Smart Retail Industry Overview
The global smart retail market size was valued at USD 19,497.0 million in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 27.7% from 2021 to 2028. The growing incorporation of technologies such as Artificial Intelligence (AI), Virtual Reality (VR), Augmented Reality (AR), and Internet of Thing (IoT) to enhance consumers’ shopping experience, facilitate accurate inventory management, and improve store operations are one of the significant trends escalating to market growth. AR is particularly transforming the retail industry by allowing brands to interact with consumers through their mobile devices. The adoption of AR in marketing helps in building consumer relationships, enhancing the customer experience, and subsequently driving sales. For instance, Airwalk, a shoe brand, uses AR and geolocation to create a virtual pop-up shop, thereby promoting the relaunch of Airwalk Jim. A significant increase in the number of retail stores across various geographies is also driving the demand for advanced technologies.
Smart retail is a cost-effective and profit-making process for consumers and retailers due to improved supply chain management. However, the impact of COVID-19 has been adverse on the supply chain of smart retail, hampering the movement of goods due to logistics and travel restrictions. Deliveries have been deferred for retailers as well as consumers. This effect on the supply chain stays temporary as things are gradually getting back to normal with safety measures. In the long term, a smart retail supply chain will play a vital role. The smart retailing industry, which had registered a healthy CAGR even before the pandemic, has grown steeply since the COVID-19 outburst. As the pandemic situation is uncertain and cannot be anticipated for the coming months, safety measures levied by regulatory bodies are varying rapidly. Contactless operations and social distancing are enabling consumers to access substitute retailing solutions; this is where smart retail plays a vital role in daily life.
Gather more insights about the market drivers, restraints and growth of the Global Smart Retail market
Many retailers, especially SMEs, lack the commercial resources to finance advanced business platforms. There is a rising settlement in the industry that stores must continue to digitize with IoT devices and focus on offering better shopping experiences to stay competitive and attract customers back in stores. Apart from the pandemic situation, smart retail advancements are also assisting the industry in gaining higher demand, for instance, buying finished goods through the voice process. This AI-based smart retail will ease the buying process and increase the adoption rate. Companies are now rising with situations and changing operations by adopting digital technology and smart retailing services. Market players from small to mega-vendors are realizing the importance of smart retailing and implementing digital solutions for a better customer experience. Apart from big smart retailing players such as Alibaba and Amazon, smaller providers also plan to tap into this opportunity. For instance, mobile manufacturer Vivo launched Vivo Smart Retail to help retailers see the demand for smartphones using its smart retail network in India. Moreover, Amazon and IKEA are using AR-Kit for visualizing their furniture at the user’s desired location.
In recent years, digital payment modes, such as debit cards, credit cards, prepaid cards, electronic wallets, and other digital platforms, are expected to witness significant traction over the forecast period. The shifting consumer preference to cashless transactions and the subsequent increase in the adoption of digital payment solutions across retail stores, including specialty stores, supermarkets, and departmental stores, are particularly expected to drive the growth of the smart retail market over the forecast period.
Digitalization can benefit retailers in the form of new customers, and reduced operational costs, among other benefits. Digitalization can also be highly motivating for the retailers’ employees. Subsequently, digitalization can help in augmenting revenues. Non-store retailing witnessed significant growth in 2020. Advances in technology, the advent of innovative sensors, improved connectivity, and availability of seamless communication solutions are expected to help online retail stores in contributing significantly to the growth of the market over the forecast period.
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Smart Retail Industry Segmentation
Grand View Research has segmented the global smart retail market based on solution, application, and region:
Smart Retail Solution Outlook (Revenue, USD Million, 2018 - 2028)
- Hardware
- Software
Smart Retail Application Outlook (Revenue, USD Million, 2018 - 2028)
- Visual Marketing
- Smart Label
- Smart Payment System
- Intelligent System
- Others (Robotics, analytics)
Smart Retail Regional Outlook (Revenue, USD Million, 2018 - 2028)
- North America
- U.S.
- Canada
- Europe
- U.K.
- Germany
- Asia Pacific
- China
- India
- Japan
- Latin America
- Brazil
- Mexico
- Middle East and Africa
Key Companies profiled:
Some prominent players in the global Smart Retail Industry include
- Amazon, Inc.
- NCR Corporation
- PAX Global Technology Limited
- Ingenico, Fiserv, Inc.
- Google LLC
- Honeywell International Inc.
- Huawei Technologies Co., Ltd.
- LG Display Co., Ltd.
- Intel Corporation
- Samsung Electronics
- Verifone Systems
- IBM Corporation
Order a free sample PDF of the Smart Retail Market Intelligence Study, published by Grand View Research.
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