Internet of Things in Retail Market Analysis | 2022-2028

“The Internet of Things in Retail Market is expected to grow from USD 14.89 billion in 2021 to USD 52.22 billion by 2028 at a CAGR of 19.6% during the forecast period”.

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Market Dynamics

Introduction

The Internet of Things (IoT) in the retail market refers to the integration of connected devices and sensors in the retail industry to enhance operational efficiency, customer experience, and decision-making processes. These IoT technologies enable retailers to gather real-time data on inventory management, customer behavior, and store conditions.

This data can be leveraged for inventory optimization, personalized marketing, and seamless in-store experiences through features like smart shelves, RFID tags, and mobile apps. IoT in retail also supports supply chain management, allowing for better tracking and monitoring of goods from production to the point of sale, ultimately improving overall retail operations.

Market Drivers

The use of IoT in Retail Market is firmly linked to GPS and RFID technologies that help brands to trace products throughout the supply chain process. It gives retailers the visibility they want to monitor product movement, conditions, and track location as well as guess an exact delivery time. For example, managers can check for different retailers, vehicles, and delivery routes, collect data on the process, and find the low-cost and safest support for directing products.

With the arrival of new technologies and advancements in smart sensors, better connectivity and communication solutions, and new devices, that are connected to IoT have the opportunities to improve operations and offer the customized and immersive experiences that customers want. One of the important features of IoT is that it builds a path between the digital and physical worlds.

Factors such as effective inventory management, store space monitoring, supply chain management, and customer behavior analysis drive demand for IoT in the retail market. Furthermore, automating and optimizing the supply chain is one of the major factors for IoT adoption among retailers. Connectivity technologies, such as top-of-the-shelf displays, digital signage, beacons, and price displays, give opportunities for a brand to access large volumes of customer activity data during in-store shopping.

However, data security and privacy concerns, and the high cost of implementation and maintenance of IoT devices hinder the growth of the market globally. In contrast to this, a reduction in the cost of smart devices and high IoT traction among SMEs is expected to provide lucrative opportunities to market players globally.

Fast growth in mobile banking

The growing use of smartphones for payments is a notable factor that drives the growth of IoT in retail offerings, particularly in emerging markets. The theft or loss of mobile phones often holds payment credentials and gives relatively easy access to personally identifiable information such as banking and payment information, email address, and home address. Fraud prevention solutions monitor these aspects of a transaction, such as location, device identification, and network.

Increased adoption of cloud platforms for deployment of IoT

Cloud computing has been an enabler technology for IoT, which allows retail companies to store and access data online. Scalability, agility, reliability, and flexibility are some of the major features associated with cloud services. Software-as-a-service (SaaS) or on-demand capacity handling are some of the cloud computing service models, wherein users pay according to the usage of computing and storage resources.

Cloud-based software tools decrease the IT infrastructure cost of a retail company to a great extent. This is the prime reason behind the growing adoption of cloud-based applications among retail companies. With mobiles becoming an integral part of individuals, businesses are increasingly spending on cloud-connected mobile applications for easy accessibility to data anytime and anywhere. Additionally, cloud-connected mobile applications allow individuals to update, synchronize, and control their data.

Recent Developments

• In July 2022, Accenture agreed to acquire The Stable to bolster its commerce transformation expertise in North America. The agreement shows Accenture’s continued investments in commerce to help its clients accelerate growth in their businesses.
• In April 2022, Mastercard with Microsoft, launched next-generation identity technology to help consumers shop online with greater security. Microsoft is the first partner to share its insights and is involved with the new Digital Transaction Insights solution across several business lines.

Segments Analysis

By Platform Type

“The device management segment holds the largest market size during the forecast period”.

The market is segmented into device management, application enablement, and connectivity management. The IoT in retail market has been segmented into device management, application enablement, and connectivity management. By platform, the device management platform is expected to hold the largest market share of the IoT in the retail market, because of the growing use of IoT-based endpoints and devices.

By Organizational Size Type

“The large enterprise segment holds the largest market size during the forecast period”.

The market is segmented into large sized enterprises and small-medium sized enterprises. The large enterprise segment dominated the IoT in retail market in 2021 and is expected to continue its dominance over the forecast period. Increased adoption has been observed for IoT technology across large retail enterprises, owing to the fast expansion of business and the increase in the need for real-time data analytics, which results in high competition.

Companies need to plan and strategize about time-to-market and production management. Therefore, increased adoption of connected devices among large-sized enterprises to operate consistent machining operations, which significantly contributes to market growth. However, the small- and medium-sized enterprises (SMEs) segment is expected to register the fastest growth rate over the forecast period.

The use of IoT in retail solutions helps SMEs involve with the global market by enabling them to gain better and faster operational and business insights to support decision-making and benefit from future opportunities. It contributes to market growth by enabling streamlining processes, increasing efficiency, and decreasing downtime. Furthermore, the adoption of cloud-based IoT in retail solutions is providing SMEs with tremendous growth opportunities in the IoT in retail market.

By Application Type

“The operations management segment held the largest market size in 2020”.

The market is segmented into operations management, customer experience management, asset management, advertising and marketing. The IoT in retail market by application has been segmented into operations management, customer experience management, asset management, and advertising and marketing. The operations management application is expected to lead the IoT in retail market in terms of market share as it covers core operations, such as workforce management, supply chain optimization, and surveillance and security.

Regional Analysis

“North America to dominate the market over the forecast period”.

The market is broken down geographically into areas, namely North America, Europe, Asia-Pacific, and the Rest of the World (RoW). In terms of market share, North America dominated the IoT in retail market in 2021. In the region, retail companies are spending on various emerging technologies to streamline work processes. The adoption of IoT enhances retail sales and customer management performance. Furthermore, advanced telecommunication infrastructure in countries such as the US and Canada boosts the use of cloud-based IoT solutions in the retail sector.

Moreover, retail firms are increasingly expected to adopt IoT to bolster their businesses and enhance the customer experience, which is advantageous for the growth of the market. Additionally, enterprises in North America are expanding their IoT capability globally, which is anticipated to significantly contribute to the market growth. However, Asia-Pacific is anticipated to witness the fastest growth rate over the forecast period.

In Asia-Pacific, the growth of the IoT in the retail market can be attributed to several economic and process advantages such as network management, real-time data analytics, and industrial automation. Furthermore, increased demand for smartphones and other mobile devices, as well as an increase in the need for internet access, are some of the key factors driving the IoT in retail market growth.

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Key Players

The following are the key players in the Internet of Things in Retail Market (arranged alphabetically)

• AT&T
• Accenture
• Allerin
• Amazon Web Services
• Bosch.io
• Cisco
• Google
• Happiest Minds
• Huawei
• IBM
• Intel
• Microsoft
• NEC Corporation
• Oracle
• PTC
• SAP
• Sierra Wireless
• Software AG
• Telit
• Vodafone

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

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