The retail technology market is witnessing a rapid transformation owing to the increasing demand for automation, digitization, and enhanced experiences for customers. Advanced technology such as AI, the Internet of Things (IoT), and cloud-based solutions, among others, which many retail industries have started using to enhance productivity, are aiding the transformation of this sector. The adoption of e-commerce as a more effective marketing tool has compelled investments in retail technology solutions, along with effective distribution strategies.
In 2023, the value of the retail technology market around the globe approximated $30bn, and it is estimated to rise; between the period of 2024 and 2030, the retail technology market is expected to grow with a CAGR of 10-12%. Factors such as the growth of the multi-channel retail models, the heightened use of smart checkout solutions, and the increase in the need for data for decision-making are driving the market growth. The global retail technology market will exceed $70 billion in size by 2030.
The retail technology market is witnessing a rapid transformation owing to the increasing demand for automation, digitization, and enhanced experiences for customers. Advanced technology such as AI, the Internet of Things (IoT), and cloud-based solutions, among others, which many retail industries have started using to enhance productivity, are aiding the transformation of this sector. The adoption of e-commerce as a more effective marketing tool has compelled investments in retail technology solutions, along with effective distribution strategies.
In 2023, the value of the retail technology market around the globe approximated $30bn, and it is estimated to rise; between the period of 2024 and 2030, the retail technology market is expected to grow with a CAGR of 10-12%. Factors such as the growth of the multi-channel retail models, the heightened use of smart checkout solutions, and the increase in the need for data for decision-making are driving the market growth. The global retail technology market will exceed $70 billion in size by 2030.
The term retail technology alludes to various strategies, applications, and innovations as they apply to the enhancement of retail business processes and improvement in customer active and efficient sales management. These include technological devices such as POS systems, automatic checkout solutions, mCommerce, AI-based analytics, RFID technology, and cloud storage of inventories.
1. POS Systems—Online payments and collection in addition to sales metrics
2. E-commerce Systems—Online sales with the help of Shopify, Magento, and WooCommerce platforms
3. Artificial Intelligence and Machine Learning—Utilization of virtual assistants, forecasting, and targeting solutions
4. Augmented and Virtual Realities—Try before you buy figuratively, virtual fitting rooms.
5. RFID Technology and IoT for Inventories—Optimized inventory management and efficient stock auditing
6. SaaS and Cloud Computing Applications—Retailer's management with support of cloud computing
7. Cashier-free Checkout Systems—Cashier-less payment with the help of video processing technology
1. Omnichannel Retail Industry—The blending of in-store and internet-based shopping experiences.
2. Smart Checkout Alternatives—Rollout of more customer self-checkout and facial recognition payment systems.
3. Retail Advertising Networks—New revenue streams for brands via retailers’ websites and mobile shoppers data.
4. Sustainable and Fair Trade Practices—Enabling visibility in the supply chain to support environmentally friendly activities.
5. Extreme Customization—Consumer-oriented, behavior-based, or technology-enabled promotions.
6. 5G/6G networks in retail—Increases of higher velocity in computation transactions and introduction of AR/VR shopping.
7. Dark Stores, Near-Field Enhanced Shopping, Demand Forecasting & Inventory Movement Optimization—A specific retailer’s AI-driven inventory centers for last-mile delivery.
- Artificial Intelligence Enabling Retail Personalization: Over 70 percent of consumers cater to retailers who opt for artificial intelligence.
- Emergence of Automated Retail Outlets: Cached infrastructure such as Amazon Go is expanding its footprints worldwide.
- E-commerce Expansion: By 2023, global e-commerce sales topped off at 5.5 trillion, necessitating more retailers to go online.
- Growth in Non-Physical Payments: Apple Pay, Samsung Pay, and Google Pay, among others, expanded by 35% year over year.
- Using Blockchain in Order to Achieve a Visible Supply Chain: There are quite a number of retailers as of now that are using technology such as blockchain to help in product tracing and fraud-proofing.
- Technology segmentation: POS, AI, IoT, Cloud, AR/VR Compression, Browser-based VR, AR/VR interactivity, Blockchain
- Segmentation by Deployment Models: On-Premises as well as Cloud/Remote Infrastructure
- Segmentation by Size of the Retailers: Small as well as Medium Size Enterprises and Large Enterprises
- Segmentation by Geography: North America, Europe, Asia Pacific, Latin America, Middle East, and Africa
- Amazon Web Services (AWS)—Cloud-based solutions for the retail sector
- Oracle Retail—Advanced retail intelligence powered by machine learning
- SAP SE—Retailers Business Applications transforming retail
- NCR Corporation—Point of sale systems, including self-checkout.
- IBM Watson—Automated Retail Enabled by Artificial Intelligence
- Microsoft Azure for Retail—Cloud Computing and Artificial Intelligence Technologies
- Salesforce Commerce Cloud—Digital Retail & Inbound Marketing
- Shopify & Magento—Leading Platforms for E-Commerce