Retail IoT software is expected to witness substantial growth with a revenue share of over 40.0% by 2025; this growth can be attributed to increasing adoption of retail analytics software to monitor consumer behavior.
The global Internet of Things (IoT) in retail market size was estimated at USD 16.36 billion in 2016 and is expected to develop at a CAGR of 21.5% over the forecast period. IoT offers retailers opportunities for development of an ecosystem that connects the physical and digital world. The retail industry has witnessed wide utilization of connected products by adopting an integrated platform.
There are several factors that have complemented the expansion of the retail industry over the past few years; emergence of Internet of Things (IoT) being one of them.
Utilization of connected devices has helped traditional retailers in delivering quality experience to customers, especially when competition from e-commerce platforms continue to spiral. Security in terms of checking inventory and preventing losses is an added benefit that retailers can capitalize on thanks to integration of technologies such as Radio Frequency Identification (RFID) tags and Near Field Communication (NFC). IoT provides retailers with opportunities to develop an ecosystem that connects the digital and physical world. The global IoT in retail market holds immense potential, which is yet to be fully tapped into in emerging regions.
- Retail IoT software is expected to witness substantial growth with a revenue share of over 40.0% by 2025; this growth can be attributed to increasing adoption of retail analytics software to monitor consumer behavior
- The beacons segment is expected to exhibit a CAGR of over 23.0% from 2016 to 2025 owing to increasing adoption of beacons for enhancing customer in-store experience by offering promotional offers and messages
- The Latin America region is anticipated to account for a revenue share of over 10.0% by 2025 owing to increasing investment in retail infrastructure
IoT in retail helps in making stores more interactive. Growing focus on providing improved shopping flexibility and customer experience is stimulating demand. Emergence of machine learning and artificial learning has facilitated optimization of retail operations. Connected technologies allow retailers to analyze existing processes and improve them with incremental investments. Retailers can also rest assured in terms of security of merchandize thanks to introduction of advanced tracking and monitoring technologies. With combination of in-store and digital operations as its offering, IoT in retail is here to stay and expand, helping retailers revolutionize their supply chain and delivery operations.