Which service segment accounted for the highest IoT in retail market share?

Internet Of Things In Retail Industry Overview

The global internet of things in retail market size is expected to reach USD 182.04 billion by 2028, registering a CAGR of 26.0% over the forecast period, according to a new report by Grand View Research, Inc. The growth can be attributed to the adoption of connected technologies by retailers against e-commerce sites. The reducing cost of hardware and IoT sensors, demand for a seamless shopping experience, and growing acceptance of smart payment are the factors expected to further fuel the growth of the internet of things (IoT) in retail market. 

The tectonic shift in optimizing retail operations is triggering IoT adoption. Retailers are experimenting with IoT, which allows them to determine the purchase history and customer’s profile by synchronizing with wearable devices. The adoption of common standards and the proliferation of connected devices are augmenting the growth of IoT-enabled capabilities across the retail industry. Moreover, the technology provides endless capabilities and improvements in the retail sector and enables retailers to explore customer behavior, optimize productivity, and create new business models.

Internet Of Things In Retail Market Segmentation

Grand View Research has segmented the global internet of things in retail market based on solution, service, technology, and region:

Based on the Service Insights, the market is segmented into Professional Services, and Managed Services.

• The professional services segment accounted for the highest market share of over 55% in 2020. Professional services include consulting, application management, and infrastructure management services. The high adoption of IoT in the retail sector has increased the demand for infrastructure and application management services.
• The payment-as-a-service solution offers retailers with terminal management services and gateway solutions that enable efficient routing of transactions, multichannel acceptance and processing, and payment value-added services such as mobile banking, POS terminals, and payment gateway.

Based on the Solution Insights, the market is segmented into Hardware, and Software.

• The hardware segment accounted for the highest revenue share of over 60% in 2020. The surge in the number of interconnected devices in retail outlets and the decreasing prices of IoT sensors are expected to propel the segment growth.
• The increasing adoption of retail analytics is expected to augment the software segment growth over the next seven years. The proliferation of smartphones and the use of mobile applications are driving the retail software segment growth.

Based on the Technology Insights, the market is segmented into Bluetooth Low Energy, Near Field Communication, ZigBee, and Others.

• The near field communication(NFC) segment accounted for a prominent market share of 30% in 2020. An NFC combines contactless smart card technology with mobile devices and allows streamlined payment transactions compared to traditional cash and card payment methods. 
• The emergence of mobile wallets has transformed the payment methods in the retail sector, providing a boost to NFC adoption
• Initially, Bluetooth Low Energy (BLE) gained notable traction as it allowed the designing of single-mode chips, which can be used in low-cost battery-powered devices. The technology can affect several aspects of the retail customer experience.
• Furthermore, with regards to payments, the technology makes store check-in and intelligent interaction much easier to implement.

Internet Of Things (IoT) In Retail Regional Outlook

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa (MEA)

Key Companies Profile & Market Share Insights

The market is fragmented with the presence and operation of many regional and international players. IBM Corporation; Impinj Inc.; Google LLC; Microsoft Corporation; and PTC Inc. are some of the leading players in the global IoT in the retail space. These companies are actively working on developing new solutions for the retail industry. Recently, in October 2020, Losant IoT partnered with Vanteon Wireless Solutions to develop an edge-to-cloud solution for multiple connected devices. In 2018, IBM Corporation announced the expansion of its Watson IoT business in Europe, providing IoT solutions for European clients such as Cooperativa Sole, an Italy-based agriculture product company.

Some of the prominent players operating in the internet of things in retail market are:

• Arm Limited
• Cisco Systems Inc.
• Google LLC
• IBM Corporation
• Impinj, Inc.
• Intel Corporation
• Losant IoT
• Microsoft Corporation
• NXP Semiconductors

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