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Hyper Personalization Market Size, Share Analysis, Global Report 2024-2033
Hyper Personalization Market Size
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According to The Business Research Company's, The hyper personalization market size has grown rapidly in recent years. It will grow from $18.49 billion in 2023 to $21.79 billion in 2024 at a compound annual growth rate (CAGR) of 17.8%. The growth in the historic period can be attributed to increase in internet usage, growth of e-commerce, rise in consumer expectations for personalized experiences, expansion of mobile technology, and growth availability of big data from various sources.
The hyper personalization market size is expected to see rapid growth in the next few years. It will grow to $42.14 billion in 2028 at a compound annual growth rate (CAGR) of 17.9%. The growth in the forecast period can be attributed to increasing demand for personalized customer experiences, growing volume of consumer data, rising of digital and e-commerce platforms, rising need for improved customer engagement and retention, and growing focus on customer-centric business models. Major trends in the forecast period include integration of AI and machine learning, adoption of omnichannel strategies, advancements in data privacy technologies, Adoption of Predictive Analytics, and development of advanced recommendation systems.
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Market Drivers and Trends:
The expanding e-commerce landscape is expected to propel the growth of the hyper personalization market going forward. The e-commerce landscape refers to the complex and dynamic network of interconnected entities, processes, and technologies that enable online commercial activities. The e-commerce landscape is attributed to factors such as increasing internet penetration, the proliferation of smartphones, advancements in logistics and supply chain management, a shift in consumer purchasing behavior towards online shopping, and the convenience of digital payment options. Hyper-personalization enhances the e-commerce ecosystem by delivering tailored shopping experiences, improving customer engagement, and boosting conversion rates through personalized product recommendations and targeted marketing. For instance, in August 2024, according to the United States Census Bureau, a US-based government agency, reported that the second quarter of 2024 rose by 6.7% (±1.2%) compared to the second quarter of 2023, while total retail sales increased by 2.1% (±0.4%) over the same period. Therefore, the expanding e-commerce landscape is driving the hyper personalization market.
Major companies operating in the hyper-personalization market are developing generative AI-powered hyper-personalization platform to deliver highly tailored customer experiences. Generative AI-powered hyper-personalization platforms use AI algorithms to analyze vast amounts of data, such as user behavior, preferences, and interactions, and generate personalized content, product recommendations, marketing messages, and other tailored experiences in real time. For instance, in May 2024, Newgen Software, an India-based software company, launched LumYn, a generative AI-powered hyper-personalization platform tailored for the banking sector. LumYn enhances profitability and customer experiences by leveraging predictive intelligence and conversational AI. Its key features include behavioral segmentation, pre-built AI models for rapid insights, and a strong emphasis on data privacy. This platform boosts customer engagement and cross-sell opportunities, showcasing Newgen's expertise in AI and banking solutions.
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Major Key Players of the Market:
Google LLC, Microsoft Corporation, PepsiCo Inc., Amazon Web Services Inc., International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce Inc., Cognizant Technology Solutions Corporation, Adobe Inc., Infosys Limited, Experian PLC, SAS Institute Inc., HubSpot, Klaviyo, Algolia, emarsys eMarketing Systems, MoEngage, Dynamic Yield Ltd., Velocify, Clearbit, Sailthru Inc., Taplytics Inc., RichRelevance
Hyper Personalization Market 2024 Key Insights:
• The hyper personalization market size is expected to see rapid growth in the next few years. It will grow to $42.14 billion in 2028 at a compound annual growth rate (CAGR) of 17.9%.
• Impact of the Expanding E-Commerce Landscape on Hyper-Personalization Market Growth
• Advancements in Hyper-Personalization Through Growth Intelligence Platforms
• Asia-Pacific was the largest region in the hyper personalization market in 2023
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