Smart Retail Industry Overview
The global smart retail market size is expected to reach USD 134,347.9 million by 2028, registering a CAGR of 27.7% from 2021 to 2028, according to a study conducted by Grand View Research, Inc. The growth is attributed to the Increasing adoption of latest technologies, such as Virtual Reality (VR), Augmented Reality (AR), Artificial Intelligence (AI), and Internet of Thing (IoT), to enhance in-store shopping experience, increasing investments in retail industry, and growing preference for cashless transactions. Moreover, retailers are increasingly adopting analytical solutions to ensure a competitive edge over their competitors by improving business operations and better understanding their customers. The growing adoption of analytics, which can potentially augment profitability across physical and online stores, is anticipated to drive the growth of the smart retail market over the forecast period. The potential use of robots for providing in-store customer service is also expected to contribute to the growth of the market.
The COVID-19 outbreak has significantly affected businesses such as conventional retail, travel, and manufacturing. However, it has opened new opportunities for healthcare, food delivery, e-commerce, smart retail, and online gaming. On the other hand, the supply chains are in jeopardy and product shortages are becoming evident due to the lockdowns imposed in various parts of the world. As consumers begin to lose trust, companies are finding new ways to cater to the changing customer expectations. Demand for smart retail is experiencing growth owing to lockdowns and social distancing rules by government bodies. Businesses that were earlier using offline retailing are now turning to digital operations. Though majority business sectors globally have experienced the negative effects of the pandemic; technologies such as smart retail can bring businesses back on track as it provides better safety and easy purchase for consumers.
Smart Retail Market Segmentation
Grand View Research has segmented the global smart retail market based on solution, application, and region:
Based on the Solution Insights, the market is segmented into Hardware and Software.
- The hardware segment dominated the market in 2020 and accounted for more than 65% of the global revenue.
- The growing deployment of Augmented Reality (AR) and Virtual Reality (VR) devices, point of sale (POS) systems, Bluetooth beacons, and Radio-frequency identification (RFID) systems to offer a seamless in-store shopping experience to customers is augmenting the growth of the segment.
- The software segment is projected to expand at the highest CAGR of 29.9% over the forecast period.
- Increasing the adoption of analytics software by retailers across the world, to understand specific end-users needs and behavior to improve customer engagement and the shopping experience is one of the crucial factors stimulating the growth of the segment.
Based on the Application Insights, the market is segmented into Visual Marketing, Smart Label, Smart Payment System, Intelligent System, and Others (Robotics, analytics).
- The visual marketing segment dominated the market in 2020 and accounted for more than 25% of the global revenue.
- The growth of the e-commerce industry has also opened several opportunities for brick-and-mortar stores. Such stores are utilizing visual marketing for their products and offerings in the form of product snapshots and videos to engage customers and gain traction on e-commerce websites.
- The smart payment system segment is projected to witness considerable growth over the forecast period. The growth can be attributed to the initiatives being pursued to promote digital payments and the growing need to enhance the customer experience.
Smart Retail Regional Outlook
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
Presently, the market players are pursuing both organic and inorganic growth strategies to increase their market share. For instance, NCR Corporation announced Horizon, a data-driven self-checkout consultancy and web-based analytics system for the retail sector. This consultancy analyzes data generated at self-checkout to provide actionable insights to retailers to improve store operation and checkout experience for customers. Similarly, Walmart Investments Cooperative U.A. invested USD 37.7 million in Wal-Mart India Pvt. Ltd to expand its presence in the Indian market.
Some of the prominent players operating in the global smart retail market are:
- com, 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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