Digital Transformation Market In Retail Market Size

Retail Industry Digital Transformation Market Analysis

The Digital Transformation Market In Retail Industry is expected to grow from USD 243.57 billion in 2024 to USD 541.44 billion by 2029, at a CAGR of 17.32% during the forecast period (2024-2029).

• The advent of digital technologies for collecting, storing, analyzing, and distributing information has created new dynamics in the digital transformation of the retail market. These digital technologies also raised numerous new opportunities for vendors serving the market as an organization requires an efficient and easy work process owing to the increase in worldwide liberal trade policies and end-users.
• Rapidly increasing internet penetration is a key factor contributing to the market's growth over the forecast period. An increase in smart gadgets and incremental technological advancements will pave the way for growth in this market by making this technology more accessible to small/medium-scale retail organizations. For instance, according to ITU 2022 report, internet users globally increased from 3,217 million in 2016 to 4,901 million in 2021.
• Customers' rising demands are pushing merchants to form strategic alliances with technology suppliers in order to capitalize on new prospects. These collaborations enable merchants to improve their technological competence and offer value to their operations. Retailers are progressively cooperating with tech suppliers to develop the most appropriate and long-term business solutions, which have contributed to market growth.
• For instance, recently, Macy's, Inc. revealed intentions to develop a curated online marketplace in order to expand the company's current influence as a digitally driven omnichannel retailer. By allowing carefully chosen third-party retailers to offer their items on macys.com and bloomingdales.com, the expanded marketplace will dramatically increase the company's inventory in established areas and brands while also introducing a variety of new regions.
• The outbreak of COVID-19 had a favorable influence on industry development throughout and after the outbreak. The demand to improve operational productivity is significantly fuelling the development of the digital transformation industry. Furthermore, the pandemic has boosted the growth of the retail e-commerce industry as consumers tend to purchase more retail products from e-commerce websites to prevent them from getting infected.
• Numerous shops focus on incorporating modern technology, including big data and AI, to help their company develop. Furthermore, a significant challenge they encounter is a need for more in-house competencies and knowledge. Employing IT expertise is challenging since leading technology businesses are competing for the finest people. These factors are expected to create obstacles to market growth over the coming years.