Connected Retail Global Market Report 2024

The connected retail market has grown exponentially in recent years. It will grow from $36.41 billion in 2023 to $44.07 billion in 2024 at a compound annual growth rate (CAGR) of 21.0%. The expansion observed in the historical period can be attributed to several factors, including the rise of e-commerce, advancements in customer experience, a growing demand for personalization, the influence of social media, optimization of supply chain processes, and the emergence of smart stores.

The connected retail market is expected to see rapid growth in the next few years. It will grow to $88.17 billion in 2028 at a compound annual growth rate (CAGR) of 18.9%. The anticipated growth in the forecasted period can be attributed to various factors, including the adoption of contactless shopping, the increasing prevalence of voice commerce, growing concerns for sustainability, cross-channel integration, and the implementation of smart mirrors and fitting rooms. Major trends expected in this period encompass the integration of the Internet of Things (IoT), the rise of mobile commerce and payments, the utilization of data analytics and artificial intelligence (AI), the implementation of smart shelves and RFID technology, and the prevalence of subscription-based models. These trends collectively contribute to the evolution and advancement of the retail landscape.

The projected growth in the connected retail market is expected to be fueled by increasing demand from key end-user segments, particularly the food and beverage industry. The food and beverage industry encompasses businesses involved in the processing, packaging, and distribution of raw food products. Connected retail solutions play a crucial role in enhancing customer engagement for food and beverage brands, providing a consistent brand experience that aligns with customer preferences. For example, in 2023, data from the Food & Drink Federation indicates a significant surge of 31% in the exports of food and drink in 2022 compared to the previous year. Additionally, the industry generated a substantial turnover of $3.52 billion (£10.3 billion) in 2022, representing 33% of the total manufacturing output in Scotland. This increased demand from the food and beverage industry serves as a driving force for the growth of the connected retail market.

The anticipated growth in the connected retail market is expected to be propelled by the increasing adoption of the Internet of Things (IoT). The IoT represents a networked system comprised of interconnected computing devices, mechanical and electronic machinery, each possessing unique identities (UIDs) and the capability to transfer data autonomously, without the need for human-to-human or human-to-computer contact. The integration of IoT technologies facilitates connected retail by leveraging interconnected devices to gather real-time data, thereby enhancing customer experiences and optimizing operational efficiency. Notably, a report published by Ericsson in September 2022 revealed that global IoT connections reached 13.2 billion in 2022 and are forecasted to experience an 18% increase, reaching 34.7 billion connections by 2028. This substantial uptick in IoT adoption serves as a significant driver fueling the growth of the connected retail market.

The connected retail market is witnessing a significant trend driven by technological advancements, as major companies in this sector embrace new technologies to maintain their competitive edge. In September 2022, Instacart, a US-based grocery technology company, introduced "connected stores," a suite of technologies aimed at assisting retailers in creating a personalized experience for customers both online and in-store. This offering enables grocers to seamlessly integrate their app or website with the physical in-store experience, providing customers with a unified and personalized shopping experience.

Leading companies in the connected retail market are actively involved in the development of next-generation retail applications. These applications are designed to enhance personalized customer experiences and optimize supply chain management through advanced data analytics and AI-driven technologies. Blockchain technology is integrated into these applications to ensure heightened security, transparency, and traceability within supply chains and transactions. An illustrative example is ReStore for Retail, a US-based technology company that launched a mobile visual merchandizing and operations platform in September 2023. This innovative system enhances retailers' merchandising and operational functions, contributing to exceptional in-store experiences for shoppers and frontline teams, ultimately leading to tangible improvements in revenues and profits.

In July 2023, Omnicom Media Group, a US-based cloud-based retail media network company, revealed the strategic acquisition of Outpromo and Global Shopper for an undisclosed amount. This acquisition signifies Omnicom Media Group's commitment to establishing a specialized e-commerce and retail media performance agency within the Brazilian market. Outpromo, a Brazil-based omnichannel commerce agency, specializes in devising and executing strategies for brand encounters across both physical and digital landscapes. On the other hand, Global Shopper, also based in Brazil, operates as a connected commerce agency, aligning with the evolving trends in the retail and e-commerce sectors.

Major companies operating in the connected retail market report are Microsoft Corporation, Zebra Technologies Corporation, Intel Corporation, PTC Inc., SAP SE, Cisco Systems Inc., International Business Machines Corporation, Google LLC, NXP Semiconductors N.V., Softweb Solutions Inc., Honeywell International Inc., Sonata Software Limited, iVend Retail, Avanade Inc., Fujitsu Limited, Verizon Enterprise Solutions, Amazon Inc., ARM Holdings PLC., Atmel Corporation, Belatrix Software Private Limited, Samsung Electronics Co. Ltd., Toshiba Corporation, Siemens AG, Wipro Limited, Accenture plc, Capgemini SE, Infosys Limited, NEC Corporation, Tata Consultancy Services Limited, DXC Technology Company.

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

The key components of connected retail include hardware, software, and services. Point-of-sale (POS) software is a critical element of the software component, employed at checkout counters in retail stores to facilitate sales transactions, manage inventory, and handle payment processing. Various technologies such as Zigbee, NFC (Near Field Communication), Bluetooth low energy, and Wi-Fi play pivotal roles in different applications, spanning electronics and appliances, home and personal care, food and beverage, apparel, sporting goods, toys, and other sectors. The integration of these technologies enhances the overall retail experience, promoting efficiency and connectivity throughout the entire shopping process.

The connected retail market research report provides connected retail market statistics, including connected retail industry global market size, regional shares, competitors with a connected retail market share, detailed connected retail market segments, market trends and opportunities, and any further data you may need to thrive in the connected retail industry. This connected 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 connected retail market includes revenues earned by providing click-and-collect or BOPIS (buy online, pick up in-store) services, in-store navigation and wayfinding, mobile payments and checkout, supply chain optimization, virtual and augmented reality (VR and AR) experiences, loyalty programs, and smart shelf management. The market value includes the value of related goods sold by the service provider or included within the service offering. The connected retail market also includes sales of connected systems and IoT-enabled devices which are used for providing connected retail services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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