The IoT in Retail Market is expected to reach $42.6 billion by 2029, at a CAGR of 17.2% during the forecast period of 2022 to 2029. The growing customer demand for a seamless shopping experience, increasing adoption of smart payment solutions, and rapidly declining cost of Internet of Things sensors and hardware are the key factors driving the growth of the IoT in Retail market. However, security concerns due to vast data flow and misconceptions and lack of knowledge regarding IoT in Retail restrain the growth of this market to some extent.
Impact of COVID-19 on the Global IoT in Retail Market
The COVID-19 pandemic adversely impacted the global economy. Nationwide lockdowns and social distancing norms negatively affected multiple industries, including the IoT in Retail. Uncertainty regarding the duration of the lockdowns made it difficult for the key market players to anticipate the recovery of the IoT in Retail market.
However, economies are shifting their focus from responding to the pandemic to economic recovery, and hence, various growth opportunities are expected to emerge for the IoT in Retail market players due to the growing demand for a seamless shopping experience and the increasing adoption of smart payment solutions.
However, several businesses are exerting extensively to move the IoT in Retail market in the right direction. Local governments are also undertaking several relief steps to mitigate the negative impacts of the COVID-19 pandemic. As a result, the IoT in Retail market is expected to recover post-2023.
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Growing Significance for Enhancement of Customer Experiences and Retail Operations Drive the Growth of the Market
Consumers’ focus on a personalized shopping experience has put a lot of pressure on online and offline retailers. Product availability and superior customer service are essential for retailers to attract and retain customers. Understanding the data behind products, suppliers, distribution, and stores is critical for running a successful business. This has significantly highlighted the importance of IoT in Retail.
The pandemic completely altered consumers’ perceptions and how brands sell their products. The retail industry is adjusting according to the shifting technology to earn new customers while maintaining its existing customer base. Companies are leveraging excellent customer experiences to draw maximum profit. The changing consumer demands and growing competition among retailers for customer loyalty encourage companies to adopt IoT in Retail solutions that enhance customer experience and engage them for a longer period. Growing adoption of CRM solutions, point-of-sale, RFID, and other smart devices generating big data allows retailers to efficiently use the datasets to understand the customer buying preferences and hidden customer insights. Retailers are adopting IoT to improvise their operations to increase business productivity, triggering the adoption of IoT in retail solutions for managing retail operations considerably.
Key Findings in the Global IoT in Retail Market Study:
In 2022, the Hardware Segment is Expected to Dominate the IoT in Retail Market
Based on component, in 2022, the hardware segment is expected to account for the largest share of the IoT in retail market. The rapidly declining cost of IoT sensors and hardware, increasing use of IoT-based devices, and increasing focus on hardware-centric security capabilities, are some of the factors driving the growth of this segment.
Additionally, the benefits associated with Internet of Things in Retail hardware, such as high performance, accountability, reliability, and efficiency, further augment the growth of this segment. Several providers are investing in R&D to improve the hardware capabilities and make them more affordable for small and medium-scale enterprises.
The Customer Experience Management Segment to Grow at the Highest CAGR During the Forecast Period
Based on application, the customer experience management segment is expected to grow at the highest CAGR during the forecast period. The increasing need to improve customer engagement and reduce customer churn rates, better customer understanding, and the rising need for collecting all the information on a single platform are expected to support the growth of this segment.
Asia-Pacific: The Fastest-growing Regional Market
In 2022, Asia Pacific is expected to account for the largest share of the Internet of Things in Retail Market, followed by North America, Europe, Latin America, and the Middle East & Africa. However, Asia-Pacific is also projected to witness rapid growth during the forecast period. The rapid growth of this region is mainly driven by the presence of prominent Internet of Things in Retail key players. Additionally, favorable government initiatives, rising e-commerce and virtual payment trends, and high IoT penetration are expected to help the region grow rapidly over the coming years.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by the leading market participants in the IoT in retail industry over the last four years. The key players profiled in the global IoT in retail market are 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).
Scope of the Report :
IoT in Retail Market, by Component
- Hardware
- Sensors & Actuators
- Network Components
- Other Hardware
- Services
- Professional Services
- Managed Services
- Platforms
IoT in Retail Market, by Application
- Customer Experience Management
- Smart Payment and Checkout
- Automatic Vending Machine
- Smart Shelves
- Operations Management
- Supply Chain Optimization
- Workforce Management
- Surveillance and Security
- Inventory Optimization
- Asset Management
- Asset Condition Monitoring
- Predictive Equipment Maintenance
IoT in Retail Market, by Region
- North America
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Poland
- Netherland
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia & New Zealand
- Rest of Asia-Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- UAE
- Israel
- Rest of Middle East & Africa
Key questions answered in the report:
