Global Recommendation Engine Market by Type (Collaborative Filtering, Hybrid Recommendation) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global recommendation engine market was valued at USD 1.77 Billion in 2020. It is projected to grow at a compound annual rate (CAGR of 33.0%) between 2021 and 2028. The demand for recommendation engines is growing due to the need to improve customer experience. There is a growing demand for recommendation engines due to the increasing adoption of digital technologies within organizations. Many industries were affected by the COVID-19 pandemic, which led to significant changes in the way that businesses and buyers shop. These changes will continue to have a lasting effect on people and businesses long after the pandemic. Amazon.com, Inc., an e-commerce company, made about USD 33 million per hour in sales during the first quarter 2020.

People were forced to shift to online shopping due to increasing fears of being infected. This is driving the demand for recommendation engines. Adobe Research 2021 estimates that 34% of shoppers will shop more if they get recommendations based upon their past purchases.

The market's growth could be hampered by rising security concerns regarding customer information. The market will be buoyant in the coming years, despite this limitation.

Type Insights

In 2020, the collaborative filtering segment was the most profitable with a revenue share of more than 40.0%. It is expected to continue its lead in the future. This is due to the increasing demand for trustworthy recommendation engines on e-commerce platforms. These recommendation engines are used to improve customers' shopping experience by suggesting products that suit their preferences and tastes. Spotify, for example, uses collaborative filtering to suggest "Discover Weekly" or other playlists to listeners based upon their listening history.

Over the forecast period, the highest projected CAGR for hybrid recommendation is 34.4%. This segment's growth can be attributed primarily to increased demand from organizations who require both content-based and collaborative filtering. Netflix, for example, uses a hybrid recommendation engine that provides insights into the features of a movie or show and viewers' preferences.

Information on Deployment

Cloud segment had the highest revenue share at over 85.0% in 2020. It is expected to grow at the highest rate over the forecast period. This is due to increased demand from cloud technology users to integrate recommendation engines into their web-based applications.

In 2020, the on-premise segment was second in revenue. This segment's growth can be attributed largely to large companies' increased demand for on premise recommendation systems and data security solutions.

Application Insights

In 2020, personalized campaigns and customer delivery accounted for more than 40% of the revenue. This segment is a result of the increased need to deliver better customer service and experience to customers.

Proactive asset management and product planning are expected to make up the second largest revenue share by the end the forecast period. This segment is expected to grow at a 35.1% CAGR over the forecast period. This segment's growth can be attributed to increasing adoption of AI and machine learning by many organizations in order to make better business decisions. These technologies allow users to gain insights from the data they collect about their customers' preferences, habits, and choices.

End-use Insights

Retail accounted for nearly 26.0% of the total revenue in 2020. It is expected to maintain its lead during the forecast period. This is due to increasing industry competition and the adoption of recommendation systems by retail organizations.

In 2020, the information technology segment accounted for the second largest revenue share. BFSI is expected to grow at the highest CAGR over the forecast period. This is due to increased demand from banks for customer engagement and profit enhancement. Customers will be offered various offers based upon their profiles.

Organization Insights

In 2020, the large enterprise segment was responsible for more than 55.0% of revenue. Large enterprises are more likely to use recommendation engines to help them make better business decisions and manage their business portfolios. This gives them a competitive advantage in the global marketplace.

The highest projected CAGR for the SMEs segment will be 34.6% over the forecast period. This segment is driven by the need to provide a better user experience in a highly competitive market. Small and medium-sized businesses are increasingly looking for alternative marketing and advertising solutions to reduce their marketing and advertising expenses due to tight budgets. This is driving the growth of recommendation engines.

Regional Insights

In 2020, North America's regional market was responsible for 33.0% of the total revenue. It is expected to maintain its lead in the future. This is due to the increasing adoption of advanced technologies and the increase in government support for these technologies in the region.

Over the forecast period, the Asia Pacific market will grow at a 35.5% CAGR. The region is experiencing a rise in e-commerce penetration, an increase in online shopping transactions and an increase of Over the Top (OTT), service providers fueling the demand to use recommendation engines.

Market Share Insights & Key Companies

Due to the presence of many regional and global players, the market for recommendation engines can be fragmented. To survive in a highly competitive market, key players are seeking strategic partnerships and collaborations to grow their businesses. Service providers also spend a lot on research and development to integrate new technologies into their offerings and create advanced products in order to be competitive with other market players.

Amazon.com, Inc., announced in June 2019 that its machine learning service, Amazon Personalize, was available. This service allows users to create personalized and non-personalized recommendations for applications. It does not require any machine learning skills. The global recommendation engine has some prominent players such as:

• Adobe

• Amazon Web Services, Inc.

• Google LLC

• Hewlett Packard Enterprise Development LP

• International Business Machines Corporation

• Intel Corporation

• Microsoft Corporation

• Oracle

• Salesforce.com, Inc.

• SAP SE

Up Market Research published a new report titled “Recommendation Engine Market research report which is segmented by Type (Collaborative Filtering, Hybrid Recommendation), By Players/Companies Salesforcecom Inc, International Business Machines Corporation, Hewlett Packard Enterprise Development LP, Microsoft Corporation, SAP SE, Google LLC, Intel Corporation, Adobe, Amazon Web Services Inc, Oracle”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Recommendation Engine Market Report Segments:

The market is segmented by Type (Collaborative Filtering, Hybrid Recommendation).

Recommendation Engine Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Recommendation Engine Market

Overview of the regional outlook of the Recommendation Engine Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Recommendation Engine Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Recommendation Engine Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Collaborative Filtering

                2. Hybrid Recommendation

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Recommendation Engine Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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• Correctly Positioning New Products
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Reasons to Purchase the Recommendation Engine Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.