Cart abandonment rates have been climbing steadily since 2014, after reaching an all-time high in 2013. In 2023, the share of online shopping carts that is being abandoned reached 70 percent for the first time since 2013. This is an increase of more than 10 percentage points compared to the start of the time period considered here. Mobiles vs. desktops When global consumers shop online, they spend considerably more when doing so on desktop computers. In December 2023, the average value of e-commerce purchases made through desktops was approximately 159 U.S. dollars. Purchases completed on mobiles and tablets were of comparable values, ranging between 100 and 105 U.S. dollars. Even though consumers spent more when conducting their shopping on computers, they were more inclined to add products to their shopping carts when using mobile devices. Ultimately, mobile devices provide a convenient and more accessible way to shop, but desktop computers remain the preferred choice for more expensive purchases. Where do consumers shop online? Across the globe, digital marketplaces are shoppers’ number-one online shopping destination. As of April 2024, some 29 percent of consumers voted marketplaces as their favorite e-commerce channel, followed by physical stores and retailer sites. Looking at which retailers’ global shoppers prefer to shop at, amazon.com emerged as the world's most popular online marketplace, based on share of visits. The U.S. portal accounted for around one-fifth of the global online marketplace's traffic in December 2023. Amazon's German and Japanese portal sites ranked third and fifth among the leading online marketplaces, further demonstrating Amazon's dominance over the market.

In 2025, almost 40 percent of U.S. consumers abandoned online purchases during checkout due to additional costs, such as shipping, taxes, or fees. Many shoppers in the United States also frequently back out of online purchases because the website requires them to create an account or due to slow delivery. Mobile carts Cart abandonment is a big issue, especially on mobile phones. The mobile cart abandonment rate is increasing in the U.S. , reaching 84 percent in the second quarter of 2022, up from 83 percent in the same period the previous year. This trend underscores the need for retailers to optimize the mobile shopping experience and streamline the checkout process to reduce cart abandonment rates. Delivery is a deal breaker Delivery is a core part of the order chain. Approximately 70 percent of online shoppers in the United States cited free shipping as the most important criteria for e-commerce delivery, followed by fast shipping at 60 percent. This highlights the critical role of cost-effective and efficient delivery options in influencing consumer purchasing decisions.

In 2025, a significant amount of online shopping orders were abandoned, i.e. not converted into a purchase. Websites offering beauty and personal care products had the highest cart abandonment rates out of all measured categories, measured at over ** percent. Why do buyers abandon their online carts? Wishful thinking, planning a dream vacation, just checking how expensive the total order will be... there are many reasons why consumers put together an order and end up abandoning it. Online travel bookers in particular are keen to shop around for deals and wait for the best day to book flights and hotels. Many online travel agencies (OTA) are dedicated to comparing prices, and countless blog entries encourage travelers to book their flights at certain times on specific days to save cash or get better value for money. For digital shoppers in the United States, the primary reason for abandoning an online shopping order is too high extra costs such as shipping and fees, followed by the requirement to create an account on the website to proceed with the purchase. It depends on the device Mobile users generally show higher cart abandonment rates than desktop shoppers. For instance, in the United States, mobile buyers exhibited a ten percentage points higher cart abandonment rate than desktop shoppers. Great Britain has a slightly smaller gap between mobile and desktop abandonment rates, though the higher-on-mobile trend seems to be upheld.

In a survey conducted in 2024, approximately ** percent of global online shoppers said they abandoned their carts because delivery fees were too expensive. Another ** percent of shoppers were abandoning their carts due to unexpected costs at checkout, or because they found items cheaper elsewhere.

Delivery trumps all else? Delivery may well be such a pivotal criterion in the online shopping experience that it can effectively make or break an online purchase. Consumer delivery preferences have veered towards the lowest-cost delivery in most if not all product categories in 2024. In fact, cost of delivery was the most important delivery feature according to ** percent of online shoppers worldwide, followed by speed and convenience of delivery.

Free versus sustainable In a survey conducted in September 2023, free shipping was the most important e-commerce delivery consideration for shoppers in the United States, United Kingdom, and Germany. Fast shipping, shipment tracking, and free return shipping also ranked high on the list of top delivery preferences. Carbon-neutral shipping, however, did not.

This statistic represents the quarterly online shopping cart abandonment rate in the United States. As of the second quarter of 2022, the abandonment rate was 84 percent for mobile phones, up from 83 percent in the same quarter of the preceding year.

The follow shopping cart market, while nascent, demonstrates significant growth potential driven by the increasing adoption of e-commerce and the rising demand for personalized shopping experiences. The market, estimated at $500 million in 2025, is projected to experience a robust Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033, reaching approximately $1.8 billion by the end of the forecast period. Key drivers include the enhanced user experience provided by follow shopping carts, allowing consumers to track items and easily revisit them later, reducing cart abandonment rates. This is further boosted by the integration of these carts with personalized recommendation engines, encouraging repeat purchases and increasing average order value. Emerging trends include the incorporation of AI-powered features predicting consumer preferences and optimizing product suggestions within the follow cart, along with seamless cross-platform functionality across mobile and desktop devices. However, challenges remain, such as ensuring data security and privacy related to consumer preferences stored within the follow cart system and the need for robust technological infrastructure to support the smooth operation of these features. The market is segmented by various factors, including user demographics, product categories, and geographical regions. Major players like Caper, Veeve, and E-MART are actively shaping the market landscape through innovation and strategic partnerships. The competitive landscape features companies vying for market share through innovative features, strategic partnerships, and geographical expansion. Caper, Veeve, and E-MART are currently leading the market, but the space is ripe for disruption by smaller players with niche offerings. Future growth will depend on addressing consumer concerns around data privacy, enhancing the overall user experience with AI-driven personalization, and expanding into emerging markets. The increasing integration of follow shopping carts with loyalty programs and subscription services further strengthens the market's trajectory, creating a feedback loop that rewards customer engagement and drives revenue. Robust investment in research and development of new functionalities will be crucial for maintaining a competitive edge and capitalizing on the market's expansion.

Why do Europeans abandon their online shopping carts? A widespread 2023 survey reveals that delivery costs are the prime reason for cart abandonment in Europe. Delivery making a product too expensive is reason enough to shop elsewhere for **** of European shoppers. Payment is also an important criterion: ** percent of Europeans cancel an online purchase because their preferred payment method is unavailable.

When shopping for goods online, it is common for consumers to pull out of a transaction, leaving the order incomplete: In the fourth quarter of 2024, approximately ** percent of orders on mobile devices in the UK were not completed. During that same three-month period, ** percent of carts created were left abandoned on computers as well.

In the fourth quarter of 2024, shopping cart abandonment was most prevalent in the Middle East and Africa, at a rate of 93 percent of carts abandoned during online shopping. Second-ranked was the APAC region, where 87 percent of carts were abandoned instead of leading to a purchase.

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Consumer Shopping Cart Market Size 2025-2029

The consumer shopping cart market size is forecast to increase by USD 132.2 million at a CAGR of 2.7% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the expansion of the retail sector worldwide. This trend is particularly evident in emerging economies, where increasing disposable income and urbanization are leading to an increase in retail sales. Another key driver is the emergence of smart shopping carts, which offer advanced features such as self-checkout, product recommendations, and real-time inventory management. These innovations are enhancing the shopping experience for consumers and providing retailers with valuable data to optimize their operations. However, the market is not without challenges. The market is experiencing significant growth, driven by the increasing trend towards e-commerce and the resulting demand for efficient and sustainable solutions. Fluctuations in raw material prices, particularly for metals and plastics, can significantly impact the cost of producing shopping carts. Additionally, consumer preferences are shifting towards more eco-friendly options, creating a strong demand for sustainable materials and recyclable packaging solutions.
Additionally, the increasing popularity of e-commerce and contactless shopping solutions may limit the growth of the traditional shopping cart market. To capitalize on market opportunities and navigate these challenges effectively, companies must stay abreast of industry trends and invest in research and development to offer innovative and cost-effective solutions. By doing so, they can differentiate themselves from competitors and maintain a competitive edge in the evolving retail landscape.

What will be the Size of the Consumer Shopping Cart Market during the forecast period?

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The market encompasses a range of solutions designed to facilitate and enhance the online shopping experience. These offerings include cart management tools, training, hosting, and consulting services. Key trends in this market include a focus on usability, cart flow optimization, checkout experience optimization, and personalized shopping experiences. Cart features such as multi-platform integration, security, and analytics are also crucial. Additionally, cart testing, design, and support are essential for ensuring a seamless customer journey. Key market drivers include the growing demand for plastic-based packaging, particularly in sectors such as food and beverage, pharmaceuticals, and industrial chemicals.
Cart abandonment analysis and reduction techniques are also vital for improving conversion rates. Overall, the market is a dynamic and growing sector, with ongoing innovation in functionality, accessibility, and integration.

How is this Consumer Shopping Cart Industry segmented?

The consumer shopping cart industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Steel carts
  Plastic carts
  Others


Distribution Channel

  Direct sales
  Distributors


Type

  Traditional shopping carts
  Smart shopping carts


Product Type

  Roller basket
  Child cart
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    Australia
    China
    Japan
    South Korea


  Middle East and Africa



  South America

By Product Insights

The steel carts segment is estimated to witness significant growth during the forecast period. The market is a dynamic and evolving industry, driven by various factors that enhance the online shopping experience. Cart recovery and abandoned cart recovery are crucial elements of conversion optimization, ensuring that businesses maximize sales opportunities. Website optimization, customer service, and user interface design are essential components of the customer journey, which can significantly impact conversion rates. Subscription services, machine learning, and targeted marketing are key trends, leveraging big data to personalize the shopping experience. Inventory management, order fulfillment, and payment processing are essential operational functions, requiring efficient and secure solutions. Mobile commerce, social commerce, voice commerce, and augmented reality are emerging channels, expanding the reach of online shopping. This market is driven by the growing demand for packaged products in various industries, including food and beverage, cosmetics, and e-commerce.

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The Steel carts segment was valued at USD 464.20 million in 2019 and showed a gradual increase during the forecast period.

Regi

In France, data from the third quarter of 2024 showed that approximately 88 percent of online shopping baskets created by mobile users did not result in a completed order. On the other hand, desktop users registered the lowest cart abandonment rate at 79 percent.

E-commerce Software Market Outlook

According to our latest research, the global E-commerce Software market size reached USD 8.9 billion in 2024, reflecting the robust digital transformation across retail and other industries. The market is projected to grow at a CAGR of 14.2% during the forecast period, reaching an estimated USD 25.1 billion by 2033. The primary growth factor driving this surge is the accelerated adoption of digital commerce platforms by businesses of all sizes, fueled by evolving consumer preferences and the need for seamless online shopping experiences.

One of the most significant growth drivers for the E-commerce Software market is the exponential rise in online retail activity worldwide. As consumer behavior shifts towards digital-first purchasing, retailers and brands are investing heavily in advanced e-commerce solutions to enhance customer engagement, streamline operations, and provide personalized shopping experiences. The proliferation of smartphones and high-speed internet connectivity has further enabled consumers to shop online with greater convenience, compelling businesses to adopt scalable and feature-rich e-commerce platforms. Additionally, the integration of artificial intelligence, machine learning, and data analytics into these platforms allows for smarter inventory management, targeted marketing, and dynamic pricing strategies, which collectively boost sales and customer satisfaction.

Another critical factor fueling the growth of the E-commerce Software market is the increasing demand for omnichannel commerce solutions. Modern consumers expect a seamless shopping journey across multiple touchpoints, including web, mobile, social media, and physical stores. E-commerce software providers are responding by developing solutions that unify inventory, order management, and customer data, enabling businesses to deliver consistent experiences regardless of the channel. This trend is particularly prominent among large enterprises and established retailers seeking to maintain competitiveness in a rapidly evolving digital landscape. Furthermore, the COVID-19 pandemic has accelerated digital adoption, with many small and medium enterprises (SMEs) embracing e-commerce platforms to survive and thrive amid shifting market dynamics.

The evolution of payment technologies and logistics infrastructure is also playing a pivotal role in expanding the E-commerce Software market. Secure and flexible payment processing solutions, coupled with advanced order fulfillment and last-mile delivery capabilities, are critical components of modern e-commerce ecosystems. Vendors are increasingly offering integrated solutions that address these needs, helping businesses reduce cart abandonment rates and improve customer loyalty. Moreover, regulatory advancements and supportive government initiatives aimed at promoting digital commerce are further catalyzing market growth, especially in emerging economies where e-commerce penetration is still on the rise.

Regionally, Asia Pacific is emerging as the fastest-growing market for E-commerce Software, driven by the rapid expansion of online retail in countries such as China, India, and Southeast Asia. North America remains a dominant market, owing to the high concentration of established e-commerce players and early adoption of advanced technologies. Europe is witnessing steady growth, supported by strong digital infrastructure and increasing cross-border e-commerce activities. Meanwhile, Latin America and the Middle East & Africa are experiencing rising adoption rates, propelled by improving internet access and a growing base of digital-savvy consumers. This diverse regional landscape underscores the global momentum of the E-commerce Software market.

Deployment Type Analysis

The E-commerce Software market is segmented by deployment type into Cloud-Based and On-Premises solutions, each offering distinct advantages to businesses. Cloud-based e-commerce platforms have gained

Instagram Checkout Enablement Market Outlook

According to our latest research, the global Instagram Checkout Enablement market size reached USD 2.17 billion in 2024, exhibiting robust expansion driven by the rapid adoption of social commerce solutions. The market is projected to grow at a healthy CAGR of 21.4% from 2025 to 2033, reaching a forecasted value of USD 14.95 billion by 2033. The primary growth factor fueling this surge is the increasing integration of seamless, in-app purchasing experiences within Instagram, which is reshaping how consumers discover and buy products directly from their favorite brands and influencers.

The exponential growth of the Instagram Checkout Enablement market is primarily attributed to the evolving consumer behavior towards mobile-first shopping. As users increasingly spend more time on social media platforms, Instagram has emerged as a powerful channel for brands to engage directly with their target audiences. The introduction of Instagram Checkout has revolutionized the customer journey by allowing users to complete purchases without leaving the app. This frictionless experience not only improves conversion rates but also enhances customer satisfaction. Brands are leveraging this feature to build stronger relationships with consumers, facilitate impulse buying, and reduce cart abandonment, all of which are significant factors contributing to the market’s expansion.

Another key driver of growth in the Instagram Checkout Enablement market is the proliferation of influencer marketing and user-generated content. Influencers play a pivotal role in shaping purchasing decisions, especially among Millennials and Gen Z consumers, who prioritize authenticity and social proof. By enabling checkout directly within posts and stories, Instagram has empowered influencers and creators to monetize their reach more effectively. This synergy between content and commerce is fostering a vibrant ecosystem where brands, influencers, and consumers interact seamlessly. Moreover, advanced analytics and targeting tools provided by Instagram allow businesses to optimize their campaigns, ensuring higher ROI and sustained growth in the adoption of checkout enablement solutions.

The rapid advancement of technology and increasing investment in digital transformation among retailers and direct-to-consumer brands are further propelling the Instagram Checkout Enablement market. Enterprises are deploying sophisticated software solutions and services to integrate Instagram Checkout with their existing e-commerce infrastructure. The rise of artificial intelligence, machine learning, and automation in personalizing shopping experiences is also playing a crucial role. Additionally, partnerships between Instagram and e-commerce platforms like Shopify and BigCommerce have simplified onboarding for businesses of all sizes, accelerating market penetration. The demand for scalable and secure checkout enablement solutions is expected to remain strong as businesses seek to capitalize on the growing trend of social commerce.

From a regional perspective, North America continues to dominate the Instagram Checkout Enablement market, accounting for the largest revenue share in 2024. This is driven by a high concentration of tech-savvy consumers, mature digital infrastructure, and early adoption of social commerce solutions by brands. However, Asia Pacific is witnessing the fastest growth, fueled by the expanding digital economy, increasing smartphone penetration, and a burgeoning middle-class population. Europe also represents a significant market, characterized by strong e-commerce activity and a growing preference for omnichannel shopping experiences. Latin America and the Middle East & Africa are emerging as promising markets, supported by rising social media usage and digital payment adoption, although they currently contribute a smaller share to the global market.

Component Analysis

The Instagram Checkout Enablement market is segmented by component into software and services, each playing a pivotal role in driving adoption and enhancing the overall user experience. The software segment encompasses a wide range of solutions, including checkout integration tools, payment gateways, analytics platforms, and customer relationship management systems tailored for Instagram commerce. These software offerings are designed to streamline the checkout process, ensure secure transactions, and provide actionable insights to brands. The growi

Retail E-Commerce Market Outlook

According to our latest research, the global retail e-commerce market size reached USD 6.3 trillion in 2024, reflecting robust expansion driven by digital transformation and evolving consumer behaviors. The market is expected to grow at a CAGR of 10.7% from 2025 to 2033, reaching a projected value of USD 15.4 trillion by 2033. This substantial growth is fueled by increasing internet penetration, mobile device usage, and the ongoing shift in consumer preferences toward online shopping platforms. As per our 2025 research, the retail e-commerce sector continues to be a dynamic force in the global retail landscape, reshaping how consumers and businesses interact and transact worldwide.

One of the most significant growth factors propelling the retail e-commerce market is the rapid adoption of smartphones and high-speed internet connectivity. With the proliferation of affordable mobile devices and expanding 4G and 5G network coverage, consumers now have unprecedented access to online shopping platforms. This accessibility has enabled companies to reach a broader audience, including previously underserved rural and semi-urban regions. Furthermore, the integration of advanced technologies such as artificial intelligence, personalized recommendation engines, and augmented reality is enhancing the online shopping experience, making it more engaging and tailored to individual needs. These technological advancements are not only driving higher conversion rates but also fostering greater customer loyalty and repeat purchases.

Another crucial driver for the retail e-commerce market is the evolution of payment methods and logistics infrastructure. The increasing availability of secure and convenient payment options, such as digital wallets, buy-now-pay-later services, and seamless credit/debit card transactions, has reduced friction in the online purchase process. Simultaneously, e-commerce companies are investing heavily in last-mile delivery solutions, real-time order tracking, and efficient returns management. These improvements have significantly enhanced customer satisfaction and trust in online retail platforms. As a result, both established players and new entrants are witnessing higher order volumes and a marked reduction in cart abandonment rates, further accelerating market growth.

Consumer preferences are undergoing a fundamental transformation, with a growing emphasis on convenience, variety, and value for money. The COVID-19 pandemic catalyzed a paradigm shift in shopping habits, pushing even the most reluctant consumers to embrace online channels. Today, shoppers expect a seamless omnichannel experience, where they can browse, compare, purchase, and return products effortlessly across web-based and mobile-based platforms. Retailers are responding by integrating their online and offline operations, leveraging data analytics to optimize inventory, pricing, and promotions. This customer-centric approach is not only expanding the addressable market for e-commerce but also enabling retailers to capture a larger share of consumer spending across diverse product categories.

From a regional perspective, Asia Pacific continues to dominate the retail e-commerce market, accounting for the largest share of global sales in 2024. This dominance is underpinned by the presence of e-commerce giants such as Alibaba, JD.com, and Flipkart, as well as a burgeoning middle class with rising disposable incomes. North America and Europe also represent significant markets, characterized by high internet penetration, mature logistics networks, and a strong culture of digital innovation. Meanwhile, Latin America and the Middle East & Africa are emerging as high-growth regions, driven by increasing smartphone adoption, favorable regulatory environments, and the entry of global and local e-commerce players. Each region presents unique opportunities and challenges, shaping the competitive dynamics and future trajectory of the global retail e-commerce market.

Platform Analysis

The

In 2020, approximately ******* of online shoppers in the United Kingdom, who abandoned their online shopping carts, came back to buy the item on the same website at a later date. Roughly a quarter of consumers abandoned their order to purchase the same item from a different online retailer. Overall, the UK's rate of cart abandonment had gone up by a few percentage points between 2019 and 2020.

Social Commerce Market Outlook

As per our latest research, the global social commerce market size in 2024 stands at USD 805.5 billion, demonstrating its rapid expansion across digital ecosystems. The market is expected to witness a robust compound annual growth rate (CAGR) of 30.6% from 2025 to 2033, propelling the market to a projected value of USD 8,305.7 billion by 2033. This remarkable growth is primarily driven by the increasing integration of e-commerce functionalities into social media platforms, the proliferation of mobile devices, and the evolving preferences of digital-savvy consumers who seek seamless, interactive, and personalized shopping experiences.

One of the most significant growth factors for the social commerce market is the rising penetration of smartphones and internet connectivity globally. As more consumers gain access to high-speed internet and affordable smart devices, the lines between social networking and online shopping continue to blur. Platforms like Instagram, Facebook, TikTok, and Pinterest have successfully embedded shopping features, allowing users to discover, review, and purchase products without leaving the app. This frictionless journey not only enhances user engagement but also increases conversion rates, making social commerce a preferred channel for both brands and consumers. Furthermore, the adoption of advanced technologies such as artificial intelligence (AI) and augmented reality (AR) for product recommendations, virtual try-ons, and personalized content is further propelling the market forward.

Another crucial driver is the shift in consumer behavior, particularly among younger demographics such as Gen Z and Millennials, who value authenticity, peer recommendations, and influencer-driven content. Social commerce leverages the power of user-generated content, reviews, and influencer collaborations to build trust and drive purchasing decisions. The interactive nature of social platforms, where users can share experiences, seek opinions, and participate in live shopping events, creates a sense of community and urgency that traditional e-commerce channels often lack. Brands are increasingly investing in social commerce strategies to tap into these engaged audiences, launching exclusive products, and running targeted campaigns that foster brand loyalty and repeat purchases.

Additionally, the evolution of payment solutions and logistics infrastructure has significantly contributed to the growth of the social commerce market. Secure, integrated payment gateways and streamlined checkout processes have reduced cart abandonment rates, while advancements in last-mile delivery and fulfillment services ensure timely and reliable product delivery. These improvements have addressed some of the key barriers associated with online shopping, such as payment security and delivery delays. As a result, businesses of all sizes, from large enterprises to small and medium enterprises (SMEs), are leveraging social commerce to expand their reach, reduce marketing costs, and optimize customer acquisition and retention strategies.

From a regional perspective, Asia Pacific continues to lead the global social commerce market, driven by the dominance of platforms like WeChat, TikTok, and Alibaba’s ecosystem in China. The region’s tech-savvy population, high social media engagement, and innovative business models have set benchmarks for social commerce adoption worldwide. North America and Europe are also witnessing substantial growth, fueled by the increasing adoption of shoppable content, influencer marketing, and cross-border commerce. Meanwhile, Latin America and the Middle East & Africa are emerging as high-potential markets, supported by rising internet penetration and digital transformation initiatives. The global landscape is evolving rapidly, with each region contributing uniquely to the overall market dynamics.

Business Model Analysis

The social commerce market is segmented by business model into B

A January 2019 survey of online shoppers worldwide revealed that ** percent of shoppers had abandoned a digital shopping cart when the cost of delivery turned out to be higher than anticipated, making it the most common reason for doing so.

UK department stores face mounting pressure amid weak household incomes, high inflation, and shifting consumer habits. Sales of luxury goods have declined as middle-income shoppers rein in discretionary spending, while the loss of tax-free shopping for tourists has dented international sales. High-profile closures highlight sector fragility. However, innovation is driving survival. Retailers like M&S and John Lewis are thriving by offering high-quality and affordable goods. The rise of eco-conscious consumers is pushing stores to embrace sustainability through resale, rental, and repair services. Beauty departments have benefited from the “lipstick effect,” with prestige fragrance sales soaring despite broader spending cutbacks. Independent department stores are enjoying a revival, capitalising on strong community ties and unique, experience-led offerings. The sector’s future hinges on blending heritage with modern convenience, sustainability, and experiential value to attract the next generation of UK shoppers. Over the five years through 2024-25, department stores' revenue is forecast to drop at a compound annual rate of 5.7% to £31.6 billion, including a 0.9% dip in 2024-25. Over the five years through 2029-30, department stores' revenue is forecast to grow at a compound annual rate of 2.1% to reach £42.6 billion. UK department stores face rising cost pressures, with the April 2025 National Living Wage increase and higher National Insurance contributions squeezing margins. Some, like M&S and John Lewis, aim to absorb these costs through supply chain efficiencies rather than raising prices, but many retailers may resort to staff cuts or automation. Online rivals continue to dominate, forcing department stores to upgrade digital experiences. Cart abandonment, delivery delays, and forced account creation remain key friction points. To compete, retailers are investing in loyalty schemes and personalisation, with experiential rewards and tailored promotions proving effective. Physical stores remain vital—especially for shoppers who value experience. Successful department stores now focus on immersive, multi-channel strategies, blending heritage, innovation, and convenience to retain relevance in a fast-changing retail landscape.

Snapshot img

Applied AI In Retail And E-Commerce Market Size 2025-2029

The applied AI in retail and e-commerce market size is forecast to increase by USD 77.56 billion, at a CAGR of 28.6% between 2024 and 2029.

The market is experiencing significant growth, driven by the surging demand for hyper-personalization and enhanced customer experience. Retailers and e-commerce businesses are increasingly leveraging AI technologies, particularly generative AI, to create personalized content and recommendations for individual consumers. This approach not only improves customer satisfaction but also drives sales and loyalty. However, the adoption of AI in retail and e-commerce comes with challenges.
Ensuring the protection of sensitive customer information and addressing ethical considerations around data usage will be crucial for businesses looking to capitalize on the opportunities presented by AI in retail and e-commerce. Companies must navigate these challenges effectively to maintain customer trust and ensure long-term success in this dynamic market. Data privacy security and ethical concerns are becoming increasingly important as businesses collect and use vast amounts of customer data to fuel their AI applications. Additionally, AI model deployment, store layout optimization, and edge computing retail are emerging trends that are expected to shape the future of the retail and e-commerce market.

What will be the Size of the Applied AI In Retail And E-Commerce Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The retail and e-commerce market continues to evolve, with artificial intelligence (AI) playing an increasingly significant role in enhancing operational efficiency and customer experience. Checkout optimization AI streamlines the purchasing process, reducing cart abandonment rates by up to 30% through intelligent suggestion of complementary items and seamless payment processing. Warehouse automation AI, driven by computer vision technology, optimizes inventory management and order fulfillment, enabling retailers to meet customer demands more effectively. Customer service chatbots, utilizing conversational AI, handle queries around the clock, improving response times and enhancing the overall shopping experience. Supply chain AI, powered by predictive analytics, optimizes logistics and demand forecasting, ensuring stock availability and minimizing overstocking or understocking issues.

Sentiment analysis in e-commerce identifies customer preferences and trends, enabling personalized product recommendations and targeted advertising. Virtual try-on technology, utilizing image recognition, revolutionizes the shopping experience by allowing customers to 'try on' clothes virtually, boosting sales and reducing returns. AI-powered store design optimizes layouts based on customer behavior prediction, maximizing sales potential. The retail industry is expected to grow by over 7% annually, fueled by advancements in AI technologies. These innovations, including AI-driven pricing strategies, smart shelf technology, and AI-powered marketing automation, are transforming the retail landscape, offering retailers a competitive edge in today's dynamic market.

How is this Applied AI In Retail And E-Commerce Industry segmented?

The applied AI in retail and e-commerce industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Component

  Solutions
  Services


Deployment

  Cloud
  On premises


End-user

  Fashion and apparel
  Electronics and appliances
  Grocery and FMCG
  Beauty and personal care
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Component Insights

The Solutions segment is estimated to witness significant growth during the forecast period. The retail and e-commerce sector is witnessing significant advancements through the deployment of AI technologies. Checkout optimization AI streamlines the buying process, reducing cart abandonment rates. Warehouse automation AI enhances inventory management and order fulfillment, improving efficiency. Customer service chatbots provide instant support, boosting customer satisfaction. Supply chain AI optimizes logistics and demand forecasting, ensuring stock availability. Sentiment analysis e-commerce and image recognition technology personalize shopping experiences. Virtual try-on technology and AI-powered store design offer engaging shopping journeys. Product recommendation algorithms and dynamic pricing models i