Connected retail market is anticipated to grow at a considerable CAGR of 3.1% during the forecast period. Connected retail is a strategy that links retail with digital technologies to create a seamless shopping experience for customers. Seamless integration of online and offline channels, personalized marketing, 24/7 availability of products, and cost efficiency are the key benefits of connected retail. The growing integration of advanced technologies such as artificial (AI), edge computing, 5G networks in retail stores, along  with the booming in-store technology ecosystem has been driving the growth of the global connected retail market. The combinations of innovative digital solutions are likely to offer opportunities to the market growth.

In March 2023, Connected Retail Experience Study 2023, conducted by Incisiv in collaboration with Verizon Business, reveals that retailers are prioritizing investments in technologies that improve operational efficiency to reduce costs and increase profitability. The study shows that retailers anticipate a significant increase in automation and expect up to 70.0% of routine tasks will be partially or fully automated by 2025. They expect to leverage the labor and productivity benefits by re-deploying associates to customer-facing high-value tasks (18% of retailers) and support business operations (26% of retailers). The increasing automation at retail stores is anticipated to promote the growth of the global connected retail market.

In February 2022, Investment firm Growth Partner has completed a $5.5 million investment into growing flooring business Connection Retail. The investment from Yorkshire-based Growth Partner will be used to support a plan to build a footprint of 100 stores across the UK. Retailers across the globe are realizing the benefits of connecting with the customers and providing them a more immersive shopping experience by consistently providing them messages about pricing, product availability and provide customer service across all touch points. The growing focus of retailers towards enhancing customer experience is driving the global connected retail market.

In addition, rapid decline in the costs of the components including RFID tags and sensors has made positive impact on the market growth. The declining cost of RFID has led to increase in demand for more and more RFID components across the retail segment to curtail fraud and theft. However, issues pertaining to privacy and security and lack of IoT standards are restraining the market growth.

Segmental Outlook

The global connected retail market is segmented based on component and technology. Based on component, the market is segmented into hardware, software, and services. Based on technology, the market is segmented into ZigBee, NFC, BLE, Wi-Fi, and others including magnetic positioning. 

Bluetooth Low Energy to Hold a Considerable Share in the Global Connected Retail Market

Bluetooth Low Energy (BLE) sub-segment is expected to hold a considerable share in the market. Surging installation and usage of the technology across major retail stores is a contributor to the high share of the segment. BLE transmits fewer data over shorter distances using much less power than Bluetooth. Retail payments and marketing verticals are increasingly using BLE technology leading to improved sales, customer loyalty, and acquisition. Although BLE has witnessed growth in customer engagement and marketing applications, for contactless payments.

Regional Outlook

The global connected retail market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). Among these, the Asia-Pacific region is estimated to be the fastest-growing region owing to the rapidly developing retail industry.

Global Connected Retail Market Growth, by Region 2023-2030

The North America Region is Expected to Hold a Considerable Share in the Global Connected Retail Market 

Among all the regions, the North America is expected to hold a considerable share in the global connected retail market. Rising omnichannel retailing, where the consumers are continuously active on connected platforms such as mobile, tablet, or desktop, has led to increasing prominence of connected retailing around the region. The presence of major retail chains such as Walmart, The Kroger Co, and Target among others that are investing heavily in connected technologies to increase their revenue generation has contributed to the high share of the regional market. For instance, in June 2021, Walmart renamed is media business to Walmart Connect, which was formerly known as Walmart Media Group. Walmart Connect was developed to accelerate their connection to customers in a closed-loop, omnichannel environment. 

Market Players Outlook

The major companies serving the global connected retail market include Cisco Systems Inc., Honeywell International Inc., IBM Corp., Intel Corp., and Microsoft Corp. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, and funding to stay competitive in the market. For instance, in September 2022, Instacart launched Connected Stores, a suite of a new and existing technologies which aims to help retailers creating a personalized experience both in-store and online.

The Report Covers

• Market value data analysis of 2022 and forecast to 2030.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global connected retail market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.