PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1308748
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1308748
According to Stratistics MRC, the Global Smart Retail Market is accounted for $42.57 billion in 2023 and is expected to reach $206.42 billion by 2030 growing at a CAGR of 25.3% during the forecast period. Smart retail describes a fusion of conventional retail practises with cutting-edge "smart" technologies. Data is gathered through the Internet of Things through a connection between implanted devices and computers. Smart retail shops can recognize the characteristics of their customers to gather demographic information, but they can also keep an eye on their actions inside the store to enhance how they do business. Due to better supply chain management, smart retail is a profitable process for both customers and merchants. Smart retailing enables businesses to monitor consumer input and make improvements to maintain consumer interest.
Retail brands benefit from better inventory accuracy and stock reliability as a result of RFID, which boosts revenue and consumer happiness. Additionally, it offers precise, real-time information on stock specifics, including volume, models, colours, and sizes, as well as inventory levels. It enables better production control and delivers more detailed management information. For scanning a huge number of things, RFID systems are far more effective. Retailers now consider RFID technology essential since it has the ability to significantly reduce costs and open up new income streams.
Establishing and sustaining long-term connections with the target audience depends on customer trust. After all, it makes it possible for companies to provide better services, foster more customer loyalty, and keep more clients. Without a tangible company with a history and face-to-face interactions between consumers and sales employees, it can be challenging to build a reliable brand identity. The market's expansion is being hampered by the aforementioned issue.
Digitalization has the potential to be very motivating for retail staff. Smart retail stores are expected to benefit from technological advancements, better connection, the introduction of novel sensors, and the availability of seamless communication solutions. Retailers gain from it in the form of more consumers and lower operating expenses. Digital payment methods have grown significantly in recent years, including electronic wallets, debit cards, credit cards, prepaid cards, and other digital platforms. In particular, it is anticipated that the market will grow due to the shifting consumer preference for cashless transactions and the subsequent rise in the adoption of digital payment solutions across retail stores, including specialty shops, supermarkets, and department stores.
Customer data helps marketing and sales teams to pinpoint the demands of their target market and effectively adjust their messaging and solutions to satisfy those needs. Retailers are dealing with several cybersecurity attacks that now target sensitive personal data as well as credit data. Database security is lacking, which allows for the theft of personal information. Cyberattacks have the power to knock firms out of business and cause severe financial hardship, legal consequences, and reputational harm. Customers' ability to make smart payments is in jeopardy due to this factor, which is impeding the market's expansion.
Almost every country on the globe had been severely impacted by the COVID-19 epidemic. Production facilities had either entirely shut down or operated at reduced capacity as a result of the lockdown limitations. As a result, businesses found new ways to access their resources, customers, assets, and data. The adoption of smart retail services and solutions was sparked by this pandemic. The epidemic gave retailers the opportunity to accelerate their preparations for digital transformation and modify their customer experiences in order to successfully adapt during these challenging times. Incorporating increasing digitalization and automation into daily operations forced larger organisations to re-evaluate their company strategy, enhance processes, and modify operations which reduced the losses during the pandemic.
The software segment is estimated to have a lucrative growth, owing to the growing digitization and expanding adoption of analytics tools in the retail industry. Enhanced software implementation facilitates inventory processing, such as redesigning marketing strategies and organizing offers and promotions. Software in smart retail may enhance customer satisfaction and product handling since it automates laborious and time-consuming operations including reporting, inventory management, pricing regulation, recording payroll, billing, and processing returns. Real-time pricing, hassle-free inventory management, and high quality customer service are the driving forces behind this market's need.
The smart payments segment is anticipated to witness the fastest CAGR growth during the forecast period. Smart payments are contactless transactions that may be finished in less than 15 seconds and operate twice as quickly as traditional cards. The retailers benefit from its convenience. It lowers processing costs and opens the door to the addition of numerous payment options. They provide a genuinely frictionless experience for customers or business users, simplifying routine or low-value transactions, saving time and effort, and lowering the possibility of low inventory as a result of a postponed purchase. The segment's prominence is being promoted by its simple payments and security.
North America is projected to hold the largest market share during the forecast period. There is a significant market in this region for high-end products and luxury goods. The retail sector has been touched by the post-pandemic effect, which has accelerated the digital transformation of enterprises. Customers presently expect less time-consuming and more convenient purchasing experiences. The US economy is being restructured as digital technology is being adopted more widely in all application areas. It also has a lot of supermarkets and other different kinds of retail establishments, such Food City (US) and Schnucks Markets, Inc. (US), which has self-checkout, automatic storage & retrieval, and POS solutions installed in their architecture.
Asia Pacific is projected to have the highest CAGR over the forecast period. Major retailing firms like Amazon and Alibaba are present in this region. The important need for retailers to digitalize their current traditional business processes is primarily responsible for a substantial proportion of this region. Cloud computing and mobile technologies are being quickly embraced in the area. Additionally, the government is fostering booming economic growth by permitting foreign investment and pushing businesses to adopt cutting-edge high-tech solutions.
Some of the key players profiled in the Smart Retail Market include Honeywell International Inc, Intel Corporation, IBM Corporation, Google LLC, Microsoft Corporation, Amazon Inc, Ingenico Group, Huawei Technologies Co Ltd, Cisco Systems, Zebra Technologies Corporation, Unitech Electronics Co., LTD., IEI Integration Corporation, Samsung Electronics, Verifone Systems, NCR Corporation, Motorola Mobility LLC, NXP Semiconductors N.V., PAX Global Technology Limited, Trigo Vision Limited and Zippin.
In May 2023, Honeywell announced the launch of its Next Generation Cellular Module (NXCM) enabling Advanced Metering Infrastructure (AMI), a groundbreaking solution that upgrades legacy gas and water meters into smart meters without requiring expenditure on additional infrastructure. The NXCM helps utility providers gather data from gas and water meters, improving operational efficiency, reducing costs, and providing customers with accurate usage information.
In September 2022, Microsoft Corporation partnered with Hanshow, a professional digital store solution provider (SP) and Intel Corporation to accelerate "Smart Retail Innovation". It summarizes changes in the global retail industry and best practices in the retail + AI sector.
In May 2022, Amazon launched Smart Commerce to change local stores into digital dukaans. Stores will now be able to digitise their operations, enhance in-store experience for walk-in customers, and create their own online storefront in minutes powered by Amazon.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.