Smart Retail Market

Market Overview:

The global smart retail market size reached US$ 31.2 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 118.82 Billion by 2028, exhibiting a growth rate (CAGR) of 24.90% during 2023-2028. The rising technological advancements, changing consumer expectations, rising automation trend, sudden outbreak of the coronavirus disease (COVID-19), increased product adoption due to the personalization, convenience and seamless shopping experiences are some factors propelling the market.

Smart retail refers to the application of advanced technologies and data-driven solutions to enhance the overall shopping experience, streamline operations, and optimize retail processes. It involves the integration of technologies, such as artificial intelligence, the Internet of Things (IoT), big data analytics, and automation, to create a seamless and personalized shopping environment. Smart retail includes features like self-checkout systems, interactive digital signage, personalized recommendations, inventory management systems, and smart shelves. These technologies aim to improve efficiency, customer engagement, and decision-making in retail, thus providing a more convenient and tailored shopping experience for consumers.

The outbreak of coronavirus disease (COVID-19) pandemic has led to the rising need for contactless experiences, online shopping options, and efficient supply chain management. . Due to this, smart retail technologies are widely adopted as they offer convenience, personalization, and seamless shopping experiences to cater to consumer expectations by providing features like personalized recommendations, mobile payments, and self-checkout options. Additionally, these smart retail technologies allow retailers to gain valuable insights into consumer behavior, preferences, and trends to understand their target audience better, deliver personalized offers, and tailor marketing strategies, resulting in improved customer satisfaction and increased sales. Other than this, smart retail solutions offer automation and optimization of various retail processes, such as inventory management, supply chain management, and customer service. By improving operational efficiency, retailers can reduce errors, minimize costs, and allocate resources effectively. Besides this, smart retail technologies also contribute to enhanced security measures. Advanced surveillance systems, biometric authentication, and secure payment methods help protect customer data, prevent theft, and ensure a secure shopping environment. Moreover, retailers are adopting energy-efficient technologies to reduce packaging waste, promote eco-friendly products, and integrate sustainability practices into their operations.

Smart Retail Market Trends/Drivers:

Changing Consumer Expectations

The changing consumer expectations play a significant role in driving the market growth as they seek convenience, personalization, and seamless experiences in their shopping journeys. They expect retailers to offer omnichannel experiences, personalized recommendations, easy and secure payment options, and efficient fulfillment services. In response, retailers are adopting smart retail technologies to meet these expectations. By leveraging technologies like artificial intelligence, IoT, and data analytics, retailers can gather and analyze customer data while offering personalized experiences, optimizing inventory management, and streamlining operations.

Data-driven insights

With the implementation of advanced technologies, retailers can gather vast amounts of customer data from various touchpoints. By analyzing this data, retailers can gain valuable insights into consumer behavior, preferences, and trends. These insights enable retailers to make data-driven decisions, personalize marketing campaigns, optimize inventory management, and enhance the overall customer experience. As a result, data-driven insights play a crucial role in propelling the market. These insights also help retailers identify areas for improvement, streamline operations, and allocate resources effectively.

Rising Automation Trend

Retailers are deploying automated checkout systems, robotic fulfillment centers, autonomous delivery vehicles, and inventory management robots. These technologies improve accuracy, speed up processes, and free up human resources to focus on more value-added tasks. With smart inventory management systems, retailers can also accurately track inventory levels, reduce stockouts, and minimize overstocking. This optimization results in reduced costs, improved inventory turnover, and enhanced customer satisfaction.

Smart Retail Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global smart retail market report, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on offering, retailer size, application, and end user.

Breakup by Offering:

• Hardware
  • RFID Tags and Labels
  • Scanner/Readers
  • Mobile Computers
  • Point of Sale (POS) Terminals
  • Others
• Software
  • Retail Management Software
  • POS Software
  • Inventory Management
  • Others
• Services
  • Integration and Deployment Services
  • Consulting Services
  • Support and Maintenance Services
     

Hardware dominates the smart retail market

The report has provided a detailed breakup and analysis of the smart retail market based on the offering. This includes hardware (RFID tags and labels, scanner/readers, mobile computers, point of sale (POS) terminals, and others and software (retail management software, POS software, inventory management, and others). According to the report, hardware represented the largest segment.

Hardware plays a crucial role in driving the smart retail market. Smart retail relies on various hardware components such as sensors, beacons, RFID tags, smart shelves, and digital signage. These devices enable the collection of real-time data, facilitate seamless inventory management, enhance customer experiences, and enable personalized marketing. For instance, sensors and beacons track customer movements, allowing retailers to analyze foot traffic patterns and optimize store layouts. RFID tags enable efficient inventory tracking and management, reducing out-of-stock situations. Smart shelves equipped with digital displays provide interactive product information and promotions. Overall, hardware forms the foundation of smart retail solutions, enabling retailers to improve operational efficiency, enhance customer engagement, and ultimately drive sales.

Breakup by Retailer Size:

• Small and Mid-sized Retailers
• Large Retailers
   

A detailed breakup and analysis of the smart retail market based on the retailer size has also been provided in the report. This includes small and mid-sized retailers and large retailers. 

The small and mid-sized retailers play a vital role in propelling the retail market as these retailers often specialize in niche markets and cater to specific customer segments. Their agility and ability to adapt quickly to market trends give them a competitive advantage. Small and mid-sized retailers often offer personalized customer experiences, local expertise, and unique product offerings, fostering customer loyalty. They contribute to the retail market by promoting innovation, driving local economic growth, and creating employment opportunities.

On the other hand, large retailers exert significant influence in the retail market. With their extensive resources, economies of scale, and established brand presence, they have the power to shape consumer trends and drive market demand. Large retailers often have vast product assortments, competitive pricing, and robust supply chain networks. Their ability to leverage technology and data analytics allows them to optimize operations, enhance customer experiences, and implement innovative strategies. Large retailers drive market competition, provide consumer convenience, and drive industry-wide standards and best practices.

Breakup by Application:

• Visual Marketing
• Smart Label
• Smart Payment System
• Intelligent System
• Others
   

Visual marketing dominate the smart retail market

The report has provided a detailed breakup and analysis of the smart retail market based on the application. This includes visual marketing, smart label, smart payment system, intelligent system, and others. According to the report, visual marketing represented the largest segment.

Visual marketing plays a pivotal role in propelling the smart retail market. With the rise of digital signage, interactive displays, and augmented reality, visual elements are key to captivating and engaging customers. Visual marketing enables retailers to deliver compelling and personalized experiences, showcasing products, promotions, and brand messages in an immersive way. It helps create a vibrant in-store atmosphere and enhances the overall customer journey. Visual marketing also facilitates effective product discovery, aids in decision-making, and drives impulse purchases. By leveraging visual elements, smart retailers can captivate customers’ attention, strengthen brand loyalty, and ultimately boost sales and revenue.

Breakup by End User:

• Supermarkets
• Hypermarkets
• Specialty Stores
• Department Stores
• Others
   

A detailed breakup and analysis of the smart retail market based on the end user has also been provided in the report. This includes supermarkets, hypermarkets, specialty stores, department stores, and others. 

Specialty stores focus on specific product categories or niche markets. These stores often prioritize personalized customer experiences and expert product knowledge. By implementing smart retail technologies such as digital signage, interactive displays, and mobile apps, specialty stores can enhance the shopping journey, offer tailored recommendations, and provide in-depth product information. Additionally, specialty stores can leverage customer data to deliver personalized promotions and loyalty programs, increasing customer engagement and retention. Their ability to create unique and curated shopping experiences positions them as frontrunners in the adoption of smart retail solutions.

Supermarkets and hypermarkets offer large-scale operations and extensive customer reach. These retailers often have vast product assortments and attract a wide range of shoppers. By implementing smart retail technologies like self-checkout systems, automated inventory management, and smart shelves, supermarkets and hypermarkets can streamline operations, reduce waiting times, and improve efficiency. They can also leverage data analytics to gain insights into consumer behavior, optimize product placement, and personalize promotions. The integration of smart retail solutions in supermarkets and hypermarkets enhances the overall shopping experience and helps drive customer satisfaction and loyalty.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest smart retail market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. 

North America plays a significant role in propelling the smart retail market. The region is known for its technological advancements, digital infrastructure, and consumer-oriented market. North American consumers are early adopters of new technologies and have a high affinity for convenience and personalized experiences. The presence of tech-savvy shoppers and a robust e-commerce ecosystem has compelled retailers to embrace smart retail solutions. Moreover, North America has a competitive retail landscape with numerous large retailers and innovative startups, fostering a culture of innovation and driving market competition. The region's strong emphasis on customer-centric approaches, combined with its technological prowess, contributes to the growth and advancement of the smart retail market in North America.

Competitive Landscape:

The key players have embraced technologies like artificial intelligence, IoT, and data analytics to enhance customer experiences. They have introduced cashier-less stores, personalized recommendations, and seamless online-to-offline integration. They are also investing in smart shelves, smart carts, and advanced supply chain systems to optimize operations. Additionally, they have leveraged customer data to offer targeted marketing campaigns and improve inventory management.

The report has provided a comprehensive analysis of the competitive landscape in the global smart retail market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Adroit Worldwide Media Inc.
• Amazon.com Inc.
• Cisco Systems Inc.
• Google LLC (Alphabet Inc.)
• Honeywell International Inc.
• Ingenico
• Intel Corporation
• NCR Corporation
• NVIDIA Corporation
• NXP Semiconductors N.V.
• PTC
• Samsung Electronics Co. Ltd.
• Zippin

Recent Developments:

• NCR Corporation has developed cloud-based platforms that enable retailers to centralize their operations, access real-time data, and streamline software updates and maintenance. to adapt quickly to changing market conditions and leverage the benefits of cloud technology.
• Amazon acquired Whole Foods Market, a leading organic grocery chain, which has allowed Amazon to integrate its smart retail technologies, such as Amazon Go and Amazon Dash Cart, into Whole Foods stores, providing customers with an enhanced shopping experience and expanding its presence in the grocery market.
• Honeywell Technology has introduced voice-directed picking and warehouse solutions that enable retailers to optimize their order fulfillment operations. These solutions enhance warehouse efficiency and increase productivity and accuracy as workers can receive instructions and communicate hands-free by utilizing voice recognition technology.

Smart Retail Market Report Scope:

Report Coverage:

Key Questions Answered in This Report:

• How has the global smart retail market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global smart retail market?
• What is the impact of each driver, restraint, and opportunity on the global smart retail market?
• What are the key regional markets?
• Which countries represent the most attractive orthodontic consumables market?
• What is the breakup of the market based on the offering?
• Which is the most attractive offering in the smart retail market?
• What is the breakup of the market based on the retailer size?
• Which is the most attractive retailer size in the smart retail market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the smart retail market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the smart retail market?
• What is the competitive structure of the global smart retail market?
• Who are the key players/companies in the global smart retail market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the smart retail market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global smart retail market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the smart retail industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.