Global Retail Digital Transformation Market Report 2024

The retail digital transformation market size has grown exponentially in recent years. It will grow from $235.92 billion in 2023 to $285.1 billion in 2024 at a compound annual growth rate (CAGR) of 20.8%. The historical period saw significant growth fueled by the expansion of e-commerce, advancements in mobile technology, the adoption of big data analytics, the integration of omnichannel platforms, and the emergence of AI and machine learning.

The retail digital transformation market size is expected to see exponential growth in the next few years. It will grow to $611.7 billion in 2028 at a compound annual growth rate (CAGR) of 21%. The anticipated growth in the forecast period is expected to be driven by augmented reality (AR) and virtual reality (VR), the Internet of Things (IoT), voice commerce, blockchain technology, and hyper-personalization. Key trends expected in the forecast period include contactless shopping, the adoption of sustainable practices, the proliferation of subscription services, increased hyper-localization, and the ascendance of direct-to-consumer (DTC) brands.

The anticipated expansion of the retail sector is poised to drive growth in the market for retail digital transformation. This sector encompasses businesses engaged in directly providing goods or services to consumers for personal use or consumption. Its growth is propelled by factors such as increasing consumer demand, globalization, and evolving market dynamics. Retail digital transformation initiatives aim to enhance customer experiences, streamline operations, and enable data-driven decision-making within the retail industry. For instance, in April 2024, according to the House of Commons Library, a UK-based research and information service provider for the UK parliament, the retail sector's economic output in 2023 was $141.56 billion (£112.9 billion), accounting for 4.9% of the UK's total economic output and reflecting a 2.5% increase compared to 2021. As of January 2023, there were 315,000 retail businesses. Retail sales in Great Britain for 2023 reached $639.48 billion (£510 billion), marking a 3% increase from the previous year. Therefore, the expansion of the retail sector is expected to propel the growth of the retail digital transformation market.

Leading companies in the retail digital transformation market are innovating by developing solutions such as cloud-neutral data management platforms. These platforms are designed to provide scalable and flexible solutions for managing retail data across diverse cloud environments. For instance, in March 2022, Informatica, a US-based enterprise cloud data management provider, introduced the Intelligent Data Management Cloud (IDMC), tailored for retail organizations. This platform addresses challenges such as data fragmentation and disconnected experiences in multi-cloud and hybrid setups. IDMC for Retail focuses on enhancing customer profiles, expanding self-service options, and improving product content management to deliver seamless customer experiences. It drives retail digital transformation by refining customer profiles, enhancing self-service functionalities, optimizing supply chain management, and reducing operational costs through automated workflows.

In March 2021, Accenture plc, an Ireland-based technology corporation, acquired REPL Group to enhance its capabilities in assisting clients in retail and related industries in improving their supply chains, operations, and creating seamless consumer and employee experiences. REPL Group, a UK-based technology consultancy, specializes in solutions for supply chain management, workforce management, store operations, and retail customer experiences.

Major companies operating in the retail digital transformation market are Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, SAP SE, Infosys Limited, Wipro Limited, Lawson Software Inc, Dassault Systèmes SE, Shopify Inc., The Sage Group plc, Zoho Corporation Pvt. Ltd, Epicor Software Corporation, Manhattan Associates Inc, Lightspeed POS Inc., Kinaxis Inc., Retalix Ltd, Nayax, BluJay Solutions LLC, Logility Inc, HighJump Software Inc., Brightpearl Limited, Wasp Barcode Technologies LLC, Aldata Solutions, Ordoro Inc.

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

Retail digital transformation entails strategically adopting and integrating digital technologies to modernize and optimize various facets of retail operations, customer experiences, and business processes. Its aim is to enhance operations, customer experiences, and overall business performance within the retail sector.

The main types of accessibility for retail digital transformation are through mobile applications and websites. Retail digital transformation mobile applications refer to software solutions designed to streamline shopping experiences, facilitate mobile payments, offer personalized recommendations, and enable seamless interactions between retailers and customers via smartphones or tablets. These applications leverage technologies such as cloud computing, big data, artificial intelligence, Internet of Things (IoT), augmented reality (AR), or virtual reality (VR) across various product categories such as media and entertainment, apparel, food and beverage, furniture and home décor, beauty and personal care, among others.

The retail digital transformation research report is one of a series of new reports that provides retail digital transformation market statistics, including the retail digital transformation industry's global market size, regional shares, competitors with a retail digital transformation market share, detailed retail digital transformation market segments, market trends and opportunities, and any further data you may need to thrive in the retail digital transformation industry. This retail digital transformation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The retail digital transformation market consists of revenues earned by entities by providing services such as personalized shopping experience and streamlined operations. The market value includes the value of related goods sold by the service provider or included within the service offering. The retail digital transformation market also includes sales of e-commerce platforms, digital payment solutions, inventory management systems, and customer relationship management (CRM) software. 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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