In-store Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

In-store Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The In-store Analytics Market is expected to register a CAGR of 21.2% during the forecasted period 2022-2027. Increased Competition From Ecommerce Players coupled with the need for providing enhanced shopping and customer services has been major contributors to the growth of the In-store Analytics Market globally.

Key Highlights

• Cloud computing is a recent trend in retail brands are focused on implementing. Cloud computing is a highly flexible and powerful cloud-based reporting solution that provides a complete view of the business and empowers it to make informed decisions faster with increasing sales. With the increasing advantage of the cloud, it further holds a strong trend in driving the in-store analytics market.
• According to NewGenApps, retailers who prefer to choose to leverage the full potential of big data analytics can optimize their operating margins by approximately 60%. Also, the omnichannel retailer can monitor in-store customer behavior and drive timely offers to customers to incent in-store purchases or later online purchases, thereby keeping the purchase within the fold of the retailer.
• For instance, in February 2021, Sephora, a beauty retailer introduced the omnichannel expansion of its new bricks-and-mortar connected boutique in the US facilitated with mobile-enabled experiences such as browsing products on in-store iPad stations and providing customized digital makeover suggestions over emails to customers. Such initiatives undertaken by companies has been promoting the adoption of in-store analytics in the market.
• Further, currently, due to the COVID-19 pandemic, the business growth for analytics service providers is penetrating. As businesses for brick and mortar are shuttered during this pandemic, it is clear how important the cloud is for continuity of operations.
• Any retail organization that actively resisted digitalization may now confronted with a harsh reality of pandemic. This puts cloud providers in a strong position. In-store analytics also provides a platform for the supply chain distribution chain, which further holds the demand for the market in this critical situation.
• However, the lack of personnel skills is challenging the growth of the market. The market faces few issues owing to the lack of skilled personnel, which are not highly efficient enough to derive the required and vital insights from the retail data.

Key Market TrendsCustomer Analytics Under Customer Management to Witness Significant Market Growth

• According to the US Census Bureau, global retail sales in 2021 was recorded to be USD 6,594.81 billion, which increased compared to USD 5,593.59 billion in previous year. With increasing sales, the other factors, such as rapidly changing demographics and uncertain economic recovery, often present retailers with challenges.
• Moreover, retailers try to understand which products, services, and offers are more attractive to customers, which significantly cater to the importance of the in-store analytics platform and further needs the demand for consumer engagement analytics for the retailers. In November 2021, Stor.ai, the end-to-end digital commerce solution for grocers, announced the launch of a new product suite designed to equip grocers and CPGs with state-of-the-art analytics tools which glean insights on data acquired from e-commerce transactions.
• AI-based video analytics also create efficiencies and offering non-security-related insights for businesses. In the retail market, store owners using surveillance cameras with analytics can spot shoplifters and alert security personnel to intervene in real-time. The in-store analytics can also measure hotspots, visitor flow, dwell time, and product display activity.
• Further, knowing the busiest store periods will help ensure that the staffing levels are appropriate to meet customer demand. This keeps costs down, drives conversion rates up, and improves the customer journey within the store. Such multiple applications of the In-store analytics for customer analytics and management is expected to further fuel the market growth of in-store analytics market globally.

North America Accounts for Significant Market Share

• With the presence of the highest number of technology innovators and increasing adoption of in-store analytics by retail corporations to enhance customers’ buying experience, this region is expected to witness a significant market share. Rapid embracement of technology such as cloud, AI, and others are complementing the requirement for in-store analytics in the region. Business enlargement by retailers is also expected to boost the implementation of in-store analytics solutions.
• The need for frequent software updates associated with in-store analytics and data security and privacy concerns over new advanced technologies are likely to remain potent growth retardants for in-store analytics in the region. However, the in-store analytics market is likely to experience market growth due to the increasing adoption of AI-based in-store analytics coupled with the need for providing an improved shopping experience in the North American region.
• Further, due to COVID-19’s impact on the US Retail Industry, the retail companies generate a huge base of unstructured data at an unprecedented rate, which makes it challenging to identify and capitalize on new lucrative opportunities. However, the post-pandemic world will be shaped to several factors contributing significantly to how retailers’ function.
• The in-store analytics would be offering actionable insights by analysing multiple data sets to help the retailers in identifying the right strategies for recovering lost sales and boost market share by addressing the dynamic needs of its customers. Such applications of in-store analytics in expected to contribute to the demand for In-store Analytics in the market in North America.

Competitive Landscape

The in-store analytics market is fragmented in nature due to several numbers of players who keep on innovating new platforms, which penetrates the rivalry in the market. Key players are Capgemini SE, RetailNext, Inc., etc. Recent developments in the market are -

• January 2022 - Pathr.ai, the industry's first and only artificial intelligence (AI) powered spatial intelligence platform announced three powerful new spatial intelligence analytics tools focused on helping retailers drive in-store profitability.
• June 2021 – RetailNext, a provider of in-store analytics, received USD 42 million in capital growth funding from Colbeck Capital Management to support its ongoing growth and market demand. The investment would enable RetailNext to accelerate the implementation of retail data infrastructure solutions in response to increasing demand.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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