Smart Retail Market Size, Share, Growth Report 2032

Industry Prospective:

The global smart retail market was valued at nearly USD 21.9 billion in 2021 and is projected to grow to around USD 72.9 billion by 2028, with a compound annual growth rate (CAGR) of approximately 22.8 percent over the forecast period. The report studies the smart retail market’s drivers, restraints/challenges, opportunities, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the smart retail market.

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Smart Retail Market: Overview

The term smart retail refers to the fusion of conventional shopping methods with new smart technologies. In smart retails information is collected through the Internet of Things by connecting implanted devices and computers. By this, the customer can benefit from a more tailored, quicker, and smarter experience. Individualized coupons and carefully selected inventory are examples of this. Smart retail mainly benefited from the emergence of new digital platforms and user-friendly shopping devices. And with the increase in smart city development, the number of smart retail is projected to boost further.

COVID-19 Impact:

The global smart retail market experienced a moderate effect during the Covid-19 pandemic. COVID-19 had a negative influence on the smart retail supply chain, causing delays in the transfer of products owing to logistical and travel constraints. Both retailers and customers had their deliveries postponed. This disruption to the supply chain is only temporary, as safety measures are progressively restoring normalcy. A smart retail supply chain will be critical in the long run. In the midst of the COVID-19 outbreak, retailers have to ensure the safety of their customers. As a result, consumers are interested in smart retail solutions such as contactless payments. Furthermore, the secured and hassle-free checkout process in the e-commerce payment transaction has increased the security and safety of transactions for customers.

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Smart Retail Market: Growth Drivers

Rising trend of digitalization is expected to drive the market growth

Retailers may have advantages from digitization in the form of additional consumers and lower operating expenses, among other things. Employees at stores may find digitalization to be tremendously inspiring. As a result, digitization can aid in revenue growth. Recently, non-store commerce is expected to develop significantly. Digital payment modalities including electronic wallets, prepaid cards, credit cards, debit cards, and other digital platforms have been driving industry expansion in recent years. The shift in customer preference toward cashless transactions, as well as the corresponding rise in the acceptance of advanced payment solutions across retail shops, such as department stores, supermarkets, and specialty stores, are all contributing to the global smart retail market's growth.

Smart Retail Market: Restraints

High maintenance expenses for modern high-end computer systems may restrain the market growth

Smart retail devices provide for more precise, rapid, and reliable control, as well as more efficient production and delivery. However, it necessitates a significant investment in maintenance, which is necessary for the technology to reach new markets. The technique enables the inspection of several items on the same smart camera, which is not always possible. This may limit the growth of the market for smart retail. In addition to this, low penetration of the market in low & middle-income countries, and lack of expertise are also some of the factors that may limit the growth of the market.

Smart Retail Market: Opportunities

Advancement in technology is likely to boost the market during the forecast period

One of the major trends driving market expansion is the increasing use of technologies such as Augmented Reality (AR), Artificial Intelligence (AI), and the Internet of Things (IoT) to improve customers' shopping experiences, inventory management, and retail operations. AR is revolutionizing the retail business by allowing brands to connect with customers via their smartphones. The use of augmented reality in marketing aids in the development of customer connections, the enhancement of the customer experience, and, as a result, the growth of sales. Currently, the market is flooded with research and deployment of a variety of automation approaches to boost productivity & accuracy, while minimizing human mistakes and improving safety. Smart retail is one of the most advanced automatic systems since it offers novel solutions in the area of retail automation to improve the customer experience. All these factors are expected to boost the global smart retail market expansion over the forecast period.

Smart Retail Market: Challenges.

High initial investments pose a major challenge to expanding the market in emerging countries.

The use of digital technology and the implementation of smart tools & apps in the store cost are relatively high which most retailers cannot afford. Also, budget constraints in the low- and middle-income countries limit the adoption of digital technology in the retail sector. Along with this, the availability of AI-powered tools, solutions, and services is a major question in low-income countries. All these factors pose a major challenge to the expansion of the market.

Smart Retail Market: Segmentation

The global smart retail market is segregated based on retail offering, application, system, and region. The retail offering segment consists of hardlines & leisure goods, fast-moving consumer goods, apparel & accessories, and others. Based on the application, the global market is divided into loyalty management & payment, inventory management, foot-traffic monitoring, smart fitting rooms, brand protection, and predictive equipment maintenance. The system segment is segregated based on intelligent vending machines, smart payment systems, smart labels, digital signage solutions, analytics, robotics, smart carts, POS solutions, virtual reality solutions, and augmented reality solutions.

Report Scope:

Recent Developments

• In March 2021, Johnson Controls' Sensormatic Solutions teams up with Intel to digitally transform retail and enhance the consumer experience. Customers may make well-informed business decisions as a result of the collaboration, which leads to desirable results.
• In March 2020, Honeywell and Intel have formed a cooperation to use IoT to strengthen the retail sector. The collaboration is to create new retail products that will improve inventory visibility, logistics, and supply chain efficiency.

Smart Retail Market: Regional Landscape

North America to lead the market over the forecast period.

North America holds the dominant share in the global smart retail market. This is primarily due to several hypermarkets, supermarkets, department stores, and other types of retail stores including Schnucks Markets, Inc. and Food City in the US have installed automatic storage, POS solutions, retrieval systems, electronic shelf labels (ESLs), and self-checkout systems. Additionally, the high spending power of the sector operators in the region is collectively contributing to the growth of the market. Further, the Europe market is also rapidly expanding with the increase in the chain of supermarkets and hypermarkets. Customers in Europe pose strong spending power; also many international brands are increasing their investments in the region. Asia Pacific is likely to offer the most lucrative opportunities for the expansion of the market. Factors such as increasing investments in smart city development by China & India, large customer base, and increasing trend of digitalization are expected to flourish the market growth.

Smart Retail Market: Competitive Landscape

Some of the leading players that are operating in the global smart retail market include Microsoft, NXP Semiconductors N.V., Cisco Systems, Inc., Intel Corporation, IBM, Amazon.com, Inc., Google Inc., Honeywell, NVIDIA Corporation, and PTC, Inc.

Global smart retail market is segmented as follows:

By System

• Digital Signage Solutions
• Smart Labels
• Smart Payment Systems
• Intelligent Vending Machines
• Augmented Reality Solutions
• Virtual Reality Solutions
• POS Solutions
• Smart Carts
• Robotics
• Analytics

By Application

• Foot-traffic Monitoring
• Inventory Management
• Loyalty Management and Payment
• Predictive Equipment Maintenance
• Brand Protection
• Smart Fitting Rooms

By Retail Offering

• Apparel and Accessories
• Fast-moving Consumer Goods
• Hardlines and Leisure Goods
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa