Market Research Report
Global Internet of Things (IoT) in Retail Market By Component (Hardware and Software), By Technology (Near field communication, Bluetooth Low Energy, ZigBee and Others), By Regional Outlook, COVID-19 Impact Analysis Report and Forecast, 2021 - 2027
|Global Internet of Things (IoT) in Retail Market By Component (Hardware and Software), By Technology (Near field communication, Bluetooth Low Energy, ZigBee and Others), By Regional Outlook, COVID-19 Impact Analysis Report and Forecast, 2021 - 2027|
Published: June 30, 2021
Content info: 242 Pages
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The Global Internet of Things (IoT) in Retail Market size is expected to reach $150.1 billion by 2027, rising at a market growth of 24.2% CAGR during the forecast period. Internet of Things devices assist with the back-end operations of retailers like planning efficient logistics operations. The IoT-connected sensors, RFID tags, and GPS trackers monitor the passage of goods in real-time, offerings an effortless supply chain management. It further helps in preventing damage, spoilage, or loss of goods while transportation, which is mostly helpful for perishable food items. The real-time data of traffic conditions, weather, and speed of vehicles promote intelligent logistics operation. In addition, aspects like decreased human errors, reduced overstocking & lack of products, efficient inventory management, and monitoring over storage conditions are contributing to the rising demand for IoT devices in retail warehousing.
IoT provides retailers an opportunity to create an enhanced ecosystem, which links the digital & physical worlds. The majority of retailers are experiencing the benefits of the broad variety of connected products by implementing an integration platform. Additionally, smart devices decrease the purchasing time of customers and offer an effortless shopping experience. There are some retailers who are gradually developing to discover the unique methods to connect with smart devices like smartphones and smartwatches for improving the in-store experience.
Various IoT solutions such as RFID tags & GPS sensors, which are utilized by retailers to gain an extensive picture related to the transportation of goods from manufacturing to a store to when a customer purchase it. The gathered data like the time required for transportation or the temperature at which the product needs to be stored could be evaluated in real-time.
This information is very useful, particularly during the transportation of perishable items, in which temperature storage plays an important role. As per the experts, generally three-quarters of retailers strategize to streamline their supply chain management with IoT solutions. Thus, this improvement in the supply chain management motivates retailers to adopt IoT in retail stores, which would further augment the market growth.
The global COVID-19 pandemic has affected the global IoT spending that also includes the retail industry. There are various new projects that have been put on hold by the retailers because their main focus was on the survival of business operations in this economic crisis. In addition, the technology plans for IoT that has been deferred by the enterprises owing to remote working restrictions. Due to this, the IoT in the retail market has showcased a slowdown in demand during the global pandemic crisis.
Though, the adoption of IoT in the retail sector is anticipated to slowly rise during the recovery phase. There are many retailers that are now deploying autonomous cleaning robots, contactless checkout kiosks, and mobile payment systems, to minimize human interference and curb the spread of the coronavirus. However, in the recovery phase of the pandemic, cloud services, AI technology, and automation are projected to empower the retail sector in the coming years.
Based on Component, the market is segmented into Hardware and Software. By solution, the hardware segment dominated the market with the largest revenue share in 2020. The increase in the number of interlinked devices in retail stores and the reduction in the prices of IoT sensors are anticipated to fuel the segment growth. The supportive government initiatives and requirements to adopt IoT technology for improving productivity, boost stock efficiencies, and automatize supply chains are motivating retailers to implement hardware components. The commitment of the retailers to IoT innovation is also propelling the growth of connected devices that include RFID tags and beacons. Hardware Segment is further bifurcated across RFID Tags, Sensors, Beacons and Others.
Based on Technology, the market is segmented into Near field communication, Bluetooth Low Energy, ZigBee and Others. In the beginning, Bluetooth Low Energy (BLE) achieved a significant attraction because it enables the development of single-mode chips that can be utilized in low-cost battery-powered devices. This technology may impact various factors of the retail customer experience. In addition, this technology enables store check-in & intelligent interaction simpler to deploy in terms of payment. Retail giants like Target, Urban Outfitters, and Macy's have implemented Bluetooth beacons at their stores a long time back.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. Region-wise, North America emerged as a leading region in the IoT in the retail market with a significant revenue share in 2020. The growth of the e-commerce segment in the region has created problems for the departmental stores regarding making improved & advanced business operations. Additionally, the growth of this region is attributed to the robust research & development abilities of key players like Google LLC, IBM Corporation, Intel Corporation, Microsoft Corporation, and PTC Inc. Google introduced a pilot project named Project Beacon in 2018 and begun sending free beacons to physical shops or stores.
The major strategies followed by the market participants are partnerships. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation, Intel Corporation, Amazon.com, Inc., and Google, Inc. are the forerunners in the Internet Of Things in Retail Market. Companies such as IBM Corporation, PTC, Inc., and Software AG are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Cisco Systems, Inc., IBM Corporation, Intel Corporation, Microsoft Corporation, PTC, Inc., Huawei Technologies Co., Ltd. (Huawei Investment & Holding Co., Ltd.), Amazon.com, Inc., SAP SE, Software AG, Google, Inc.
Recent strategies deployed in Internet Of Things in Retail Market
Partnerships, Collaborations, and Agreements:
Jun-2021: Software AG formed a partnership with Laird Connectivity. Under this partnership, Software AG joined the PartnerConnect partner program by Liard Connectivity. The Cumulocity cloud helps customers who are looking forward to leverage an IoT cloud with Laird Connectivity IoT sensors & gateways. Together, the companies streamline the IoT journey for enterprise clients looking to get to market instantly.
Feb-2021: PTC joined hands with Lacoste, a French clothing brand. In this collaboration, Lacoste deployed PTC's ThingWorx Internet of things (IoT) technology and integrating it with Lacoste's prevailing FlexPLM solution and other third-party applications.
Feb-2021: Software AG partnered with SAP, a German multinational software corporation. This partnership aimed to integrate SAP's S/4HANA Cloud with Software AG's TrendMiner that is self-service industrial analytics software for the smart factories. The partnership would also bring together the sensor-generated time-series data into the analytics & operational performance fold.
Jan-2021: IBM extended its partnership with Atos, a global leader in digital transformation. This expansion aims to help organizations boost their digital transformation and improve business processes. The expected field of focus would involve Asset Monitoring & Maintenance, Asset Lifecycle Management Solutions, Repair, Operations (MRO) Optimization Solutions, Transportation, Packaging, SMART Waste/Energy Monitoring, Logistics Optimization Solutions, and Optimization Solutions.
Dec-2020: Microsoft extended its partnership with SAP, an enterprise resource planning software. This expansion aimed to enable users to design and manage intelligent digital supply chain & Industry 4.0 solutions in the cloud & at the edge. The partnership that involves a collaborative approach to standards, open-source, and consortia, would carve the future of supply chain & manufacturing.
Sep-2020: Microsoft teamed up with NCR, an American software, managed and professional services, consulting, and technology company. Together, the companies aimed to help NCR's retail users to achieve an IoT monitoring & managed services product, which proactively maintains connected device operations with more uptime.
Mar-2020: SAP announced its partnership with Wipro, an India-based IT, consulting, and business process Services Company. Together, the companies have been working on new software products and co-developing solutions for the fashion and wider retail industry. The companies would develop new tools for retailers to better manage business processes and customer experience.
Acquisition and Mergers:
Jun-2018: Software AG took over TrendMiner, a Software AG company. Through this acquisition, Software AG aimed to strengthen its position in the loT market. The plug-and-play software by TrendMiner would play an important role after its implementation in Software AG's Cumulocity Internet of Things (IoT) & Industry 4.0 product portfolio.
Product Launches and Product Expansions:
Jan-2021: Microsoft released Microsoft Cloud for Retail. It would use numerous products, from Azure & Microsoft 365 to Dynamics & Microsoft Power Platform that connects applications together. This solution brings together a wide variety of data sources over the retail value chain, which enable retailers to identify the true value of their data by empowering the key business processes and transforming data into actionable insights.
Jan-2021: PTC released a new version of its FlexPLM platform, V12. This version helps in boosting the digital transformation efforts of retailers through a transformative user interface, which unwraps the visual line collaboration, 3D workflows, and implemented AI.
Nov-2020: Cisco launched two new cloud-managed sensor solutions. These solutions can help companies streamline asset & facility monitoring over their companies, from indoor IT closets to outdoor Operation Technology (OT) spaces at scale.
Jul-2020: IBM launched Watson Advertising Social Targeting with Influential, a new solution that uses artificial intelligence (AI) to help brands identify influencers that best align with their brand values. The new solution within the Watson Advertising suite of targeting products is the result of IBM's expanded collaboration with Influential, a leader in advanced social media technology. The social targeting tool helps brands communicate with an audience.
Jun-2020: Cisco introduced the latest intent-based networking solutions to assist in optimizing business and network operations. These latest innovations aimed at streamlining the automation and offering IT & business insights and would enable IT teams, to be flexible, at the same time staying close to business objectives.
Market Segments covered in the Report:
Unique Offerings from KBV Research
List of Figures