Connected Retail Global Market Report 2026

Connected retail involves the integration of diverse digital technologies and platforms to create a seamless shopping experience for consumers, encompassing both online and offline channels. This strategy aims to establish a cohesive connection between businesses and customers by leveraging personalized marketing, merging analog and digital shopping experiences, optimizing the supply chain, offering diverse payment options, and providing staff with the necessary resources for improved collaboration.

The key components of connected retail include hardware, software, and services. Point-of-sale (POS) software is a critical element of the software component, employed at checkout counters in retail stores to facilitate sales transactions, manage inventory, and handle payment processing. Various technologies such as Zigbee, NFC (Near Field Communication), Bluetooth low energy, and Wi-Fi play pivotal roles in different applications, spanning electronics and appliances, home and personal care, food and beverage, apparel, sporting goods, toys, and other sectors. The integration of these technologies enhances the overall retail experience, promoting efficiency and connectivity throughout the entire shopping process.

Tariffs have affected the connected retail market by increasing costs of imported pos systems, iot devices, digital signage, and networking equipment. These impacts are significant for hardware-intensive retail deployments across electronics and apparel segments. Asia pacific and europe are particularly exposed due to global supply chain dependencies. Higher equipment costs have slowed store modernization initiatives. At the same time, tariffs have encouraged retailers to adopt software-based and cloud-driven retail solutions, supporting scalable and flexible connected retail ecosystems.

The connected retail market research report is one of a series of new reports from The Business Research Company that provides connected retail market statistics, including connected retail industry global market size, regional shares, competitors with a connected retail market share, detailed connected retail market segments, market trends and opportunities, and any further data you may need to thrive in the connected retail industry. This connected retail market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The connected retail market size has grown rapidly in recent years. It will grow from $51.32 billion in 2025 to $61.24 billion in 2026 at a compound annual growth rate (CAGR) of 19.3%. The growth in the historic period can be attributed to growth of e-commerce platforms, demand for seamless shopping experiences, adoption of digital payment systems, rise of customer analytics tools, expansion of retail automation.

The connected retail market size is expected to see rapid growth in the next few years. It will grow to $123.94 billion in 2030 at a compound annual growth rate (CAGR) of 19.3%. The growth in the forecast period can be attributed to integration of ai-driven personalization, adoption of iot-enabled retail systems, growth of contactless payments, demand for data-driven merchandising, expansion of smart retail stores. Major trends in the forecast period include omnichannel retail integration, smart in-store technologies, personalized customer engagement platforms, connected payment and checkout systems, real-time inventory visibility solutions.

The growing adoption of the Internet of Things (IoT) is anticipated to drive the expansion of the connected retail market in the coming years. The Internet of Things (IoT) is a network of interconnected computing devices, mechanical and electronic machinery with unique identities (UIDs), capable of transmitting data without requiring human-to-human or human-to-computer interaction. The surge in IoT adoption is driven by businesses and consumers seeking real-time connectivity, automated processes, and smarter decision-making through seamless device integration and data-driven insights. The Internet of Things (IoT) facilitates connected retail by using interconnected devices to collect real-time data, enhance customer experiences, and improve operational efficiency. For example, in February 2025, Ubisense, a UK-based software company, reported that in 2023, connected IoT devices reached 16.6 billion, marking a 15% increase from 2022. Consequently, the rising adoption of the Internet of Things is fueling the growth of the connected retail market.

Leading companies in the connected retail market are concentrating on developing innovative solutions, such as digital product interaction, to boost customer engagement, provide transparent product information, and enhance shopping experiences. Digital product interaction is a technological feature that enables consumers to access comprehensive product details, origin, and sustainability information directly through a digital interface, supporting informed purchasing decisions. For instance, in October 2024, Carrefour SA, a France-based retail company, launched "QR Codes powered by GS1" on its private-label wine range. This implementation allows shoppers to view transparent product information and origin at a scan, while preparing stores for POS compatibility with next-generation 2D symbols that enable richer customer engagement and improved supply chain visibility.

In July 2023, Omnicom Media Group, a US-based cloud-based retail media network company, revealed the strategic acquisition of Outpromo and Global Shopper for an undisclosed amount. This acquisition signifies Omnicom Media Group's commitment to establishing a specialized e-commerce and retail media performance agency within the Brazilian market. Outpromo, a Brazil-based omnichannel commerce agency, specializes in devising and executing strategies for brand encounters across both physical and digital landscapes. On the other hand, Global Shopper, also based in Brazil, operates as a connected commerce agency, aligning with the evolving trends in the retail and e-commerce sectors.

Major companies operating in the connected retail market are Microsoft Corporation; Zebra Technologies Corporation; Intel Corporation; PTC Inc.; SAP SE; Cisco Systems Inc.; International Business Machines Corporation; Google LLC; NXP Semiconductors N.V.; Softweb Solutions Inc.; Honeywell International Inc.; Sonata Software Limited; iVend Retail; Avanade Inc.; Fujitsu Limited; Verizon Enterprise Solutions; Amazon Inc.; ARM Holdings PLC.; Belatrix Software Private Limited; Samsung Electronics Co. Ltd.; Toshiba Corporation; Siemens AG; Wipro Limited; Accenture plc; Capgemini SE; Infosys Limited; NEC Corporation; Tata Consultancy Services Limited; DXC Technology Company

North America was the largest region in the connected retail market in 2025. Asia-Pacific is expected to be the fastest-growing region in the global connected retail market during the forecast period. The regions covered in the connected retail market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the connected retail market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The connected retail market includes revenues earned by providing click-and-collect or BOPIS (buy online, pick up in-store) services, in-store navigation and wayfinding, mobile payments and checkout, supply chain optimization, virtual and augmented reality (VR and AR) experiences, loyalty programs, and smart shelf management. The market value includes the value of related goods sold by the service provider or included within the service offering. The connected retail market also includes sales of connected systems and IoT-enabled devices which are used for providing connected retail services. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Connected Retail Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses connected retail market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for connected retail ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The connected retail market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Component: Hardware; Software; Services
• 2) By Technology: ZigBee; NFC (Near Field Communication); Bluetooth Low Energy; Wi-Fi; Other Technologies
• 3) By Application: Electronics And Appliances; Home And Personal Care; Food And Beverage; Apparel; Sporting Goods And Toys; Other Applications
• Subsegments:
• 1) By Hardware: Point Of Sale (POS) Systems; IoT Devices; Digital Signage; Self-Service Kiosks
• 2) By Software: Inventory Management Systems; Customer Relationship Management (CRM) Software; Analytics And Reporting Software; Payment Processing Software
• 3) By Services: Consulting Services; Integration Services; Support And Maintenance Services; Managed Services
• Companies Mentioned: Microsoft Corporation; Zebra Technologies Corporation; Intel Corporation; PTC Inc.; SAP SE; Cisco Systems Inc.; International Business Machines Corporation; Google LLC; NXP Semiconductors N.V.; Softweb Solutions Inc.; Honeywell International Inc.; Sonata Software Limited; iVend Retail; Avanade Inc.; Fujitsu Limited; Verizon Enterprise Solutions; Amazon Inc.; ARM Holdings PLC.; Belatrix Software Private Limited; Samsung Electronics Co. Ltd.; Toshiba Corporation; Siemens AG; Wipro Limited; Accenture plc; Capgemini SE; Infosys Limited; NEC Corporation; Tata Consultancy Services Limited; DXC Technology Company
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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