Asia Pacific Artificial Intelligence (AI) in Retail Market size valued at USD 500 million in 2020 and is set to observe 40% growth rate between 2021 and 2027. The market demand is due to growing investments in AI technology and increasing digitalization in the region.
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China has made significant progress in artificial intelligence and e-commerce companies in the country have widely implemented AI technology in their business processes. Leading players operating in the market are focusing on the acquisition of regional players to strengthen their position in the market. For instance, in October 2020, Intel Corporation planned to acquire SigOpt, an AI software models vendor. The company plans to leverage SigOpt’s expansive technology expertise and software models to integrate with other hardware portfolios.
The customer relationship management (CRM) segment in the Asia Pacific AI in retail market will record over 39% CAGR during the forecast period. The segment growth is credited to an increasing need to analyze customer data, allowing businesses to learn more about the consumers and their respective demands. CRM manages all the interactions of a company with current & potential customers. Organizations use CRM software to get a clear understanding of customer behavior to improve business relationships and growth.
The managed service segment is projected to register an exponential growth rate in the coming years, driven by the increasing adoption of intelligent algorithms among managed service providers. Managed Service Providers (MSPs) are leveraging AI technology for a wide array of applications, ranging from controlling network traffic, fixing machine issues without human assistance, increasing human technician productivity using chatbots, and several other ways.
Natural Language Processing technology acquired around 35% Asia Pacific artificial intelligence in retail market share in 2020, owing to the increasing adoption of NLP technology among retail companies to analyze customers and improve their experience in stores. NLP technology has permeated the retail & e-commerce industries, making it more real & accessible than ever before. The technology has simplified online shopping with advanced machine learning algorithms and refined search queries & better search results.
The data science application segment is predicted to expand at a CAGR of 40% through 2027. The growing digital data and adoption of smart devices are propelling the market growth. The ubiquity of connected devices, constantly evolving technological landscape, and growing per capita income are some of the major factors due to which the expectations of the average consumer have risen greatly. Retailers are constantly working on providing a better customer experience and meeting customer requirements. To address these challenges, retailers are leveraging data science capabilities.
In 2020, Japan held a share of more than 15% in the Asia Pacific AI in retail market, led by the growing e-commerce and retail industries. The country has 82.59 million e-commerce users, and 6.33 million users are expected to shop online by the end of 2021.
Leading companies are emphasizing on partnerships to strengthen their portfolios. For instance, in December 2020, Fujitsu signed a partnership agreement with Zippin, an AI-based checkout-free technology developer for retailers. The partnership aims to strengthen its cooperation and distribute AI-based checkout-free solutions in Japan.
Major artificial intelligence (AI) in retail market participants include Amazon Web Services, Baidu Inc., BloomReach Inc., Google Inc., IBM Corporation., Intel Corporation, Inbenta Technologies, Interactions LLC, Microsoft Corporation., Nvidia Corporation, Sentient Technologies Holdings Limited, and Salesforce.com, Inc.