Retail Analytics Market: New Technologies are Breathing New Life into both e-commerce and Retail

The Retail Analytics Market size was valued at USD 7.34 Bn. in 2022 and the total revenue is expected to grow by 19.5% from 2023 to 2029, reaching nearly 25.67 Bn.

The process of delivering analytical data on inventory levels, sales, consumer demand, and supply chain movement is known as retail analytics. Combining data from several areas with scope and improvement needs aids businesses in identifying customer insights, such as new trends and shifting preferences. One of the most effective techniques for maintaining procurement levels and empowering businesses by providing a rapid and efficient decision-making process is retail analytics. Almost every aspect of a retail firm, from sales and marketing to inventory management and operations, depends heavily on analytics. Retail analytics, in a nutshell, enables users to harness data and realize its value.

Many retailers were confident at the beginning of 2022 about their capacity to overcome the difficulties they had encountered the previous two years. As retailers started to look beyond COVID-19, there was a notion that the industry is expected to be able to capitalize on new consumer behavior and make significant progress in defining what the future of shopping would entail through technology, innovation, and new business models. However, a number of unanticipated headwinds have combined to make the market more difficult than ever for retailers and their suppliers: the cost of doing business has increased due to the price and scarcity of fuel and raw materials; the global cost of living crisis, with rapid inflation reducing consumer spending power; and the Russian military invasion of Ukraine, which has affected supply chains and forced businesses to halt operations across the world.To know about the Research Methodology :- Request Free Sample Report
Retail Analytics Market Dynamics:
The Popularity of Omnichannel Retailing is Growing

The growing trend of omnichannel retailing is one of the most significant trends in the retail industry. As a result, businesses are turning away from conventional brick-and-mortar stores and depending instead on online marketplaces to market their goods. The fashion industry has seen a particularly noticeable increase in this tendency. In addition to having physical locations, many fashion retailers now provide their products online. By doing this, they may reach a larger audience and cut down on the costly expenditures of running a physical location.

The Growing Importance of Improving Customer Experience And Retail Operations

Companies are adopting retail analytics solutions that improve the customer experience and keep customers engaged with the company for a longer period of time as a result of shifting consumer needs and increasing rivalry among retailers for client loyalty. The growing industry use of customer relationship management (CRM) technologies clearly demonstrates the growing importance of improving client experiences. Retailers may effectively use the datasets to understand client buying habits and hidden customer insights thanks to the growing usage of point-of-sale, IoT, RFID, and other smart devices generating big data. Retailers' emphasis on improving the consumer experience is hence fueling market growth across the world.

Retailers are implementing retail analytics to improve their operations and optimize business procedures as a further measure to boost business productivity. This aspect sparked the widespread adoption of retail analytics tools for managing retail operations. Thanks to the quick recovery following the COVID-19 epidemic, the retail analytics market is therefore expected to grow rapidly through the forecast period.

Technological Innovations in Retail to drive the Retail Analytics Market

Artificial Intelligence (AI): By 2022, it is expected that the market for AI in retail would reach $5,010.12 million. As it gets simpler to automate operations and enhance consumer experience, AI will play a bigger role in retail. Predictive analytics and machine learning may become widely used in the industry as a result, and robot utilisation may rise significantly.

Augmented reality (AR): By enabling buyers to explore products inside virtual reality surroundings, AR has already begun to have a significant impact on retail. In 2022, this technology is expected to become much more common as merchants try to provide their customers really immersive experiences.

Blockchain: A distributed digital ledger system called blockchain enables private exchanges between participants without the use of middlemen. Retailers are considering blockchain more and more as a means of streamlining their supply.

Gen Z: The rise of Gen Z is one of the major factors that will alter the retail sector. This generation is renowned for being the most mobile-friendly and digitally aware ever. Additionally, they are more likely to purchase online, so established stores will need to change if they want to compete.
Widespread Benefits of Retail Analytics
The most profitable retail brands frequently leverage data-driven insights to improve choices and increase revenue. While there are many advantages to using analytics in the organization, there are also some difficulties. Retail analytics tools leverage customer data to assist businesses in better understanding consumer behavior at each stage of the purchasing process. This means that by providing better, customer-centric experiences everywhere, firms are expected to be able to build deeper relationships with their customers. Using consumer data, merchants may improve customer experiences with the use of retail analytics technologies.

The best experiences and the appropriate items can be provided, and devoted client retention is ensured when firms are fully aware of their consumers' preferences. The elimination of speculation from company decision-making is one of the biggest advantages of retail analytics. Forecasting by hand is prone to error. Firms can accurately estimate and plan for the future with the aid of a retail analytics tool, which will also help businesses improve their supply chains and (in the end) increase their revenue.The State of Retail Analytics: Trends and Stats

Merchants across the world are implementing technologies like RFID, in-store WiFi, and the Internet of Things, as well as cloud-based applications. In addition, firms now have access to additional information as data and analytics are frequently included in these technologies. Here are some of the trends that are now causing a stir in the retail analytics sector and will likely continue to do so in the near future.

Predictive Analytics- This frequently refers to an analytics system that analyses data and makes predictions about the future using machine learning, predictive modeling, and data mining. Retailers would feel more secure in the decisions they make as a result of the use of predictive analytics, which tries to remove the element of guessing from the equation.

Prescriptive Analytics- Some products on the market have advanced to the point where they can now advise the store on how to proceed as well as predict what will happen next. For instance, based on the sales and inventory data of the shops, there are retail analytics tools that can suggest which products to mark down.

Customized analytics solutions- Given that each organisation may have different data requirements, it makes sense for providers to develop specialised services or adaptable platforms that enable firms to access the precise data they require.

Livestream Shopping Changing Retail Dynamics

Livestream shopping is a new trend that is closely tied to the development of social commerce. The distinction between e-commerce and in-store purchases is being erased by the availability of in-person product demonstrations and knowledgeable sales staff who can offer advice and extra options. According to MMR analysis, 265 million people, mostly in China, have already used livestream video commerce. Livestream purchasing is still relatively new in the United States. However, there are some remarkable outcomes from our clients, particularly for more expensive things like luxury goods, which usually require at least one in-store visit. Livestream buying has increased online conversion rates for jewelry shops by a factor of 20. The average amount spent on e-commerce has increased by 250% at high-end furniture stores. Including social commerce platforms and in-store video, livestream sales in the United States is expected to hit $11 billion this year and $25 billion in 2023.
Retail Analytics Market Segment Analysis:
By Type, the Retail Analytics Market is segmented into Software and Services. The software segment held the largest market share in 2022. The software segment's market growth is expected to be driven by its capacity to offer in-depth analytical data on the key performance indicators of the company. In addition, the software component is constantly experimenting and innovating, which makes it easier to incorporate new technologies that successfully address issues related to the retail industry.By Enterprise Size, the Retail Analytics Market is segmented into SMEs and Large Enterprises. Thanks to its increased focus on enhancing consumer contact through the use of retail analytics, the large enterprise segment accounted for the largest revenue share in 2022. A large company's strong financial position allows it to invest in cutting-edge technology, such retail analytics. In addition, COVID-19's market disruption, harsh competition, and unstable market conditions compelled large companies to utilize retail analytics to boost profits and decrease losses, which is what is causing this market segment's revenue rise.

In 2022, the Small & Medium Enterprises (SMEs) segment contributed a modest portion of total revenue. SMEs are seeking to deploy retail analytics more swiftly in order to stay competitive and improve their business operations as they increasingly recognised the possibilities of analytics. The availability of affordable software and the growing acceptability of cloud-based deployment are what are fueling this segment's revenue growth.

By Application, the Retail Analytics Market is segmented into Customer Management, Merchandising, In-Store Operations, Supply Chain, and Strategy & Planning. In-Store Operations segment dominated the market share in 2022, and it is expected that it would continue to rule the industry through the forecast period. The operating plan of a brick-and-mortar business must now include analytics based on in-store operations. Further understanding of devoted customers results in the creation of tactics to raise client stickiness, with advantages ranging from providing the right product to the right customer. On the vendor side, Microsoft recently unveiled new retail products associated with its Microsoft Dynamics 365 portfolio. This is consistent with what is being offered to retail consumers to increase operational efficiency in-store, measure saleable items better, and correctly identify who is buying and how to attract more people.
Retail Analytics Market Regional Insights:
In 2022, North America dominated the market with the largest market share. The United States is one of the most influential markets as it is a technical early adopter, and large companies there spend a lot of money on different technologies to stay competitive. Numerous significant businesses are investing more money in creating cutting-edge smart stores, which are also anticipated to fuel market expansion in this area. For instance, Amazon has started opening actual Amazon Go food and convenience stores around the United States.

Asia Pacific region is expected to grow significantly through the forecast period. Due to a variety of factors, including the presence of multiple developed and developing economies, the Asia Pacific market had the second-largest revenue share in 2022. It offers excellent opportunities for both technology advancement and retail shop growth. Particularly China, India, and Japan are focusing on data management to enable data-driven business decisions and enhance retail operations. Retail analytics market revenue growth is also being fueled by big corporations' increasing deployment of smart shops in this region. For instance, the Swedish furniture and home goods firm Ikea wants to dominate India's major cities by building four to five small-format stores to reach more customers in densely populated areas, in addition to a few large shops in each city.

In 2022, major businesses in China accounted for more than 70% of the market as large retailers prioritised big data analytics to extract value from their data. Business intelligence technologies are being aggressively implemented by players in the retail sector, including Alibaba Group and Suning Commerce Group, to support merchandising and branding efforts. By supporting large businesses in the management of stocks and supply chains and boosting foot traffic throughout huge retail store chains, retail analytics is complementing the business growth of these companies.

Growing partnerships and the introduction of new goods by major European corporations are propelling market growth in Europe. For instance, on December 18, 2022, Dunnhumby, the world's leading retail data science business, launched Dunnhumby Sphere, a comprehensive customer-first retail media platform. Dunnhumby Sphere is the end-to-end retail media platform that takes users from brand insights to campaign billing through its fully integrated collection of modules, assisting in the unification of audience targeting, media booking, forecasting, and measurement across a variety of retail media platforms. While advertising partners gain from enhanced collaboration and the capacity to plan, book, measure, and pay for campaigns across online and in-store channels, retailers may use this platform to scale their retail media capabilities and optimise revenue from retail media.
Competitive Landscape
The visionary leaders have very strong market presences together with established product portfolios. The wide range of products offered by Manthan encompass all essential application fields, including merchandising, pricing, inventory, assortment, forecasting, and customer management across crucial business processes including sales, marketing, store operations, and supply chain. The perfect evaluation score of 4/4 reflects the maturity of the solution as well as the breadth and depth of its offering. Manthan obtained a high rating for its corporate strategy as well, earning it a position of 4 in the market, behind IBM, Oracle, and Microsoft.

The major industry participants are eager to incorporate cutting-edge technologies like blockchain, artificial intelligence, machine learning, cloud computing, and more with the retail analytics solution. The providers hope to provide specialised analytics tools through these developments in order to improve the consumer experience. To establish a dominant market position, the players are introducing an unique and cutting-edge solution.

To accomplish a competitive edge in the market, businesses are stressing the incorporation of AI technology in their retail analytics solutions. For instance, Google introduced a new line of AI-powered goods for shops in January 2022. The new package provides managerial insights as well as in-depth analytics on consumer purchase habits. The AI suite offers individualized solutions and targets both big and small merchants.
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Retail Analytics Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
USD 7.34 Bn.


Forecast Period 2023 to 2029 CAGR:
19.5%
Market Size in 2029:
USD 25.57 Bn.


 Segments Covered:
by Type
• Software
• Services
o Training & Consulting
o Integration and Deployment
o Managed Services



by Deployment
• On-premise
• Cloud


by Enterprise Size
• SMEs
• Large Enterprises


by Application
• Customer Management
• Merchandising
• In-Store Operations
• Supply Chain
• Strategy & Planning



Retail Analytics Market, by Region
• North America (United States, Canada and Mexico)
• Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
• Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
• Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
• South America (Brazil, Argentina Rest of South America)
Retail Analytics Market, Key Players are:
• Microsoft Corporation (US)
• clickworker GmbH (US)
• Field Agent Inc (US)
• MicroStrategy Incorporated (US)
• Oracle Corporation (US)
• QlikTech International AB (US)
• Salesforce, Inc (US)
• SAS Institute Inc (US)
• Teradata Corporation (US)
• TIBCO Software Inc (US)
• Adobe Systems Incorporated (US)
• Altair Engineering Inc (US)
• IBM Corporation (US)
• Enhanced Retail Solutions (US)
• BeMyEye Holdings Ltd. (UK)
• Javelin Group (UK)
• SAP SE (Germany)
• Fit Analytics (Germany)
• Vemco Group (Denmark)
• HCL Technologies Limited (India)
• Wipro Limited (India)
• Fujitsu (Japan)
• Tapway (Malaysia)

FAQs:

1. How big is the Retail Analytics Market?
Ans. The global retail analytics market size was estimated at 7.34 billion in 2022 and is expected to reach USD 25.57 billion by 2029.

2. What is the growth rate of the Retail Analytics Market?
Ans. The Retail Analytics Market is growing at a CAGR of 19.5% over forecast the period.

3. What are the key factors driving the growth of the retail analytics market?
Ans. Increase in demand for better customer experiences and emergence of AI and machine technologies for data analysis.

4. What is the forecast period for the Retail Analytics Market?
Ans. The forecast period for the Retail Analytics Market is 2023-2029.

5. Which region has largest share in Retail Analytics Market?
Ans. North America held the largest Retail Analytics Market share in 2022.