SAN FRANCISCO, June 7, 2021 /PRNewswire/ -- 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.
Key Insights & Findings:
The software segment is expected to register the fastest CAGR of over 27% from 2021 to 2028. The growing emphasis on analytics software such as video analytics is expected to propel the growth of the segment
Beacons are gaining significant traction owing to their high adoption by retailers to increase customer engagement, thereby increasing loyalty and sales. As a result, the beacons segment is projected to register a strong growth rate over the forecast period
The growing demand for Payment as a Service (PaaS) and cloud-based solutions for POS terminals is expected to provide high growth opportunities for managed services
Due to the growing importance of omnichannel retailing to survive the intense competition, several retailers from the Asia Pacific region are focusing on strengthening and adding value to their digital platforms to serve the needs of local customers
"Analysis of customer data gathered from wearable devices will open up more opportunities."
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.
IoT devices also help in the back-end operations of retailers, such as planning effective logistics operations. The IoT-connected sensors, GPS trackers, and RFID tags track the movement of goods in real-time, providing seamless supply chain management. This also prevents spoilage, damage, or loss of goods during transportation, mainly beneficial for perishable food items. The real-time information of weather, traffic conditions, and speed of vehicles enable intelligent logistics operation. Moreover, factors such as effective inventory management, reduced human errors, minimized overstocking and shortage of products, and control over storage conditions are driving the demand for IoT devices in retail warehousing.
"The use of connected devices will help in developing an enhanced ecosystem, enabling retailers to improve the shopping experience of customers."
IoT offers retailers an opportunity to develop an improved ecosystem that connects the digital and physical worlds. Retailers are utilizing the advantage of the wide range of connected products by adopting an integration platform. Moreover, smart devices reduce the buying time of customers and provide a seamless shopping experience. Retailers are slowly evolving to explore advanced ways to connect with smart devices such as smartphones and smartwatches for enhancing the in-store experience.
Europe is the third-largest adopter of IoT, followed by North America and the Asia Pacific. Germany, the U.K., France, and Italy are at the forefront of the adoption of advanced retail technologies. The presence of multinational retail brands such as H&M and ZARA has further fueled the demand for IoT solutions in retail stores. These companies are investing in digital technologies to meet the continuously changing customer demand. Recently, H&M announced that the RFID technology would be implemented in more stores in the coming years. The company has already implemented the Azure IoT platform in its flagship stores.
Grand View Research has segmented the global internet of things in retail market based on solution, service, technology, and region:
Internet Of Things (IoT) In Retail Solution Outlook (Revenue, USD Million, 2017 - 2028)
Internet Of Things (IoT) In Retail Service Outlook (Revenue, USD Million, 2017 - 2028)
Internet Of Things (IoT) In Retail Technology Outlook (Revenue, USD Million, 2017 - 2028)
Bluetooth Low Energy
Near Field Communication
Internet Of Things (IoT) In Retail Regional Outlook (Revenue, USD Million, 2017 - 2028)
Middle East & Africa
List of Key Players in the Internet Of Things In Retail Market
Cisco Systems Inc.
Softweb Solutions Inc.
Verizon Communications Inc.
Zebra Technologies Corporation
Check out more topics related to IoT and its applications:
5G IoT Market – Global 5G Internet of Things (IoT) market is expected to witness significant growth from 2021 to 2028. The growth can be attributed to the strong emphasis enterprises are putting on implementing Industry 4.0 as part of the efforts to increase the efficiency of the industrial sector.
Industrial Internet Of Things Market – Global Industrial Internet of Things market size was valued at USD 161.14 billion in 2018 and is anticipated to register a CAGR of 29.4% during the forecast period.
Internet of Things Market – Global Internet of Things (IoT) market size was valued at USD 605.69 billion in 2014.Technological proliferation and increasing investments are expected to drive global market over the next seven years.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.