Retail Analytics Global Market Report 2024

The global retail analytics market has grown exponentially in recent years. It will grow from $6.99 billion in 2023 to $8.84 billion in 2024 at a compound annual growth rate (CAGR) of 26.4%. During the historic period, growth can be attributed to various factors including heightened competition within the retail sector, a dedicated focus on enhancing customer experiences, increased adoption of loyalty programs, the emergence and utilization of big data analytics, the proliferation of e-commerce platforms, and a rising demand for personalized services and products.

The global retail analytics market is expected to see exponential growth in the next few years. It will grow to $20.29 billion in 2028 at a compound annual growth rate (CAGR) of 23.1%. The anticipated growth in the forecast period is driven by several factors including improved fraud detection capabilities, the widening implementation of omnichannel strategies, the use of real-time analytics, increased demand for sustainability analytics, concerns surrounding privacy and compliance, and the global expansion of retail chains. Key trends expected in the forecast period encompass a heightened focus on customer experience analytics, the integration of omnichannel analytics for seamless operations, the utilization of real-time analytics for swift decision-making, the utilization of visual and image analytics, the adoption of cloud-based analytics solutions, customer segmentation for targeted marketing, and collaborative efforts with analytics service providers.

The retail analytics market is anticipated to experience growth driven by the digitalization efforts aimed at enhancing customer experience and retail operations. Digitalization involves the transformation of business models through the adoption of digital technologies, creating new opportunities for value creation and revenue generation. Regardless of the channel or location, digital transformation enables businesses to engage with modern customers and meet their expectations for a seamless customer experience. For instance, a 2021 survey by BDO USA LLP revealed that customer experience remained the top digital priority for retail, with 35% of respondents focusing on improving customer experience. This emphasis on digitalizing for improved customer experience and streamlined retail operations is a key factor propelling the growth of the retail analytics market.

The expansion of Information Technology (IT) infrastructure is expected to further propel the growth of the retail analytics market. IT infrastructure encompasses hardware, software, networks, data centers, and other components that support and enable an organization's information technology environment. A robust and well-maintained IT infrastructure is foundational for the successful implementation of retail analytics, providing support for data management, processing, and analysis. This infrastructure ensures that retailers can effectively leverage data to make informed decisions, enhance customer experiences, and optimize their operations. As evidenced by the substantial funds raised by fast-growing IT businesses in the UK in 2022, the growth in IT infrastructure is a driving force behind the expansion of the retail analytics market.

Technological advancement emerges as a prominent trend in the retail analytics market, with major companies developing innovative analytics platforms using advanced technologies such as artificial intelligence (AI), internet of things (IoT) devices, augmented and virtual reality, chatbots, and more. For example, Crossmark, a US-based retail merchandising services provider, launched an accelerator in August 2021 - a cutting-edge data analysis platform for Consumer Packaged Goods (CPG) sales and marketing activities. This platform, designed to evolve with the addition of new data sources and machine learning capabilities, represents a trend where technological innovation plays a pivotal role in sustaining market positions. The platform, developed in collaboration with leading technology firms, offers intuitive visualization of analytical tasks critical for smarter selling and faster growth in the retail analytics market.

Major players in the retail analytics market are actively introducing innovative technological products, such as the Retail Prescriptive Analytics System, to enhance profitability and competitiveness in the market. Prescriptive analytics, a form of data analytics, offers recommendations on what actions to take next by analyzing historical performance and trends, helping businesses make informed decisions to achieve future objectives. A notable example is Kepler Analytics, an Australia-based retail analytics company, which launched the Retail Prescriptive Analytics System in January 2023. This system empowers retailers to establish optimal prices, promotions, and assortments at granular levels, catering to their best customers and fostering loyalty. Retail prescriptive analytics systems serve as valuable tools for making intelligent decisions at scale, allowing retailers to analyze various data sets, including geolocation, trends, product availability, and peak shopping hours.

In April 2021, EDITED, a UK-based retail intelligence provider and AI-driven data insights company, acquired DynamicAction for an undisclosed amount. This strategic acquisition aimed to bridge the information-action gap, providing retailers with the insights needed to make better data-driven decisions. EDITED and DynamicAction collaborated to develop the first fully integrated retail automation system, combining global market data with insights from the supply chain ecosystem for rapid decision-making. DynamicAction, a US-based company specializing in retail analytics for both B2C and B2B retail brands, contributed to the creation of an advanced and comprehensive solution that integrates diverse data sources to drive effective retail strategies. This acquisition reflects the trend of major companies in the retail analytics market leveraging acquisitions to enhance their capabilities and provide holistic solutions to retailers.

Major companies operating in the retail analytics market report are Microsoft Corporation, HCL Technologies Limited, IBM Corporation, 1010data Inc., FLIR Systems Inc., Radius Networks Inc., Manthan Software Services Pvt. Ltd., Wipro Limited, Capgemini SE, TIBCO Software Inc., Adobe Inc., Cisco Systems Inc., Amazon.com Inc., Teradata Corporation, MicroStrategy Incorporated, Tableau Software LLC, FICO, Fiserv, Inc., Verisk Analytics Inc., Nielsen Holdings PLC, Experian PLC, Mastercard Incorporated, Visa Inc., PayPal Holdings Inc., Square Inc., Shopify Inc., Facebook Inc., Dor Technologies Inc., True Fit Corporation, Orbital Insight Inc., Cuebiq Inc., Rubikloud Technologies Inc.

North America was the largest region in the retail analytics market in 2023. The Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the retail analytics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the retail analytics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary components within retail analytics comprise solutions and services. Solutions refer to tailored products or services designed to address common or specific client issues. These encompass functions related to customer management, merchandising, store operations, supply chain management, strategy, and planning. These solutions are deployed through various models including on-premise and cloud-based systems and are utilized by both offline and online end-users.

This report provides retail analytics market statistics, including retail analytics industry global market size, regional shares, competitors with a retail analytics market share, detailed retail analytics market segments, market trends and opportunities, and any further data you may need to thrive in the retail analytics industry. This retail analytics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The retail analytics market includes revenues earned by entities by descriptive analytics, diagnostic analytics, predictive analytics, and prescriptive analytics. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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