Global Recommendation Engine Market Report and Forecast 2024-2032

Global Recommendation Engine Market Outlook

The global recommendation engine market size reached nearly USD 3.76 billion in 2023. The market is projected to grow at a CAGR of 15.5% between 2024 and 2032 to reach a value of around USD 13.71 billion by 2032.

Key Trends in the Market

A recommendation engine refers to a technology which offers recommendations based on the behaviour patterns and preferences of consumers. This type of system uses statistical modelling and predictive analysis to provide a personalised experience to end users.

• The increasing popularity of OTT platforms, the growing demand for high-quality content across entertainment websites, and the increasing availability of linguistically diverse content are propelling the recommendation engine market growth.

• Technological advancements in the BFSI sector are heightening the usage of recommendation algorithms and personalised banking systems to enhance customer satisfaction. Moreover, the rising demand for personalised services in various end-use sectors, including healthcare, BFSI, and retail, among others, is driving the market.

• One of the key recommendation engine market trends is the increasing adoption of consumer devices such as smartphones, tablets, and laptops, among others. Furthermore, in the forecast period, the expansion of the e-commerce sector is expected to drive the deployment of recommendation engines to track consumer behaviour and improve their experiences.

Market Analysis

Based on type, the market is segmented into collaborative filtering, content-based filtering, and hybrid recommendation systems, among others. On the basis of deployment type, the market is classified into cloud based and on-premises. By technology, the recommendation engine market segmentation includes context aware and geospatial aware.

Based on application, the market is categorised into strategy and operations planning, product planning and proactive asset management, and personalised campaigns and customer discovery. By end use, the market is divided into IT and telecommunication, BFSI, retail, media and entertainment, and healthcare, among others. The major regional markets for recommendation engine include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the key players in the global recommendation engine market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Netflix, Inc

• Amazon Web Services, Inc.

• Tinder

• Google LLC

• SAP SE

• Adobe Inc.

• Microsoft Corporation

• Salesforce Inc.

• Oracle Corporation

• Nosto Solutions Oy

• Dynamic Yield

• Others

Market Share by Application

Personalised campaigns and customer discovery account for a significant portion of the recommendation engine market share. Personalised campaigns and customer discovery curate specific content and videos for the target audience, improving the user experience. This also leads to a higher subscription rate across websites and content delivery platforms. Furthermore, increasing investments by various end users towards personalising their product and service recommendations in order to enhance their scalability and profitability are fuelling the segment’s growth.

Market Share by End Use

According to the recommendation engine market analysis, the retail sector is likely to represent a substantial market share in the forecast period. There is a heightening adoption of recommendation engines by retailers to better analyse their customers’ interests and preferences and cultivate customer loyalty.

Rapid digitalisation in the retail sector, along with a swift transition from traditional to technologically advanced retailing strategies, is expected to further garner the segment’s growth in the forecast period.

Competitive Landscape

Netflix, Inc is a company which offers high-quality streaming services. This company provides content of diverse genres, including anime, docu-dramas, and movies, among others. It was founded in 1997 and is headquartered in California, the United States.

Amazon Web Services, Inc. is a leading company which offers technological solutions, including cloud-based recommendation systems. The company also offers APIs to several end-use sectors as well as individuals. It was established in 2006 and is headquartered in Washington, the United States.

Tinder is an online dating company which also offers geosocial networking applications. The services provided by this company are based on personalised user recommendations. The company was founded in 2012 and is headquartered in California, the United States.

Other players considered in the recommendation engine market report include Google LLC, SAP SE, Adobe Inc., Microsoft Corporation, Salesforce Inc., Oracle Corporation, Nosto Solutions Oy, and Dynamic Yield, among others.

Key Highlights of the Report