Increasing internet penetration is the major factor driving the demand for retail analytics market
The global retail analytics market size is expected to surpass USD 16 billion by 2025, at a CAGR of ~22%. The retail industry has always been an essential factor in the world’s economy and with the increasing globalization, it is becoming one of the strong pillars for any economy. With the changing customer preferences, demands, and unsettled market conditions the retail industry is becoming more complex every day. Additionally, growing competition and various government regulations are restricting the growth of retailers. However, by adopting retail analytics solutions, retailers can analyze extensive patterns and observe the increasing demand for products among customers. Hence, such factors are creating a demand for retail analytics solutions among global retailers.
The existing and future retail analytics market developments are defined to determine the attractiveness of the market. Key impacting factors highlight the retail analytics market opportunities throughout the forecast period. Factors such as the increase in internet penetration in developing countries such as India, China, and others are the major factor driving market growth. Moreover, developments in technologies such as AI, machine learning, and AR &VR are also fuelling the demand for retail analytics market growth. However, due to legacy retail systems, the initial setup costs rise which is anticipated to hamper the market growth. Also, the lack of a skilled workforce is impeding the overall market growth. Furthermore, the advent of cloud-based analytics is anticipated to provide major growth opportunities for the market in the forthcoming years.
The report also highlights numerous aspects of the global retail analytics industry by evaluating the market through value chain analysis. Besides, the report covers numerous qualitative aspects of the retail analytics industry in market drivers, restraints, and key industry opportunities. Furthermore, the report offers a complete assessment of the market rivalry along with company profiling of local as well as global vendors.
The retail analytics market has strong competition among the well-established as well as new emerging players. Also, the retail analytics industry players are targeting prospective markets to capture a competitive advantage over the other industry players by forming agreements, mergers & acquisitions, acquiring new startups & other companies, forming collaboration and partnerships, and expanding their business presence.
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.
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 in the region.
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. In addition, 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.
Segment Overview of Global Retail Analytics Market
Type Overview, 2018-2025 (USD Billion)
Application Overview, 2018-2025 (USD Billion)
- Supply Chain
- Store Operations
- Strategy and Planning
Solutions Overview, 2018-2025 (USD Billion)
- In-Store transformation
- Omnichannel retail transformation
- Insights & marketing automation
- Security & Infrastructure transformation
Regional Overview, 2018-2025 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America