The global big data analytics in retail market was valued at USD 2.85 billion in 2017, and is projected to reach a value of USD 9.01 billion by the end of 2023, registering a CAGR of 21.15% over the forecast period, 2018-2023.
Big data analytics has gradually emerged to be the prominent collective phenomenon in the industry, and analytics tools enable key stakeholders to translate hordes of consumer data into actionable insights. More than ever, retailers are now taking advantage of their in-store connected working environment investments to empower distribution associates and even cashiers and other staff with real-time analytics. The demand for advanced big data analytics tools has been bolstering the retail analytics market, globally. The process of retail analytics begins with gathering data from multiple sources, followed by data mining for gaining insights into business decisions in retail marketing and warehousing. Moreover, big data analytics provides an additional benefit to retailers, by enabling them to devise and test their strategies before implementation. Even consumers have an advantage of getting product insights, thereby, improving their decision process. The trend is revolutionizing the retail market.
Digital marketing techniques, such as CRM, social media analytics, and content management, help in identifying the customers and provide the best strategies to approach them. Moreover, the rise of digital marketing software services offer details of the products to the customer, which plays a crucial role in redefining the purchasing preference of a majority of the target audience. In addition, big data analytics can enhance overall capabilities by generating back-end activities, such as order management, warehouse logistics, data analytics, mobile support, and tracking. The growth of the big data and Internet of Things, along with the rise in the usage of smart gadgets, is further boosting the big data analytics in retail market. For instance, companies like Amazon, EBay, and others are continuously updating the way consumers think about their services and the way they go about their daily shopping routine with the help of digital marketing techniques.
Merchandising and supply chain analytics are an add-on to the retail market, as they can manage the resources by planning inventory, delivery, warehousing, and demand forecasting, distribution, and scheduling to optimize the workflow. The growth in the adoption of analytics is largely fueled by technological advancements in the field of ICT, and increased market penetration of broadband and mobile devices. The primary factors adding value to the retail industry are complex processes, like packaging, order pickup schedules, delivery management, and others, which can be fed into the analytical software.
The major contributors to the market in the region are China and India, as the countries together account for the lion’s share of the revenue generated in the retail industry in APAC. The presence of a robust retail industry setup with rapidly prospering economies, and boasting of the largest consumer base, as compared to the Rest of the World, the market for analytics finds immense potential for deployment in the region. Other major factors driving the growth of the market in the region are the growth in consumer electronics, industrial, transportation & logistics, and other industries, which essentially make up the retail industry.
Major players: SAP SE, Oracle Corporation, Qlik Technologies Inc., Zoho Corporation, IBM Corporation, Retail Next Inc., Alteryx Inc., Tableau Software Inc., Adobe Systems Incorporated, Microstrategy Inc., Prevedere Software Inc., Targit, Pentaho Corporation, ZAP Business Intelligence, and Fuzzy Logix