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Artificial Intelligence (AI) Based Personalization Market Expected to Achieve 5.1% CAGR by 2029: Growth Forecast Insights
Artificial Intelligence (AI) Based Personalization
How Large Will the Artificial Intelligence (AI) Based Personalization Market Size By 2025?
The market size of the personalization sector, powered by artificial intelligence (AI), has seen a robust growth in the past few years. The market, which stands at $498.22 billion in 2024, is expected to rise to $525.21 billion in 2025, with a compound annual growth rate (CAGR) of 5.4%. This past growth could be ascribed to various factors such as the increase in data availability, surge in e-commerce ventures, expansion of digitalization, enhanced user interaction, and wide-scale adoption across different industries.
How Big Is the Artificial Intelligence (AI) Based Personalization Market Size Expected to Grow by 2029?
The market size of personalization based on artificial intelligence (AI) is anticipated to experience significant growth in the coming years, with projections estimating it to reach $639.73 billion by 2029, expanding at a compound annual growth rate (CAGR) of 5.1%. The growth during this forecast period is likely due to factors such as enhanced focus on customer retention, the rise of 5G technology, improvements in machine learning algorithms, the fast-growing proliferation of IoT devices, and increased integration of AI. Key trends for this period include the combination of human expertise and AI, predictive analytics powered by AI, real-time personalization, voice and conversational AI, and content recommendations driven by AI.
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Which Key Market Drivers Powering Artificial Intelligence (AI) Based Personalization Market Expansion and Growth?
The rising interest in artificial intelligence within the business sector is anticipated to fuel the expansion of the AI-based personalization market. Artificial intelligence involves creating and deploying computer systems capable of executing tasks that usually necessitate human intellect. The blending of sophisticated algorithms, real-time functions, and a comprehensive grasp of customer experiences places AI-led personalization in a key role for businesses aiming to deliver personalized and captivating customer encounters. For instance, according to the International Business Machines Corporation (IBM), a technology firm based in the United States, in May 2022, about 35% of businesses globally utilized artificial intelligence in 2022, representing a 4% rise from 2021. Furthermore, there was a 13% surge in the number of organizations adopting AI in 2022 in comparison to 2021. As a result, this growing trend towards the adoption of artificial intelligence by businesses is expected to propel the development of the AI-based personalization market.
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Which Fast-Growing Trends Are Poised to Disrupt the Artificial Intelligence (AI) Based Personalization Market?
Leading firms in the AI-driven personalization marketplace are creating groundbreaking technologies such as personalized cold email instruments to enhance the customer experience. The AI-enhanced personalized cold email instrument allows sales teams to upscale ultra-personalized cold email overtures and utilizes generative AI for the automatic creation of personalized content for those receiving the emails. For example, the software company in the US, Regie.ai, launched Rapid Writer in April 2023. This tool is specifically curated to aid sales teams in executing ultra-personalized cold email outreach on a larger scale. This revolutionary tool employs generative AI technology for automating the preparation of personalized content for people receiving the emails, bolstering the efficacy of communication strategies for sales teams.
What Are the Emerging Segments in the Artificial Intelligence (AI) Based Personalization Market?
The artificial intelligence (AI) based personalization market covered in this report is segmented -
1) By Type: Website Personalization, Display Ads Personalization, Social Media Personalization, E-Mail Personalization
2) By Technology: Machine Learning And Deep Learning, Natural Language Processing, Other Technologies
3) By Application: Travel, Retail, Media And Entertainment, Other Applications
Subsegments:
1) By Website Personalization: Content Customization, Product Recommendations, User Interface (UI) Personalization, Display Ads Personalization
2) By Dynamic Retargeting: Behavioral Targeting, Social Media Personalization
3) By Targeted Content Feeds: Customized Ads, E-Mail Personalization
4) By E-Mail Personalization: Personalized Subject Lines, Product Recommendations In Emails
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Who Are the Global Leaders in the Artificial Intelligence (AI) Based Personalization Market?
Major companies operating in the artificial intelligence (AI) based personalization market report are Amazon.com Inc., Apple Inc., Alphabet Inc. (Google), Microsoft Corp., Meta Platforms Inc., accenture* Plc, International Business Machines Corp. (IBM), Oracle Corporation, SAP SE, Salesforce.com Inc., McDonald Corp., Adobe Systems Inc., Twilio, Verint Systems Inc., Bounteous Inc., BloomReach Inc., Sitecore Holding II AS, RichRelevance, Coveo, Crownpeak Technology Inc., Dynamic Yield Ltd., Blueshift Labs Inc., Reflektion, mParticle Inc., ViSenze Pte. Ltd., H2O.ai Inc., Infinite Analytics Inc
Which are the Top Profitable Regional Markets for the Artificial Intelligence (AI) Based Personalization Industry?
North America was the largest region in the artificial intelligence (AI) based personalization market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) based personalization market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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