PUBLISHER: Orion Market Research | PRODUCT CODE: 1877653
PUBLISHER: Orion Market Research | PRODUCT CODE: 1877653
Asia-Pacific AI in E-Commerce Market Size, Share & Trends Analysis Report by Component (Software and Services), by Deployment Mode (On-Premises and Cloud), and by Application (Warehouse Automation, Supply Chain Analysis, Customer Relationship Management, Product Recommendation, Merchandising, Fake Review Analysis, and Customer Service), Forecast Period (2025-2035)
Industry Overview
Asia-Pacific AI in e-commerce market was valued at $2.2 billion in 2024 and is projected to reach $12.0 billion by 2035, growing at a CAGR of 16.8% during the forecast period (2025-2035). The growing digital payments, along with fintech integration, are expected to propel the growth of AI adoption in e-commerce. The consumers' shift from traditional payment methods towards digital wallets, UPI, QR-code payments, and buy-now-pay-later options further contributes growth of the market during the forecast period. The e-commerce market players are adopting AI technologies to secure these payment methods and to detect fraud in real time. These organizations are analyzing payment patterns to integrate a seamless checkout experience. For instance, according to the Economic Times, Unified Payment Interface (UPI), in December 2024, UPI transactions marked a new record and grew by 16.73 billion. This was the rise from 15.48 billion in November 2024. This continuous month-on-month growth is highlighting India's shift from traditional payment methods to digital payments.
Market Dynamics
AI-Driven Recommendations Personalize Shopping, Boosting Customer Engagement
The growing demand for personalized shopping experiences through AI-driven recommendations is expected to drive AI in the e-commerce market in the region. The adoption of personalized shopping experiences is to enhancing customer engagement, along with increasing conversion rates, average order values, and long-term customer loyalty. For instance, in June 2024, Taobao and Tmall announced that they are upgrading consumer shopping support through AI. The integration of AI is to better engage and serve shoppers. Through this AI support, the company will boost operating efficiency for merchants. TTG platforms have unveiled a suite of AI-powered tools from personalized consumer-facing chatbots to visual generation applications for merchants.
Adoption of Chatbots and Virtual Assistants is Enhancing Customer Support in Online Shopping
The growing adoption of chatbots and virtual assistants to enhance customer support is driving the growth of AI in the e-commerce market in the region. These AI-powered tools provide 24/7 assistance, handle large volumes of queries simultaneously, and offer instant solutions to common issues such as order tracking, returns, or product inquiries. For instance, in December 2024, Lazada implemented an AI-powered virtual assistant called AI Lazzie. The company's virtual assistant acts as a virtual shopping assistant and provides tailored recommendations and seamless support.
Market Segmentation
Product Recommendation Segment to Lead the Market with the Largest Share
Among all the applications, product recommendations are expected to hold the largest share in the Asia-Pacific AI in e-commerce market. AI-powered product recommendation enhances personalization, increasing customer engagement, boosting conversion rates, and supporting higher sales revenue. For instance, in August 2025, Amazon launched Rufus, a new generative AI-powered conversational shopping assistant, in India. The conversational AI assistant can answer customer questions on shopping needs, products, and comparisons. The AI assistant can make product recommendations based on the context, and can facilitate product discovery in the same Amazon shopping experience customers use regularly.
Software: A Key Segment in Market Growth
In the Asia-Pacific AI in e-commerce market, the software segment is expected to play a key role as it powers the core engines, models, and applications that drive AI capabilities across the sector, with its scalability through licensing, subscription, and SaaS models making it a strong recurring revenue driver and fuelling market growth during the forecast period.
The Asia-Pacific AI in e-commerce market is further divided by countries, including India, China, South Korea, ASEAN, Australia and New Zealand, Japan, and the Rest of Asia-Pacific.
China Dominates the Market with a Major Share
Among all regions, China is expected to dominate the Asia-Pacific AI in the e-commerce market during the forecast period. The growth is majorly driven by its advanced digital infrastructure, presence of key e-commerce platforms, and extensive adoption of AI technologies in the country. For instance, in August 2025, Glance AI launched an AI commerce platform in partnership with Sharp's Flagship AQUOS R10 smartphones. Sharp, the company, debuted an AI-powered shopping experience on the new AQUOS R10 SH-M31 smartphone.
Key companies in the Asia-Pacific AI in e-commerce market, including Amazon Web Services, Adobe, Appier, Google, IBM, Jio Haptik, Salesforce, ViSenze, Oracle, Infosys, Yellow.ai, Microsoft, SenseTime, and Tata Consultancy Services, are advancing the market by pursuing collaborations, partnerships, and acquisitions to enhance AI capabilities, broaden product offerings, promote sustainability, and meet rising demand for personalized, efficient, and high-performing e-commerce solutions across retail and customer experience channels.
Recent Developments