Smart Retail Market (Updated Version Available)

Key Market Overview:

Smart retail market is anticipated to reach around USD 219.9 Billion by 2030 from a value of USD 23.7 Billion in 2022, and the market is projected to register a CAGR of 27.5% from 2022 to 2030.

Smart retail is referred to an approach that uses modern technology such as the Internet of Things (IoT), artificial intelligence, and cloud computing. This approach enables innovation by introducing technologies to improve the consumer experience in terms of rapid, safer, and smarter shopping. Further, the results include business optimization via decentralization and machine efficiency. The large adoption of such approach has resulted in making a major impact on both shoppers and workers. Thus, the core idea of smart retail is to offer a personalized experience to consumers that results in customer satisfaction, further increasing the chances of store visits in the future.

The retail network has started to adopt the concepts of smart retail in terms of mobile applications, smart mobile wallets, inventory management, and others. The major features of this high introduction of intelligent processes result in transparency, business optimization, and decentralization of the retail chains. Thus, businesses utilize such concepts to enhance the customer experience, improve self-adaptability, and reduce the chances of business disruptions via sustainable production.

The rising adoption of smart retail aspects especially AR and VR is anticipated to bolster the market presence during the forecast period. For instance, one of the renowned brands, Nike, utilizes augmented reality and virtual reality within their physical stores. Such innovation offers customers multiple features such as scanning the information related to shoes or clothing, trying the product through the VR avatar of the customer, and recommending further customizations into the products. Thus, such technology integration, especially in marketing, aids retail businesses to build customer relationships, simplify store operations, and further driving business sales.

Report Attributes	Report Details
Study Timeline	2018-2030
Market Size in 2030 (USD Billion)	219.9 Billion
CAGR (2022-2030)	27.5%
By Solution	Hardware, and Software
By System	Intelligent Vending Machines, Digital Signage Solutions, Smart Payment Systems, Robotics, POS Solutions, Augmented Reality and Virtual Reality Solutions, Smart Carts
By Application	Foot-Traffic Monitoring, Smart Label, Visual Marketing, Brand Protection, Inventory Management, Loyalty Management and Payment, Predictive Equipment Maintenance, and Smart Fitting Rooms
By Retail Offering	Apparel and Accessories, Hardlines and Leisure Goods, Fast-moving Consumer Goods, and Others
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey, Switzerland] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	Amazon.com, Inc., IBM Corporation, 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 System

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Market Dynamics:

Driver:

The high adoption of automation and robotics especially in retail chains boosts the market growth in terms of the augmented demand for big analytics, blockchain, machine learning, and artificial intelligence by retailers. Additionally, the growing customer expectations for enhanced product innovations and customized offerings also fuel the usage of smart technologies. Thus, the rising adoption of emerging technologies such as in-store navigation, customer engagement, cloud-connected key zones, and integration of sensors for theft prevention are the major drivers that propel the market statistics during the forecast period.

Restraint:

The adoption of smart technologies involves the integration of devices such as Bluetooth, magnetic positions or sensors, augmented reality, and others that require high maintenance costs. Thus, such expensive costs result in hampering the market growth during the forecast period due to the large presence of medium business enterprises as compared to the high-end competitors. Furthermore, the risks of data theft and the lack of skilled technical professionals to maintain high-end computing systems also restrict the market growth.

Opportunity:

The scope of introducing advancements in terms of internet connectivity among retail chains and the development of innovative sensors at affordable costs are anticipated to contribute to the market growth. Moreover, the high expenditures on easy integration of AI and IoT in the retail network are projected to offer lucrative opportunities for market growth in terms of the development of smart shelves with real-time inventory information.

COVID-19 Impact:-

The mobile POS systems market witnessed a major decline during the initial phases of the COVID-19 pandemic due to government lockdown impositions and reduced manufacturing activities. The closure of restaurants and retail chains resulted in the reduced usage of mPOS solutions for sales and financial management. Furthermore, the situation started to shift in the favor of the market with the resumption of the hospitality sectors post COVID-19. Thus, the overall market growth witnessed an enhanced demand due to raised limits for contactless payments and optimized cashless transactions, especially in such sectors.

Smart retail Market Segmentation:



By Solution

The solution segment is bifurcated into hardware and software. The hardware solution contributed over 64.6% of the market share in 2022. The presence of hardware solutions such as interactive kiosk solutions, point-of-sale (POS) systems, digital media signage, and others are major factors that bolster the market demand for hardware smart retail solutions. Thus, the increased dependence on such solutions for seamless in-store customer experience is anticipated to facilitate the high adoption of hardware solutions among retail networks. Furthermore, the software solution also supports the growth of the smart retail market statistics in terms of the fastest CAGR growth of over 30.1%. This solution allows retailers to include smart technologies such as IoT, iBeacons, Mobile POS, and others into existing smart devices. Thus, such software solutions aid in emphasizing consumer preference with the help of analytics in smart retailing.

By System

The system segment is categorized into intelligent vending machines, digital signage solutions, POS solutions, smart payment systems, augmented reality and virtual reality solutions, smart carts, and robotics. The POS solution systems contributed the largest revenue share to the market growth during the projected period. The integration of mPOS hardware results in augmented facilitation in terms of faster checkout systems, a user-friendly interface, and robust security. Thus, retailers utilize such POS solution systems to improve staff performance, effective tracking of inventory, and optimized stock accuracy. Moreover, smart payment systems are also expected to support market growth in terms of volume. The concept of smart payments revolves around payment transactions via IoT devices that maintain a certain level of autonomy in terms of data. Thus, the smart payments system is estimated to support the market growth due to the convenience, on-time payment of fees, and minimize risks of data loss or theft.

By Application

The application segment is divided into foot-traffic monitoring, inventory management, smart label, visual marketing, loyalty management and payment, brand protection, predictive equipment maintenance, and smart fitting rooms. Visual marketing is expected to comprise a major smart retail market share contribution of over 27.6%. The rising consumer awareness of e-commerce platforms has resulted in an augmented dependence on visual marketing. Such marketing aids in conveying the core message about company values, portfolio information, and other crucial aspects. Thus, the growing influence especially of social media platforms shapes consumer perspectives via virtual marketing in the favor of advertised products. Also, inventory management is largely adopted to reduce the risks associated with overselling, and avoiding stockouts which result in organized warehouses of the retail businesses.

By Retail Offering

The end user is segmented into entertainment, healthcare, restaurant, and retail. The restaurants contributed over 55.2% of revenue share to the market growth in 2022. Multiple small, medium and large restaurants are consistently shifting towards digitization of their business operations. This adoption of mPOS solutions aid in optimizing the processing and ordering operations by providing flexible and scalable payment options. Thus, the high adoption of mPOS by restaurants for facilitating connectivity and resource usability bolsters market growth. Furthermore, retail businesses are also expected to witness significant growth during the forecast period. This fosters an efficient business model adoption of transaction processing through secure and better accounting within the retail chains of business.

By Region

The regional segment comprises of Europe, Asia Pacific, North America, Latin America, the Middle East, and Africa. In the context of the region, North America is expected to increase the market trends during the projected period. The augmented integration of smart technologies such as intelligent dressing rooms, shopping guide robots, and others supports the market presence in the North American region. Additionally, the favorable consumer awareness and business adoption of technological innovations such as on-premise self-checkout systems, smart shelves, and carts, automatic storage and retrieval coupled with personalized shopping further augment the market statistics in this region.



Asia Pacific is also projected to provide creative growth opportunities in terms of volume and value. The surged emphasis on research and developments of robotics, especially in Japan and China is anticipated to propel the market growth in the region. Furthermore, the growing expenditures on smart retail concepts by established firms such as Amazon, Vivo, IKEA, and others are also projected to explore the untapped areas of the market presence across the Asia Pacific region.

Smart Retails Market Competitive Landscape:

The market research report published on the smart retail market emphasized the in-detailed analysis of crucial indicators utilized to assess the business value chain of leading industry players. Furthermore, multiple aspects are also covered within the report to understand market trends, product launches, collaborations, product developments, and company profiling. Thus, stakeholders gain an opportunity to understand the strategies primarily adopted by the major market players. Following are the prime industry conglomerates that cover the current market presence–

• Amazon.com, Inc.
• IBM Corporation
• 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 System

Recent Developments

• In June 2019, NCR Corporation announced a model called Horizon. This model is referred to as the data-driven web-based analytics system and self-checkout consultancy, especially for the retail sector. Additionally, this consultancy analyzes the data generated during the self-checkouts and provides reliable insights to business retailers for improved in-store operation and overall checkout experience for the customers.

• In May 2020, the Chinese smartphone brand named Vivo introduced a new model that aids offline partners or product retailers. The model called \"Vivo Smart Retail\" aims to leverage the retail network across the globe that aids in addressing the demand for smartphones. This model is also anticipated to help Vivo retail partners to connect with consumers through e-store, SMS, and e-commerce pages.