Global Internet Of Things (IoT) In Retail Market Size By Component (Hardware, Platform),By Technology (Bluetooth Low Energy, Near Field Communication), By Application (Operations Management, Customer Management), By Deployment (On-Premise, Cloud), By Geographic Scope And Forecast

Internet Of Things (IoT) In Retail Market Size And Forecast

Internet Of Things (IoT) In Retail Market size was valued at USD 19.8 Billion in 2022 and is projected to reach USD 78.8 Billion by 2030, growing at a CAGR of 18.6% from 2023 to 2030.

This growth can be linked to the retail sector’s incorporation of in-store and internet activities. For example, in January 2023, Google Cloud released four upgraded and new technologies to help merchants improve their in-store shelf-checking operations as well as their e-commerce sites. Furthermore, the adoption of self-checkout automation in shops allows consumers to finish their transactions quickly and conveniently, which is likely to fuel the Internet of Things in retail market development throughout the forecast period.

Global Internet Of Things (IoT) In Retail Market Definition

The integration of Internet-connected devices and sensors with many parts of the retail business is referred to as the Internet of Things (IoT) in retail. It entails the use of smart, connected gadgets to collect data, automate operations, and improve both the consumer and retailer experience. Physical things like shelves, products, shopping carts, point-of-sale (POS) systems, and even wearable gadgets are embedded with sensors, RFID tags, or other embedded technology in a retail IoT environment. These devices capture and broadcast data via the Internet, allowing for real-time retail monitoring, analysis, and control.

The primary goal of using IoT in retail is to enhance efficiency and productivity while also providing a personalized and seamless shopping experience. IoT sensors can monitor inventory levels in real-time and alert store management when things need to be refilled. This aids in inventory optimization, reducing out-of-stock situations, and streamlining the supply chain. IoT-enabled shelves can detect when items are running low or missing, sending signals to shop personnel to refill or rearrange the shelves. Customers can also receive personalized product suggestions or promotions via digital displays. Retailers can simplify operations, cut costs, get important information, and create personalized experiences that fit the ever-changing wants of customers by using the potential of IoT.

Global Internet Of Things (IoT) In Retail Market Overview

IoT technology gives businesses a competitive advantage by using Radio-Frequency Identification (RFID) tags and smart shelves, which identify low inventory and track the movement of related items. The use of IoT technology allows businesses to better manage in-store operations and give a better shopping experience to their consumers. Furthermore, considerations such as supply chain management, inventory management, effective shop premise monitoring, and consumer behavior observation are increasing demand for IoT in the retail business.

Furthermore, key components of IoT adoption and implementation among retailers include automating and optimizing supply chain operations. Connecting technologies such as digital signage, beacons, price tickers, and on-shelf displays enable a brand to access a large amount of data based on customer or consumer activity during in-store or physical shopping, which is expected to drive market growth over the forecast period.

The advancement of Artificial Intelligence (AI) and Augmented Reality (AR) in retail establishments has resulted in exponential growth in the retail sector. Retailers utilize AI to study past customers’ purchasing histories, determine the target group, and provide customized product adverts to their consumers. Furthermore, AI has demonstrated its traditional aptitude for conversational commerce, as merchants integrate chatbots with messaging apps, allowing people to communicate with their businesses. This, in turn, is likely to fuel market growth even more.

Connectivity technology such as digital signage, point-of-sale displays, beacons, and pricing displays enable a brand to access vast amounts of data on customer behavior while in-store shopping. However, data security and privacy issues, as well as the expensive implementation and maintenance costs of IoT devices, are limiting worldwide industry growth. On the contrary, the lower cost of connected devices and IoT adoption among SMEs are likely to generate attractive chances for worldwide IoT expansion in the retail business.

Global Internet Of Things (IoT) In Retail Market Segmentation Analysis

The Global Internet Of Things (IoT) In Retail Market is Segmented on the basis of Component, Technology, Application, Deployment, and Geography.

Internet Of Things (IoT) In Retail Market, By Component

• Hardware
• Platform
• Services

Based on Component, The market is segmented into Hardware, Platform, and Services. The hardware component category had the highest revenue share in 2022, owing to retailers’ extensive usage of sensors and RFID tags in the business. Furthermore, the dropping prices of IoT sensors and an increase in the number of connected devices in retail outlets are likely to fuel category growth. Furthermore, RFID tags enable real-time sight of inventory for automatic replenishment, which benefits in satisfying customer needs and operational consistency. The increasing RFID ecosystems, along with price reductions, enable item-level goods tracking, which is likely to fuel segment expansion during the projection period.

Internet Of Things (IoT) In Retail Market, By Technology

• Bluetooth Low Energy
• Near Field Communication
• ZigBee
• Others

Based on Technology, The market is segmented into Bluetooth Low Energy, Near Field Communication, ZigBee, and Others. Over the projected period, the Bluetooth Low Energy (BLE) technology category is predicted to develop at the quickest CAGR. This is owing mostly to the technology’s cheap cost and power solution. BLE devices may run for a lengthy amount of time on tiny batteries, making them excellent for usage in retail contexts where a large number of devices are required. Furthermore, in terms of payments, the technology simplifies shop check-in and intelligent engagement, which is likely to boost the segment’s growth throughout the projection period.

Internet Of Things (IoT) In Retail Market, By Application

• Operations Management
• Customer Management
• Asset Management
• Advertising and Marketing
• Others

Based on Application, The market is segmented into Operations Management, Customer Management, Asset Management, Advertising and Marketing, and Others. Over the projection period, the customer management segment is expected to develop at the fastest CAGR. Smart vending machines, smart shelving, queue management, and automated checkout are sub-segments of this market. Customer management solutions help merchants to provide their consumers with a customized, personalized, and engaging experience, which is driving category growth. Furthermore, IoT devices and sensors give merchants a plethora of data about consumer purchasing behavior and preferences, which can be utilized to improve customer engagement tactics in a variety of ways, including customer segmentation, feedback, and customization. This, in turn, is likely to fuel category growth even further.

Internet Of Things (IoT) In Retail Market, By Deployment

• On-premise
• Cloud

Based on Deployment, the market is segmented into On-premise and Cloud. The on-premise deployment category captured a significant share of the market in 2022, and this trend is likely to continue throughout the forecast period. The benefits provided to merchants, including control over data protection and privacy, dependability, cost savings, and customization choices, have contributed to the segment’s rapid rise. Furthermore, for merchants with large-scale IoT installations, on-premise implementation is less expensive than cloud-based solutions. Because data processing and storage are conducted locally, merchants may avoid pricey data fees and other cloud-based expenditures, which is boosting category growth even further.

Internet Of Things (IoT) In Retail Market, By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

On the basis of Geography, the Global Internet Of Things (IoT) In Retail Market is classified into North America, Europe, Asia Pacific, Latin America, the Middle East and Africa. In 2022, North America held the largest market share. This is due to the region’s expansion of e-commerce, which has allowed department shops to succeed in their commercial operations. The presence of significant firms in the region with strong R&D skills, such as IBM Corporation, Google LLC, Microsoft Corporation, Intel Corporation, and PTC Inc., is also helping its success.

In December 2022, Google Cloud, a division of Google LLC, teamed with KORE, a leading provider of IoT solutions, to assist organizations in developing powerful IoT solutions and reaping the benefits of IoT technology. Over the projection period, Asia Pacific is predicted to emerge as the dominant region, with China being the leading adopter of the Internet of Things in retail. Due to increased retail sector investments, India has great development potential, which is likely to contribute to market growth as well.

Key Players

The “Global Internet Of Things (IoT) In Retail Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are IBM Corporation, Arm Limited, Intel Corporation, Cisco Systems Inc., NXP Semiconductors, Microsoft Corporation, Google LLC, Impinj, Inc., Losant IoT, and PTC Inc.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In January 2023, SATO Holdings Corporation, a leading provider of labelling and auto-ID systems, has joined forces with Energous Corporation, a leading manufacturer of wireless power networks. This collaboration is intended to result in the development of unique solutions that combine IoT technology with Energous’ 1W WattUp PowerBridge transmitters for sophisticated smart store solutions.
• In November 2022, Microsoft Corporation has released the Microsoft Supply Chain Platform, which is designed to help businesses make the most of their supply chain data domain investments. This would be supported by the Microsoft ecosystem, which includes, among other things, Microsoft Cloud, Azure, and Dynamic 365.

Ace Matrix Analysis

The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators. 

Market Attractiveness

The image of market attractiveness provided would further help to get information about the region that is majorly leading in the Internet Of Things (IoT) In Retail Market. We cover the major impacting factors that are responsible for driving the industry growth in the given region.

Porter’s Five Forces

The image provided would further help to get information about Porter’s five forces framework providing a blueprint for understanding the behavior of competitors and a player’s strategic positioning in the respective industry. Porter’s five forces model can be used to assess the competitive landscape in the Global Internet Of Things (IoT) In Retail Market gauge the attractiveness of a certain sector, and assess investment possibilities.

Report Scope