Retail Analytics Market - Growth, Trends, and Forecast (2020 - 2025)

The Retail Analytics Market is segmented by Solution (Software and Service), Deployment (Cloud and On-premise), Function (Customer Management, In-store Operation, Strategy and Planning), and Geography.

Market Snapshot

retail analytics market

Study Period:


Base Year:


Fastest Growing Market:

North America

Largest Market:



19 %

Major Players:

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Market Overview

The Retail Analytics market was valued at USD 5.29 billion in 2019 and is expected to reach USD 15.03 billion by 2025, at a CAGR of 19% over the forecast period 2020 - 2025. The robust outlook of the retail industry, coupled with the digital revolution that is aided by technological advancements and proliferation of smartphones, has encouraged retailers to rethink their business strategies and make the most of the opportunity. With the growth of e-commerce, customer preferences and behaviors have changed drastically. 

  • The rising adoption of IoT to decipher data, the use of beacons, Wi-Fi, and RFID tags have become common in the retail sector. Retailers have already begun experimenting with IoT solutions and devices, to revolutionize services and customer experience, by developing a digital ecosystem across various stages of the supply chain. 
  • The changing consumer behavior, with an inclination toward a personalized and tailored shopping experience, has played a significant role in the adoption of analytics to derive searches that are more personalized, based on the individual shopper’s unique preferences and context.
  • The lack of general awareness and expertise is expected to hamper the growth of the market.

Scope of the Report

Retail analytics is the process of providing analytical data on inventory levels, supply chain movement, consumer demand, sales, etc., which are crucial for marketing and procurement decisions. It also offers detailed customer insights, along with insights into the business and processes of the organization, with the scope and need for improvement.

Customer Management
In-store Operation
Strategy and Planning
Supply Chain Management
Marketing and Merchandizing
Other Functions
North America
Asia Pacific
Latin America
Middle East & Africa

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Key Market Trends

Customer Management to Hold Major Share

  • Market factors, like rapidly changing demographics and uncertain economic recovery, often present retailers with challenges. Thus, retailers try to understand which products, services, and offers are more attractive to customers.
  • A dramatic increase in online shopping and bargain hunting have disrupted the traditional customer engagement paradigm of retailers. Therefore, attracting, retaining, and offering value-added services to customers have become retail imperatives, with retailers recognizing the new capabilities that are required to capture and take action upon consumer insights.
  • Understanding which customers represent sales helps the retailers to make necessary adjustments in assortments, pricing, service behaviors, marketing communication, and other customer experience elements that can potentially produce incremental revenue.
  • Owing to these benefits, SAP has been investing in enhancing digitization, by trying to convince small- and medium-sized enterprises across the globe, particularly developed markets to invest in tech software, so as to better engage with customers.
retail analytics market

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Europe to Hold Significant Share

  • The European segment is strong, owing to the presence of large players like IBM Corporation and SAP SE, which are the leading providers of predictive analytics and advanced retail analytics software. 
  • Moreover, more than six million companies are active in this region and employ more than 33 million people. Europe is home to many of the large-scale retailers in the world, such as Tesco, Carrefour, Lidl, Metro AG, and Aldi. 
  • Online shopping has emerged as one of the most popular internet activities, by providing a wide variety of products for consumers and a multiplicity of sales challenges for the e-commerce players.
  • Thus, the use of advanced analytics for making online shopping smarter and merging offline and online data can help retailers to customize their targeting, thus resulting in incremental increases in e-commerce revenues and contributing to the growth of the European segment of the market studied. 
retail analytics market

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Competitive Landscape

The Retail Analytics Market is moderately competitive. The players in the market are innovating in providing strategic solutions to increase their market presence and customer base. This is enabling them to secure new contracts and tap new markets.

  • September 2018 - SAP at the Strata Data Conference announced that it has injected an array of machine learning algorithms into the SAP Analytics Cloud as part of an effort to deliver real-time analytics that proactively suggests actions to be taken as data is captured.
  • September 2018 - SAP launched new features to digitally optimize the supply chain and infuse it with intelligence from product design and production to delivery, operations and service. With the integration of SAP S/4HANA to digital supply chain solutions from SAP, companies can gain new insights, make predictions and instantly adapt in an agile supply chain that extends to customers and supplier networks.

Table Of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Increasing E-retail Sales

      2. 4.3.2 Rising Demand for Predictive Analysis

      3. 4.3.3 Technological Advancements in AI and AR/VR

    4. 4.4 Market Restraints

      1. 4.4.1 Lack of General Awareness and Expertise

    5. 4.5 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry



    1. 6.1 Solution

      1. 6.1.1 Software

      2. 6.1.2 Service

    2. 6.2 Deployment

      1. 6.2.1 Cloud

      2. 6.2.2 On-premise

    3. 6.3 Function

      1. 6.3.1 Customer Management

      2. 6.3.2 In-store Operation

      3. 6.3.3 Strategy and Planning

      4. 6.3.4 Supply Chain Management

      5. 6.3.5 Marketing and Merchandizing

      6. 6.3.6 Other Functions

    4. 6.4 Geography

      1. 6.4.1 North America

      2. 6.4.2 Europe

      3. 6.4.3 Asia Pacific

      4. 6.4.4 Latin America

      5. 6.4.5 Middle East & Africa


    1. 7.1 Company Profiles

      1. 7.1.1 SAP SE

      2. 7.1.2 IBM Corporation

      3. 7.1.3 Alteryx Inc.

      4. 7.1.4 Inc. (Tableau Software Inc.)

      5. 7.1.5 Oracle Corporation

      6. 7.1.6 Retail Next Inc.

      7. 7.1.7 SAS Institute Inc.

      8. 7.1.8 Fujitsu Ltd

      9. 7.1.9 Angoss Software Corporation

      10. 7.1.10 Hitachi Ltd.



* List Not Exhaustive

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