Retail Analytics Market Size By Function (Customer Management, Merchandising, Store Operations, Supply Chain, Strategy & Planning), By Solution (Software, Services [Training & Consulting, Integration & Deployment, Managed Services]), By Deployment Model (

Retail Analytics Market Size By Function (Customer Management, Merchandising, Store Operations, Supply Chain, Strategy & Planning), By Solution (Software, Services [Training & Consulting, Integration & Deployment, Managed Services]), By Deployment Model (On-premise, Cloud), By Enterprise Size (Large Enterprises, SMEs), By Field Crowdsourcing (On-shelf Availability, Documentation & Reporting, Promotion Campaign Management, Customer Insights), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 - 2032

Retail Analytics Market size is forecast to expand meteorically through 2032 driven by the thriving e-commerce industry in Latin America. Increasing penetration of smartphones and internet access, along with paradigm shift in buying habits of consumers in the region has surged the use of e-commerce. As per International Trade Administration statistics, the number of online consumers in Brazil, in 2020 alone, rose by more than 40%.

Growing awareness regarding importance of data analytics amongst retailers in the Asia Pacific economies would further propel the market prospects between 2023-2032. Hong Kong malls and retailers are using AI analytics to gain more insights about the shopping habits and preferences of customers, which would eventually help them revive sales after years of industry slump.

The global retail analytics market is projected to face challenges on grounds of dearth in technical expertise. Use of retail analytics tools and data thus derived needs skilled professionals to convert it into usable insights. A survey conducted in 2020 reported that about 35% of companies cited having difficulty in finding appropriate skillsets for data science roles. Such factors are likely to impede the market growth curve.

However, launch of new training programs constructed by public and private organizations to enhance the data analytics skills for retailers would offer lucrative growth opportunities for retail analytics market players.

The overall industry is segregated in terms of function, solution, service, enterprise size, deployment mode, crowdsourcing, and regions.

On the basis of function, the retail analytics market growth is characterized by merchandizing. In 2022, the segment captured a revenue share of more than 22.5% and is estimated to grow notably through 2032. Merchandizing analytics tools allow retail organization to enhance their merchandising strategies in tandem with effective planning, assortment, and negotiations.

With regards to service, managed services segment across retail analytics market would expand at more than 27% growth rate between 2023-2032. These services enable enterprises to leverage the benefits of easy-to-grasp dashboards and reports without the need for hefty investments in time and financial resources.

Based on the enterprise size, SMEs are projected to generate high demands for retail analytics given the rising investments of these enterprises in data analytics for managing ad campaigns, determining pricing strategies, and making data-driven business decisions. The segment is anticipated to depict over 25.5% CAGR over 2023-2032.

Regionally, the Middle East and Africa retail analytics market would expand profusely through 2032. The regional market is expected to acquire a business share of 10% by 2032 end. The growth can be credited to the increasing presence of leading retail analytics companies in the MEA economies. These enterprises are focusing on digitization with the adoption of advanced technology solutions to gain a niche in the marketplace.