Retail Digital Transformation Market Report 2026

The retail digital transformation market size has grown rapidly in recent years. It will grow from $336.93 billion in 2025 to $397.8 billion in 2026 at a compound annual growth rate (CAGR) of 18.1%. The growth in the historic period can be attributed to increasing adoption of e-commerce platforms, rise of mobile internet usage, early investments in retail it infrastructure, growth of digital payment solutions, consumer demand for convenience.

The retail digital transformation market size is expected to see rapid growth in the next few years. It will grow to $768.87 billion in 2030 at a compound annual growth rate (CAGR) of 17.9%. The growth in the forecast period can be attributed to advancements in AI-powered analytics, expansion of cloud-based retail solutions, increasing adoption of ar/vr in retail, growth of connected store technologies, rising focus on sustainable digital retail solutions. Major trends in the forecast period include omnichannel retail integration, personalized customer experiences, e-commerce platform optimization, supply chain digitization, contactless payment adoption.

The expansion of the retail sector is anticipated to drive the growth of retail digital transformation. The retail sector includes businesses that sell goods or services directly to consumers for personal use or consumption. Factors such as rising consumer demand, globalization, and changing market trends are fueling the expansion of the retail sector. Retail digital transformation improves customer experiences, optimizes operations, and supports data-driven decision-making within the sector. For example, in December 2025, according to the UK Parliament's House of Commons Library, a UK-based government body, the retail sector produced an economic output of £114.7 billion ($146 billion) in 2024, contributing 4.4% of the UK’s total economic output and reflecting a 1.4% increase from 2023. Consequently, the expansion of the retail sector is expected to propel the growth of retail digital transformation.

Major companies operating in the retail digital transformation market are focusing on utilizing conversational artificial intelligence (AI), such as chat-based AI shopping assistants, to improve customer experience personalization and streamline product discovery. Chat-based AI shopping assistants are conversational platforms powered by large language models that understand natural language queries and contextual user preferences, guiding shoppers through product discovery and purchasing in an interactive dialogue format. For example, in June 2025, Daydream, a US-based retail technology company, introduced the Daydream Shopping Agent, a conversational AI platform designed to facilitate fashion shopping through natural language interactions, offering real-time personalized product suggestions, intent-driven searches across multiple fashion brands and retailers, and contextual comprehension of individual style preferences. The Daydream Shopping Agent enhances digital retail outcomes by minimizing search friction, increasing personalization accuracy, and delivering a more intuitive and engaging online shopping experience.

In July 2024, Accenture plc, a technology company headquartered in Ireland, acquired Logic for an undisclosed sum. This acquisition strengthens Accenture’s ability to deliver cutting-edge retail solutions and support clients in adapting to ongoing changes in the ever-evolving market. Logic, a retail technology services firm based in the United States, offers AI and automation solutions, ranging from supply chain optimization to engaging shoppers through semantic search.

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 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the retail digital transformation market report are Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.

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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