IMARC Group, a leading market research company, has recently released a report titled "Recommendation Engine Market Size, Share, Trends and Forecast by Type, Technology, Deployment Mode, Application, End User, and Region, 2025-2033." The study provides a detailed analysis of the industry, including the global recommendation engine market Trends, share, trends, growth and forecast. The report also includes competitor and regional analysis and highlights the latest advancements in the market.
Market Overview
The global recommendation engine market size was valued at USD 6.32 billion in 2024 and is projected to reach USD 72.62 billion by 2033. The market is expected to grow at a CAGR of 29.62% during the forecast period of 2025-2033. Growth is driven by AI and machine learning advancements enhancing personalization across e-commerce, entertainment, and digital marketing sectors. Increasing demand for real-time, context-aware recommendations coupled with cloud computing and big data is further fueling this market.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
Recommendation Engine Market Key Takeaways
- Current Market Size: USD 6.32 Billion (2024)
- CAGR: 29.62% (2025-2033)
- Forecast Period: 2025-2033
- North America held the largest market share of 40.0% in 2024, led by strong technological infrastructure and AI adoption.
- Collaborative Filtering is the largest market type in 2024, accounting for 35.3% of the market.
- Context Aware technology leads the market by offering personalized real-time suggestions based on dynamic variables.
- Cloud-based deployment dominates for its scalability, flexibility, and cost-efficiency.
- IT and Telecommunication sectors led with 34.3% market share in 2024, heavily using personalized services.
Request Your Free “Recommendation Engine Market” Insights Sample PDF: https://www.imarcgroup.com/recommendation-engine-market/requestsample
Market Growth Factors
Rise in demand for personalization in areas such as e-commerce, media & entertainment, and healthcare are expected to drive the growth of the recommendation engine market. In January 2024, Arthur was launched. Recommender System Support is a tool that monitors data drift, addresses performance problems, and improves AI recommendations. The technology directly increases customer satisfaction and revenue, changing the way recommendation systems are employed in the digital economy.
The development of big data and artificial intelligence technologies has allowed the industry to analyze consumer behavior data and produce tailored recommendations. With advances in machine learning algorithms and cloud-computing technologies, the industry has been able to improve scalability and efficiency. Taking these factors into account, a meaningful source of market growth is expected to come by way of accurate personalized recommendations.
The key market for personalized customer experiences across e-commerce, streaming, and digital marketing is driven by demands. In April 2024, Bloomreach announced its new AI-powered features for its Discovery platform. Product recommendations are visuals, algorithmic recommendations, and analytics dashboards. The rise of omnichannel solutions and cloud-based products is helping common adoption as organizations seek to increase engagement and revenue via increased relevance.
Market Segmentation
Breakup by Type:
- Collaborative Filtering: The largest type in 2024, using user interactions and preferences to recommend items liked by similar users; widely used in e-commerce and streaming.
- Content-based Filtering: Not provided in source.
- Hybrid Recommendation Systems: Not provided in source.
- Others: Not provided in source.
Breakup by Technology:
- Context Aware: Leads the market by providing personalized suggestions based on real-time contextual data like behavior, location, and time.
- Geospatial Aware: Not provided in source.
- Deployment Mode:
- On-premises: Not provided in source.
- Cloud-based: Dominates due to scalability, flexibility, and real-time processing capabilities, facilitating widespread adoption.
Breakup by Application:
- Strategy and Operations Planning: Not provided in source.
- Product Planning and Proactive Asset Management: Not provided in source.
- Personalized Campaigns and Customer Discovery: Leading application in 2024, focusing on tailored marketing campaigns enhancing customer engagement and targeting.
Breakup by End User:
- IT and Telecommunication: Market leader with 34.3% share in 2024, utilizing personalized content and data-driven solutions.
- BFSI: Not provided in source.
- Retail: Not provided in source.
- Media and Entertainment: Not provided in source.
- Healthcare: Not provided in source.
- Others: Not provided in source.
Breakup By Region:
- North America (United States, Canada)
- Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
North America dominates the recommendation engine market with a 40.0% share in 2024, attributed to advanced technological infrastructure and extensive AI and machine learning adoption. Key companies like Amazon, Netflix, and Google heavily invest in recommendation systems to personalize user experiences, further driving demand. The region's strong innovation focus on data analytics and cloud technologies continues to reinforce its market leadership.
Recent Developments & News
- In May 2025, DishTV launched "FLIQS" within its Watcho app in India, empowering content creators and personalizing viewer experiences via an AI-powered recommendation engine. In the same month, Makip introduced its 3D Avatar Unisize recommendation engine in the UK and US markets, enhancing clothing fit visualization.
- April 2025 saw Haut.AI launch Deep C.A.R.E., a context-aware AI recommendation engine for skincare. South Africa’s Department of Trade, Industry and Competition released the Business Visa Recommendation System (VRS) in March 2025 to automate visa processing.
- In January 2025, Delta launched a next-gen cloud-based in-flight entertainment system featuring an advanced recommendation engine partnered with YouTube.
Key Players
- Adobe Inc.
- Amazon.com Inc.
- Dynamic Yield (McDonald's)
- Google LLC (Alphabet Inc.)
- Hewlett Packard Enterprise Development LP
- Intel Corporation
- International Business Machines Corporation
- Kibo Software Inc.
- Microsoft Corporation
- Oracle Corporation
- Recolize GmbH
- Salesforce.com Inc.
- SAP SE
Ask Analyst For Request Customization: https://www.imarcgroup.com/request?type=report&id=4706&flag=E
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
About Us
IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
Contact Us
IMARC Group,
134 N 4th St. Brooklyn, NY 11249, USA,
Email: sales@imarcgroup.com,
Tel No: (D) +91 120 433 0800,
United States: +1-201971-6302
