The global Internet of Things (IoT) in the retail market is set to experience substantial growth, rising from USD 57.8 billion in 2023 to an estimated USD 464.9 billion by 2031. This represents a compound annual growth rate (CAGR) of 30.1% from 2024 to 2031, according to a study by InsightAce Analytic Pvt. Ltd. IoT is transforming the retail sector by enhancing customer interactions, optimizing store operations, and enabling the development of new business models.
Technologies such as smart shelves, beacons, and connected devices provide real-time data on inventory levels, customer preferences, and store traffic. This data helps streamline stock management, personalize marketing efforts, and improve supply chain efficiency. The rise of omnichannel retailing and the growth of IoT-enabled smart stores are major trends driving the IoT retail market.
These trends focus on delivering immersive and personalized shopping experiences. The seamless integration of online and offline shopping platforms through IoT adoption is further propelling the market. Key players in the IoT retail market include Allerin Tech Pvt Ltd, Amazon Web Services, Arm Limited, Bosch.IO GmbH, Cisco Systems Inc., IBM Corporation, Intel Corporation, Microsoft Corporation, NEC Corporation, RetailNext, Inc., Verizon Communications Inc., and Zebra Technologies Corporation.
IoT transforming retail innovation
The market report highlights several segments based on components, technology, deployment, and application. These segments include hardware, platform, services, Bluetooth Low Energy, Near Field Communication, Zigbee, on-premise, cloud, inventory management, supply chain automation, customer management, automated checkout, predictive maintenance, smart digital signage, and geomarketing.
Regionally, North America is expected to maintain a significant market share due to advanced retail technologies like RFID tags and smart shelves that enhance operational efficiency. The Asia-Pacific (APAC) region is projected to be the fastest-growing market with a robust CAGR, driven by increasing internet usage, smartphone penetration, and booming e-commerce activities. Despite the rapid growth, the IoT retail market faces challenges such as data security and privacy concerns, integration difficulties with existing infrastructure, and the need for substantial technological investments.
Keeping pace with rapid technological advancements also demands continuous adaptation and can be resource-intensive. Recent developments in the market include a partnership between IBM Corporation and SAP SE in January 2024 to optimize supply chain and retail operations using generative AI. In December 2023, HCL Technologies teamed up with SAP to develop IoT solutions tailored for various industries, streamlining the implementation of Industry 4.0 transformations.
The forecasted growth of IoT in the retail market represents significant opportunities for businesses to leverage advanced technologies for enhanced efficiency and customer engagement. Companies investing in IoT solutions will be well-positioned to capitalize on the ongoing digital transformation in the retail industry.
