- In 2019, the hardware segment took the highest market revenue
- The Asia-Pacific region is expected to hold the highest CAGR during the forecast period 2020–2025
The global IoT in retail market will reach a value of $32 billion in 2025 as per a report by Adroit Market Research. The report said that this can be attributed to the increase in internet penetration in developing countries like India, China, and others. It also said that the developments in technologies like the Internet of Things (IoT), Artificial Intelligence (AI), machine learning, and big data are leading to the increase in demand for IoT in retail market growth.
The report stated, “Globally the retailers are progressively adopting advanced and innovative technologies to provide their customers with an enhanced experience while shopping online as well as in-store. However, with the growing competition, many retailers are facing problems in running their business efficiently and failing to optimize their resources. Therefore, the Internet of Things (IoT) in retail solutions enable retailers to gain insights from the past as well as real-time data that allow retailers to provide products based on their previous purchase history and which section they visit the most.”
Software segment is projected to gather the highest CAGR
As per the report, the increasing need to provide better consumer experience and increase in need to get insights on customer preferences and choices are also some factors that are speeding up the adoption of IoT in retail solutions. The report also said that initial setup cost and legacy retail systems are hampering the market growth. The advent of cloud-based analytics is expected to provide growth opportunities for the IoT in the retail market in the coming years.
As per the report, in 2019, the hardware segment took the highest market revenue and it is anticipated to govern the IoT in the retail market throughout the forecast period. It said that hardware companies working in manufacturing semiconductor components have partnered with hardware, networking, and solution providers with industry associations, and academic consortiums to develop informal and formal standards for IIoT applications. The report said that the software segment is projected to gather the highest CAGR during the forecast period.
Asia-Pacific region to lead
The report added, “Based on the application, the market is segmented into operations management, asset management, customer experience management, advertising and marketing, and others. The market for operations management is anticipated to hold the largest market share in 2019 since it comprises core operations that include workforce management, supply chain optimization, and surveillance and security.”
The Asia-Pacific region is expected to hold the highest CAGR during the forecast period 2020–2025. The growth here is mainly due to the increasing penetration of smartphones. The growing adoption of internet services is driving e-commerce in this region. As per the report, North America dominated the IoT in the retail market during the forecast period due to the presence of major market players and a rising number of retail chains in the region.