Internet of Things (IoT) in Retail

Global Internet of Things (IoT) in Retail Market to Reach US$138.2 Billion by 2030

The global market for Internet of Things (IoT) in Retail estimated at US$39.4 Billion in the year 2023, is expected to reach US$138.2 Billion by 2030, growing at a CAGR of 19.6% over the analysis period 2023-2030. Software Component, one of the segments analyzed in the report, is expected to record a 20.7% CAGR and reach US$72.0 Billion by the end of the analysis period. Growth in the Hardware Component segment is estimated at 18.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$10.9 Billion While China is Forecast to Grow at 18.6% CAGR

The Internet of Things (IoT) in Retail market in the U.S. is estimated at US$10.9 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$20.6 Billion by the year 2030 trailing a CAGR of 18.6% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 17.5% and 16.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.2% CAGR.

Global Internet of Things (IoT) in Retail Market - Key Trends and Drivers Summarized

How Is the Internet of Things (IoT) Transforming the Retail Industry?

The Internet of Things (IoT) is significantly reshaping the retail industry by enhancing both operational efficiency and the customer experience. IoT technologies enable retailers to optimize inventory management, automate supply chains, and provide personalized shopping experiences. With IoT-enabled devices such as smart shelves, RFID tags, and connected point-of-sale systems, retailers can monitor inventory levels in real-time, preventing stockouts and improving inventory accuracy. Moreover, IoT solutions like beacon technology and smart shopping carts are used to deliver personalized promotions to customers based on their shopping habits and preferences. As a result, IoT is helping retailers not only streamline operations but also build stronger relationships with customers by offering tailored shopping experiences.

How Are Technological Advancements Driving IoT in Retail?

Technological advancements, including artificial intelligence (AI), machine learning (ML), and sensor technology, are accelerating the adoption of IoT in the retail sector. AI and ML are being integrated into IoT platforms to analyze vast amounts of data from connected devices, providing insights that retailers can use to optimize store layouts, predict demand, and improve customer engagement. Advanced sensor technologies, such as RFID and NFC, are enabling real-time tracking of products throughout the supply chain, offering greater visibility and control over inventory. Additionally, advancements in facial recognition and mobile payment technologies are enhancing in-store security and creating frictionless checkout experiences. These technologies are making IoT solutions more efficient, scalable, and adaptable to the evolving needs of the retail industry.

How Do Market Segments Define the Growth of IoT in Retail?

Components include hardware such as sensors, smart shelves, and connected point-of-sale terminals; software platforms for inventory management, customer analytics, and security; and services such as system integration and support. Key applications of IoT in retail include supply chain management, inventory tracking, personalized marketing, and smart checkout solutions, with inventory management and personalized marketing leading the market due to the focus on optimizing operations and enhancing the customer experience. Geographically, North America dominates the market due to early adoption of IoT technologies, while Asia-Pacific is expected to see rapid growth as retailers in the region embrace digital transformation to stay competitive in a fast-evolving retail landscape.

What Factors Are Driving the Growth in the IoT in Retail Market?

The growth in the IoT in retail market is driven by several factors, including the increasing demand for operational efficiency, advancements in connected device technologies, and the growing focus on enhancing the customer experience. Retailers are adopting IoT solutions to streamline inventory management, reduce costs, and improve supply chain transparency. Technological innovations such as AI-driven analytics and advanced sensors are enabling retailers to gain real-time insights into customer behavior, helping them deliver personalized shopping experiences. Additionally, the rise of omnichannel retail strategies and the growing need for seamless in-store and online integration are pushing retailers to invest in IoT technologies to stay competitive in an increasingly digital retail environment.

Select Competitors (Total 37 Featured) -

• Accenture
• Allerin
• Amazon Web Services
• AT&T
• Bosch.Io
• Cisco
• Google
• Happiest Minds
• Huawei
• IBM
• Intel
• Microsoft
• NEC Corporation
• Oracle
• PTC
• SAP
• Sierra Wireless
• Software AG
• Telit
• Vodafone

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.