IoT in Retail Market size is set to exceed USD 30 billion by 2024, according to a new research report by Global Market Insights, Inc.
Increasing adoption of the Internet of Things by retailers to enhance the customer experience, reduce costs and improve overall performance is expected to drive the IoT in retail market growth over the forecast timeline. Rising trend of digitization across the retail sector coupled with the increasing usage of smart devices contributes significantly to the industry growth. In order to gain shopper insights and understand the buying behavior and deliver customized offers & promotions, retailers are increasingly deploying such solutions.
IoT has enormous potential to transform the retail industry. The various benefits include efficient store management, tracking & monitoring inventory and improvise the store security and loss prevention. Automated check-out, tracking the product quality and optimized supply chain management are among the other benefits of implementing the technology. Growing internet connectivity across various regions coupled with the increasing adoption of smartphones is anticipated to propel the IoT in retail. Factors such as gradual decline in prices of components such as RFID tags & sensors is expected to contribute to the adoption.
IoT in Retail Market size was valued at over USD 9 billion in 2016 and will grow at more than 19% CAGR estimation from 2017 to 2024.
Concerns related to data security and privacy might hinder the IoT in retail market growth. Factors such as high cost associated with the implementation coupled with the interoperability of devices in the system is anticipated to curb the demand for such technological solutions.
Increasing installation of IoT solutions by retailers is expected to drive the adoption of connectivity technology such as Bluetooth Low Energy (BLE) in the IoT in retail market. It identifies the registered customers when they enter the stores and send messages which include customized promotions and offers. BLE is generally used for applications which need exchange of data in low volume and consumes less power as compared to that of Bluetooth. RFID market is anticipated to grow significantly owing to the increasing adoption coupled with the rapidly declining cost of RFID tags.
Wide adoption of IoT in applications such as digital signage mainly used for advertising & marketing is expected to fuel the market growth. Advantages of digital signage include offering the customers an interactive shopping experience and making the innovative advertisements available to the masses in reduced time. The intuitive touch screen offering the customers with personalized & relevant content should also contribute to the growth of IoT in the retail market. The adoption of surveillance analytics helps retailers gain invaluable information about their customers. Video analytics are becoming increasingly popular among retailers to streamline the operations. The increasing need for specific solutions such as inventory management and product performance analytics has encouraged buyers to implement niche solutions.
Asia Pacific IoT in retail market is expected to witness significant growth pertaining to the retail sector in economies such as China, Japan and India. Increasing disposable income of the middle-class population residing in those economies coupled with the growing user base of smartphones lies impetus to the industry growth in the region. Factors such as improving the customer experience followed by speeding up the check-out process is the main reason for implementing such solutions by the retailers.
North America, being the largest market for retail is expected to grow considerably. This is attributed to the early technology adoption coupled with the presence of an organized retail sector in the region. The retailers in the region mainly focus on enhancing the supply chain performance by heavily investing in technologies such as automated inventory verification.
Companies in the IoT in retail market comprise IBM Corporation, Intel Corporation, Microsoft Corporation, SAP AG, Zebra Technologies, Cisco Systems, Amazon Web Services (AWS). The industry is fragmented with the entry of new players with innovative products and advanced technologies. Strategies followed by the industry players include mergers & acquisitions, new product launches in order to achieve growth and enter into new markets. The players are making huge investments in R&D to gain eminence. Moreover, they are increasingly focusing on enhancing the overall customer experience by innovating and differentiating the services.