Global Generative AI in E-commerce Market By Deployment Model (Cloud-based, On-premises, and Hybrid), By Technology (Natural Language Processing, Computer Vision, and Other), By Application (B2B, Personal, and Other), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
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July 2023
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This report was compiled by Correspondence Linkedin | Detailed Market research Methodology Our methodology involves a mix of primary research, including interviews with leading mental health experts, and secondary research from reputable medical journals and databases. View Detailed Methodology Page
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Report Overview
Generative AI in E-Commerce Market size is expected to be worth around USD 2,123.6 Mn by 2032 from USD 529.5 Mn in 2022, growing at a CAGR of 14.90% during the forecast period from 2023 to 2032.
The global generative AI in e-commerce market refers to the market for generative artificial intelligence solutions & services in the e-commerce industry worldwide. Generative AI is a type of AI that can make or generate new data, images, text, or other content based on patterns & input data. In e-commerce, generative AI can be used to supply personalized and efficient shopping experiences, improve inventory management, optimize pricing, enhance fraud detection, and other applications.
Driving Factors
Growing E-commerce Industry and Increased Use of Data
Generative AI can automate various tasks like inventory management, pricing optimization as well as fraud detection can improve the efficiency of e-commerce businesses, and save time & resources. One of the best driving factors for the adoption of generative AI in e-commerce Market is the maximizing demand for personalized shopping experiences. Generative AI can analyze customer data & generate personalized product recommendations and shopping experiences that are tailored to each customer's preferences, which can grow customer satisfaction & loyalty.
Cloud-based deployment of generative AI solutions allows e-commerce businesses to scale up their operations quickly & efficiently without the need for expensive hardware or IT infrastructure. The rising amount of data created by e-commerce businesses has created a need for more advanced analytics & processing tools and generative AI can be used to extract insights and supply real-time recommendations based on this data. The e-commerce industry is rising repeatedly, with more businesses shifting to online sales channels. This growth is making the highest need for efficient & effective e-commerce results, including generative AI.
Restraining Factors
Lack of Technical Expertise and High Costs
Generative AI solutions can be expensive to develop and implement, especially for small and medium-sized e-commerce businesses with limited budgets. The use of generative AI in e-commerce Market involves the collection and processing of large amounts of customer data, which can raise concerns about data privacy and security. E-commerce businesses must comply with strict data protection regulations, such as GDPR, which can limit the adoption of generative AI solutions.
The development and implementation of generative AI solutions require technical expertise and specialized skills, which can be a barrier for some e-commerce businesses. Integrating generative AI solutions with existing e-commerce systems and processes can be challenging, especially for businesses with complex IT infrastructures. In e-commerce, generative AI in computer vision enhances product recommendation systems, enabling personalized shopping experiences for customers.
COVID-19 Impact Analysis
The COVID-19 pandemic has had a significant impact on the e-commerce industry, with more consumers shopping online and e-commerce businesses looking for ways to provide personalized and efficient shopping experiences. COVID-19 has accelerated the shift to online sales channels, which has maximized the demand for advanced e-commerce solutions like generative AI, to improve the customer experience and meet the rising demand. However, COVID-19 has also caused supply chain disruptions, delays, and a lack of products that has maximized the need for efficient inventory management solutions, which can be supplied by generative AI.
On the other hand, COVID-19 has caused financial strain for many e-commerce businesses, particularly small & medium-sized businesses, which may limit their ability to invest in the latest technologies, including generative AI. Overall, the COVID-19 pandemic has had both positive & negative impacts on the market for generative AI in e-commerce and the full extent of these impacts may not be fully realized until the pandemic is over.
By Deployment Model Analysis
The on-premises Segment Accounted for the Largest Revenue Share in Generative AI in E-commerce Market in 2022.
Based on the deployment model, the generative AI in e-commerce market is segmented into cloud-based, on-premises, and hybrid. Among these, the on-premises segment is dominant in the deployment model segment in generative AI in the e-commerce market, with a market share of 46%. Owing to its versatility, cost-effectiveness, and scalability.
Without the need for costly hardware or IT infrastructure, cloud-based deployment enables businesses to utilize generative AI solutions from any location with an internet connection. Real-time insights and the capacity to manage enormous amounts of data are other benefits of cloud-based deployment that are essential in e-commerce.
By Technology Analysis
The Machine Learning Segment Holds a Significant Share in the Technology Segment in the Generative AI in E-commerce Market.
Based on technology, the generative AI in e-commerce market is divided into natural language processing, computer vision, machine learning, speech recognition, and augmented reality. Among these, the machine learning segment is dominant in the technology segment in generative AI in the e-commerce market, with a market share of 36%. Owing to machine learning is a vastly used technology in the e-commerce industry, particularly in the context of personalized product recommendations.
Machine learning algorithms can analyze the biggest amounts of customer data to define patterns & trends and use this information to create personalized product recommendations that are tailored to each customer's preferences. This has become an increasingly important capability in the e-commerce industry as customers expect personalized & relevant shopping experiences.
By Application Analysis
B2C Holds a Significant Share in the Application Segment of Generative AI in E-commerce Market.
Based on application, the generative AI in e-commerce market is divided into B2B, personal, business use, seasonal use, B2C, and other applications. Among these, the B2C segment dominates the market with a revenue share of 19.3% in the forecasted period. Owing the increasing demand for personalized and efficient shopping experiences among consumers has led to the widespread adoption of generative AI solutions, such as personalized product recommendations and virtual try-ons, among e-commerce businesses that sell directly to consumers.
The B2C application segment is also likely to benefit from the increasing use of machine learning algorithms in e-commerce, which can analyze large amounts of customer data to generate personalized product recommendations and improve the efficiency of e-commerce processes.
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Generative AI in E-commerce Market Segments
Based on Deployment Model
- Cloud-based
- On-premises
- Hybrid
Based on Technology
- Natural Language Processing
- Computer Vision
- Machine Learning
- Speech Recognition
- Augmented Reality
Based on Application
- B2B
- Personal
- Business use
- Seasonal use
- B2C
- Other Applications
Growth Opportunity
Expansion into New Regions and Investment in Research and Development
The market for generative AI in e-commerce presents significant growth opportunities for businesses that can develop and implement innovative solutions that improve the customer experience and increase efficiency. One of the important growth opportunities is expansion into new regions, as the market for generative AI in e-commerce is expected to rise globally, providing businesses with opportunities to tap into new customer segments.
Additionally, the integration of generative AI with other technologies like blockchain and the IoT, can lead to the development of more advanced & efficient e-commerce solutions. Collaboration with other businesses can also lead to the development of new & innovative generative AI solutions that can improve the customer experience & drive growth.
Investment in research and development can lead to the development of more sophisticated and accurate generative AI solutions, and a focus on ethical and responsible AI practices can differentiate businesses and provide a competitive advantage. Finally, the adoption of hybrid deployment models can provide businesses with high flexibility to choose which solutions to host on-premises and which ones to host in the cloud, improving efficiency & minimizing costs. Overall, businesses that can capitalize on these growth opportunities can drive growth in the market for generative AI in e-commerce and gain a competitive advantage.
Latest Trends
Voice-Enabled Shopping and Hybrid Cloud Solutions
Conversational commerce is a trend that contains the use of chatbots and other conversational interfaces to enable customers to interact with e-commerce businesses through natural language processing. This trend is driven by the requirement for more personalized & efficient shopping experiences. Ethical & responsible AI is a trend that prioritizes the development of AI solutions that are transparent, explainable as well as bias free.
This trend is driven by the rising concern around bias and discrimination in AI. Hybrid cloud solutions are a trend that involves the adoption of solutions that combine cloud-based and on-premises deployment models, providing businesses with high flexibility and control over their AI solutions. This trend is driven by the need for the most efficient & effective price solutions.
Regional Analysis
North America Accounted for the Largest Revenue Share in Generative AI in E-commerce Market in 2022.
North America is the leading region in the global generative AI in e-commerce market. owing to the high adoption rate of advanced technologies and the presence of major players in the region. The US & Canada are expected to be the major contributors to the growth in this region.
The rising demand for personalized and efficient shopping experiences among customers is driving the adoption of generative AI solutions in the e-commerce industry in North America. The region is also witnessing increasing investments in AI and machine learning technologies, which are driving innovation and growth in the market.
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Key Regions
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Key Players Analysis
The market for generative AI in e-commerce is highly competitive, with a few established players and new entrants competing for market share. These players offer a range of AI & machine learning solutions that can be used to enhance the efficiency of e-commerce processes and provide a better customer experience. For Example, IBM Corporation is one of the leading players in the market for generative AI in e-commerce, with a significant market share.
Market Key Players
- Alibaba Group
- Walmart
- Shopify
- Magento
- com Inc
- IBM Corporation
- Other Key Players
Recent Developments
- In March 2021, IBM announced the launch of IBM Watson Orchestrate, a new product that uses AI to automate routine tasks and processes. This product is expected to help e-commerce businesses improve efficiency and reduce costs.
- In May 2021, Salesforce announced the acquisition of artificial intelligence startup, Parse.ai. This acquisition is expected to help Salesforce improve its AI capabilities and provide more personalized customer experiences for e-commerce businesses.
Report Scope
Report Features Description Market Value (2022) USD 529.5 Mn Forecast Revenue (2032) USD 2,123.6 Mn CAGR (2023-2032) 14.90% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Deployment Model-Cloud-based, On-premises, and Hybrid; By Technology-Natural Language Processing, Computer Vision, Machine Learning, Speech Recognition, and Augmented Reality; By Application-B2B, Personal, Business use, Seasonal use, B2C and Other Applications; Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Amazon.com Inc., Alibaba Group, Walmart, Shopify, Magento, Salesforce.com Inc, IBM Corporation, Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) -
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- Alibaba Group
- Walmart
- Shopify
- Magento
- com Inc
- IBM Corporation
- Other Key Players