What Is The Definition Of The Global Retail Analytics Software And Services Market?
Retail analytics software and services refer to tools and solutions used by retail companies to collect, analyze, and interpret data related to their sales, inventory, customers, and market trends. These tools help retailers make informed decisions to optimize their strategies, improve sales performance, and enhance customer experiences. The goal of retail analytics is to improve business performance by identifying areas of the business that can be optimized, predicting future outcomes, and identifying opportunities for growth and expansion.
Retail Analytics Software And Services Global Market Report 2024 provides data on the global retail analytics software and services market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The Retail Analytics Software And Services market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Are The Global Retail Analytics Software And Services Market Size And Growth Rates Projected To Evolve?
The retail analytics software and services market size has grown rapidly in recent years. It will grow from $1.77 billion in 2023 to $2.08 billion in 2024 at a compound annual growth rate (CAGR) of 17.3%. The growth in the historic period can be attributed to the expansion of E-commerce, data explosion, demand for personalization, competition, supply chain optimization, and omnichannel retailing. The retail analytics software and services market size is expected to see rapid growth in the next few years. It will grow to $4 billion in 2028 at a compound annual growth rate (CAGR) of 17.8%. The growth in the forecast period can be attributed to a shift towards cloud-based solutions, artificial intelligence and machine learning, Internet of Things (IoT), augmented reality (AR) and virtual reality (VR), blockchain, and voice commerce. Major trends in the forecast period include the adoption of advanced analytics and artificial intelligence (AI), predictive analytics, hyper-personalization, unified commerce platforms, ethical and responsible analytics, and collaborative analytics.
What Are The Essential Drivers Behind The Growth Of The Retail Analytics Software And Services Market?
The rise in the retail and e-commerce sectors is anticipated to drive the growth of the retail analytics software and services market in the foreseeable future. Retail and e-commerce sectors encompass businesses selling goods and services directly to consumers through physical stores or online platforms, leveraging convenience and technological advancements. Retail analytics software and services empower retailers to optimize operations and enhance customer experiences through data-driven insights. According to the United States Census Bureau's February 2024 data, total e-commerce sales in 2023 reached $1,118.7 billion, marking a 7.6% increase from 2022, while total retail sales experienced a 2.1% increase. E-commerce sales constituted 15.4% of total retail sales in 2023, up from 14.7% in 2022. Therefore, the rise in the retail and e-commerce sectors is driving the growth of the retail analytics software and services market.
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How Is The Global Retail Analytics Software And Services Market Divided Into Key Segments?
The retail analytics software and services market covered in this report is segmented –
1) By Component: Solutions, Services
2) By Application: Merchandising Analysis, Pricing Analysis, Customer Analytics, Promotional Analysis And Planning, Yield Analysis, Inventory Analysis, Other Applications
3) By Distribution Channel: Online, Offline
4) By Organization Size: Large Enterprises, Small And Medium Enterprises
5) By Business Function: Finance, Marketing And Sales, Human Resources, Operations
What Trends Are Reshaping The Future Of The Retail Analytics Software And Services Market?
Major players in the retail analytics software and services market are advancing technology with innovations like smart store analytics to enhance retail solutions. Smart Store Analytics is a data platform enabling retailers to implement autonomous shopping technology efficiently. For instance, in January 2023, AiFi Inc., a US-based software company, in collaboration with Microsoft Corporation, launched smart store analytics—a tracking service for cashierless stores. This platform uses AiFi's computer vision algorithm to monitor shoppers' behaviors, including their selections and cart placements, and automatically charges their payment cards at checkout. Smart store analytics provides insights into customer behavior, foot traffic, product interactions, and other metrics without relying on facial recognition or biometric data.
What Is The Fastest Growing Region In The Retail Analytics Software And Services Market?
North America was the largest region in the retail analytics software and services market in 2023. The regions covered in the retail analytics software and services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
