Big Data Analytics in Retail Market Size

Big Data Analytics in Retail Market Analysis

The Big Data Analytics in Retail Market size is estimated at USD 6.38 billion in 2024, and is expected to reach USD 16.68 billion by 2029, growing at a CAGR of 21.20% during the forecast period (2024-2029).

The retail industry is witnessing a major transformation through advanced analytics and Big Data technologies. With the growth of e-commerce, online shopping, and high competition for customer loyalty, retailers are utilizing Big Data analytics to stay competitive in the market.

• The retail industry witnessed a steady adoption of cloud, AI, and related technologies and is considered one of the top sectors in terms of growth. According to a survey by NASSCOM, 70 percent of the companies said they focus on revenue growth by leveraging AI and increasing their spending. For Example, Walmart, one of the largest retailers in the world, is undergoing a digital transformation. It is in the process of building the world's largest private cloud system, which is expected to have the capacity to manage 2.5 petabytes of data every hour.
• Predictive analytics is a proactive approach whereby retailers can use data from the past to predict expected sales growth due to changes in consumer behaviors and market trends. It can help retailers stay ahead of the curve, compete effectively, and gain considerable market share. Increased Emphasis on Predictive Analytics which can help increase promotional effectiveness, drive cross-selling, and much more to build sustainable relationships with the customers.
• Retailers attempt to find innovative ways to draw insights from the ever-increasing amount of structured and unstructured information about consumer behavior. Retailers, both offline and online, are adopting the data-first strategy toward understanding their customers' buying behavior, mapping them to products, and planning marketing strategies to sell their products to increase profits by applying Big Data Analytics at every step of the retail process. Innovative ways such as Implementing IPS systems, Store Automation with self check out, Robots, and Automation in retail, etc., drive the need for Big data analytics in the retail market.
• Data integration challenges could restrain the market, including data governance, scalability, and problems associated with getting data from multiple sources to have data duplication and transformation rules. However, these can be reduced with the proper systematic set of rules.
• The COVID-19 pandemic hugely impacted retail markets at the regional and country level due to the shutdown of factories, and manufacturing plants, increase in prices, strict lockdowns, and supply chain disruptions as people's mobility were confirmed to their homes. However, post-pandemic considering the inherent human needs, Big Data is helping retailers to cater to customers in a more personalized way via targeted advertising, product recommendations, and pricing; the retailers increasingly prefer the technology.