Smart Retail Market: Growing Trend of Digitization | Global Industry Analysis and Forecast (2024-2030)

The Smart Retail Market size was valued at USD 29.84 Billion in 2023 and the total Smart Retail Market revenue is expected to grow at a CAGR of 22.06% from 2024 to 2030, reaching nearly USD 120.46 Billion.
Smart Retail Market Overview:
The Smart Retail Market represents a fusion of traditional shopping methods with modern technologies. It incorporates a range of cutting-edge technologies, such as Artificial Intelligence (AI), Virtual Reality (VR), Augmented Reality (AR), and the Internet of Things (IoT), within the retail industry to elevate consumers’ shopping experiences, streamline inventory management, and enhance store operations. This integration yields several benefits, including heightened efficiency, improved quality, and enhanced sustainability in output.



The utilization of Smart Payment Systems is burgeoning globally, driven by the escalating demand for digital payment solutions following the shift in consumer behavior induced by the pandemic and the digitization of retail outlets. Projections indicate that Smart Payment Systems are poised to capture approximately a quarter of the world Smart Retail Market share by 2030. The ascendancy of digital payments is evidenced by a significant increase in both transaction volume and value, accompanied by a marked decline in the usage of paper-based payment modalities such as demand drafts and checks. For instance, in 2021, 76% of persons worldwide had accounts with a bank, another financial institution, or a mobile money provider, up from 68% in 2017 and 51% in 2011, according to World Bank statistics. Globally, two-thirds of individuals are presently engaged in digital payment transactions, with emerging economies contributing an increasing share, rising from 35% in 2014 to 57% in 2021.
Smart Retail Market Dynamics:
Rising Smart Retail Consumption Worldwide:

Smart Retail, one of the most consumed beverages worldwide, holds a significant market share in North America. Nearly 71% of individuals in the US consume Smart Retail on a daily basis. In Europe, the Smart Retail market is growing, driven by the increasing popularity of single-serve and specialty Smart Retail methods. According to the International Smart Retail Organization (ICO), global exports of Smart Retail bags increased from 10.83 million in February 2019 to 11.11 million in February 2020, marking a 2.6% growth within a year. Recent data from ICO reveals Europe as the leading region in Smart Retail consumption, followed closely by Asia-Pacific and North America. Growing awareness of the health benefits associated with Smart Retail market is fueling its global popularity. Furthermore, many Smart Retail companies are introducing new products to capitalize on opportunities in emerging economies, where urbanization rates are high and disposable incomes are increasing. Countries in Southeast Asia, including Indonesia, the Philippines, Thailand, and Malaysia, are experiencing a surge in Smart Retail consumption. The proliferation of cafes and beverage outlets worldwide is also contributing to the growth of the smart retail market. Accordingly, the increasing global adoption of Smart Retail is expected to drive smart retail industry growth in the foreseeable future.

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The Impact of Growing Smart Stores on Smart Retail Market Growth:

The Smart Retail Market is experiencing substantial growth, primarily propelled by its cost-effectiveness, which enhances profitability and improves supply chain management. Social media marketing plays a pivotal role in attracting millennials, allowing retailers to streamline the shopping experience while minimizing social media disruptions. Visual marketing strategies, including product snapshots and videos, are employed by stores to engage customers and enhance visibility on e-commerce platforms. These developments are anticipated to fuel the growth of the Smart Retail Market in the forecast period.

Moreover, the increasing adoption of digital payment methods such as debit cards, credit cards, prepaid cards, electronic wallets, and other digital platforms is expected to drive significant growth in the smart retail market over the forecast period.

Growing Digitalization:

Retailers stand to gain from digitization through the acquisition of new customers and decreased operational costs, among other advantages. Technological advancements, along with the emergence of innovative sensors, enhanced connectivity, and the availability of seamless communication solutions, are poised to empower online retail stores, thereby making significant contributions to smart retail market growth in the forecast period.

Smart Retail Market Challenges:

Implementing smart retail technology poses a significant financial challenge, particularly for smaller retailers. The costs associated with hardware, software, and ongoing maintenance create a formidable barrier to entry for many. Moreover, the utilization of smart retail technologies involves the collection and analysis of customer data. To mitigate the risks of data breaches and potential legal liabilities, retailers must ensure strict compliance with data protection regulations and secure storage of customer data. Furthermore, numerous retailers still depend on legacy systems like point-of-sale and inventory management software. Integrating smart retail technologies with these systems proves to be arduous, requiring retailers to verify compatibility and ensure seamless data sharing. Additionally, the implementation of smart retail technologies necessitates comprehensive staff training in both utilization and maintenance. This process is resource-intensive, particularly for retailers managing large staff numbers or experiencing high turnover rates. These challenges represent significant obstacles for the smart retail market to overcome.
Smart Retail Market Segment Analysis:
The MMR report will provide an accurate prediction of the contribution of the various segments to the growth of the smart retail market size.

By Application, the visual marketing segment holds the largest smart retail market share of nearly 35% in 2023. Visual marketing is a cornerstone in driving the advancement of the smart retail market. The emergence of digital signage, interactive displays, and augmented reality has elevated the significance of visual components in captivating and involving customers. Through visual marketing, retailers offer captivating and tailored experiences, showcasing products, promotions, and brand messages in an immersive manner. This strategy fosters a dynamic in-store ambiance and enriches the overall customer journey. Furthermore, visual marketing facilitates efficient product discovery, assists in decision-making processes, and stimulates impulse purchases. Through the strategic utilization of visual elements, smart retailers effectively capture customers' attention, reinforce brand loyalty, and ultimately amplify sales and revenue streams.



Based on Solution, Software segment is estimated to be the fastest-growing segment, with a CAGR of 23.15% over the forecast period 2024-2030. The smart retail market's growth is fuelled by the increasing adoption of analytics software by retailers worldwide. This enables them to understand the unique needs and behaviours of end-users, thereby enhancing consumer engagement and the shopping experience. This trend is anticipated to create substantial opportunities for analytics in smart commerce.
Smart Retail Market Regional Overview:
Geographically, in North America, a significant smart retail market share is attributed to its advanced technological infrastructure, widespread consumer acceptance of smart retail solutions, and the presence of major retail players. The region has been a leader in technological innovations, prioritizing enhanced customer experiences and optimized retail operations. With substantial investments in research and development, extensive retail networks, and a tech-savvy population, North America stands as a pivotal hub for smart retail innovations and implementations.

Asia Pacific is witnessing rapid growth in the smart retail market driven by various factors. The region boasts a large consumer base, rising disposable incomes, and increasing urbanization, resulting in a heightened demand for enhanced shopping experiences. Additionally, countries like China, Japan, South Korea, and India are at the forefront of technological advancements and digital transformation in the retail industry. The burgeoning e-commerce market, coupled with the widespread adoption of smartphones and internet connectivity, is propelling the adoption of smart retail solutions across Asia Pacific. With ongoing developments and investments, Asia Pacific is poised to witness substantial growth in the smart retail market in the predictable future.

Smart Retail Market Competitive Analysis:

The Smart Retail industry is competitive with global, regional and emerging brands competing for smart retail market share. Companies invest in R&D to innovate products and meet consumer demands to stay ahead of competition. The growth of the analysed smart retail market is being positively influenced by new product launches and strategic initiatives by key players. For example, in May 2023, Google Cloud, a platform offered by Google LLC, forged a partnership with Tata Consultancy Services, a multinational company headquartered in India, aimed at developing and delivering business solutions. This collaboration enables the two entities to enhance customer service by offering a comprehensive suite of generative AI solutions.

In May 2023, NVIDIA Corporation entered into a partnership with ServiceNow, a US-based software company, to offer workflow automation capabilities. This strategic alliance empowers NVIDIA to better serve its IT customers by providing them with generative AI solutions.
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Global Smart Retail Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 29.84 Bn.


Forecast Period 2024 to 2030 CAGR:
22.06%
Market Size in 2030:
US $ 120.46 Bn.


 Segments Covered:
by Solution
Hardware
Software


by Application
Visual Marketing
Smart Label
Smart Payment System
Intelligent System
Others (Robotics, Analytics)



Smart Retail Market, by Region
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
North America (United States, Canada and Mexico)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Smart Retail Market Key Players:
North America Smart Retail Market Top Players:
1. IBM - United States
2. Intel Corporation - United States
3. Cisco Systems Inc. - United States
4. NVIDIA Corporation - United States
5. Google Inc. - United States
6. PTC Inc. - United States
7. Standard Cognition - United States
8. Caper Inc. - United States
9. Zippin - United States
10. Walmart Inc. - United States
11. Amazon.com Inc. - United States
12. Focal Systems Inc. - United States
13. Estimote Inc. - United States
14. AWM SMART SHELF - United States
15. Smartcart - United States
Europe Smart Retail Market Top Players:
16. NXP Semiconductors N.V. – Netherlands
17. Trigo – Israel
18. Albert Heijn BV – Netherlands
APAC Smart Retail Market Top Players:
19. Cozy Infosystems – India
20. LOTTE - South Korea
21. Huawei Investment & Holding Co. Ltd – China
22. Samsung Electronics - South Korea

FAQs:
1] Which region is expected to hold the highest share in the Market?
Ans. North America region is expected to hold the highest share in the Market.

2] Who are the top key players in the Market?
Ans. IBM, Cisco Systems, Microsoft are the top key players in the Market.

3] Which segment is expected to hold the largest market share in the Market by 2030?
Ans. Visual Marketing material segment is expected to hold the largest market share in the Market by 2030.

4] What is the market size of the Market by 2030?
Ans. The market size of the Market is expected to reach US $ 120.46 Bn. by 2030.

5] What was the market size of the Market in 2023?
Ans. The market size of the Market was worth US $ 29.84 Bn. in 2023.