Global AI Based Recommendation System Market Outlook 2024, Forecast To 2033
23 Jul, 2024
The AI-based recommendation system market has also seen rapid growth, rising from $2.01 billion in 2023 to $2.21 billion in 2024, growing at a CAGR of 10.1%. This growth is driven by personalized recommendations, abundant data for AI systems, workforce management efficiency, e-commerce expansion, and applications in education. Looking forward, the market is projected to reach $3.28 billion by 2028, growing at a CAGR of 10.4%. Drivers include streaming service adoption, healthcare applications, regulatory compliance, digital advertising growth, and CDN optimizations. Major trends include personalized strategies, real-time recommendations, adaptive learning models, multi-modal systems, user feedback advancements, and social influence analyses.
Major Driver In The AI Based Recommendation System Market
The AI-based recommendation system market is set to grow alongside the expansion of digital advertising. Digital advertising's appeal lies in its broad reach, targeting capabilities, and cost-effectiveness, driving increased spending globally. AI-based recommendation systems enhance digital advertising by improving targeting and personalization, thereby boosting user engagement and conversion rates. For instance, global digital advertising spending is expected to rise from $378 billion in 2020 to $646 billion by 2024. This expansion is expected to drive the AI-based recommendation system market.
Request A Free Sample Of The Global AI Based Recommendation System Market ReportAI Based Recommendation System Market Competitive Landscape
Alphabet Inc, Microsoft Corporation, Alibaba Group Holding Limited (Alibaba), Meta Platforms Inc, Amazon Web Services, Huawei Technologies Co. Ltd, Tencent Holdings Limited, Intel Corporation, International Business Machines Corporation, Oracle Corp, SAP SE, Netflix, Hewlett Packard Enterprise (HPE), Salesforce Inc, Adobe Inc, Sentient Technologies, RecomTech, Kibo Commerce, SmartRecs, AIRecom, IntelliChoice, Unbxd Inc, Coveo Solutions Inc, Algonomy Software Pvt. Ltd, Recolize GmbH, Dynamic Yield Inc, IntelliSuggest, RecomAId, SuggestAI, AIAdvise
Key AI Based Recommendation System Market Trend
Major companies in the AI-based recommendation systems market are advancing technologies like recommender system support to improve the efficiency and effectiveness of recommendation engines. These systems analyze user data and preferences to generate personalized recommendations for products, services, content, or other items of interest. For instance, Arthur, a US-based AI performance platform, launched recommender system support in January 2024 for AI-driven recommendation engines, marking a significant advancement in AI technology. This technology enhances recommendation engines by providing accurate and tailored recommendations, benefiting online businesses by boosting customer satisfaction levels and revenue growth. It includes features such as a model overview page, metrics dashboard, data drift monitoring, advanced querying, and filtering for an enhanced user experience.
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The AI-based recommendation system market covered in this report is segmented –
1) By Type: Collaborative Filtering, Content Based Filtering, Hybrid Recommendation
2) By Deployment Mode: On-Premise, Cloud
3) By Application : E-Commerce Platform, Online Education, Social Networking, Finance, News And Media, Health Care, Other Applications
By Geography:The regions covered in the AI-based recommendation system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
North America was the largest region in the AI-based recommendation system market in 2023.
The AI-Based Recommendation System Global Market Report 2024 furnishes information about the global AI-based recommendation system market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.