According to the reportpublished by Allied Market Research, the global IoT in retail industry is estimated to reach $24.14 billion in 2021, and is projected to generate $177.90 billion by 2031, witnessing a CAGR of 20.3% from 2022 to 2031.
Over the years, internet of things (IoT)has gained a huge momentum across every sectors. Thisadvanced technology uses numerous sensors and software, especially GPS & RFID technologies in retail sectors, to help brands track products through the entire supply chain process.Starting from customer experience to supply chain management, IoT is all set to transform the retail sector.
The major driving factors of the global IoT in retail market includesupply chain management, inventory management, effective store space monitoring, and customer behavior monitoring coupled with optimization and automation of the supply chain. However, high implementation & maintenance cost of IoT devices and concerns regarding data security & privacy are expected to hamper the market growth. On the other hand, advanced technologies such as digital signage, top-of-the-shelf displays, price displays, and beacons present immense opportunities for the market growth in the coming years.
The outbreak of the Covid-19 pandemic positively impacted the global IoT in retail market, owing to implementation of the global lockdown which caused several companies to adopt work-from-home policies. A considerable rise in demand for cloud-based solutions and SaaS-based modelfavored the demand for IoT and automation in retail as it eliminated the dependency on staff availability during the lockdown.
Based on offering, the solution segment was estimated to hold the largest market share in 2021, due to proliferation of smartphones and use of mobile applications. Based on application, the supply chain operation management segment dominated the market in terms of revenue in 2021, attributed to drive innovation in their supply chains and to decrease costs as well asenhance customer services. Based on deployment mode, the on-premise segment witnessed the lion’s share in 2021, owing to many benefits in terms of security, flexibility, and customization. Based on region, Asia-Pacific is heldthe highest market share in terms of revenue in 2021. Growth in this region is driven by various economic and process benefits such as real-time data analytics, network management, and industrial automation.
KEY FINDINGS OF STUDY
- Based on offering, the services segment is projected to manifest the highest CAGR of 21.7% from 2022 to 2031.
- Based on application, the customer management segment is estimated to portray the largest CAGR of 23.1% from 2022 to 2031.
- Based on deployment mode, the cloud segment is expected to witness the largest CAGR of 1% from 2022 to 2031.
- Based on region, the North America is expected to register the fastest CAGR of 2% from 2022 to 2031.