Product Recommendation Engine Market Report 2025

This product recommendation engine market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The product recommendation engine market size has grown exponentially in recent years. It will grow from $7.42 billion in 2024 to $10.13 billion in 2025 at a compound annual growth rate (CAGR) of 36.5%. The growth in the historic period can be attributed to a rise in the digitalization rate, increasing demand for personalization, the rise of e-commerce, enhanced customer engagement, growth in mobile commerce, and growth in subscription services.

The product recommendation engine market size is expected to see exponential growth in the next few years. It will grow to $34.77 billion in 2029 at a compound annual growth rate (CAGR) of 36.1%. The growth in the forecast period can be attributed to increased average order value (AOV), rising competitive advantage, improved customer retention, rising demand for real-time recommendations, and rising expectations for customer support. Major trends in the forecast period include technological advancements, hybrid recommendation systems, artificial intelligence integration, a focus on customer experience, and cross-platform integration.

The growth of e-commerce is anticipated to drive the expansion of the product recommendation engine market in the coming years. E-commerce involves buying and selling goods and services online through digital platforms. This growth can be attributed to the convenience of shopping from anywhere at any time and the increased use of mobile devices, which facilitate easier access to online platforms. Product recommendation engines enhance the e-commerce experience by personalizing shopping, suggesting products based on users' past behaviors and preferences, and boosting customer engagement. For example, a report published in September 2023 by IAB Australia, a non-profit organization based in Australia, found that 73% of online shoppers purchased non-grocery retail products online at least once a month, a trend that has remained steady since 2022. As a result, the rise in e-commerce is fueling the growth of the product recommendation engine market.

Major companies in the product recommendation engine market are concentrating on developing advanced solutions, such as AI-powered intelligent product recommendation engines, to improve user experience and create personalized shopping experiences. AI-driven product recommendation engines are sophisticated systems that utilize artificial intelligence and machine learning to analyze user data and offer tailored product suggestions. For example, in June 2023, SAP SE, a Germany-based software company, introduced a new AI-powered solution named SAP Intelligent Product Recommendation. This tool enhances the sales process and customer experience by using machine learning and historical data to deliver personalized product recommendations based on customer needs, thereby streamlining the quotation process for configurable products. This launch is part of SAP’s broader strategy to integrate AI capabilities across its applications, helping organizations make better decisions and improve operational efficiency with advanced technologies.

In December 2022, GetResponse, a Poland-based software development company, acquired Recostream for an undisclosed sum. This acquisition is intended to enhance GetResponse’s email marketing platform with advanced AI-driven product recommendations, which will enable more personalized engagement and improve conversion rates in e-commerce. Recostream, based in the US, specializes in providing customized product recommendations for e-commerce businesses.

Major companies operating in the product recommendation engine market are Amazon.com Inc., Google plc, Microsoft Corporation, Alibaba Group Holding Limited, Intel Corporation, International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce Inc., Adobe Inc., Outbrain Inc., Cloudera Inc., Bloomreach Inc., Emarsys eMarketing Systems AG, Piano Software Inc., Coveo Solutions Inc., Dynamic Yield Ltd., Muvi LLC, Nosto Solutions Oy, Unbxd Inc., Certona Corporation, Recombee s.r.o.

Asia-Pacific was the largest region in the product recommendation engine market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the product recommendation engine market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the product recommendation engine market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A product recommendation engine is a software tool or algorithm that suggests products to users based on various data points and patterns. It is widely used in e-commerce and online platforms to personalize the shopping experience for customers. Product recommendation engines help businesses increase sales by providing a more tailored shopping experience, boosting customer satisfaction, and enhancing engagement.

The main types of product recommendation engines are collaborative filtering, content-based filtering, hybrid recommendation systems, and others. Collaborative filtering is a method used by recommendation engines to suggest products or services based on the preferences and behaviors of similar users. These engines can be deployed both on-premise and cloud, serving a variety of end-user industries such as information technology and telecommunications, banking, financial services, and insurance (BFSI), retail, media and entertainment, healthcare, and others.

The product recommendation engine market research report is one of a series of new reports that provides product recommendation engine market statistics, including product recommendation engine industry global market size, regional shares, competitors with a product recommendation engine market share, detailed product recommendation engine market segments, market trends and opportunities, and any further data you may need to thrive in the product recommendation engine industry. This product recommendation engine market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The product recommendation engine market includes revenues earned by entities by providing services such as data collection, algorithm development, data analytics, cloud hosting, API integration, and user experience design. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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