Assortment Gap Analysis Artificial Intelligence Global Market Report 2025

The assortment gap analysis artificial intelligence market size has grown exponentially in recent years. It will grow from $1.82 billion in 2024 to $2.2 billion in 2025 at a compound annual growth rate (CAGR) of 21.3%. The growth during the historic period can be attributed to the increasing investment in artificial intelligence technologies, a rising focus on improving demand forecasting accuracy, the growing adoption of data analytics tools, the increasing need for efficient inventory management, and the rising competition within the retail and e-commerce sectors.

The assortment gap analysis artificial intelligence market size is expected to see exponential growth in the next few years. It will grow to $4.72 billion in 2029 at a compound annual growth rate (CAGR) of 21%. The growth during the forecast period can be attributed to the growing adoption of artificial intelligence in retail, the increasing need for inventory optimization, the rising demand for personalized product assortment, advancements in machine learning algorithms, and the expansion of data-driven decision-making within supply chains. The key trends in the forecast period include advancements in predictive analytics, the development of real-time demand forecasting, innovation in artificial intelligence-driven inventory optimization, progress in machine learning for assortment planning, and the development of gap analysis tools powered by artificial intelligence.

The growing emphasis on personalized shopping experiences is anticipated to drive the expansion of the assortment gap analysis artificial intelligence market in the coming years. Personalized shopping experiences involve tailoring product offerings, recommendations, and promotional messages based on individual consumer preferences, behaviors, and purchasing patterns. The demand for such experiences is increasing as consumers expect brands to understand their unique tastes and provide relevant choices. Assortment gap analysis artificial intelligence supports this demand by helping retailers identify and address product assortment gaps, ensuring that the right products reach the right customers at the right time. For example, in July 2024, according to Etsy, a US-based e-commerce company, gross merchandise sales rose by 4.1 percent in 2024 compared to the previous year, driven by increased consumer demand for personalized gifts on its platform. Therefore, the growing focus on personalized shopping experiences is fueling the growth of the assortment gap analysis artificial intelligence market.

Key companies operating in the assortment gap analysis artificial intelligence market are emphasizing technological advancements such as artificial intelligence-powered retail optimization to improve merchandising efficiency, demand forecasting accuracy, and personalized shopping experiences across global retail environments. Artificial intelligence-powered retail optimization involves using advanced artificial intelligence technologies and machine learning algorithms to streamline retail operations, enhance product assortment, improve demand forecasting, and deliver personalized shopping experiences, enabling retailers to make data-driven decisions and maximize operational efficiency in diverse markets. For instance, in October 2025, Centric Software, a US-based provider of product lifecycle management and retail planning solutions, introduced significant upgrades to its Centric Planning platform, designed to transform retail operations with artificial intelligence. The platform incorporates AI-driven demand forecasting, intelligent assortment planning, and seamless integration with Centric PLM and Centric Visual Boards, providing up to 110 percent improvement in margins, a 75 percent reduction in planning cycle times, a 50 percent decrease in inventory, and a 50 percent reduction in budget preparation times. This makes it highly effective for retailers seeking data-driven decision-making, operational efficiency, and competitive benchmarking through real-time market insights.

In January 2025, Vision Group, a US-based IoT, AI, and image recognition SaaS solutions provider for retailers, CPG brands, wholesalers, and shoppers, acquired Hivery for an undisclosed amount. Through this acquisition, Vision Group aims to integrate Hivery’s hyperlocal AI-driven assortment simulation technology to enhance its space planning, retail execution, and category management capabilities while strengthening its competitive position. Hivery is an Australia and US-based company specializing in AI-powered assortment simulation, store-level optimization, and predictive ROI solutions for retail applications.

Major players in the assortment gap analysis artificial intelligence market are Microsoft Corporation, IBM Corporation, SAP SE, SAS Institute Inc., Teradata Corporation, Mu Sigma Inc., o9 Solutions, RELEX Solutions, Fractal Analytics, Domo Inc., ParallelDots, Impact Analytics, Tredence Inc., DataX.ai, Xbyte.io, Invent.ai, Intelligence Node, Quantzig, OptimiX, ClearDemand.

North America was the largest region in the assortment gap analysis artificial intelligence market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in assortment gap analysis artificial intelligence report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the assortment gap analysis artificial intelligence market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.

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

Assortment gap analysis artificial intelligence involves the application of advanced algorithms and machine learning models to detect gaps and inefficiencies within product assortments. It enables businesses to optimize inventory distribution, enhance product availability, and boost sales performance through data-driven insights. This technology utilizes predictive analytics to streamline decision-making, ensuring a more efficient and profitable assortment strategy.

The key component types of assortment gap analysis artificial intelligence are software and services. Assortment gap analysis software is an AI-powered digital system designed to evaluate sales, inventory, and demand data to identify product assortment gaps and recommend improvements for enhanced category performance. These are deployed through various deployment modes such as cloud and on-premises. They are used by different enterprise sizes such as large enterprises and small and medium enterprises, and across multiple applications such as retail, e-commerce, consumer goods, grocery, fashion, and apparel. They are also utilized by different end users such as banking, financial services, and insurance (BFSI), information technology (IT) and telecom, healthcare, government, retail, and others.

The assortment gap analysis artificial intelligence market consists of revenues earned by entities by providing services such as assortment data analytics service, machine learning model development, category management optimization, consumer behavior insights service and predictive demand forecasting service. The market value includes the value of related goods sold by the service provider or included within the service offering. The assortment gap analysis artificial intelligence market also includes sales of products such as agronomy assortment optimization tools, and revoices assortment optimization tools. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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