Smart Retail Market - Global Industry Analysis

Smart Retail Market By System (Digital Signage Solutions, Smart Labels, Smart Payment Systems, Intelligent Vending Machines, Augmented Reality Solutions, Virtual Reality Solutions, POS Solutions, Smart Carts, Robotics, and Analytics), By Application (Foot-traffic Monitoring, Inventory Management, Loyalty Management & Payment, Predictive Equipment Maintenance, Brand Protection, and Smart Fitting Rooms), By Retail Offering (Fast-moving Consumer Goods, Hardlines & Leisure Goods, Apparel & Accessories, and Others), and By Region – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2028

Published Date: 19-Apr-2022 Category: Technology & Media Report Format : PDF Pages: 199 Report Code: ZMR-3318 Status : Published

The global smart retail market was valued at nearly USD 21.9 billion in 2021 and is projected to grow to around USD 72.9 billion by 2028, with a compound annual growth rate (CAGR) of approximately 22.8 percent over the forecast period.

Description

Industry Prospective:

The global smart retail market was valued at nearly USD 21.9 billion in 2021 and is projected to grow to around USD 72.9 billion by 2028, with a compound annual growth rate (CAGR) of approximately 22.8 percent over the forecast period. The report studies the smart retail market’s drivers, restraints/challenges, opportunities, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the smart retail market.

Smart Retail Market: Overview

The term smart retail refers to the fusion of conventional shopping methods with new smart technologies. In smart retails information is collected through the Internet of Things by connecting implanted devices and computers. By this, the customer can benefit from a more tailored, quicker, and smarter experience. Individualized coupons and carefully selected inventory are examples of this. Smart retail mainly benefited from the emergence of new digital platforms and user-friendly shopping devices. And with the increase in smart city development, the number of smart retail is projected to boost further.

COVID-19 Impact:

The global smart retail market experienced a moderate effect during the Covid-19 pandemic. COVID-19 had a negative influence on the smart retail supply chain, causing delays in the transfer of products owing to logistical and travel constraints. Both retailers and customers had their deliveries postponed. This disruption to the supply chain is only temporary, as safety measures are progressively restoring normalcy. A smart retail supply chain will be critical in the long run. In the midst of the COVID-19 outbreak, retailers have to ensure the safety of their customers. As a result, consumers are interested in smart retail solutions such as contactless payments. Furthermore, the secured and hassle-free checkout process in the e-commerce payment transaction has increased the security and safety of transactions for customers.

Smart Retail Market: Growth Drivers

Rising trend of digitalization is expected to drive the market growth

Retailers may have advantages from digitization in the form of additional consumers and lower operating expenses, among other things. Employees at stores may find digitalization to be tremendously inspiring. As a result, digitization can aid in revenue growth. Recently, non-store commerce is expected to develop significantly. Digital payment modalities including electronic wallets, prepaid cards, credit cards, debit cards, and other digital platforms have been driving industry expansion in recent years. The shift in customer preference toward cashless transactions, as well as the corresponding rise in the acceptance of advanced payment solutions across retail shops, such as department stores, supermarkets, and specialty stores, are all contributing to the global smart retail market's growth.

Smart Retail Market: Restraints

High maintenance expenses for modern high-end computer systems may restrain the market growth

Smart retail devices provide for more precise, rapid, and reliable control, as well as more efficient production and delivery. However, it necessitates a significant investment in maintenance, which is necessary for the technology to reach new markets. The technique enables the inspection of several items on the same smart camera, which is not always possible. This may limit the growth of the market for smart retail. In addition to this, low penetration of the market in low & middle-income countries, and lack of expertise are also some of the factors that may limit the growth of the market.

Smart Retail Market: Opportunities

Advancement in technology is likely to boost the market during the forecast period

One of the major trends driving market expansion is the increasing use of technologies such as Augmented Reality (AR), Artificial Intelligence (AI), and the Internet of Things (IoT) to improve customers' shopping experiences, inventory management, and retail operations. AR is revolutionizing the retail business by allowing brands to connect with customers via their smartphones. The use of augmented reality in marketing aids in the development of customer connections, the enhancement of the customer experience, and, as a result, the growth of sales. Currently, the market is flooded with research and deployment of a variety of automation approaches to boost productivity & accuracy, while minimizing human mistakes and improving safety. Smart retail is one of the most advanced automatic systems since it offers novel solutions in the area of retail automation to improve the customer experience. All these factors are expected to boost the global smart retail market expansion over the forecast period.

Smart Retail Market: Challenges.

High initial investments pose a major challenge to expanding the market in emerging countries.

The use of digital technology and the implementation of smart tools & apps in the store cost are relatively high which most retailers cannot afford. Also, budget constraints in the low- and middle-income countries limit the adoption of digital technology in the retail sector. Along with this, the availability of AI-powered tools, solutions, and services is a major question in low-income countries. All these factors pose a major challenge to the expansion of the market.

Smart Retail Market: Segmentation

The global smart retail market is segregated based on retail offering, application, system, and region. The retail offering segment consists of hardlines & leisure goods, fast-moving consumer goods, apparel & accessories, and others. Based on the application, the global market is divided into loyalty management & payment, inventory management, foot-traffic monitoring, smart fitting rooms, brand protection, and predictive equipment maintenance. The system segment is segregated based on intelligent vending machines, smart payment systems, smart labels, digital signage solutions, analytics, robotics, smart carts, POS solutions, virtual reality solutions, and augmented reality solutions.

Report Scope:

Report Attribute Details
Base Year 2020
Historic Years 2016 - 2020
Forecast Years 2021 - 2028
Segments Covered By Product Type, By Application, and By End Use
Forecast Units Value (USD Billion), and Volume (Units)
Quantitative Units Revenue in USD million/billion and CAGR from 2021 to 2028
Regions Covered North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World
Countries Covered U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others
Number of Companies Covered 10 companies with scope for including additional 15 companies upon request
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.
Customization Scope Avail customized purchase options to meet your exact research needs.

Recent Developments

  • In March 2021, Johnson Controls' Sensormatic Solutions teams up with Intel to digitally transform retail and enhance the consumer experience. Customers may make well-informed business decisions as a result of the collaboration, which leads to desirable results.
  • In March 2020, Honeywell and Intel have formed a cooperation to use IoT to strengthen the retail sector. The collaboration is to create new retail products that will improve inventory visibility, logistics, and supply chain efficiency.

Smart Retail Market: Regional Landscape

North America to lead the market over the forecast period.

North America holds the dominant share in the global smart retail market. This is primarily due to several hypermarkets, supermarkets, department stores, and other types of retail stores including Schnucks Markets, Inc. and Food City in the US have installed automatic storage, POS solutions, retrieval systems, electronic shelf labels (ESLs), and self-checkout systems. Additionally, the high spending power of the sector operators in the region is collectively contributing to the growth of the market. Further, the Europe market is also rapidly expanding with the increase in the chain of supermarkets and hypermarkets. Customers in Europe pose strong spending power; also many international brands are increasing their investments in the region. Asia Pacific is likely to offer the most lucrative opportunities for the expansion of the market. Factors such as increasing investments in smart city development by China & India, large customer base, and increasing trend of digitalization are expected to flourish the market growth.

Smart Retail Market: Competitive Landscape

Some of the leading players that are operating in the global smart retail market include Microsoft, NXP Semiconductors N.V., Cisco Systems, Inc., Intel Corporation, IBM, Amazon.com, Inc., Google Inc., Honeywell, NVIDIA Corporation, and PTC, Inc.

Global smart retail market is segmented as follows:

By System

  • Digital Signage Solutions
  • Smart Labels
  • Smart Payment Systems
  • Intelligent Vending Machines
  • Augmented Reality Solutions
  • Virtual Reality Solutions
  • POS Solutions
  • Smart Carts
  • Robotics
  • Analytics

By Application

  • Foot-traffic Monitoring
  • Inventory Management
  • Loyalty Management and Payment
  • Predictive Equipment Maintenance
  • Brand Protection
  • Smart Fitting Rooms

By Retail Offering

  • Apparel and Accessories
  • Fast-moving Consumer Goods
  • Hardlines and Leisure Goods
  • Others

By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • France 
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Table Of Content

Methodology

Free Analysis

In today’s online era, retailers need to counter the changing consumer buying behavior and expectations by deploying smart retail solutions in their outlets. Nowadays many of the shoppers want smart retail stores where they can experience end-to-end customer connection and receive high quality, personalized, advice, and assistance. They want a space where the displayed physical products are connected to the Internet. Smart retail solutions allow the configuration of services and products to be customized as per individual preferences, along with efficient, effective customer communications, and retention. 

Increasing popularity of multichannel retailing approach such as omnichannel retailing is expected to drive the growth of the smart retail market across the globe. Omnichannel retailing provides a flexible and seamless shopping experience to consumers by aligning and integrating different retail channels. It helps the retailers to capture more sales and increases brand awareness and loyalty. Growing adoption of Internet of Things (IoT) in the retail sector is further anticipated to boost the demand for smart retail globally. IoT helps retailers in improving customer experience, supply chain, and distribution channels. Numerous retailers have adopted IoT technology to connect with next-generation customers, advanced technologies, and tracking devices. Furthermore, the rising adoption of smartphones has increased the popularity of smart retail market across the globe. Worldwide sales of the smartphones had reached up to 1.46 billion devices by 2017. Smartphones can be used as a directory and catalog for store outlets, and can also be used as a direct means of payment for goods and services. Moreover, increasing investments in the retail sector will gain significant traction for smart retail market during the forecast period. The global retail market is expected to reach USD 31.88 trillion by 2023. However, privacy and data security of IoT devices and connectivity may hinder the global smart retail market growth in the coming years. 

Global Smart Retail Market

The smart retail market is segmented based on technology, application, and region. On the basis of technology, the market is segmented into ZigBee, Wi-Fi, Bluetooth Smart (BLE), LPWAN, and others. Among technologies, Bluetooth Smart (BLE) technology segment witnessed significant growth in the global smart retail market. Bluetooth Smart (BLE) is able to communicate with other existing Bluetooth devices with very low levels of battery consumption. This means various IoT-based devices such as healthcare devices, sports & fitness devices, keyboards and mice, wearable, along with actuators and small sensors that can operate on a single battery charge for a year or more. Applications of the smart retail solutions are smart payment system, robotics, analytics, indoor navigation, visual marketing, smart label, and others. The regional segmentation includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Among regions, Asia Pacific is expected to have the highest CAGR in the global smart retail market. Increasing adoption of the click-and-collect system has boosted the growth of the smart retail market in the Asia Pacific region. According to a recent study, 88% of retailers have planned to implement the click-and-collect system, i.e., order online and collect from the store by 2021.

Key players in the global smart retail market are Intel Corporation, IBM, Nvidia, Samsung Electronics, Microsoft Corporation, Google Inc., PTC Inc., Amazon, NXP Semiconductors, Cisco Systems, LG Display, and Huawei Investment & Holding, among others. 

Choose License Type

Request the coronavirus impact analysis across industries and markets

FrequentlyAsked Questions

Retailers may have advantages from digitization in the form of additional consumers and lower operating expenses, among other things. Employees at stores may find digitalization to be tremendously inspiring. As a result, digitization can aid in revenue growth. Recently, non-store commerce is expected to develop significantly. Digital payment modalities including electronic wallets, prepaid cards, credit cards, debit cards, and other digital platforms have been driving industry expansion in recent years. The shift in customer preference toward cashless transactions, as well as the corresponding rise in the acceptance of advanced payment solutions across retail shops, such as department stores, supermarkets, and specialty stores are all contributing to the smart retail market's growth.

According to the Zion Market Research report, the global smart retail market was worth about 21.9 (USD billion) in 2021 and is predicted to grow to around 72.9 (USD billion) by 2028, with a compound annual growth rate (CAGR) of around 22.8 percent.

North America holds the dominant share in the global smart retail market. This is primarily due to several hypermarkets, supermarkets, department stores, and other types of retail stores including Schnucks Markets, Inc. and Food City in the US have installed automatic storage, POS solutions, retrieval systems, electronic shelf labels (ESLs), and self-checkout systems. Additionally, the high spending power of the sector operators in the region is collectively contributing to the growth of the market.

Some of the leading players that are operating in the global smart retail market include Microsoft, NXP Semiconductors N.V., Cisco Systems, Inc., Intel Corporation, IBM, Amazon.com, Inc., Google Inc., Honeywell, NVIDIA Corporation, and PTC, Inc.

 

HappyClients

Office Address

Contact Us

Zion Market Research
Tel: +1 (844) 845-5245
USA/Canada Toll Free No.+1 (855) 465-4651

Asia Pacific Office

3rd Floor, Mrunal Paradise, Opp Maharaja Hotel, Pimple Gurav, Pune 411061, Maharashtra, India
Phone No 020-46277770

Contact #

US OFFICE NO +1 (844) 845-5245
US/CAN TOLL FREE +1 (855) 465-4651
Email: sales@zionmarketresearch.com

We Are On Social

Business Hours

Our support available to help you 24 hours a day, five days a week.

Monday - Friday: 9AM - 6PM

Saturday - Sunday: Closed