USD 30.30 billion
Global Smart Retail Market Size, Share, Growth Analysis, By Solution(Hardware and Software), By Application(Visual Marketing, Smart Label) - Industry Forecast 2024-2031
Report ID:
SQMIG25Z2010 |
Region:
Global |
Published Date: April, 2024
Pages:
223
|
Tables:
62 |
Figures:
75
Global Smart Retail Market Insights
Global Smart Retail Market size was valued at USD 30.30 billion in 2022 and is poised to grow from USD 39.09 billion in 2023 to USD 299.74 billion by 2031, growing at a CAGR of 29% in the forecast period (2024-2031).
The global Smart Retail Market is undergoing dynamic growth, driven by the relentless integration of cutting-edge technologies into the retail landscape. Key drivers include the escalating demand for better customer experiences, through the implementation of Internet of Things (IoT), Artificial Intelligence (AI), and Radio-Frequency Identification (RFID) solutions. Retailers are increasingly adopting these smart technologies to enhance operational efficiency and provide personalized, immersive shopping experiences, thereby shaping consumer behavior and preferences.
The market encounters several challenges as well, including high upfront costs for implementation, concerns over data security and privacy, and the necessity for a skilled workforce. Interoperability issues among various smart technologies also pose obstacles to seamless integration.
Amidst these challenges, the Smart Retail Market offers investment opportunities also. Innovations addressing security concerns and ensuring interoperability stand out as areas ready for investment. The transformative potential of smart retail, with its ability to reshape traditional retail paradigms and create more efficient, data-driven, and customer-centric shopping environments, continues to attract investors seeking long-term growth in the rapidly evolving global retail landscape.
The global market for smart retail is poised for significant growth in the foreseeable future. The market is experiencing a notable increase in the adoption of advanced technologies like Artificial Intelligence (AI), Virtual Reality (VR), Augmented Reality (AR), and the Internet of Things (IoT) to enhance the shopping experience for consumers, improve inventory management accuracy, and optimize store operations. AR, in particular, is revolutionizing the retail industry by enabling brands to engage with customers through their mobile devices. The integration of AR in marketing efforts helps build consumer relationships, enhance the customer experience, and ultimately drive sales. Additionally, the expansion of retail stores across different regions is fueling the demand for these advanced technologies. Smart retail proves to be a cost-effective and profitable process for both consumers and retailers due to the enhanced management of the supply chain. However, many retailers, especially small and medium-sized enterprises (SMEs), face challenges in funding advanced business platforms. There is a growing consensus in the industry that stores must embrace digitization through IoT devices and focus on providing superior shopping experiences to remain competitive and attract customers back to physical stores. Besides the impact of the pandemic, advancements in smart retail are also generating higher demand, such as purchasing finished goods through voice commands. In recent years, digital payment methods such as debit cards, credit cards, prepaid cards, electronic wallets, and other digital platforms have gained significant popularity and are expected to continue growing in the forecast period. The shift in consumer preferences towards cashless transactions and the subsequent adoption of digital payment solutions in various retail stores, including specialty stores, supermarkets, and departmental stores, are driving market growth. Digitalization offers numerous benefits to retailers, including attracting new customers, reducing operational costs, and motivating employees. As a result, digitalization contributes to revenue growth. Advancements in technology, improved connectivity, innovative sensors, and seamless communication solutions are expected to further boost online retail stores, significantly impacting market growth in the forecast period.
US Smart Retail Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Hardware
Fastest Growth
Software
Growth Rate
29% CAGR
Global Smart Retail Market ($ Bn)
Country Share for North America Region (%)
Global Smart Retail Market By Solution ($ Bn)
Global Smart Retail Market By Solution (%)
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Global Smart Retail Market Segmental Analysis
Global Smart Retail Market is segmented by solution, application, and region. Based on solution, the market can be segmented into hardware and software. Based on application, the market is segmented into Visual Marketing, Smart Label, Smart Payment System, Intelligent System and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Smart Retail Market Analysis by Solution
The hardware segment captured the largest market share, primarily driven by the rising usage of Augmented Reality (AR) and Virtual Reality (VR) devices, point of sale (POS) systems, Bluetooth beacons, and Radio-frequency identification (RFID) systems. These technologies enable retailers to provide a seamless in-store shopping experience, contributing to the segment's growth.
On the other hand, the software segment is expected to grow at a faster pace throughout the forecast period. This growth is attributed to the increasing adoption of analytics software by retailers worldwide. By utilizing analytics software, retailers can gain insights into the specific needs and behaviors of their customers, leading to improved customer engagement and enhanced shopping experiences. With the evolving consumer preferences and the growing emphasis on customer-centric marketing, there is a rising demand for analyzing data in the smart retailing sector, presenting significant opportunities for analytics in the industry.
Smart Retail Market Analysis by Application
The dominant segment in the market is Visual Marketing. Visual marketing plays a crucial role in attracting and engaging customers by utilizing technologies like augmented reality (AR), virtual reality (VR), and interactive displays. By leveraging these technologies, retailers can create immersive and captivating experiences that enhance brand visibility, product showcasing, and overall customer engagement. Visual marketing enables retailers to showcase products in a more interactive and visually appealing manner, leading to increased customer interest, higher conversion rates, and ultimately driving sales.
The fastest-growing segment in the market is the Smart Payment System. With the increasing shift towards digital transactions and the rising adoption of cashless payment methods, smart payment systems are witnessing rapid growth. These systems encompass various technologies such as mobile wallets, contactless payments, and biometric authentication, providing convenience, security, and seamless transactions for both customers and retailers. The growing demand for fast and hassle-free payment experiences, coupled with the need for enhanced security measures, is propelling the expansion of smart payment systems in the smart retail industry. This segment is expected to experience significant growth as more consumers embrace digital payment solutions and retailers prioritize implementing advanced payment technologies to cater to evolving consumer preferences.
Global Smart Retail Market By Solution, 2023 (%)
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Global Smart Retail Market Regional Insights
North America holds a significant share due to the advanced technological infrastructure, high consumer adoption of smart retail solutions, and the presence of major retail players. The region has been at the forefront of technological advancements, with a strong focus on enhancing customer experiences and optimizing retail operations. The market in North America benefits from robust investments in research and development, extensive retail networks, and a tech-savvy population, making it a key hub for smart retail innovations and implementations.
Asia Pacific is witnessing rapid growth in the smart retail sector due to several factors. The region boasts a large consumer base, rising disposable incomes, and increasing urbanization, leading to a higher demand for improved shopping experiences. Moreover, countries like China, Japan, South Korea, and India are at the forefront of technological advancements and digital transformation in the retail industry. The growing e-commerce market, coupled with the increasing penetration of smartphones and internet connectivity, is driving the adoption of smart retail solutions in Asia Pacific. With ongoing developments and investments in the region, Asia Pacific is expected to experience substantial growth in the smart retail market in the coming years.
Global Smart Retail Market By Region, 2024-2031
- Largest
- Fastest
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Global Smart Retail Market Dynamics
Smart Retail Market Drivers
Increasing demand for enhanced customer experiences
- One key driver of the smart retail market is the growing demand for enhanced customer experiences. Customers today are increasingly seeking personalized and immersive shopping experiences. Smart retail technologies such as augmented reality (AR), virtual reality (VR), and IoT devices enable retailers to create interactive and engaging experiences that cater to individual customer preferences. By leveraging these technologies, retailers can offer personalized recommendations, seamless payment processes, and real-time inventory information, thereby enhancing customer satisfaction and driving sales.
Smart Retail Market Restraints
High implementation costs associated with adopting advanced technologies
- One key restraint of the smart retail market is the high implementation costs associated with adopting advanced technologies. Upgrading existing infrastructure, integrating various smart retail solutions, and training employees to effectively utilize these technologies can require significant investments. This cost barrier poses a challenge, particularly for small and medium-sized retailers with limited financial resources. The initial capital expenditure and ongoing maintenance costs can deter some retailers from fully embracing smart retail solutions. However, as technology advances and economies of scale are achieved, the cost of implementation is expected to decrease, mitigating this restraint over time.
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Global Smart Retail Market Competitive Landscape
The competitive landscape of the global smart retail market is highly dynamic and characterized by intense competition among a wide range of players. Market participants compete based on factors such as product offerings, technological advancements, pricing strategies, distribution networks, and customer relationships. To gain a competitive edge, companies focus on continuous innovation, research and development, and strategic partnerships. Collaboration with technology providers, software developers, and data analytics companies is crucial for leveraging cutting-edge technologies and gaining insights into customer behavior. Marketing and branding efforts are essential for capturing customer attention and building brand loyalty. Mergers, acquisitions, and collaborations are common strategies for expanding product portfolios and increasing market reach. Overall, the smart retail market presents a dynamic and evolving landscape where companies strive to differentiate themselves and adapt to changing consumer preferences and technological advancements.
Smart Retail Market Top Player’s Company Profiles
- Google LLC (US)
- Honeywell International Inc. (US)
- Huawei Technologies Co., Ltd. (China)
- Ingenico (France)
- Fiserv, Inc. (US)
- Intel Corporation (US)
- LG Display Co., Ltd. (South Korea)
- NCR Corporation (US)
- NVIDIA Corporation (US)
- NXP Semiconductors (Netherlands)
- PAX Global Technology Limited (China)
- Samsung Electronics (South Korea)
- Verifone Systems (US)
- Toshiba Corporation (Japan)
- Zebra Technologies Corporation (US)
- Oracle Corporation (US)
- Shopify Inc. (Canada)
Smart Retail Market Recent Developments
- In March 2024, Associated Wholesale Grocers and Instacart expanded their partnership to offer ecommerce solutions and AI-powered smart carts, called Caper Carts, to more AWG-member retailers.
- In February 2024, REWE Group launched a REWE Ready ‘smart shop’ at the EnBW Hypernetz EV Charging Hub in Lichtenau/Chemnitz, Germany.
- In January 2024, omnichannel PayTech specialist Secure Retail announced the acquisition of Smart Technology Solutions (STS), a UK-based payments acceptance software firm.
Global Smart Retail Key Market Trends
- One key market trend in the Global Smart Retail Market is the growing adoption of artificial intelligence (AI) and machine learning (ML) technologies. Retailers are increasingly leveraging AI and ML to gain insights into customer behavior, personalize marketing campaigns, optimize inventory management, and enhance overall operational efficiency. These technologies enable retailers to analyze vast amounts of data, automate processes, and make data-driven decisions, resulting in improved customer experiences, increased sales, and streamlined operations.
Global Smart Retail Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global smart retail market analysis, the market is experiencing significant growth driven by the incorporation of technologies like artificial intelligence (AI), augmented reality (AR), and internet of things (IoT). These technologies are transforming the retail industry by enhancing the shopping experience, improving inventory management, and optimizing store operations. AR, in particular, allows brands to engage with consumers through mobile devices, building relationships and driving sales. The market is fueled by the increasing number of retail stores worldwide and the demand for advanced technologies. However, the high implementation costs can be a restraint for some retailers. The market is highly competitive, with companies focusing on innovation, partnerships, and digitalization to offer better customer experiences. The use of digital payment solutions and the growth of non-store retailing are also shaping the market. Overall, the market presents opportunities for companies to digitize and enhance customer experiences while adapting to evolving consumer preferences.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 30.30 billion |
| Market size value in 2031 | USD 299.74 billion |
| Growth Rate | 29% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Smart Retail Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Smart Retail Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Smart Retail Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Smart Retail Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Smart Retail Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Smart Retail Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Smart Retail Market Report Snapshots
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