In the United States, one in ***** business-to-consumer (B2C) organizations fully included AI-based technologies in their e-commerce operations, a 2023 survey showed. Another ** percent of professionals answered their companies are experimenting with artificial intelligence tools.

In May of 2025, companies in the United States gave insight to the most popular applications of artificial intelligence (AI) in e-commerce. The majority, over ** percent, of companies use AI for customer service, while only around ** percent use it for the creation of content.

In 2023, one in two B2B e-commerce companies with annual revenue over 100 million U.S. dollars used artificial intelligence (AI) to optimize prices of products or services. Another 45 percent of them used AI tools to automate product recommendations. Site search on B2B e-commerce sites was the third-most common use of artificial intelligence and machine learning among big B2B organizations.

As of January 2025, Shopify was the biggest name in the U.S. e-commerce software market, used by roughly ** percent of websites that use e-commerce technologies. The market’s other major competitors include Wix Stores around ** percent, WooCommerce Checkout, and Squarespace Add to Cart, each of which boasts a market share of around ** percent. E-commerce E-commerce is the term used to describe the broad spectrum of products and services which are bought and sold over the internet. It can include everything from the sale of physical good on sites like Amazon, to the online provision of software offered by companies like Google. Often seen as the future of commerce, the market has grown rapidly, especially in the U.S., where it accounts for around 15 percent of overall retail sales in 2021. The retail e-commerce sales in the U.S. is projected to bring in *** billion U.S. dollars in 2021. Such booming sales signals strong demand for the software support behind e-commerce platforms, and estimates suggest that the e-commerce software application market alone will be worth over *** billion dollars by the end of 2021. E-commerce companies The undisputed biggest name in e-commerce internationally is Amazon.com. The company brought in more than *** billion U.S. dollars in revenue from its online stores in 2020. Other major competitors include Chinese brands Alibaba and Jingdong. Alibaba's annual revenue amounted to more than *** billion yuan in it's 2021 fiscal year, which translates to around *** billion U.S. dollars. The annual sales of Jingdong (JD.com) reached a record high of *** billion yuan in 2020, which is the equavalent of *** billion U.S. dollars.

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Report Overview

As per the latest insights from Market.us, the global AI in eCommerce market is poised for significant growth over the next decade. The market size is expected to reach a value of USD 50.98 billion by 2033, up from USD 5.79 billion in 2023, reflecting a compound annual growth rate (CAGR) of 24.3% during the forecast period from 2024 to 2033. This rapid expansion underscores the growing reliance on artificial intelligence technologies to enhance eCommerce operations, from personalized recommendations to automated customer service.

In 2023, North America dominated the market, holding a substantial share of 38.6%, with a revenue of USD 2.23 billion. The region’s leadership is driven by the high adoption of AI-powered solutions, robust digital infrastructure, and strong investments in innovative technologies. As businesses increasingly seek to improve customer experiences and streamline operations, AI’s role in the eCommerce sector is expected to become even more pivotal, fueling growth in both developed and emerging markets.

The AI in e-commerce market is experiencing rapid growth, with significant investments directed towards enhancing customer engagement and operational efficiency. By 2025, the market size is projected to reach significant figures, driven by the widespread adoption of AI technologies such as chatbots, recommendation engines, and visual search tools. Retailers are leveraging these technologies to improve customer interaction, predict product demand, and create a more engaging shopping environment​.

According to the Adobe Digital Economy Index, online retail sales in the United States for the first quarter of 2021 made up 40% of total retail sales, compared to 36% during the same period in 2020. This noticeable increase highlights a clear spike in online shopping, which has been a key factor driving the growth and adoption of artificial intelligence (AI) in the e-commerce industry. As more consumers shift towards digital platforms for their shopping needs, businesses are increasingly leveraging AI to optimize customer experiences, streamline operations, and personalize interactions, further fueling the expansion of AI technologies within the sector.

The primary driving factors for AI in e-commerce include the need for enhanced customer personalization, improved operational efficiency, and competitive advantage. AI-driven personalization engines are able to tailor product recommendations and marketing messages based on individual user behavior, significantly enhancing the customer experience. Moreover, AI’s capability in inventory and supply chain management helps retailers reduce costs and improve service delivery by predicting demand and optimizing stock levels​.

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Artificial Intelligence (AI) Market In Retail Sector Size 2024-2028

The artificial intelligence (ai) market in retail sector size is forecast to increase by USD 42.22 billion, at a CAGR of 42% between 2023 and 2028.

The Artificial Intelligence (AI) market in retail is experiencing significant growth, fueled by escalating investments and research and development in AI startups. This trend is driven by the increasing adoption of AI technologies in various retail applications, particularly in e-commerce, where AI is being used for personalized product recommendations, fraud detection, and customer service. However, the deployment of AI in retail comes with challenges. One of the most pressing issues is privacy concerns. Retailers must address these challenges by implementing robust data security measures and transparent communication with customers regarding the collection and use of their data.
Effective management of these challenges will enable retailers to capitalize on the vast opportunities presented by AI, enhancing customer experiences, improving operational efficiency, and driving innovation in the retail sector.

What will be the Size of the Artificial Intelligence (AI) Market In Retail Sector during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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The retail sector continues to witness the integration of artificial intelligence (AI) technologies, revolutionizing various aspects of business operations. From promotion optimization to customer service automation, AI applications span across numerous retail functions. Image recognition and machine learning algorithms enhance operational efficiency by automating tasks such as inventory management and data mining. Sales forecasting and demand prediction are further advanced through AI-powered recommendations and real-time analytics. Facial recognition and customer segmentation enable personalized shopping experiences, while virtual assistants and recommendation systems streamline the customer journey. AI's role extends to supply chain management, cost reduction, and targeted advertising through retail analytics and predictive analytics.

Moreover, AI's integration into omni-channel retail enhances conversion rates, customer satisfaction, and loyalty programs. Automated checkout and process automation contribute to efficiency gains, while deep learning and marketing automation optimize pricing and UX. Data security and decision support systems ensure data-driven insights for business intelligence and sentiment analysis. Fraud detection and predictive modeling further strengthen retail operations, with smart shelves and business intelligence systems providing valuable insights for retailers. AI's continuous evolution in the retail sector is transforming the industry, offering endless opportunities for innovation and growth.

How is this Artificial Intelligence (AI) In Retail Sector Industry segmented?

The artificial intelligence (ai) in retail sector industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Sales and marketing
  In-store
  PPP
  Logistics management


Geography

  North America

    US
    Canada


  Europe

    UK


  APAC

    China
    Japan


  Rest of World (ROW)

By Application Insights

The sales and marketing segment is estimated to witness significant growth during the forecast period.

In the retail sector, artificial intelligence (AI) is revolutionizing sales and marketing functions. Customer Relationship Management (CRM) strategies are enhanced through AI, allowing businesses to understand customer interaction histories and tailor sales efforts accordingly. Operational efficiency is a priority, with AI-based chatbots and virtual assistants driving customer engagement and freeing up human resources. Machine learning algorithms, image recognition, and predictive analytics are key technologies, powering personalized shopping experiences, targeted advertising, and real-time inventory management. Cloud computing enables seamless data access for AI applications, from demand forecasting to sentiment analysis and fraud detection. AI-powered recommendation systems and supply chain management optimize sales conversion and reduce costs.

Businesses are embracing omni-channel retail, integrating AI into various touchpoints, from mobile commerce to in-store analytics. Deep learning and computer vision technologies further enhance the customer experience, with applications in price optimization, shelf optimization, and predictive modeling. Data security and decision support systems are essential considerations, ensuring customer satisfactio

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US B2C E-Commerce Market Size 2025-2029

The us b2c e-commerce market size is forecast to increase by USD 289.2 billion at a CAGR of 8.7% between 2024 and 2029.

The B2C E-Commerce Market in the US is experiencing significant growth, driven by the increasing trend of online spending and the widespread adoption of smartphones. Consumers are increasingly turning to e-commerce platforms for convenience and the ability to shop from anywhere at any time. The emergence of omnichannel retailing, which integrates online and offline channels, is further fueling this growth. However, the market also faces challenges, with logistics management becoming a critical aspect of e-commerce operations. The need to efficiently manage and deliver products to customers in a timely manner has resulted in high overhead costs for retailers. Effective logistics strategies will be essential for companies seeking to capitalize on the opportunities presented by the growing e-commerce market while navigating these challenges. Success in this market will require a focus on providing seamless shopping experiences, efficient logistics, and competitive pricing. Companies that can successfully balance these factors will be well-positioned to thrive in the dynamic and evolving e-commerce landscape.

What will be the size of the US B2C E-Commerce Market during the forecast period?

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In the B2C e-commerce market in the US, omni-channel retail strategies have gained prominence, integrating bricks-and-mortar stores with online platforms for a seamless customer experience. Cloud computing enables businesses to manage their operations more efficiently, while multi-channel marketing caters to consumers' preferences. Customer journey mapping and experience (CX) optimization are key priorities, with video and influencer marketing playing crucial roles. Logistics optimization and security audits ensure smooth transactions and safeguard sensitive data. Blockchain technology, data encryption, and data warehousing bolster security and streamline processes. Digital wallets and mobile payments facilitate hassle-free transactions, and live streaming and responsive design enhance user interface (UI) and customer engagement. Supply chain management, big data, predictive analytics, and delivery automation optimize operations, while two-factor authentication and personalized recommendations cater to individual consumers. Social commerce and content marketing foster community building and brand loyalty. Innovations like delivery drones and augmented reality try-on features continue to shape the market landscape. As e-commerce competition intensifies, businesses must stay agile and adapt to the latest trends to thrive.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. TypeB2C retailersClassifiedsApplicationConsumer electronics and home appliancesApparel and accessoriesPersonal careOthersPlatformMulti-brandSingle-brandGeographyNorth AmericaUS

By Type Insights

The b2c retailers segment is estimated to witness significant growth during the forecast period.

The B2C e-commerce market in the US is experiencing significant growth, driven by the increasing preference for online shopping and the availability of secure payment platforms. E-commerce sales have been on the rise, with consumers drawn to the convenience and wide product selection offered by digital retailers. To enhance customer experience, companies employ marketing automation, social media marketing, and personalized recommendation engines. Customer service is also prioritized through multiple channels, including chatbots and AI-powered support. Subscription models, inventory management, and order management systems ensure seamless transactions, while compliance regulations safeguard consumer data. Data analytics and machine learning enable targeted customer segmentation and personalized marketing. Mobile commerce (m-commerce) and voice search optimization cater to the growing use of mobile devices for shopping. Loyalty programs and product reviews foster brand loyalty and trust. E-commerce platforms offer various payment gateway options, ensuring secure transactions using the latest security protocols. Augmented reality (AR) and virtual reality (VR) enhance the shopping experience, while shopping cart software and shipping logistics streamline the ordering process. Fraud detection and A/B testing are essential for maintaining customer satisfaction and trust. Returns and refunds are managed efficiently, ensuring a hassle-free shopping experience. Onlin

From October to December 2024, U.S. retail e-commerce sales amounted to roughly 309 billion U.S. dollars, marking an increase compared to the previous quarter. Overall, retail e-commerce sales outdid the quarterly sales records registered in 2020. E-commerce in the post-pandemic era During the second quarter of 2020, as COVID-19 spread across the globe, the U.S.'s quarterly e-commerce revenue reached 200 billion for the first time in history. In 2021, online retail sales account for ten percent of total retail in the United States. Clothing and accessories, including footwear, is one of the largest B2C e-commerce merchandise categories. Retail e-commerce sales in the United States are estimated from samples used for the Monthly Retail Trade Survey and exclude online travel services, ticket sales agencies, and financial brokers. Latest trend? Quick commerce Shoppers expect fast delivery of their purchases, especially when it comes to grocery products. This segment of the e-commerce industry goes under quick commerce and is expected to generate increasing revenue in the next years. Major quick commerce companies like Instacart or Uber Eat operate in the United States, where the quick commerce market is forecast to hit nearly 40 billion U.S. dollars by 2027.

The North American B2B e-commerce market is experiencing robust growth, driven by the increasing adoption of digital technologies by businesses and the ongoing shift towards online procurement. The market's Compound Annual Growth Rate (CAGR) of 10.20% from 2019 to 2024 indicates a significant expansion, and this upward trajectory is projected to continue throughout the forecast period (2025-2033). Key drivers include the need for enhanced operational efficiency, improved supply chain management, and access to a wider range of suppliers through online platforms. Businesses are increasingly leveraging e-commerce solutions to streamline their purchasing processes, reduce costs, and gain a competitive advantage. The market is segmented by channel (direct sales and marketplace sales) and geography (primarily the United States and Canada), reflecting the varying levels of e-commerce penetration across different regions and business models. The United States holds the largest market share, owing to its mature digital infrastructure and high level of business activity. Canada is also a significant market, with considerable growth potential, driven by increasing internet penetration and the adoption of B2B e-commerce solutions among small and medium-sized enterprises (SMEs). While the market faces restraints such as cybersecurity concerns and the need for robust digital literacy, these challenges are being addressed through advancements in technology and improved security protocols. The leading players in the North American B2B e-commerce market are a mix of established e-commerce giants and specialized B2B marketplaces. These companies offer a wide range of services and solutions catering to various business needs, from online procurement to inventory management and supply chain optimization. The competitive landscape is dynamic, with ongoing mergers and acquisitions, as well as the emergence of new market entrants offering innovative solutions. Future growth will likely be shaped by the increasing adoption of artificial intelligence (AI) and machine learning (ML) in e-commerce, enhancing personalization, improving customer service, and optimizing supply chain efficiency. The market's expansion will also be influenced by the integration of e-commerce platforms with enterprise resource planning (ERP) systems, creating seamless end-to-end solutions. Overall, the North American B2B e-commerce market presents considerable opportunities for businesses to capitalize on the ongoing digital transformation and the growing demand for efficient and cost-effective procurement solutions. The continued evolution of technology and the increasing sophistication of B2B e-commerce platforms will drive further growth and innovation in this dynamic sector. Recent developments include: March 2022 - Xeeva announced a partnership with Amazon Business, allowing Xeeva's Procure to Pay customers the flexibility of using Amazon to search and order directly within the P2P purchasing environment. Xeeva customers would no longer need to exit the P2P solution for searching Amazon for competitive pricing. The collaboration will allow users to search Amazon directly inside the P2P solution with the simple click of a button and instantly add desired items to their Xeeva shopping cart., December 2021 - Alibaba.com partnered with Hello Alice to initiate the first Alibaba.com Grants Program. The program supported 50 small business entrepreneurs by funding them with USD 10,000 grants each. The thousands of applicants also had access to the Alibaba.com Digitalization Sprint for Retailers, guiding with the help of valuable insights about eCommerce basics, including digital advertising, sourcing, and supply chain management.. Key drivers for this market are: Increasing Focus on Digital Experience of Modern B2B Buyers, Digitalization of Retail Business to Online Operations; Rising Popularity of Specialized B2B Online Marketplace. Potential restraints include: Increasing Focus on Digital Experience of Modern B2B Buyers, Digitalization of Retail Business to Online Operations; Rising Popularity of Specialized B2B Online Marketplace. Notable trends are: Popularity of Retail Business Operations Online to Drive the Market.

Note:- Only publicly available data can be worked upon

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In 2023, e-commerce comprised over 15.6 percent of total retail sales in the United States. Forecasts suggest that this proportion will continue to rise steadily in the coming years, reaching approximately 20.6 percent by 2027. Fashion fever The digital revolution has significantly changed how retail is done, impacting a wide range of product categories. Out of all e-commerce product categories, apparel and accessories are the most purchased online in the United States. As of February 2023, roughly 18 percent of all fashion retail sales took place online. Furniture and home furnishing, as well as computer and consumer electronics, ranked second, with over 15 percent of each product category purchased via the internet. The product categories that are least purchased online are office equipment and supplies (1.4 percent) and books, music, and video (5.1 percent). Shopping hotspots Amazon dominates the e-commerce industry in the United States, though other competitors still have significant market share. In December 2023, amazon.com was the most-visited e-commerce and shopping site in the United States. That month, around 45 percent of all visits to e-commerce sites were made to Amazon. Other popular shopping sites include ebay.com, walmart.com, etsy.com, and target.com. The staggering proportion of online retail sales in the country attributed to Amazon is quite remarkable. In 2023, Amazon's website accounted for almost half of all online computer and consumer electronics sales. Similarly, nearly one-third of online fashion purchases in the country were made on Amazon.

According to a survey to e-commerce merchants, a fifth of e-commerce fraud losses experienced by their companies in the previous 12 months were using credit transactions as payment methods. The 2025 study also reveled that debit cards represented the same share (20%) of the total fraud losses.

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Artificial Intelligence (AI) In Food And Beverage Industry Market Size 2025-2029

The artificial intelligence (AI) in food and beverage industry market size is forecast to increase by USD 32.2 billion, at a CAGR of 34.5% between 2024 and 2029.

The Artificial Intelligence (AI) market in the Food and Beverage industry is witnessing significant growth, driven by the rising demand for automation to enhance productivity and streamline operations. The integration of Industrial Internet of Things (IIoT) in food and beverage processing is a key trend, enabling real-time monitoring and predictive maintenance, leading to improved efficiency and quality. However, the lack of skilled personnel poses a significant challenge in implementing and managing AI technologies, necessitating investments in training and development programs.
Companies in the food and beverage sector seeking to capitalize on the opportunities presented by AI must focus on addressing this talent gap while also ensuring compliance with data security regulations and ethical considerations in the use of AI technologies. Effective collaboration between industry players, academia, and governments can help bridge the skills gap and foster innovation in the sector.

What will be the Size of the Artificial Intelligence (AI) In Food And Beverage Industry Market during the forecast period?

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The food and beverage industry continues to experience dynamic market activities, driven by the integration of artificial intelligence (AI) technologies. From recipe development to production efficiency, AI applications span various sectors, shaping the industry's evolving landscape. Robotics and automation streamline processes, ensuring consistent product quality and reducing labor costs. Smart packaging with embedded sensors monitors food freshness and safety, enhancing consumer trust. AI-driven trend forecasting and social media marketing strategies help businesses stay competitive. Deep learning models optimize ingredient usage, improve demand forecasting, and enable personalized nutrition recommendations. Computer vision algorithms facilitate image recognition for food labeling regulations and allergen detection.

AI-powered sensory analysis refines flavor profiling and dietary recommendations. Sustainability reporting, precision fermentation, and food waste reduction are key areas where AI contributes to industry innovation. Business model development and supply chain management are optimized through AI-driven data analytics platforms and e-commerce solutions. AI's role in the food and beverage industry extends to food safety, consumer insights, and competitive landscape analysis. Food fraud detection and cloud-based solutions further enhance transparency and efficiency. The continuous integration of AI technologies promises a future of smart, sustainable, and personalized food production and delivery.

How is this Artificial Intelligence (AI) In Food And Beverage Industry Industry segmented?

The artificial intelligence (AI) in food and beverage industry 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.

Type

  Transportation and logistics
  Production planning
  Quality control
  Others


End-user

  Food processing industry
  Hotels and restaurants
  Beverage industry


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

.

By Type Insights

The transportation and logistics segment is estimated to witness significant growth during the forecast period.

In the food and beverage industry, automation is becoming a key trend as players seek to optimize operations and improve production efficiency. This is particularly evident in intralogistics, where manufacturers, beverage wholesalers, breweries, and bottling plants are employing advanced technologies such as machine vision systems, robotics, and automation to streamline their warehousing and distribution processes. The need for flexibility and swift returns processing is also driving demand for these solutions. The transportation and logistics segment of the global AI market in food and beverage industry is poised for growth, with manufacturers investing in precision fermentation, deep learning models, and other advanced technologies to enhance their manufacturing processes.

The emergence of digitization and new business models is bringing about a paradigm shift in the industry. Food labeling regulations and product traceability are also major considerations for player

With a market cap of about 9.3 billion U.S. dollars, VIP Shop stood as the leading fashion e-commerce company worldwide. According to data compiled in June 2023, the Chinese company stood ahead of competitors Zalando, The Hut Group, and Revolve. In addition, the aforementioned brands also featured as some of the fastest-growing fashion e-commerce retailers worldwide between 2021 and 2023.

The reach of online fashion Globally, the fashion e-commerce market has reached an overall market value of 781.5 billion U.S. dollars. Estimates predict that the industry will continue to grow to 1.6 trillion dollars within the next six years. Spearheading the industry with their massive economical power, China and the United States make up a significant portion of the fashion e-commerce industry, accounting for over 207 billion U.S. dollars and 182 billion U.S. dollars in revenue in 2023, respectively.

China and the United States: fashion shopper favorites With the prevalence of online fashion shopping, it is no surprise that the largest share of rural China’s online retail sales were generated through the purchasing of clothing and textile products. Online retail marketplaces that sell a plethora of fashion items made up the list of leading retail brands in the country. At the top of the list was Pinduoduo, the parent company of the recently launched Temu – which has become a hotspot for online marketplace and fashion shoppers in the United States. In 2023, Temu surpassed Shein as the most downloaded shopping app in the U.S.

In June 2023, German-based online retailer About You was projected to have the biggest revenue growth among the leading online fashion companies in the world, with a 2021 to 2023 compound annual growth rate (CAGR) of 12 percent. According to the study, The RealReal had also to that date one of the largest market caps among fashion e-commerce sites worldwide.

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Enterprise AI Market Size 2025-2029

The enterprise AI market size is forecast to increase by USD 94.23 billion at a CAGR of 54.1% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of AI technologies, particularly chatbots, in various industries. This trend is not limited to large corporations but is also gaining traction among Small and Medium-sized Enterprises (SMEs), as they recognize the benefits of automating routine tasks and improving customer engagement. However, the market's growth is not without challenges. Another trend is the growing interest in chatbot and their application in enterprise settings, particularly among Small and Medium-sized Enterprises (SMEs). The fourth industrial revolution brings self-driving cars, augmented reality, and virtual reality to the forefront, with AI playing a crucial role in these technologies.
This skills gap presents both an opportunity and a challenge for businesses, as they can either invest in upskilling their existing workforce or partner with AI service providers to overcome this hurdle. As the market continues to evolve, companies seeking to capitalize on the opportunities and navigate challenges effectively must stay informed about the latest trends and developments in enterprise AI.

What will be the Size of the Enterprise AI Market during the forecast period?

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The market is witnessing significant growth as businesses in various industries seek to optimize their operations and improve profitability. AI technologies, such as predictive analytics solutions and advanced robotics, are being integrated into business processes to increase efficiency and reduce costs. Digitalization is a critical aspect of modern manufacturing, and AI is playing an increasingly important role in digital manufacturing. By analyzing process flows and identifying inefficiencies, AI can help streamline production processes and improve operating efficiency. This, in turn, leads to cost savings and better business outcomes.
By implementing AI governance and integrating AI into their enterprise software applications, they can gain valuable insights from their data and make informed decisions. The adoption of AI is not limited to manufacturing alone. In the realm of autonomous mobility, AI is being used to develop self-driving vehicles and optimize transportation logistics. In the realm of IIOT, AI is being used to analyze big data, AI analytics, and improve predictive maintenance. Operating costs are a major concern for businesses, and AI is proving to be an effective solution.

How is the Enterprise AI Industry segmented?

The enterprise AI 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.

Deployment

  On-premises
  Cloud


End-user

  Advertising and media and entertainment
  Retail and e-commerce
  Medical and life sciences
  BFSI
  Others


Component

  Solutions
  Services


Application

  Marketing
  Customer support and experience
  Security and risk
  Process automation
  HR and recruitment


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    The Netherlands
    UK


  APAC

    China
    India
    Japan


  Middle East and Africa



  South America

By Deployment Insights

The on-premises segment is estimated to witness significant growth during the forecast period. The market encompasses the deployment of artificial intelligence (AI) infrastructure within an organization's premises for business process enhancement. On-premises AI infrastructure, which involves installing AI systems on a company's own property, is gaining popularity due to heightened security concerns. With the increasing demand for data security and control, many businesses prefer on-premises AI infrastructure over cloud-based alternatives. This segment's growth is driven by the integration of AI into various industries, including manufacturing processes, business processes, and industrial automation. Key technologies such as edge computing, augmented reality, and virtual reality are also contributing to the market's expansion.

The implementation of AI in industries like manufacturing, banking, and transportation is leading to significant operating cost savings and improved operational efficiency. Integrated systems, autonomous mobility, and digital transformation are other significant trends shaping the market. Key players in this sector include leading technology companies and startups specializing in cutting-edge robotics and AI.

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The On-premises segment was valued at USD 1.22 billion in 2019 and showed a gradual increa

Introduction

The global datafication in the e-commerce market is experiencing rapid growth, with projections to reach USD 3,853 billion by 2034, up from USD 61.7 billion in 2024, at a compound annual growth rate (CAGR) of 15.2% from 2025 to 2034. This growth is driven by increasing e-commerce activity, the rise of big data technologies, and the growing need for businesses to leverage data analytics to enhance customer experience, optimize inventory management, and improve decision-making. Datafication in e-commerce is transforming how businesses operate, providing actionable insights that drive growth and competitive advantage.

E-Commerce Market Outlook 2032

The global e-commerce market size was USD 16.2 Trillion in 2023 and is likely to reach USD 56.7 Trillion by 2032, expanding at a CAGR of 14.9% during 2024–2032. The market is propelled by the expansion of supply and distribution industry.



Increasing digitalization and internet penetration is expected to boost the market during the assessment period. E-commerce has transformed the way businesses operate and consumers shop. This industry leverages technology to facilitate online buying and selling of goods and services. The latest trend in this market is the integration of artificial intelligence and machine learning to personalize customer experiences, optimize logistics, and enhance decision-making.

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  In April 2022, Flipkart, based in Bengaluru, acquired ANS Commerce, an Indian e-commerce service provider. This acquisition is set to enhance Flipkart's online shopping marketplace.

  
  

Growing consumer expectations for convenience and speed are significant driving factors for the e-commerce market. As digital natives become a larger share of the consumer base, the demand for seamless, efficient online shopping experiences is rising. E-commerce platforms cater to this demand by offering a wide range of products and services at the click of a button, complete with home delivery and easy return policies.



Rising adoption of mobile commerce presents another opportunity in the e-commerce market. With smartphones becoming ubiquitous, consumers are shopping on their mobile devices. This trend has led to the development of mobile-friendly e-commerce platforms and apps, enabling businesses to reach their customers wherever they are, at any time. Thus, e-commerce is not just a business model, but a critical driver of economic growth and consumer convenience.

Impact of Artificial Intelligence (AI) in E-Commerce Market