SMART RETAIL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Smart Retail Market Size and Trends

The global smart retail market is estimated to be valued at USD 31.22 Bn in 2024. The market is expected to reach USD 155.25 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 25.7% from 2024 to 2031.

Key Takeaways of the Smart Retail Market:

• The hardware segment is expected to account for 50.3% of the market share in 2024
• The IoT solutions segment is expected to capture a significant 43.5% share of the smart retail market in 2024
• The inventory management segment is expected to accounts for 38.6% of the market share in 2024
• North America is projected to lead the global market with a 35.5% share in 2024, followed by the Asia Pacific region, which is expected to hold a 30.8% share

Market Overview:

The introduction of advanced technologies such as artificial intelligence, Internet of Things (IoT), and predictive analytics has boosted the growth of this market. The market is witnessing increased adoption of digital solutions across the retail supply chain. Technologies like AI and IoT enable automated product recommendations, digital payment options, and personalized customer experiences in physical stores. Many retailers are investing in digitization to stay competitive in the evolving retail landscape and attract more customers with an omnichannel experience.

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Key Developments:

• In May 2024, Wipro Limited, a leading global information technology, consulting, and business process services company, announced significant upgrades to its Wipro VisionEDGE+ solution. Designed to enhance its capabilities in the retail sector, the improved platform focuses on driving retail transformation and maximizing the potential of retail media networks. Developed in collaboration with Cisco and AT&T and powered by Amazon Web Services (AWS), VisionEDGE+ highlights Wipro's commitment to enabling cutting-edge solutions for the evolving retail landscape.
• In April 2024, Fiserv, Inc., a global leader in payments and financial technology, introduced advancements to its Pix hub technology, tailored to businesses in Brazil. The updated solution facilitates seamless adoption of electronic person-to-business payments through an agnostic platform that empowers retailers to select their preferred Payment Service Providers (PSPs). Key updates include centralized management, high availability, and advanced security measures like fraud prevention and monitoring to reduce business risks. Additionally, Fiserv provides merchants with the flexibility to process Pix payments either through its own services or their selected PSPs, showcasing its innovative approach to streamlining digital payments.

Top Strategies Followed by Global Smart Retail Market Players

• Established Players: Large companies focus extensively on research and development to introduce innovative products.
• For example, Amazon invests heavily in developing autonomous stores with advanced computer vision and sensor technology. Companies also form strategic partnerships to strengthen their position. Amazon collaborated with Startup Anthropic to incorporate AI safely in its systems. Other major players like Walmart have expanded globally through acquisitions and partnerships to reach more customers internationally.
• Mid-Level Players: Mid-sized companies strive to provide cost-effective solutions for price-sensitive consumers. For example, Trigo Vision works with retailers to install its cashier-less checkout systems at an affordable cost. Companies also collaborate to augment their capabilities. Taiwan-based startup, PChome, partners with logistics firms and cloud providers to offer one-stop online shopping.
• Small-Scale Players: Emerging players focus on specialized market niches. For instance, AiFi sells its small autonomous stores suitable for small retailers. Some adopt cutting-edge technologies like computer vision from Scala and DeepBlue to offer advanced computer vision solutions. Local partners help gain traction. Einova works with Korean partners to deploy smart fitting rooms in the country.

Emerging Startups - Global Smart Retail Industry Ecosystem

• Innovative Technologies: Startups develop innovative technologies. Anthropic develops self-supervised learning to ensure AI safety. AiFi utilizes shelf-scanning cameras and product recognition for cashier-less stores.
• Sustainable Solutions: Startups focus on sustainability. TRASHin works with retailers to utilize smart containers monitoring trash levels. Package-free shops like Zero Market sell organic products in refillable packaging to reduce plastic waste. This contributes to reducing the industry's environmental impact.
• Market Contribution: Startups satisfy unique needs. Takeoff Technologies partners with retailers to develop automated order picking solutions to boost warehouse productivity. Collaborations also help drive innovation.