Retail Search Technologies: Market Activity Update H1 2024

ComCap anticipates an uptick in investment in this sector as e-commerce firms and online retailers realize that adopting search technologies can enhance customer engagement rates and average order values, exerting a lasting impact on their overall revenue. Additionally, key strategic investors are actively seeking to enhance their search technology capabilities through an inorganic route.

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The adoption of search technologies is poised to rise as e-commerce firms increasingly recognize the significance of disruptive technologies (such as natural language processing, generative AI, visual search, etc.) in providing personalized product recommendations and search results, thereby transforming the way these entities engage with their customer.

Additionally, the report highlights the following:

  • Recognizing the potential of generative AI, prominent retail and e-commerce firms have made significant investments to boost their generative AI-powered search capabilities
  • Conversational search that uses natural language understanding for a more interactive and user-friendly search experience, is the next leap in e-commerce
  • Social media platforms have become potent search engines, with 50% of social media users in the US likely to be social buyers in 2024
  • Visual + social search is the next battlefield for commerce search