Status : Published | Published On : Jan, 2024 | Report Code : VRSME9039 | Industry : Semiconductor & Electronics | Available Format : | Page : 220 |
Industry Overview
The Smart Retail Market is likely to grow from USD 20.4 billion to USD 63.5 billion by 2030 during the forecast period at a high CAGR of 24.7%.
It actually signifies the advanced retail technologies. These technologies allow physical stores a significant edge to compete with online traders, drive more customers towards their stores, and regain lost market. The technology helps in collecting valuable data regarding customer behavior and buying patterns and analyze them accurately. This further helps the distributors to personalize their offerings to enhance the shopping experience. Sophisticated technologies such as beacons, mPOS, and NFC allow them to collect relevant information and even greet consumers by their name. The integration of advanced technologies such as AI, AR, VR and Internet of Things (IoT) make the mechanism much more efficient. This allows widespread use across several industry verticals for different reasons, such as improving store operations, optimizing inventory management, and providing better shopping experience to consumers.
Market Segmentation
Insight by Application
The global smart retail market is divided by its applications into Foot-traffic Monitoring and control, Inventory Management, Loyalty Management and Payment, Predictive Equipment Maintenance, Brand Protection, and Smart Fitting Rooms segments. Out of these segments, the foot-traffic monitoring and control segment is expected to grow at a faster rate and hold the larger share of the market due to rapid urbanization, rise in foot traffic in the retail industry, and increased sales and profit margins of the brick-and-mortar stores.
Insight by Retail Offering
According to the offerings, the global smart retail market is divided into Apparel and Accessories, Fast-moving consumer goods, Hardlines and Leisure Goods, and other segments. Out of these segments, the fast-moving consumer goods segment is expected to grow more and hold a larger share of the market due to the ever-growing global population.
Insight by Technology
The global smart retail market is divided by different technologies used, into Radio Frequency Identification (RFID), Internet of Things (IoT), Augmented Reality (AR), Virtual Reality (VR), and Artificial Intelligence (AI). Among all these segments, the AI and RFID segments are expected to grow more due to improved inventory accuracy streamlined supply chain management and operations. The IoT technology segment will also grow due to its ability for real-time data collection and analysis.
Insight by Store Type
Different store types also divide the global smart retail market into Supermarkets or Hypermarkets, Specialty Stores, Department Stores, and Convenience Stores. Out of all these market segmentations, the supermarkets or hypermarkets sector has a greater growth potential to grow more and contribute a larger share to the market due to more such stores and larger amount of traffic in them. The specialty stores category is also expected to grow at a higher CAGR due to a rising emphasis on offing tailored product and shopping experience.
Insight by Deployment Mode
Divided according to the different deployment modes, the global smart retail market categories include on-premises and cloud-based solutions. Out of these two segments, the cloud-based solutions segment is anticipated to dominate the market and grow at a faster rate due to higher scalability, easy integration with the current systems, and greater cost-effectiveness. On the other hand, the on-premises solutions segments will also grow significantly in the large retailer sector, in particular due to higher customization requirements.
Report Metric |
Details |
Historical Period |
2018 - 2023 |
Base Year Considered |
2024 |
Forecast Period |
2025 - 2030 |
Market Size in 2023 |
U.S.D. 20.4 Billion |
Revenue Forecast in 2030 |
U.S.D. 63.5 Billion |
Growth Rate |
24.7% |
Segments Covered in the Report |
By Application, By Technology, By Store Type, By Deployment Mode, and By Retail Offering |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Regions Covered in the Report |
North America, Europe, Asia-Pacific, Middle East, and Rest of the World |
Industry Dynamics
Industry Trends
The major players in the industry are adopting the cloud and using edge computing models to offer key solutions. Efforts are also made to improve data collection and analysis, merchandising and predictive analytics in the cloud. There is also a growing trend of omnichannel retailing noticed among the retailers to offer better shopping experience irrespective of the channels used due to the integration of both offline and online data gathered from continual customer interactions that help in personalizing offerings. The retail sectors are now offering contactless payment options more notably. This adds to the shopping experience and convenience of the consumers. It also enhances security while making a payment. Automation is another significant trend as well as the growing use of robotics in managing different retail processes. It improves inventory operation and management, fulfilling order timely, and overall customer service. The automated robots ease the operations related to restocking, shelf scanning, and product delivery. The intention to offer more sustainable service and following eco-friendly and ethical practices is another emerging trend seen in retail strategies. This offers higher transparency and sustainable sourcing. Emphasis on ensuring higher security by integrating advanced technologies into the existing security measures reduces cyber threats, upholds data privacy, and safeguards customer info. This increases trust among the consumers.
Growth Drivers
The use of advanced technologies like AI is driving the global smart retail market forward because these technologies help enhance everything from operations and inventory management to customer experience. Retailers use these technologies to collect and analyze data to draw insights about sales, quantity, and price and reach the target audience in a better way. In addition, the digitization initiatives of retail chains are supposed to drive market growth. The changing preferences of the consumers also affect the growth of the market since they want a more convenient, personalized, and higher shopping experience. As a result, the retailers are adopting smart retail solutions to cater to their changing needs. The e-commerce market has also grown significantly over the past few years on a global scale which fuels the growth of smart retail market because the retailers need to integrate advanced technologies into their existing systems to improve operations, stay competitive, and offer an omnichannel shopping experience to consumers. Growing smart city development and rapid urbanization also needs integrating cutting-edge technologies and retail solutions into the existing infrastructure. This propels the smart retail market growth further. Higher use of smartphones and other mobile devices to make payments has also resulted in the growing adoption of mobile-friendly technologies in smart retail. Other significant factors that drive the market growth include higher customer engagement via several loyalty programs, greater efficiency of the demand and supply chain due to logistics optimization, growing disposable income, supportive government initiatives, higher investments in digital infrastructure, growing focus on reducing environmental impact and enhance sustainability, and intense competitive pressure.
Challenges
Stringent data regulation laws such as the General Data Protection Regulation (GDPR) hinder market growth because they will not allow any retailer to use big data technology and take advantage of it without caring for data privacy. Also, a slower rate of tech penetration in developing countries affects the growth of the smart retail market.
Opportunities
Fast modernization drives, tech developments, and adoption of cloud-based platforms are, however, presenting higher growth opportunities for the Middle East and African markets. Also, the General Data Security Regulation of the European Union is contributing significantly to the growth of the market.
Geographic Overview
The APAC region is expected to show higher growth potential during the forecast period due to higher penetration of broadband internet services and the fast-expanding economies in this region. The growth prospects drive more investments from the global retail chains in these markets. This will raise the demand significantly. Also, the adoption of retail analytical platforms by several countries like China, Japan, and Australia is driving the smart retail market in this region. It is expected to grow more in the projected period.
The North American smart retail market is also expected to grow significantly during the forecast period due to developed technological infrastructure, growing demand for innovations, higher investments in research and development, the existence of a large number of retail majors, growing emphasis on omnichannel retailing, and supportive government regulations.
Competitive Insights
Some of the key players in the smart retail market are INTEL CORPORATION, IBM, Samsung Electronics, AMAZON, Google, Inc, MICROSOFT CORPORATION, SOFTBANK ROBOTICS HOLDINGS, Ingenico S.A., Verifone Systems, NCR Corporation, Cisco Systems, Inc., NXP Semiconductors N.V., Huawei Investment & Holding Co., Ltd, NVIDIA Corporation, Samsung Electronics, PTC, Inc., Trigo, Standard Cognition, Caper Inc., Zippin, Walmart Inc., Alibaba Group Holding Limited, and Albert Heijn BV (Ahold Delhaize).
Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, and incorporated in Delaware. Intel designs, manufactures and sells computer components and related products for business and consumer markets.
Google LLC is an American multinational corporation and technology company focusing on online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, consumer electronics, and artificial intelligence.
Recent Developments by key Players
Microsoft has launched a series of new generative AI and data solutions for retailers. The updates respond to ongoing challenges in the retail industry, from high store associate turnover to changing shopping habits, with retailers increasingly turning to data-backed generative AI solutions to help meet these challenges. The new updates give retailers access to copilot templates on Azure OpenAI Service to build personalized shopping experiences.
Amazon is selling its smart grocery cart technology as a service offering and the technology is in play at grocery locations. Several stores in Kansas and Missouri are currently testing the Dash Cart
The Smart Retail Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2025–2030.
Segments Covered in the Report
Region Covered in the Report
Source: VynZ Research
Smart Retail Market