Internet of Things (IoT) In Retail Market Share, Size, Trends, Industry Analysis Report, By Component (Hardware, Platform, Services); By Technology; By Deployment (Cloud, On-premise); By Application; By Region, And Segment Forecasts, 2024 - 2032
- Published Date:Jan-2024
- Pages: 112
- Format: PDF
- Report ID: PM3590
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global Internet of Things (IoT) In Retail Market was valued at USD 54.16 billion in 2023 and is expected to grow at a CAGR of 28.20% during the forecast period. Adoption of IoT technology can help retailers increase efficiency, reduce costs, and improve the customer experience, ultimately leading to a competitive edge in the marketplace. IoT technology the use of RFID tags and smart shelves, can offer a significant competitive edge to retailers. RFID tags can be attached to products, and these tags can be scanned by sensors placed on the shelves or at other locations in the store. The data collected by these sensors can be used to track inventory levels in real-time and detect when items are running low. This information can then be used to automatically reorder products or alert store staff to restock the shelves. Smart shelves take this concept a step further by using weight sensors to determine when products are running low. The shelves can also be programmed to provide personalized product recommendations to customers based on their shopping history or preferences.
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In addition to these operational benefits, IoT technology can also be used to enhance the shopping experience for customers. For example, retailers can use location-based services to send targeted offers or promotions to customers' smartphones when they are in the store. They can also use IoT devices such as beacons to send personalized messages or alerts to customers as they move through the store. Moreover, adoption of IoT technology in the retail industry is being driven by several factors, including supply chain management, inventory management, store monitoring, and customer behaviour observation. By leveraging IoT devices and sensors, retailers can automate and optimize their operations, reduce costs, and improve the customer experience.
By leveraging IoT devices and sensors, retailers can gain real-time visibility into their supply chain, track inventory levels, monitor store premises for security purposes, and gather data on customer behaviour and preferences. Effective supply chain management is critical to the success of any retail operation. By using IoT-enabled sensors, retailers can track products throughout the supply chain, from the manufacturer to the distribution center to the retail store. This real-time visibility into the supply chain allows retailers to optimize their operations, improve inventory management, and reduce waste and inefficiencies.
By using sensors to track product movements and inventory levels, retailers can ensure that they always have the right products in stock, reducing out-of-stock situations and improving customer satisfaction. In addition to supply chain and inventory management, IoT technology can also be used to monitor store premises for security purposes. Retailers can use sensors to track foot traffic, monitor inventory levels, and detect any unusual behaviour, such as shoplifting or vandalism.
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Industry Dynamics
Growth Drivers
Connecting technologies in the retail industry is expected to drive Internet of Things (IoT) In Retail market growth over the forecast period. By leveraging these technologies, retailers can gain a competitive edge by improving the customer experience, optimizing their operations, and increasing efficiency. Connecting technologies like digital signage, beacons, price tickers, and on-shelf displays provide retailers with a wealth of data about customer behaviour and preferences during in-store or physical shopping. By using these technologies, retailers can gather data on factors such as customer foot traffic, product interactions, and purchase history, allowing them to personalize their offerings and improve the overall customer experience.
Digital signage, for example, can be used to display targeted promotions or product recommendations based on customer data. Beacons can be used to send personalized messages or alerts to customers' smartphones as they move through the store. Price tickers can be used to display real-time pricing information and promotions, while on-shelf displays can be used to highlight specific products and encourage customer engagement. By collecting data from these technologies, retailers can gain valuable insights into their customers' behaviour and preferences, allowing them to optimize their store layouts, product offerings, and marketing strategies. This data can also be used to improve supply chain management and inventory forecasting, reducing waste, and improving efficiency.
Report Segmentation
The market is primarily segmented based on component, technology, application, deployment, and region.
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By Component |
Technology |
By Application |
By Deployment |
By Region |
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Hardware segment held largest revenue share in 2022
Hardware segment accounted for the largest share. Sensors and RFID tags are increasingly being used in the retail industry by retailers to track inventory, monitor store premises, and gather data on customer behaviour and preferences. As the prices of IoT sensors continue to decrease and the number of connected devices in retail outlets continues to rise, the adoption of these technologies is expected to accelerate further. Declining prices of the IoT sensors & increase in the number of connected devices in the specialty retail outlets are driving the adoption of these technologies in the industry. As retailers seek to improve their operations, reduce costs, and enhance the customer experience, the adoption of sensors and RFID tags is expected to accelerate further.
Services segment registered steady growth over the study period. IoT product and solution providers are offering a range of professional services to retailers, including repair and maintenance, training and helpdesk support, and installation and deployment. These services are becoming increasingly important as retailers seek to adopt IoT technologies and optimize their operations. In addition, retailers often require training and helpdesk support to ensure that their staff can use the new IoT technologies effectively.
IoT solution providers can offer training programs and helpdesk support to ensure that retailers can fully utilize the new technologies and maximize their benefits. Furthermore, repair and maintenance services are essential to ensure that the IoT systems are functioning properly and to minimize downtime in case of any issues. IoT solution providers can offer repair and maintenance services to ensure that the systems are functioning optimally and to minimize any disruption to the retailer's operations.
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BLE segment held largest share in the global market
In fiscal year 2022, the BLE segment dominated the market. Segment’s growth is driven by the increasing demand for location-based services and personalized marketing. In addition, the low cost and easy installation of BLE devices make them an attractive option for retailers who want to implement IoT technologies without a significant upfront investment. BLE technology can also be used for store check-in and intelligent interaction with customers, making it easier for retailers to implement mobile payments, location-based marketing, and personalized offers. For example, retailers can use BLE beacons to send personalized offers to customers' smartphones when they are in the store, based on their location and purchase history.
NFC technology represented steady growth. The increased coverage of NFC-based transactions is expected to drive the growth of mobile payments in the retail industry, as it makes it easier and more convenient for customers to pay for purchases. The use of NFC-based transactions is also expected to improve the overall customer experience in retail stores, as it allows for faster and more efficient checkout processes.
North America accounted for the largest share in 2022
In the fiscal year 2022, North America garnered the largest revenue share. Region’s growth is due to the early adoption of new innovative technologies. Rise of e-commerce has increased competition in the retail industry, leading department stores to invest in new technologies and innovations to stay competitive. This has led to the development of new in-store experiences, such as interactive displays and augmented reality, as well as the adoption of new technologies such as RFID and IoT to improve operations and enhance the customer experience.
Department stores have also been able to leverage e-commerce technology to improve their operations and enhance the customer experience. For example, many department stores have implemented online ordering and pickup options, allowing customers to order products online and pick them up at the store. This has improved the convenience of shopping for customers and has also helped to increase sales for department stores.
Asia Pacific registered robust growth over the study period. Increasing adoption of location-based services and real-time systems, the decline in the price of sensors, and the convergence of technologies are all factors that are driving the growth of IoT technology in the region. As businesses continue to recognize the benefits of IoT solutions, we can expect to see continued growth in the market for IoT technology across the region. Location-based services, which use GPS and other location technologies to provide information and services based on a user's location, are becoming increasingly popular in many industries, including retail, healthcare, and transportation.
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Competitive Insight
The global players include Arm Limited, Cisco Systems, Google, IBM Corporation, Intel Corporation, Losant IoT, Microsoft Corp., NXP Semiconductors, PTC Inc., RetailNext, SAP, Softweb Solutions, Verizon Communications, and Zebra Technologies.
Recent Developments
- In January 2023, SATO Holdings partnered with the Energous Corp. to develop customized solutions to integrate IoT services with the company’s 1W Watt Up PowerBridge transmitters for store management.
- In December 2022, Google Cloud partnered with the KORE to help enterprises to create meaningful IT services and to extract benefits of IoT technology in retail sector.
Internet of Things (IoT) In Retail Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 69.4 billion |
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Revenue forecast in 2032 |
USD 507.32 billion |
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CAGR |
28.20% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019– 2022 |
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Forecast period |
2024– 2032 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2024 to 2032 |
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Segments covered |
By Component, By Technology, By Application, By Deployment, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key companies |
Arm Limited, Cisco Systems, Google, IBM Corporation, Impinj,, Intel Corporation, Losant IoT, Microsoft Corp., NXP Semiconductors, PTC Inc., RetailNext, SAP, Softweb Solutions, Verizon Communications, and Zebra Technologies.. |
FAQ's
The Internet Of Things (IoT) In Retail Market report covering key are component, technology, application, deployment, and region.
Internet Of Things (IoT) In Retail Market Size Worth $ 507.32 Billion By 2032.
The global Internet of Things (IoT) In Retail Market expected to grow at a CAGR of 28.2% during the forecast period.
North America is Internet Of Things (IoT) In Retail Market.
key driving factors in Internet Of Things (IoT) In Retail Market are Increasing adoption of smart Payment solution and digital operation in retail industry.
