Smart Retail Market by Offering (Hardware, software, and Services), Technology, Application (Customer Experience Management, Supply Chain Management), End User (Supermarkets, Department Stores, Specialty Stores) and Geography - Global Forecast to 2030

The Smart Retail Market is expected to reach $91.36 billion by 2030, at a CAGR of 22.4% during the forecast period of 2023–2030. The growth of the smart retail market is driven by the growing need to enhance customer experiences & retail operations and the increasing number of smart stores. However, the lack of technology adoption in the unorganized retail sector restrains the growth of this market. The rising cases of shoplifting and the increasing adoption of disruptive technologies to forecast future market trends are expected to create growth opportunities for the stakeholders in this market. However, legal concerns & data privacy issues are major challenges for market growth. Additionally, the growing adoption of cloud services in the retail sector and the advent of computer vision in the retail sector are prominent trends in this market.

Impact of COVID-19 on the Smart Retail Market

The COVID-19 pandemic severely impacted most countries around the globe. Governments imposed countrywide lockdowns to control the spread of the infection. The lockdown restrictions impacted manufacturing operations, with production facilities either completely shutting down or running at reduced capacities to ensure social distancing and employee safety. Most industries came to a standstill due to raw material & workforce shortages, supply chain disruptions, and restrictions on international trade. The combat measures like complete lockdown and quarantine to fight against COVID-19 have a strong adverse impact on many industries globally, including the retail industry.

Lockdowns and quarantines to counter COVID-19 restricted the companies' physical access to the existing resources. Department stores and specialty/boutique retailers experienced thousands of store closures and significant business disruption as consumers cut non-essential spending and made the sweeping shift to online shopping. Thus, companies are exploring new avenues to access their assets, customers, resources, and data. This triggered the adoption rate of smart retail solutions and services. The pandemic allowed retailers to speed up their digital transformation plans and adjust their customer journeys to adapt successfully in these difficult times. Larger businesses were also obliged to rethink their business strategy, improve procedures, and change operations by incorporating more digitization and automation into their daily operations.

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Increasing Number of Smart Stores to Drive Market Growth

Globally, stores are getting smarter due to the adoption of advanced technologies and innovative approaches. The proliferation of smart stores has increased the potential for physical and online shopping. Smart stores deliver services via the web and smartphone apps, while physical stores use augmented reality apps. Retailers are adopting innovative technologies, including advanced analytics, augmented reality, artificial intelligence, the Internet of Things, and computer vision, to transition to smart stores to offer customers a more personalized, frictionless, and immersive shopping experience. Cashless transactions, smart checkout & shelves, movement tracking systems, interactive kiosks, smart mirrors, and real-time condition monitoring of goods also help improve customer experience, streamline operations, and maximize productivity.

Several companies are adopting new strategies to transition from traditional to smart retail stores. For instance, in September 2022, DFS Group (China), a luxury travel retailer, partnered with Tencent Cloud (China) to upgrade its digital technologies with one-stop solutions & services and improve its smart retail capabilities. Also, in June 2020, Amazon.com, Inc. (U.S.) launched its Smart Stores to provide customers with contactless payment methods, including UPI and QR code scanning with the Amazon app, for an in-store purchasing experience. Such developments, coupled with the rising consumer demand for immersive in-store shopping experiences, support the growth of the smart retail market.

Key Findings in the Smart Retail Market Study:

In 2022, the Hardware Segment Dominated the Smart Retail Market

Based on offering, the smart retail market is segmented into hardware, software & analytics, and services. In 2022, the hardware segment accounted for the largest share of the global smart retail market. The large market share of this segment can be attributed to the growing demand for IoT deployments for various applications in the retail industry, the increasing number of smart stores, and the growing investment in technology by retailers. However, the software & analytics segment is projected to register the highest CAGR during the forecasted period. The enormous increase in the availability of customer data and the growing need for more accurate predictions of the future state of the business, coupled with increasing awareness of the importance of analytics solutions in the retail industry, are expected to drive the growth of this segment.

In 2022, the IoT Segment Dominated the Smart Retail Market

Based on technology, the smart retail market is broadly segmented into IoT big data analytics, AI, robotics, cloud computing, and others. In 2022, the IoT segment accounted for the largest share of the global smart retail market. 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 large market share of this segment. However, the AI segment is projected to register the highest CAGR during the forecast period. The growth in the segment is driven by factors such as perpetually growing internet users and smart devices, increasing awareness about AI and big data & analytics, and government initiatives towards digitization.

Asia-Pacific to be the Fastest-growing Regional Market

Based on geography, the smart retail market is segmented into North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa. In 2022, Asia-Pacific accounted for the largest share of the global smart retail market, followed by North America, Europe, Latin America, and the Middle East & Africa. The large share of this region is mainly attributed to the indispensable requirement of retailers to digitalize their traditional business operations, the presence of major analytics players, and the rapid adoption of mobile devices and cloud technology. Furthermore, the rapidly increasing e-commerce industry is expected to help the region continue its dominance in the coming years.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by the leading market participants in the smart retail market between 2020 and 2022. The key players profiled in the smart retail market report are IBM Corporation (U.S.), Intel Corporation (U.S.), Microsoft Corporation (U.S.), Honeywell International Inc. (U.S.), PTC Inc. (U.S.), NVIDIA Corporation (U.S.), Amazon.com, Inc. (U.S.), NCR Corporation (U.S.), PAX Global Technology Limited (China), Ingenico (France), Google LLC (U.S.), Huawei Technologies Co., Ltd. (China), Samsung Electronics Co., Ltd. (South Korea), VeriFone, Inc. (U.S.), NXP Semiconductors (Netherlands), Fiserv, Inc. (U.S.), Trigo Vision Ltd. (Israel), Caper (U.S.), and Zippin (U.S.).

Scope of the report:

Smart Retail Market by Offering                       

• Hardware               
  • RFID Tags & Labels
  • Scanner/Readers
  • Mobile Computers
  • Point of Sale (POS) Terminals
  • Intelligent Vending Machines
  • Digital Signage
  • Others
• Software & Analytics           
  • Business Intelligence
  • Sales Forecasting
  • Demand Forecasting
  • Others
• Services
  • Integration & Deployment Services
  • Consulting Services
  • Support & Maintenance Services

Smart Retail Market, by Technology

• IoT
• Big Data Analytics
• AI
• Robotics
• Cloud Computing
• Others    

Smart Retail Market, by Application

• Customer Experience Management
• Supply Chain Management
• Store Operations
• Inventory Management Systems
• Smart Payment Systems
• Others

Smart Retail Market, by End User

• Supermarkets                       
• Hypermarkets
• Specialty Stores   
• Department Stores
• Other End Users   

Smart Retail Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Denmark
  • Netherlands
  • Sweden
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Singapore
  • Australia & New Zealand
  • Rest of Asia-Pacific
• Latin America
  • Mexico
  • Brazil
  • Rest of Latin America
• Middle East & Africa
  • UAE
  • Israel
  • Rest of the Middle East & Africa

Key questions answered in the report: