The global smart retail market is anticipated to grow at a significant CAGR of 26.1% during the forecast period. The growing deployment of IoT systems is the key factor contributing to the growth of the smart retail market during the forecast period. The IoT technology allows retailers to connect any electronic device, such as appliances, cell phones, laptops, and more, via an app or software linked with various sensors that track product inventory and consumer behavior. With IoT solutions, retailers can monitor, when their products sell in real-time and how much shoppers spend on average in-store by using smart POS terminals no matter how busy the location happens to be. When combined with smart retail, IoT devices provide retailers with deep insights into their customers’ purchasing habits which aids businesses to manage inventory levels and optimize the supply chain of the retail business as a whole. 

Furthermore, IoT devices can also prevent theft or loss by tracking store assets and inventory. This technology also enables retailers to quickly locate lost or stolen items with GPS tracking — making it easy to recover their merchandise. For instance, in March 2022, HLDS launched HL-DP, IoT operating platform, for smart retail using sensor solutions, which implement a cashier-less store where users can shop, select products, and pay for them with only their facial recognition and without a wallet or smartphone payment function.

Impact of COVID-19 Pandemic on Global Smart Retail Market

The impact of the COVID-19 pandemic has fallen on almost all sectors of development including retail which plays a major role in the day to day life. The pandemic has upended the retail industry, forcing the closure of physical stores and causing uncertainty for the future of the in-store experience. These abrupt shifts have left many retailers scrambling to effectively serve customers through other channels. Digital-first and omnichannel retailers have pivoted more easily, but retailers that prioritized physical stores and face-to-face engagement over omnichannel strategies have struggled to respond.

Segmental Outlook 

The global smart retail market is segmented based on the solution, retail offering, and application. Based on the solution the market is bifurcated into the hardware and software. Based on the retailer offering, the market is sub-segmented into the fast-moving consumer goods and hardlines and leisure goods. Based on the application, the market is augmented by visual marketing, smart label, smart payment system, intelligent system, and others. Among the solution segment, the software segment is expected to hold a considerable share in the market over the forecast period. The changing end-users need and behavior are pushing retailers to adopt software-based solutions which will help to improve customer satisfaction and experience. 

Global Smart Retail Market Share by Application, 2021 (%)

The Smart Payment System Segment is Expected to Hold the Prominent Share in the Global Smart Retail Market

Among application segments, the smart payment system is expected to hold a prominent share in the market over the forecast period. The smart payment system is an all-in-one payments solution that uses the latest technologies to reduce friction during checkout while supporting a variety of other applications. The initiative taken by retailers to promote digital payments and enhance customer experience is propelling the growth of the segment growth during the forecast period. For instance, in June 2021, PayStand announced the launch of Smart Lockbox, the digital-first alternative to traditional lockbox services. Now, for the first time, businesses will have the keys to unlock a fully paperless cash cycle from payer to merchant – one that incentivizes customers to move to a digitized payment model that eliminates manual tasks and lowers operational costs for finance teams.

Regional Outlooks

The global smart 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).  The market can be analyzed for a particular region or country level as per the requirement. Among all, the North American region is expected to drive market growth due to the presence of key players such as IBM Corp., Intel Corp., Cisco Sysytems Inc., Nvidia Corp., and others across the region. In addition, the rapid adoption of technologies and availability of well-developed infrastructure in the region is another factor responsible for market growth. 

Global Smart Retail Market Growth, by Region 2022-2028

The Asia-Pacific Region is Expected to Hold the Considerable Share in the Global Smart Retail Market

The Asia-Pacific region is expected to hold a considerable share in the market over the forecast period, due to the increasing deployment of robotics for different purposes in the countries such as China, Japan is propelling the growth of the smart retail market. For instance, in January 2022, the Ministry of Industry and Information Technology (MIIT) stated that The new 5-year plan for the robotics industry in China. It focuses on promoting innovation - making China a global leader in robot technology and industrial advancement. The statistical department of the International Federation of Robotics reports on the domestic and foreign engagement in the world's largest market.

Market Players Outlook

The major companies serving the global smart retail market include Amazon.com Inc., Cisco Systems Inc., IBM Corp., Google LLC, Microsoft Corp., Nvidia Corp., PAR Technology Corp., PTC Inc., NCR Corp., Nxp Semiconductors N.V., Robert Bosch Gmbh, Samsung Electronics Co., Ltd., Softbank Robotics Corp., Standard Cognition Corp., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in May 2020, the Chinese smartphone brand Vivo launched a new model to support its offline partners. The Vivo smart retail aims to address the demand for smartphones across the country by leveraging the retail network. It will allow offline Vivo partners to connect with customers via SMS, e-store, and Facebook page. 

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global smart 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.