According to a report by Research and Markets, the global image recognition in retail market is expected to grow from $1.63 billion in 2022 to $1.98 billion in 2023 at a compound annual growth rate (CAGR) of 21.6%. The image recognition in retail market is expected to grow to $4.16 billion in 2027 at a CAGR of 20.4%.

Major players in image recognition in retail market are Catchoom, Ricoh Innovations, Blippar, LTU Tech, Google LLC, Wikitude, Trax Retail, Snap2Insight, Clarifai Inc., Slyce, Paralleldots, NEC Corporation, Huawei Technologies Co Ltd., Qualcomm, Amazon Web Services Inc., Zippin, Vispera, Hitachi Ltd., and NVidia Corporation.

Image recognition in retail is an algorithm that analyses a picture or video, decodes its information, and identifies the image as representing a certain brand, product, category, or something else entirely. Image recognition in retail is used to maintain shelf health, display compliance, competitive insight, and planogram compliance.

The main types of image recognition in retail are code recognition, digital image processing, facial recognition, object recognition, and others. Code recognition is an identifying solution that can read and validate both QR codes, all conventional barcodes, and 2D data matrix codes. The various components include hardware, software, and services that are deployed through on-premises and cloud. The applications include scanning and imaging, image search, security and surveillance, augmented reality, marketing and advertising, and others.

The report says that increasing use of image recognition applications is expected to drive the demand for image recognition in the retail market going forward. The image recognition applications such as scanning and imaging, security and surveillance, and marketing and advertising are being used increasingly due to the need for improving operational accuracy, strengthening security, and better marketing campaigns. The increasing use of image recognition applications in turn will increase demand for image recognition in retail due to the improved ROI (return on investment) for retailers.

Technological development is a key trend gaining popularity in image recognition in the retail market. Major players in image recognition in the retail sector are focused on technological developments to sustain their marketplace, says the report.

The report cites the example of BeMyEye, an England-based retail technology company, which launched the latest addition to its list of CPG tools, 'real-time image recognition for retail store audits. With the help of this innovative technology, audit times may be reduced by up to 70% while giving sales representatives precise store insights in less than 20 seconds. This new technology enhances the speed, efficiency, and actionability of field teams engaged in the store audit.

According to the report,  North America was the largest region in image recognition in retail market in 2022.

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