Globally the retailers are progressively adopting advanced and innovative technologies to provide their customers with an enhanced experience while shopping online as well as in-store. However, with the growing competition, many retailers are facing problems in running their business efficiently and failing to optimize their resources. Therefore, the Internet of Things (IoT) in retail solutions enable retailers to gain insights from the past as well as real-time data that allow retailers to provide products based on their previous purchase history and which section they visit the most.
The Internet of Things (IoT) in Retail market is expected to grow at a CAGR of 17.2 % to reach $42.6 billion in 2029.
.jpg "The Global Internet Of Things Iot In Retail Market 2019-2029 (USD Billion)")
The global Internet of Things (IoT) in retail market size is anticipated to reach over USD 32 billion by 2025. This can be attributed to the increase in internet penetration in developing countries such as India, China, and others. Moreover, developments in technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), machine learning, and big data are also fuelling the demand for the Internet of Things (IoT) in retail market growth.
Additionally, the growing need to provide better consumer experience and increase in need to get insights on customer preferences & choices are also some of the essential factors boosting the adoption of the Internet of Things (IoT) in retail solutions. However, initial setup cost and legacy retail systems are hampering the market growth. Furthermore, the advent of cloud-based analytics is expected to provide growth opportunities for the retail analytics market in the forthcoming years.
Internet of Things (IoT) in Retail Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2029 |
| Study Period | 2018-2029 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2029 | $ 42.6 billion |
| Growth Rate | CAGR of 17.2 %during 2019-2029 |
| Segment Covered | by Component, Application, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | ABB Ltd. (Switzerland), NEC Corporation (Japan), Cisco Systems, Inc. (U.S.), IBM Corporation (U.S.), Intel Corporation (U.S.), Microsoft Corporation (U.S.), Amazon Web Services, Inc. (U.S.), PTC, Inc. (U.S.), Huawei Technologies Co., Ltd (China), Allerin Tech Pvt Ltd. (India), RetailNext, Inc. (U.S.), Impinj, Inc. (U.S.), Software AG (Germany), Vodafone Group Plc (U.K.), and Sierra Wireless (Canada). |
Key Segment Of The Internet of Things (IoT) in Retail Market
by Component (USD Billion)
• Hardware
• Services
• Connectivity
• Platform
Application, (USD Billion)
• Customer Experience Management
• Operations Management
• Asset Management
Regional Overview, (USD Billion)
North America
• US
• Canada
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of South America
Middle East and South Africa
Frequently Asked Questions (FAQ) :
The market value of internet of things (IoT) in retail market in 2029 was $42.6 billion
Asia-Pacific dominated the market for internet of things (IoT) in retail market and accounted for the largest revenue share.
The major contenders in the global internet of things (IoT) in retail market ABB Ltd. (Switzerland), NEC Corporation (Japan), Cisco Systems, Inc. (U.S.), IBM Corporation (U.S.), Intel Corporation (U.S.), Microsoft Corporation (U.S.), Amazon Web Services, Inc. (U.S.), PTC, Inc. (U.S.), Huawei Technologies Co., Ltd (China), Allerin Tech Pvt Ltd. (India), RetailNext, Inc. (U.S.), Impinj, Inc. (U.S.), Software AG (Germany), Vodafone Group Plc (U.K.), and Sierra Wireless (Canada).
Retail is a very data-intensive industry and in the past few years with the emergence of e-commerce and adoption of IoT devices the industry has become more complex. Also, many retailers have failed in taking advantage of the technological disruption in this industry. However, with the emergence of big data analytics and its wide application in numerous sectors are providing major opportunities to retailers. Integrated with the smart devices and applications it provides the ability to connect with customers in real-time. With big data analytics, a retailer can optimize e-commerce, personalize marketing and service, evaluate brand perception on social media, offer dynamic pricing, and enhance the in-store shopping experience. For example, retail analytics allows retailers to gain insights from social media, mobile, website, and other sources by using analytical models. It further helps retailers in planning, engaging, and retaining the customer and ultimately results in improved business results & increased revenues. Hence, such factors are driving the adoption of retail analytics solutions globally.
Type Segment
Based on the type segment, the market is bifurcated into two sub-segments that are software and services. In 2019, the software segment gathered the highest market revenue and it is anticipated to govern the retail analytics market throughout the forecast period. The growth of this segment is mainly attributed to increasing demand for analytics software among retailers to make better business decisions and efficiently manage store and supply chain operations. On the contrary, the services segment is projected to gather the highest CAGR during the forecast period.
Application Segment
Based on the application, the market is segmented into the merchandising, marketing, supply chain, store operations, strategy & planning, and others. The market for merchandising seized the highest revenue in 2019. However, the strategy & planning sub-segment is anticipated to gather the market growth of over 29% during the forecast period.
Solutions Segment
Based on solutions, the market is bifurcated into in-store transformation, omnichannel retail transformation, insights & Marketing automation, security & infrastructure transformation, and others. In 2019, the in-store transformation segment captured the highest market revenue and is anticipated to dominate the retail analytics market throughout the forecast period. On the contrary, the insights & marketing automation segment is projected to accumulate the highest CAGR during the forecast period.
Asia-Pacific region is expected to hold the highest CAGR during the forecast period 2020–2025. The growth of this region is mainly attributed to the increasing penetration of smartphones. Also, the growing adoption of internet services is driving e-commerce in this region. Moreover, North America dominated the retail analytics market during the forecast period due to the presence of major market players and a rising number of retail chains in the region.
_1.png "North America Retail Analytics Market, 2018-2025 (USD Billion)")
The major players of the global retail analytics market are Fujitsu, SAS, Microsoft, Oracle, SAP, Teradata, Microstrategy, IBM, RetailNext, and Altair Engineering. Moreover, the other potential players in the retail analytics market are QBurst, FLIR Systems, BRIDGEi2i, Qlik Technologies, Diaspark. The Retail analytics market is fragmented with the existence of well-known global and domestic players across the globe. Also, recognized companies are coming up with innovative and new retail analytics technologies and solutions. For instance, In January 2019, a global retail analytics solution provider, RetailNext announced the launch of its innovative retail analytics software, partner ecosystem advancements, and hardware. These solutions are expected to assist retailers in delivering an enhanced experience to shoppers.