IoT in Retail Global Market Report 2024

The iot in retail market size has grown rapidly in recent years. It will grow from $33.76 billion in 2023 to $40.35 billion in 2024 at a compound annual growth rate (CAGR) of 19.5%. The growth observed in the historical period can be attributed to data-driven decision-making, the evolution of customer engagement, inventory optimization, enhanced in-store experiences, and security and loss prevention measures.

The iot in retail market size is expected to see rapid growth in the next few years. It will grow to $78.73 billion in 2028 at a compound annual growth rate (CAGR) of 18.2%. The anticipated growth in the forecast period can be attributed to the integration of data analytics and AI, increased adoption of edge computing, consumer adoption of IoT devices, the expansion of omnichannel retailing, and the implementation of cybersecurity and data privacy measures. Major trends expected in the forecast period include enhanced supply chain visibility and transparency, the implementation of smart shelves and product monitoring, improved security and loss prevention measures, in-store analytics and foot traffic monitoring, as well as the widespread adoption of contactless payment and checkout systems.

The anticipated growth of the IoT in the retail market is driven by the increasing prevalence of e-commerce. E-commerce, synonymous with online commerce, involves buying and selling goods or services over the internet, facilitated by IoT technologies that enhance inventory management through features such as radio frequency identification tags. These tags enable the retrieval of essential item information, such as product type, availability, and expiration date, without human intervention. IoT in e-commerce optimizes retail operations by offering precise tracking during supply chain management, remote product assessment for predictive maintenance, personalized business experiences, and efficient customer and sales management. In the third quarter of 2022, the Census Bureau of the Department of Commerce reported total retail sales estimated at $1,792.0 billion, with e-commerce contributing to 14.8% of total sales, emphasizing the significant impact of increasing e-commerce penetration on the IoT in the retail market.

The growth of the IoT in the retail market is further propelled by the rising adoption of smartphone devices. Smartphones, mobile devices with advanced computing capabilities, internet access, and touchscreen interfaces, have led to increased usage of mobile shopping applications. Retailers leverage IoT technologies to enhance these applications by offering features such as personalized recommendations, in-app navigation, and location-based promotions. As of February 2023, Uswitch Limited reported an increase in active mobile connections to 71.8 million in 2022, reflecting a 3.8% growth from the previous year. With an estimated 95% smartphone penetration among the projected 68.3 million people in the UK by 2025, the adoption of smartphones is a significant driver of IoT growth in the retail market.

A notable trend in the IoT in the retail market is product innovation, with major companies focusing on research and development to introduce innovative products. For instance, in May 2022, Hanshow Technology Co. Ltd introduced the AllStar IoT platform, designed to assist retailers in upgrading and expanding their digitalization efforts. The platform integrates various digital devices within a store, offering functions such as pricing management, inventory management, geolocation, dynamic pricing, and interactive marketing, among others. Product innovation is crucial for companies to maintain their positions in the IoT in the retail market.

Major companies in the IoT in retail market are adopting a strategic partnership approach to create wirelessly powered IoT applications for in-store retail. Strategic partnerships involve leveraging mutual strengths and resources for shared benefits. In January 2023, Energous Corporation partnered with SATO Holdings Corporation to integrate Energous' WattUp PowerBridge transmitters with IoT applications developed for advanced smart store functionalities. This collaboration aims to enable wireless powering capabilities for Wiliot IoT Pixel sensor tags, facilitating asset and inventory management solutions in stores and warehouses. The partnership demonstrates the importance of strategic collaborations in driving innovation in the IoT in the retail market.

In September 2021, Panasonic Holdings Corporation acquired Blue Yonder for $8.5 billion. This strategic move aims to strengthen both companies' portfolios in autonomous supply chains, enhancing e-commerce strategies, retail stores, warehouses, transportation, and workplaces. Blue Yonder, a provider of an end-to-end digital fulfillment platform, aligns with Panasonic's vision of establishing smarter and more integrated solutions in the IoT-driven retail landscape.

Major companies operating in the iot in retail market report are ARM Limited, Cisco Systems Inc., Alphabet Inc., IBM Corporation, Impinj Corporation, Intel Corporation, Microsoft Corporation, PTC Inc., RetailNext Inc., SAP SE, Softweb Solutions Inc., Zebra Technologies Corporation, Huawei Technologies Company Limited, Amazon Web Services Inc., Software AG, Bosch Software Innovations GmbH, NEC Corporation, Oracle Corporation, Vodafone Group Plc., Allergen Technologies Private Limited, Sierra Wireless Inc., Happiest Minds Technologies Limited, Losant IoT Inc., NXP Semiconductors N.V., Verizon Communications Inc., Freescale Semiconductor Inc., Xively Inc., Microchip Technology Incorporated, Bsquare Corporation, Fujitsu Limited, Hewlett Packard Enterprise Development LP.

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

The main types of IoT applications in retail include Beacons, RFID tags, sensors, wearables, and others. Beacons are small, battery-powered wireless devices that transmit Bluetooth signals to nearby cellphones. These solutions and services leverage technologies such as Bluetooth low energy, near-field communication, ZigBee, among others. Deployment modes include on-premise and cloud, serving various applications such as supply chain operations management, customer management, sales, asset management, and more.

The IoT in the retail market research report is one of a series of new reports that provides IoT in retail market statistics, including IoT in retail industry global market size, regional shares, competitors with an IoT in retail market share, detailed IoT in retail market segments, market trends and opportunities, and any further data you may need to thrive in the IoT in the retail industry. This IoT in retail 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 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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