Internet of Things in Retail Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The global internet of things in retail market was valued at USD 35.63 billion in 2020 and is expected to reach USD 67.60 billion by 2026 witnessing a CAGR of 11.3% over the forecast period (2021 - 2026). The retail industry has witnessed significant impact from IoT, in terms of boosting profitability and offering the enhanced, omni-channel experience to retailers.

• IoT has been enabling retailers to connect with both businesses and people. This enables retailers to gain insights about product performance and new ways of customer engagement with both new and existing customers. Several companies, like Kroger, Zara, Walmart, Tesco, etc., have launched smart devices, to improve customer experience.
• With an existing network infrastructure likely to be used for ‘connected things’, the investments and expenditures on analytics are projected to be high, as companies are striving to find new ways to analyze the significant volumes of smart device-generated data.
• Additionally, the use of e-commerce platforms is rapidly increasing owing to the ease of shopping and smartphone penetration in the market, which is likely to boost the market. The increasing need for data analysis and integration of analytics is expected to propel the utilization of the Internet of Things market over the forecast period.
• For instance, Amazon’s first store in Seattle, the United States, is incorporated with self-checkout service and mobile payment methods, which are available on both Android and iOS systems. The store is equipped with cameras, sensors, and/or RFID readers, to identify shoppers and products, and use computer vision, deep learning algorithms, and the ‘sensor fusion’.

Scope of the Report

IoT helps retailers to gather data and produce insights, without compromising on data security. As a result retailers are able to maintain the basic approaches to the adoption of in-store connectivity (such as enabling the IoT era at the end points).

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Key Market Trends

Software Component Expected to Hold Significant Share

• The major growth of internet shopping can be attributed to higher transaction values and increased order frequency. IoT can optimize supply chain management, reduce inventory error, and decrease labor costs. Ultimately, IoT can help your traditional brick-and-mortar shop compete with today’s online-first shopping world, by exponentially improving customer experience and decreasing unnecessary expenses.
• There are different kinds of software solutions that IoT provide for the betterment of retail sector: Qliktag, Evrythng, ThinFilm NC solutions, Gimble, Kaa Projects, Wise Shelf, Swirl, Memomi, Authentic or Not, Queuehop.
• NFC-enabled technology creates noninvasive opportunities for retailers to inform and persuade shoppers. For instance, national supermarket chain Kroger Co. piloted smart shelf tags to display product information.
• NFC provides significant functionalities to IoT by solving the challenges of unpowered objects lacking network access, providing the simplest, most intuitive way to indicate a user’s interest to take an action, connecting devices easy and intuitive. Hence, an increase in the usage of NFC solution is penetrating the retail market.

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