by The Artificial Intelligence in E-Commerce market provides businesses and customers with data-driven insights and personalized experiences through machine learning and natural language processing technologies. These advanced AI solutions help analyze user behavior patterns, product preferences and purchase histories to optimize website design, search relevance and product recommendations. For customers, AI-powered chatbots and voice assistants simplify online shopping tasks and deliver customized product information.
The global Artificial Intelligence in E-Commerce market is estimated to be valued at US$ 6.12 billion in 2024 and is expected to exhibit a CAGR of 25% over the forecast period from 2024 to 2031.
Increased spending on digital marketing and the proliferation of online retail channels are fueling demand for AI technologies that deliver more human-like and personalized customer service experiences.
Key Takeaways
Key players operating in the Artificial Intelligence In E-Commerce Market Companies are Amazon.com, Inc., AntVoice SAS, Appier Inc., Celect, Inc., Cortexica Vision Systems Ltd., Crobox B.V., Deepomatic SAS, Dynamic Yield Ltd., Eversight, Inc., Granify Inc., LivePerson, Inc. These leading companies are investing heavily in research and development to improve AI capabilities around predictive analysis, natural language processing and computer vision.
The growing demand for omnichannel shopping experiences and personalized product recommendations is another key driver for adoption of AI technologies among e-commerce platforms and retailers. AI helps unify customer data from different online and offline touchpoints to deliver coherence across channels. This improves customer retention and average order value.
Globally, the expansion of internet and smartphone users is facilitating the spread of AI-powered e-commerce applications around the world. Developing regions like Asia Pacific and Latin America with rapidly growing online retail sectors are important markets for AI vendors. Investments are being made in developing localized solutions tailored for regional consumer preferences and languages.
Market Key Trends
The Artificial Intelligence In E-Commerce Market Growth is the development of conversational commerce capabilities through chatbots and virtual assistants. AI is making online shopping increasingly natural and collaborative through its ability to understand text, speech and intent. Chatbots can now take complex product queries, process online payments and provide customized recommendations on behalf of e-tailers and brands. This is digitizing the entire customer journey and shopping experience.
Porter’s Analysis
Threat of new entrants: High capital requirement and need for deep technological expertise limits new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives in the market.
Bargaining power of suppliers: Suppliers have high bargaining power due to their technologies and solutions.
Threat of new substitutes: Substitutes are emerging however, technological complexity is still limiting widespread adoption of new substitutes.
Competitive rivalry: High as companies compete to gain higher market share through continuous product innovations and advanced solutions.
North America accounts for the largest share of the artificial intelligence in e-commerce market owing to early adoption of advanced technologies and strong presence of AI vendors in the region. Around 40% of the total market revenue is concentrated in North America.
Asia Pacific is expected to witness the fastest growth in the artificial intelligence in e-commerce market during the forecast period. The growing e-commerce industry, rising internet penetration, and increasing investments by technology companies are some of the major factors driving the adoption of AI in e-commerce across countries like China, India, Japan and Southeast Asian nations.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
