Global AI-Based Recommendation System Market Size Forecast 2024 - 2033
23 Dec, 2024
How Is The Global AI-Based Recommendation System Market Defined?
An AI-based recommendation system is a technology that utilizes artificial intelligence (AI) algorithms and machine learning techniques to analyze large datasets, user preferences, and behavioral patterns to provide personalized recommendations and suggestions to users. These systems enhance user experiences, drive engagement, and increase customer satisfaction by providing customized recommendations and suggestions tailored to individual preferences, interests, and needs across various industries and applications.
AI-Based Recommendation System Global Market Report 2024 provides data on the global ai-based recommendation system market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The ai-based recommendation system market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global AI-Based Recommendation System Market Size Expected To Change, And What Are The Growth Rate Projections?
The AI-based recommendation system market has shown consistent growth, rising from $2.01 billion in 2023 to $2.21 billion in 2024 at a CAGR of 10.1%. Historical growth factors include rising demand for personalized recommendations, data proliferation, workforce management efficiency, e-commerce expansion, and the need for cross-selling and upselling opportunities. The market is expected to grow to $3.28 billion by 2028, with a CAGR of 10.4%, driven by increased adoption in streaming services, healthcare applications, regulatory compliance, digital advertising expansion, and content delivery optimization. Key trends include real-time recommendations, adaptive learning models, multi-modal recommendation systems, enhanced user feedback, and social influence analytics.
Which Drivers Are Accelerating Growth In The AI-Based Recommendation System Market?
The growth of digital advertising is expected to drive the expansion of the AI-based recommendation system market. Digital advertising involves marketing through online channels like websites, streaming content, and more, with various media formats such as text, images, audio, and video. The growth of digital advertising is driven by its ability to reach audiences, target effectively, provide measurable results, offer cost efficiency, and enable personalization. AI-based recommendation systems are increasingly used in digital advertising to enhance targeting, personalization, and campaign effectiveness, thus boosting user engagement and conversions. For instance, Oracle Corporation estimates that global digital advertising spending will increase from $378 billion in 2020 to $646 billion by 2024. Therefore, the expansion of digital advertising is driving the growth of AI-based recommendation systems.
Get Your Free Sample of the Global AI-Based Recommendation System Market ReportWhat Are The Core Segments Of The Global AI-Based Recommendation System Market?
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
Which Emerging Trends Are Reshaping The AI-Based Recommendation System Market Size?
In the AI-based recommendation system market, top companies are working on developing advanced technologies, such as recommender system support, to improve recommendation engines' effectiveness. Recommender systems analyze user data to suggest products, services, or content based on preferences. For instance, in January 2024, Arthur, a US-based AI performance platform, introduced recommender system support for AI-driven recommendation engines. This innovative technology is expected to revolutionize how online businesses use recommendation systems, enhancing customer satisfaction and boosting revenue. It improves recommendation accuracy by leveraging AI and also includes features like a model overview page, metrics dashboard, data drift monitoring, and advanced querying to enhance the overall user experience.
What Is The Largest Region In The AI-Based Recommendation System Market?
North America was the largest region in the AI-based recommendation system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the AI-based recommendation system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.