Internet of Things in Retail Market Growth Analysis | 2022-2028

Market Insights

The internet of things in retail market was estimated at USD 14.89 billion in 2021 and is likely to grow at a CAGR of 19.6% during 2022-2028 to reach USD 52.22 billion in 2028.

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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 the internet of things 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, we 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.

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Fast growth in mobile banking

The growing use of smartphones for payments is a notable factor that drives the growth of internet of things 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 2021.”

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 internet of things 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 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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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s internet of things in retail market realities and future market possibilities for the forecast period of 2022 to 2028. After a continuous interest in our internet of things in retail market report from the industry stakeholders, we have tried to further accentuate our research scope to the internet of things in retail market to provide the most crystal-clear picture of the market. The report segments and analyses the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate the growth strategies to expedite their growth process.

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 1000 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 industry experts to obtain both qualitative and quantitative insights.

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 market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market, covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The internet of things in retail market is segmented into the following categories:

By Offering Type

• Hardware (Sensors, Beacons, Gateways, Radio Frequency Identification)
• Platform (Device Management, Connectivity Management, Application Enablement)
• Services (Professional Services, Managed Services)

By Application Type

• Operations Management (Energy Optimization, Supply Chain Optimization, Surveillance and Security, Inventory Optimization, Workforce Management)
• Customer Experience Management (Smart Payment and Checkout, Queue Management, Automatic Vending Machine, Smart Shelves)
• Asset Management (Asset Condition Monitoring, Predictive Equipment Maintenance)
• Advertising and Marketing (Geomarketing, Digital Signage)

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

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