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Artificial Intelligence In E-commerce Market Forecast 2025-2034: Evaluating Growth Factors, Segments, and Emerging Trends
Artificial Intelligence In E commerce Market
The surge in online shopping is predicted to fuel the expansion of artificial intelligence in the e-commerce sector in the near future. The term online shopping denotes the purchase of goods or services from a vendor through the internet, utilizing a web browser or a mobile application. Online shopping uses artificial intelligence in e-commerce to improve customer experience and simplify business processes for price optimization and inventory control. For example, Shopify Inc., a Canadian e-commerce firm, projected in August 2023 that the global e-commerce market would reach $4.8 trillion by 2025, with the potential for further growth in future years. This trend underscores the escalating profitability of cross-border e-commerce for internet retailers. Expectedly, around 23% of all retail sales will happen online by 2027. Thus, the surge in online shopping is accelerating the expansion of artificial intelligence in the e-commerce sector. Artificial Intelligence In E-commerce Market Driver: High Internet Penetration Fuels AI Revolution In E-Commerce
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What growth opportunities are expected to drive the artificial intelligence in e-commerce market's CAGR through 2034?
The e-commerce market for artificial intelligence has seen a quick expansion in recent years. The market size is predicted to increase from $8.06 billion in 2024 to $9.19 billion in 2025, with a compound annual growth rate (CAGR) of 14.0%. The historical growth of this sector can be traced back to the increased demand for a tailored shopping experience, enhanced search and discovery capabilities, the rise of chatbots and virtual assistants, and government backing for AI development.
The market size for artificial intelligence in e-commerce is projected to experience a speedy expansion in the coming years. By 2029, it's predicted to reach $16.42 billion, with a compound annual growth rate (CAGR) of 15.6%. The growth anticipated within this period can be linked to factors such as the growing emphasis on customer data analytics, augmented investments in ai for e-commerce, escalating demand for ai-driven product endorsements, increased application of ai in managing supply chains, and the heightened use of ai in detecting fraudulent activities. Key trends in this forecast period include ai technological advances, the spread of voice commerce, optimization of supply chains, improved customer support aided by ai, and conversational e-commerce.
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How are the latest trends influencing the growth of the artificial intelligence in e-commerce market?
Leading firms in the artificial intelligence for e-commerce sector are pioneering new technology like AI for e-commerce SaaS to maintain their market standing. The introduction of generative AI technology in e-commerce SaaS platforms offers users the luxury of personalized and automated inventory management as well as innovative product search. For example, Hype, an e-commerce company based in India, introduced a generative AI e-commerce SaaS platform in May 2023. The platform is designed to transform online e-commerce by equipping merchants with the ability to generate, enhance, and control online shops. The platform employs an advanced AI and machine learning system that continually adapts and learns from the unique data patterns of each store.
Which growth-oriented segments of the artificial intelligence in e-commerce market are leading the industry's development?
The artificial intelligence in e-commerce market covered in this report is segmented -
1) By Technology: Natural language processing (NLP), Deep Learning, Machine Learning
2) By Deployment: Cloud, On-Premise
3) By Application: Customer Relationship Management, Supply Chain Analysis, Fake Review Analysis, Warehouse Automation, Merchandizing, Product Recommendation, Customer Service, Other Applications
4) By End User: Information Technology(IT) And Telecommunication, Retail And E-Commerce, Banking, Financial Services and Insurance (BFSI), Healthcare, Manufacturing, Automotive, Other End User
Subsegments:
1) By Natural Language Processing (NLP): Chatbots And Virtual Assistants, Sentiment Analysis Tools, Language Translation Services, Text Analytics
2) By Deep Learning: Image Recognition Systems, Recommendation Engines, Customer Behavior Prediction Models, Fraud Detection Systems
3) By Machine Learning: Predictive Analytics, Personalization Algorithms, Inventory Management Solutions, Dynamic Pricing Models
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What regions are leading the charge in the artificial intelligence in e-commerce market?
North America was the largest region in the artificial intelligence in e-commerce market in 2024. The regions covered in artificial intelligence in the e-commerce market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
What companies are at the forefront of innovation in the artificial intelligence in e-commerce market?
Major companies operating in the artificial intelligence in e-commerce market are Apple Inc., Google LLC, Microsoft Corporation, Amazon Web Services Inc., Siemens AG, Intel Corporation, The International Business Machines Corporation, Oracle Corporation, SAP SE, Nvidia Corporation, Sentient Technologies, Bloomreach, Aidaptive, Coveo, Dynamic Yield, Persado, Emarsys eMarketing Systems, Syte, Bluecore, Twiggle, Kindred AI, ViSenze, Gorgias, Layer 6 Inc., Nauto.
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What Is Covered In The Artificial Intelligence In E-commerce Global Market Report?
• Market Size Forecast: Examine the artificial intelligence in e-commerce market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the artificial intelligence in e-commerce market for a structured understanding.
• Key Players Overview: Analyze major players in the artificial intelligence in e-commerce market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the artificial intelligence in e-commerce market.
• Segment Contributions: Evaluate how different segments drive overall growth in the artificial intelligence in e-commerce market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the artificial intelligence in e-commerce market.
• Industry Challenges: Identify potential risks and obstacles affecting the artificial intelligence in e-commerce market.
• Competitive Landscape: Review strategic developments in the artificial intelligence in e-commerce market, including expansions, agreements, and new product launches.
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