Retail Analytics Market

Retail Analytics Market: Overview

The market size for retail analytics was USD 4.1 Billion in 2021, and it is projected to grow at a CAGR of 20.9 percent during the forecast period. Factors contributing to the growth of the retail analytics market include its increasing importance for enhancing customer experiences and retail operations, the rising adoption of disruptive technologies to forecast future market trends, the rising number of smartphones, and the rising use of m-commerce. However, the unorganized retail sector's slow adoption of technology, legal challenges with data protection, shifting consumer needs, and unstable and constantly shifting markets are impeding industry expansion. However, rising cloud service usage in retail and the development of computer vision are anticipated to boost market expansion in the near future.

Retail analytics technologies are in demand as the internet of things is being used in retail processes to boost productivity and efficiency. Retail analytics technologies are in high demand because they enable retailers to learn more about crucial data, and consumer purchasing patterns, improve customer experience and give actionable insight to boost all in-store operations. Another significant element driving the market expansion is the growing use of industry 4.0 in the retail sector. Customer service, inventory management, customer accounts, merchandising management, and supply chain management activities are just a few of the retail industry processes and operations that have been automated and digitized under retail 4.0.

Artificial intelligence (AI), machine learning (ML), augmented reality (AR), and other emerging technologies are seen as opportunities for market players. It provides retailers with data insights that help boost sales while improving the customer experience. Retailers are given the capacity to consume enormous volumes of data in numerous different formats by integrating retail analytics with AI. A significant barrier to the growth of the global retail analytics industry is the high cost of implementation. Software license fees, materials and connection charges, travel expenses, installation fees, and various technical labor costs are all part of the upfront expenditures for establishing a retail analytics plan. Based on the features required and business operations, the actual cost of retail analytics may be much more complex, and the budget may occasionally go over the initial estimates.

Retail Analytics Market: COVID-19 Impact

The COVID-19 epidemic has had a negative impact on a number of economies worldwide. However, the technology market in the data analytics sector has not been significantly impacted, and as a result, the retail analytics market is anticipated to quickly rebound following the COVID-19 pandemic. Companies were physically unable to operate with the available resources because to COVID-19 countermeasures like lockdowns and quarantines. As a result, businesses are adopting various IT services to explore new ways to access their assets, clients, resources, and necessary data remotely. As a result, more people are using retail analytics services and solutions since they work well with the company's valuable customer, client, and employee data.  Several retailers used retail analytics extensively throughout the pandemic to visualize and evaluate the effects of the pandemic. The adoption of e-commerce and contactless delivery methods substantially altered consumer behavior, creating a new retail environment. Consumer preferences were primarily centered on proactively stocking up on healthy goods, pantry essentials, and everyday necessities. To better analyze consumer behavior and boost earnings, this led to a demand for tailored retail analytics solutions.

Retail Analytics Market: Drivers

Digitalization of Retail Operations to Improve Consumer Experience to Drive Market Growth

The worldwide retail and consumer goods industry is evolving more swiftly than anyone could have imagined as digital acceleration takes hold. Businesses and users are beginning to understand that a data-driven strategy should be used in every part of their operations in order to gain a competitive advantage. For a retailer, the digital transformation can entail offering the best deals in real-time while customers are inside physical locations or managing inventory to improve both the online and in-store experiences. By providing customers with the services and goods they require, digital transformation in retail can increase customer retention and happiness. The emergence of new technologies that blur the boundaries between the physical and digital worlds is what defines the fourth industrial revolution (Industry 4.0). Access to data is changing how businesses operate when combined with strong analytics tools like scenario analysis, predictive learning algorithms, and visualization. Nowadays, businesses are able to gather enormous data sets from physical assets and facilities in real-time, use advanced analytics to get fresh insights, and then make better decisions. The design, development, and customer delivery of products are being transformed by the digital revolution. The retail value chain stands to gain greatly from it.

Growing Use of AI and Machine Learning Driving Market Growth

A crucial component in the digitalization of retail establishments is artificial intelligence (AI). Personalizing the shopping experience aids the company in developing compelling customer interactions. Additionally, cutting-edge technologies like AI and machine learning help businesses in the retail sector create successful business plans by identifying the most recent trends in customer purchasing patterns. The increasing use of AI by businesses in their operations is predicted to fuel market expansion over the forecast period. For instance, in May 2020, Simons, a well-known Canadian retailer of fashion, included AI in its retail merchandising through a partnership with Retalon, a company that specializes in AI and predictive analysis.  The partnership, according to the business, will allow them to generate shipments and estimate demand correctly. Additionally, it will help with product distribution and precise replacement calculations.

Retail Analytics Market: Restraints

Ineffective Use of Technology in Unorganised Retail Industry to Hamper Market Growth

Large retail establishments employ technology for standard tasks including billing and payments, shrinkage prevention, stock record keeping, and supply chain management. Insights into sales, inventory, customers, and other critical factors are obtained using solutions like retail analytics; better customer relationship management is ensured by CRM systems, and other tasks are made easier by ERP technologies. The unorganized retail sector must contend with the limited availability, viability, and adoption of technology while large enterprises make the most of such innovations. Unorganized retailers are under pressure from well-funded offline, modern trade outlets and the e-commerce craze; nonetheless, despite their desire to advance using technology, they are frequently constrained by financial limitations. Maintaining antiquated legacy systems comes with hidden expenses that can add up quickly and leave little money for innovation or digital transformation. Such retail firms have had a tough time expanding and modernizing due to the high cost of capital and barriers to obtaining capital investment, particularly in rural and isolated areas.

Retail Analytics Market: Segment Overview

Large Enterprises to Dominate Market due to their Strong Financial Support

Large and small businesses make up the market segments based on the size of the company. Due to their increased focus on enhancing their consumer interaction through the implementation of retail analytics, major organizations had the lion's share of the global market for retail analytics in 2021. Large businesses have strong financial support, enabling them to invest in cutting-edge technologies like retail analytics. Additionally, the COVID-19 market disruption, fierce competition, and dynamic market conditions drove large enterprises to implement retail analytics to reduce losses and increase revenues. The SMEs market, however, is anticipated to have rapid growth in the near future due to rising cloud deployment acceptance and affordable software availability. SMEs are adopting retail analytics more quickly as a result of gradually discovering the promise of analytics and the need to stay competitive.

With Increased Demand for Information, Solution Category Dominated Market

The worldwide retail analytics market is divided into solutions and services based on component type. In 2021, the solution segment had the biggest revenue share. Information on sales, inventory, customers and other crucial variables that merchants must take into account when making choices is the main emphasis of retail analytics solutions. The discipline integrates different fine-grained categories to create an overall picture of the sales and health of the retailer, as well as areas for growth and reinforcement. As it helps them make better decisions, run organizations more effectively, and offer better customer service, numerous businesses are showing an increasing desire for retail analytics, which is propelling this market's revenue growth. In 2021, the services segment's revenue contribution was just minor.  With the use of customer behavior data, retail analytics services offer advantages like scalability, cost-efficiency, and better-targeted marketing and communications.

Retail Analytics Market: Regional Landscape

North America to Dominate Market due to its Growing Adaptability of Technology

Due to the U.S. and Canada's sizable worldwide market share, the retail analytics market in North America is anticipated to hold a large share by the end of 2028. Advanced technology can also be seamlessly integrated with retail analytics to produce effective outcomes in the area. Large participants in the retail sector are concentrated in North America, particularly in the United States and Canada, where they have adopted retail analytics extensively and are prepared to do so in the near future. Regional market participants are quickly outsourcing analytics technologies to gather business intelligence for the retail sector.

During the projected period, the European retail analytics market is anticipated to increase at a substantial rate (CAGR, %). This is attributed to an increase in the use of retail analytics to integrate with global standards and take into consideration prospective changes in technology and business needs. The considerable presence of cutting-edge technology and the accessibility of infrastructure in the region are the main reasons why the retail analytics market in the Asia Pacific is expected to grow at a high CAGR during the forecast period. In the coming years, it is anticipated that the Middle East and Africa will witness stable growth in the retail analytics industry. Due to the abundance of sophisticated supermarkets and hypermarkets, the UAE represents a profitable market for retail analytics.  Saudi Arabia presents an appealing prospect for the regional retail analytics market due to its vast population and low penetration of organized retail businesses.

Global Retail Analytics Market: Competitive Landscape

The Forrester Wave named SAP SE a leader for retail planning in October 2020, according to a statement from SAP SE. Based on their Omni channel planning solutions, SAP SE is recognized as a leader in this field. This will make it easier for the business to launch new innovations. Moreover, Microsoft and SAS Institute made an extensive technology and go-to-market strategic partnership announcement in June 2020. As part of the collaboration, both businesses will move SAS Institute's industry solutions and analytical products to Microsoft Azure, which will serve as SAS Cloud's preferred cloud provider. To provide its customers with cloud-based SAS industrial solutions, Microsoft teamed together with SAS Institute.

Few of the players in the Retail Analytics Market include Microsoft (US), IBM (US), Oracle (US), Salesforce (US), SAP (Germany), AWS (US), SAS Institute (US), Qlik (US), Manthan (India), Bridgei2i (India), MicroStrategy (US), Teradata (US), HCL (India), Fujitsu (Japan), Domo (US), Google (US), FLIR Systems (US), Information Builders (US), 1010Data (US), Capillary (Singapore), RetailNext (US), WNS (India), True Fit (US), Vend (New Zealand), Fit Analytics (Geramny),  Edited (UK), Decision6 (Brazil), Cubelizer (Spain), ThinkInside (Italy), Dor Technology (US), Glimpse Analytics (India), Pygmalios (Slovakia), and Orenda Software Solutions (Canada).

Regional Classification of the Global Retail Analytics Market is Described Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa

*Regions and countries are subject to change based on data availability

Key Elements Included In The Study: Global Retail Analytics Market

• Retail Analytics Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value, 2018 - 2022
• Market Value at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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