Connected Retail Market will produce opportunities worth US$82.31 bn by the end of 2025
According to this business intelligence study, the demand in the global connected retail market will multiply at an impressive CAGR of 19.80% during the forecast period of 2017 to 2025. The analysts of the report have estimated that the hardware and software pertaining to connected retail will produce opportunities worth US$82.31 bn by the end of 2025, substantially up from its evaluated worth of US$19.46 bn in 2017.
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Increasing adoption of the Internet of Things (IoT) is the primary driver of the global connected retail market, promising to revolutionize the way retailers handle their inventory management and customers use end products such as washing machines, wearable devices, automotive, mobile phones and tablets, among others.
As the technology is harnessed further, the costs of components such as RFID tags are expected to decline and become more affordable for larger masses. The emergence of omni channel retailing also expected to fuel the connected retail market, which on the other hand is expected to suffer negatively from a few factors such as privacy issues and lack of IoT standards.
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Zigbee Continues to be the Leading Connectivity Segment
On the basis of connectivity, this report segments the connected retail market into Zigbee, Wi-Fi, Bluetooth, and NFC. In 2016, the Zigbee segment constituted for the maximum demand, which was a reflection of its low cost despite the ability to provide strong connectivity. With Zigbee, retails are able to improve their in-store experience for their customers as well as gain data regarding the frequency of purchases.
On the basis of component, the connected retail market has been bifurcated into hardware and software. In 2016, hardware components provided for more than 60% of the total demand, dominating with rising usage of devices such as RFID, sensors, and POS systems. That being said, the demand for software components is primed to expand at a stronger CAGR during the forecast period of 2017 to 2025.
The market has been further segmented based on end users into Electronics and Appliances, Beauty, Home and personal care, food and beverage, apparel footwear & accessories, home goods, sporting goods and toys and others. Electronic and appliances is anticipated to showcase the fastest growth rate during the forecast period owing to the rise in adoption of gadgets among the population.
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Demand from Asia Pacific to Expand Quicker than North America
North America is currently the most lucrative region for the vendors operating in the global connected retail market, promising to provide for a demand that will be worth US$27.80 bn by 2025. While Europe is the second most profitable region and is expected to hold onto its position until 2025, the demand for connected retail from Asia Pacific is projected to expand at an above average CAGR of 23.3% during the forecast period of 2017 to 2025, which is greater than any other region. South America has also been highlighted as a profitably prospering regional market.
Some of the key companies of the global connected retail market are: Cisco Systems (San Jose, California), Verizon (New York, United States) International Business Machines Corporation (IBM) (U.S.), Amazon Web Services Inc. (Seattle, U.S.), Microsoft Corporation (Washington, U.S.), Belatrix Software (Redwood City, U.S), ARM Holdings PLC (Softbank Group) (Cambridge,U.K), Softweb Solutions Inc. (Chicago, U.S), Atmel Corporation (Microchip Technology Inc.) (California, U.S), Google Inc. (U.S.), Microsoft Corporation (U.S.), Intel Corporation (Santa Clara, U.S), SAP SE (Germany), NXP Semiconductors NV (Netherlands), Zebra Technologies Corp. (U.S), Fujitsu Limited (Tokyo, Japan), PTC Inc. (Massachusetts, U.S).
Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.
TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.
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