various cost considerations. Retailers must overhaul their traditional operational systems to combine advanced generative AI models, which creates a financial challenge. Moreover, the complexity of implementing and understanding generative AI systems adds to the challenge. Further, the complexity of installation and management expenses mostly discourages small-scale retailers from using these models, impeding market growth. As a result, while the potential advantages of generative AI are clear, addressing the cost factor is essential to ensure higher adoption and maximize its benefits across the retail industry.

Trends

Virtual try-on experiences are driving the popularity within the retail industry, supported by generative AI. Retailers install virtual fitting room applications or AR-based apps powered by generative AI to allow customers to virtually visualize and try products, which in particular are prominent in fashion and beauty, enhance the shopping journey by providing convenience and engagement. 

In addition, generative AI streamlines content creation, producing blog articles, social media posts, and product descriptions quickly and efficiently. By using AI-generated content, retailers save time and resources while maintaining quality. Furthermore, generative AI changes visual merchandising by inspecting customer behavior and sales data to optimize store layouts and product placement, ultimately improving the in-store experience, increasing foot traffic, and driving sales.

Research Scope and Analysis

By Technology

In the Global Generative AI in Retail Market, the Variational Autoencoders (VAEs) segment is projected to secure the largest revenue share by 2024, driven by its higher adoption in the retail sector. VAEs provide versatile applications like data generation, feature extraction, and anomaly detection, proving valuable for retailers. These models excel in improving and reconstructing images by learning meaningful representations from training data, allowing retailers to enhance product images' quality and repair damaged visuals. Using VAEs, retailers can improve customer engagement and operational efficiency through synthesized data generation, anomaly detection, and personalized experiences, ultimately yielding positive business outcomes.

Generative AI in Retail Market Technology Share Analysis

Further, Generative Adversarial Networks (GANs) have come out as an excellent tool in the retail industry's generative AI landscape and are expected to show major growth in coming years. Comprising a generator and a discriminator, GANs work collaboratively to develop realistic and high-quality data, which offers retailers a range of capabilities, from generating lifelike images to optimizing store layouts and detecting fraudulent activities. By using GANs, retailers can improve personalization, better customer experiences, and drive operational efficiency, ultimately causing better business outcomes and sustained growth in the competitive retail landscape.

By Deployment

Cloud Deployment is anticipated to lead the Generative AI in Retail Market in terms of revenue share by 2024, providing retailers with numerous advantages including scalability, affordability, data accessibility, security, and performance optimization. Through cloud platforms, retailers can easily scale and integrate generative AI solutions, providing better product design and personalized customer experiences, whereas on-premise deployment needs the usage of generative AI systems and infrastructure within the retailer's premises or data centers, rather than depending on cloud-based services. 

Even after many benefits of cloud deployment, some retailers still favor on-premise solutions due to many factors. However, the scalability and low-cost of cloud deployment make it a highly favored option among retailers looking to use generative AI technology to drive innovation and competitiveness in the retail market.

By Application

In the application of Generative AI in Retail Market, Product Design & Development segment is expected to claim a significant share by 2024, marking a great impact on the retail industry's design processes. Generative AI transforms product development by giving innovative solutions that promote design processes and improve product quality, thereby enhancing customer satisfaction. By easily generating various design variations while considering design parameters and constraints, generative AI allows retailers to look into new concepts, identify design patterns, and optimize product features efficiently, which allows retailers to innovate and streamline processes, ultimately providing superior products to the market.
 
Moreover, Generative AI largely influences visual merchandising, allowing retailers to create visually captivating displays, optimize store layouts, and improve the overall shopping experience. Through the integration of computer vision techniques, Generative AI supports the creation of attractive 3D virtual environments that replicate physical stores, allow retailers to experiment with different merchandising strategies, and evaluate their impact on customer behavior and sales before implementing changes in the physical store.

By End User

Generative AI has transformed both the fashion and apparel industries, providing designers, retailers, and consumers with better creativity, personalized experiences, trend insights, and sustainable practices. In fashion, generative AI in retail market acts as a vital tool for staying aware of the latest trends, meeting customer demands, and designing captivating and distinct fashion encounters. 

Also, the consumer electronics sector experiences a major impact from generative AI, permeating design, manufacturing, marketing, and customer interactions. By using the capabilities of generative AI, consumer electronics companies can develop innovative product designs, simplify operations, deliver personalized consumer experiences, and sustain competitiveness within a dynamic market landscape, which drives the industries forward, reshaping traditional approaches and ushering in an era of unprecedented innovation and consumer engagement.

The Generative AI in Retail Market Report is segmented on the basis of the following:

By Technology

  • Variational Autoencoders
  • Generative Adversarial Networks
  • Deep Reinforcement Learning
  • Recurrent Neural Networks
  • Transformer Networks
  • Others

By Deployment

  • Cloud
  • On-Premise

By Application

  • Product Design & Development
  • Visual Merchandising
  • Demand Forecasting
  • Personalized Marketing
  • Fraud Detection
  • Inventory Management
  • Supply Chain & Logistics
  • Others

By End User

  • Fashion and Apparel
  • Consumer Electronics
  • Home Décor
  • Beauty and Cosmetics
  • Grocery Shops
  • Online Platforms

Regional Analysis

North America is expected to lead the generative AI market in retail, commanding about 44.3% of the market share in 2024, which is driven by the region's fast technological development, mainly in economically developed nations like the US and Canada. Major market players are majorly investing in AI, further driving market growth. With many industries, like retail services and automobiles, utilizing AI technologies, North America's e-commerce sector is also noticing a growth in advanced techniques adoption to meet the growth in online consumer base. Generative AI, in major, provides virtual try-on systems and predictive product images, enhancing consumer satisfaction and driving adoption across the region.

Generative AI in Retail Market Regional Analysis

Further, Asia Pacific emerges as the fastest-growing market for generative AI in retail during the forecast period, as the growth in population and fast technological developments contribute to this high growth. E-commerce shopping is experiencing a high expansion in Asia Pacific, driven by higher interest in online platforms. Generative AI, using algorithms to analyze consumer behavior, addresses changing consumer needs effectively. Moreover, the region's retail businesses display a higher inclination towards adopting advanced technological solutions to overcome business challenges, further driving market growth.

By Region

North America
  • The U.S.
  • Canada
Europe
  • Germany
  • The U.K.
  • France
  • Italy
  • Russia
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
Asia-Pacific
  • China
  • Japan
  • South Korea
  • India
  • ANZ
  • ASEAN
  • Rest of Asia-Pacific
Latin America
  • Brazil
  • Mexico
  • Argentina
  • Colombia
  • Rest of Latin America
Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Israel
  • Egypt
  • Rest of MEA

Competitive Landscape

In the global Generative AI in Retail Market, competition is fierce among key players competing for market share and innovation dominance. These contenders constantly invest in R&D to improve their generative AI solutions, meeting the changing needs of retailers worldwide. Differentiation strategies revolve around offering complete product portfolios, superior technological capabilities, and strong customer support services. In addition, partnerships and collaborations with retail giants and technology firms are common tactics used to expand market reach and support innovation.

Some of the prominent players in the global Generative AI in Retail Market are:
  • IBM
  • Adobe
  • Amazon Web Services
  • Google
  • Intel
  • Microsoft
  • NVIDIA Corp
  • Oracle Corp
  • Infective AI
  • Anthropic
  • Other Key Players

Recent Developments

  • In March 2024, Accenture and Adobe announced a collaboration to co-develop industry-specific solutions utilizing Adobe Firefly, that will help organizations design personalized content at scale and accelerate the transformation of their content supply chains, as Accenture will combine Adobe Firefly Custom Models into marketing services provided by Accenture Song, to support clients with the industry-specific insights needed to train bespoke models on their proprietary data and brand guidelines.
  • In February 2024, Amazon launched Rufus, a new generative AI-powered conversational shopping experience, which is an expert shopping assistant trained on Amazon’s product catalog and information from across the web to respond to customer questions on shopping needs, products, and comparisons while making recommendations and support product discovery.
  • In January 2024, Microsoft Corp. launched Retail Media Creative Studio in the Microsoft Retail Media Platform a new generative AI and data solutions and capabilities for retailers that span the retail shopper journey, from allowing personalized shopping experiences, supporting store associates, and unlocking and unifying retail data to helping brands more effectively reach their audiences. Through new copilot templates on Azure OpenAI Service that enable retailers to build personalized shopping experiences and support store operations, the introduction of retail data solutions.
  • In January 2024, Walmart Inc. introduced access to a generative artificial intelligence tool that enables shoppers to search for products by specific use cases, rather than look up one item at a time, and is available for use on the Walmart app on Apple Inc.’s iOS mobile operating system.
  • In January 2024, Google launched new tools using generative AI for retailers through its Cloud Business, which would utilize the emerging technology to enhance online shopping experiences through retailers who use Google Cloud.

Report Details

                                    Report Characteristics
Market Size (2024) USD 801.3 Mn
Forecast Value (2033) USD 14,619.7 Mn
CAGR (2023-2032) 38.1%
Historical Data 2018 – 2023
Forecast Data 2024 – 2033
Base Year 2023
Estimate Year 2024
Report Coverage Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc.
Segments Covered By Technology (Variational Autoencoders, Generative Adversarial Networks, Deep Reinforcement Learning, Recurrent Neural Networks, Transformer Networks, and Others), By Deployment (Cloud and On-Premise), By Application (Product Design & Development, Visual Merchandising, Demand Forecasting, Personalized Marketing, Fraud Detection, Inventory Management, Supply Chain & Logistics, Others), By End User (Fashion and Apparel, Consumer Electronics, Home Décor, Beauty and Cosmetics, Grocery Shops, and Online Platforms)
Regional Coverage North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
Prominent Players IBM, Adobe, Amazon Web Services, Google, Intel, Microsoft, NVIDIA Corp, Oracle Corp, Infective AI, Anthropic, and Other Key Players
Purchase Options We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively.

 

Frequently Asked Questions

  • How big is the Global Generative AI in Retail Market?

    The Global Generative AI in Retail Market size is estimated to have a value of USD 801.3 million in 2024 and is expected to reach USD 14,619.7 million by the end of 2033.

  • Which region accounted for the largest Global Generative AI in Retail Market?

    North America is expected to have the largest market share in the Global Generative AI in Retail Market with a share of about 44.3% in 2024.

  • Who are the key players in the Global Generative AI in Retail Market?

    Some of the major key players in the Global Generative AI in Retail Market are IBM, Adobe, Amazon Web Services, and many others.

  • What is the growth rate in the Global Generative AI in Retail Market?

    The market is growing at a CAGR of 38.1 percent over the forecasted period.

  • Contents

      1.Introduction
        1.1.Objectives of the Study
        1.2.Market Scope
        1.3.Market Definition and Scope
      2.Generative AI in Retail Market Overview
        2.1.Global Generative AI in Retail Market Overview by Type
        2.2.Global Generative AI in Retail Market Overview by Application
      3.Generative AI in Retail Market Dynamics, Opportunity, Regulations, and Trends Analysis
        3.1.Market Dynamics
          3.1.1.Generative AI in Retail Market Drivers
          3.1.2.Generative AI in Retail Market Opportunities
          3.1.3.Generative AI in Retail Market Restraints
          3.1.4.Generative AI in Retail Market Challenges
        3.2.Emerging Trend/Technology
        3.3.PESTLE Analysis
        3.4.PORTER'S Five Forces Analysis
        3.5.Technology Roadmap
        3.6.Opportunity Map Analysis
        3.7.Case Studies
        3.8.Opportunity Orbits
        3.9.Pricing Analysis
        3.10.Ecosystem Analysis
        3.11.Supply/Value Chain Analysis
        3.12.Covid-19 & Recession Impact Analysis
        3.13.Product/Brand Comparison
      4.Global Generative AI in Retail Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Technology, 2017-2032
        4.1.Global Generative AI in Retail Market Analysis by By Technology: Introduction
        4.2.Market Size and Forecast by Region
        4.3.Variational Autoencoders
        4.4.Generative Adversarial Networks
        4.5.Deep Reinforcement Learning
        4.6.Recurrent Neural Networks
        4.7.Transformer Networks
        4.8.Others
      5.Global Generative AI in Retail Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Deployment, 2017-2032
        5.1.Global Generative AI in Retail Market Analysis by By Deployment: Introduction
        5.2.Market Size and Forecast by Region
        5.3.Cloud
        5.4.On-Premise
      6.Global Generative AI in Retail Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By Application, 2017-2032
        6.1.Global Generative AI in Retail Market Analysis by By Application: Introduction
        6.2.Market Size and Forecast by Region
        6.3.Product Design & Development
        6.4.Visual Merchandising
        6.5.Demand Forecasting
        6.6.Personalized Marketing
        6.7.Fraud Detection
        6.8.Inventory Management
        6.9.Supply Chain & Logistics
        6.10.Others
      7.Global Generative AI in Retail Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by By End User, 2017-2032
        7.1.Global Generative AI in Retail Market Analysis by By End User: Introduction
        7.2.Market Size and Forecast by Region
        7.3.Fashion and Apparel
        7.4.Consumer Electronics
        7.5.Home Décor
        7.6.Beauty and Cosmetics
        7.7.Grocery Shops
        7.8.Online Platforms
      10.Global Generative AI in Retail Market Value ((US$ Mn)), Share (%), and Growth Rate (%) Comparison by Region, 2017-2032
        10.1.North America
          10.1.1.North America Generative AI in Retail Market: Regional Analysis, 2017-2032
            10.1.1.1.The US
            10.1.1.2.Canada
        10.2.1.Europe
          10.2.1.Europe Generative AI in Retail Market: Regional Trend Analysis
            10.2.1.1.Germany
            10.2.1.2.France
            10.2.1.3.UK
            10.2.1.4.Russia
            10.2.1.5.Italy
            10.2.1.6.Spain
            10.2.1.7.Nordic
            10.2.1.8.Benelux
            10.2.1.9.Rest of Europe
        10.3.Asia-Pacific
          10.3.1.Asia-Pacific Generative AI in Retail Market: Regional Analysis, 2017-2032
            10.3.1.1.China
            10.3.1.2.Japan
            10.3.1.3.South Korea
            10.3.1.4.India
            10.3.1.5.ANZ
            10.3.1.6.ASEAN
            10.3.1.7.Rest of Asia-Pacifc
        10.4.Latin America
          10.4.1.Latin America Generative AI in Retail Market: Regional Analysis, 2017-2032
            10.4.1.1.Brazil
            10.4.1.2.Mexico
            10.4.1.3.Argentina
            10.4.1.4.Colombia
            10.4.1.5.Rest of Latin America
        10.5.Middle East and Africa
          10.5.1.Middle East and Africa Generative AI in Retail Market: Regional Analysis, 2017-2032
            10.5.1.1.Saudi Arabia
            10.5.1.2.UAE
            10.5.1.3.South Africa
            10.5.1.4.Israel
            10.5.1.5.Egypt
            10.5.1.6.Turkey
            10.5.1.7.Rest of MEA
      11.Global Generative AI in Retail Market Company Evaluation Matrix, Competitive Landscape, Market Share Analysis, and Company Profiles
        11.1.Market Share Analysis
        11.2.Company Profiles
          11.3.1.Company Overview
          11.3.2.Financial Highlights
          11.3.3.Product Portfolio
          11.3.4.SWOT Analysis
          11.3.5.Key Strategies and Developments
        11.4.IBM
          11.4.1.Company Overview
          11.4.2.Financial Highlights
          11.4.3.Product Portfolio
          11.4.4.SWOT Analysis
          11.4.5.Key Strategies and Developments
        11.5.Adobe
          11.5.1.Company Overview
          11.5.2.Financial Highlights
          11.5.3.Product Portfolio
          11.5.4.SWOT Analysis
          11.5.5.Key Strategies and Developments
        11.6.Amazon Web Services
          11.6.1.Company Overview
          11.6.2.Financial Highlights
          11.6.3.Product Portfolio
          11.6.4.SWOT Analysis
          11.6.5.Key Strategies and Developments
        11.7.Google
          11.7.1.Company Overview
          11.7.2.Financial Highlights
          11.7.3.Product Portfolio
          11.7.4.SWOT Analysis
          11.7.5.Key Strategies and Developments
        11.8.Intel
          11.8.1.Company Overview
          11.8.2.Financial Highlights
          11.8.3.Product Portfolio
          11.8.4.SWOT Analysis
          11.8.5.Key Strategies and Developments
        11.9.Microsoft
          11.9.1.Company Overview
          11.9.2.Financial Highlights
          11.9.3.Product Portfolio
          11.9.4.SWOT Analysis
          11.9.5.Key Strategies and Developments
        11.10.NVIDIA Corp
          11.10.1.Company Overview
          11.10.2.Financial Highlights
          11.10.3.Product Portfolio
          11.10.4.SWOT Analysis
          11.10.5.Key Strategies and Developments
        11.11.Oracle Corp
          11.11.1.Company Overview
          11.11.2.Financial Highlights
          11.11.3.Product Portfolio
          11.11.4.SWOT Analysis
          11.11.5.Key Strategies and Developments
        11.12.Infective AI
          11.12.1.Company Overview
          11.12.2.Financial Highlights
          11.12.3.Product Portfolio
          11.12.4.SWOT Analysis
          11.12.5.Key Strategies and Developments
        11.13.Anthropic
          11.13.1.Company Overview
          11.13.2.Financial Highlights
          11.13.3.Product Portfolio
          11.13.4.SWOT Analysis
          11.13.5.Key Strategies and Developments
        11.14.Other Key Players
          11.14.1.Company Overview
          11.14.2.Financial Highlights
          11.14.3.Product Portfolio
          11.14.4.SWOT Analysis
          11.14.5.Key Strategies and Developments
      12.Assumptions and Acronyms
      13.Research Methodology
      14.Contact
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