What Has Been The Historical And Current Growth Of The Connected Retail Market?
The connected retail market has seen considerable growth due to a variety of factors.
•In recent times, the size of the connected retail market has seen an accelerated expansion. It's predicted to increase from $43.18 billion in 2024 to a higher $51.71 billion in 2025, indicating a compound annual growth rate (CAGR) of 19.7%.
Several key factors contributed to this spurt in growth during the historic period, including the boom in e-commerce, the enhancement of customer experiences, the need for more personalized services, the impact of social media, the optimal use of supply chains, and the rise of smart stores.
What Is The Forecast For The Connected Retail Market By 2029?
The connected retail market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the connected retail market is predicted to increase rapidly in the near future. It is projected to expand to a market value of "$106.76 billion by 2029, growing at a compound annual growth rate (CAGR) of 19.9%.
Factors contributing to this development during the forecast period include voice commerce adoption, fear of touch shopping, cross-channel integration, regard for sustainability, and innovations like smart mirrors and fitting rooms. Key trends during this predicted period also entail incorporation of the Internet of Things (IoT), mobile commerce, and payments, the use of data analytics and artificial intelligence (AI), intelligent shelving and RFID technology, and models based on subscriptions.
What Are The Essential Drivers Behind The Growth Of The Connected Retail Market?
The growth of the connected retail market is anticipated to accelerate due to rising demands from end user industries like the food and beverage sector. This industry involves all enterprises that manage the processing, packaging, and distribution of raw food. Connected retail aids food and beverage brands in enhancing customer interaction by offering a consistent brand experience that caters to customer predilections. For example, the Food & Drink Federation, a UK-based entity that provides representation and counsel to UK food and drink manufacturers, reported a 31% rise in food and drink exports in 2023 compared to 2021. Furthermore, the food and beverage sector recorded a turnover of $3.52 billion (£10.3 billion) in 2022, contributing to 33% of the overall Scottish manufacturing output. Hence, the escalating demand from end user industries like the food and beverage sector is propelling the growth of the connected retail market.
How Is The Global Connected Retail Market Divided Into Key Segments?
The connected retail market covered in this report is segmented –
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
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What Trends Are Reshaping The Future Of The Connected Retail Market?
The rise in technological advancements is a significant trend gaining traction in the connected retail market. Principal companies in the connected retail market are leveraging new technologies to maintain their market standing. For instance, Instacart, an American grocery technology company, launched connected stores in September 2022. This new suite of technologies, some new and some already in use, aims to assist retailers in delivering a personalized experience both online and in physical stores. This novel service enables grocers to offer a consolidated, custom-tailored experience for consumers by effortlessly merging their app or website with the physical in-store experience.
Who Are the Key Players in the Connected Retail Market?
Major companies operating in the connected retail market include:
• 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
What are the Regional Insights into the Connected Retail Market?
North America was the largest region in the connected retail market in 2024. 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, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
