Retail Cloud Market Forecasts to 2028 – Global Analysis By Solution (Supply Chain Management, Customer Management, Merchandizing and Other Solutions), Service Type (Infrastructure as a service (IaaS), Software as a service (SaaS) and Platform as a service

Retail Cloud Market Forecasts to 2028 – Global Analysis By Solution (Supply Chain Management, Customer Management, Merchandizing and Other Solutions), Service Type (Infrastructure as a service (IaaS), Software as a service (SaaS) and Platform as a service (PaaS)), Organization Size (Larger Enterprises and Small and medium-sized enterprises (SMEs)), Deployment and By Geography

According to Stratistics MRC, the Global Retail Cloud Market is accounted for $16.57 billion in 2022 and is expected to reach $46.58 billion by 2028 growing at a CAGR of 18.8% during the forecast period. Retail Cloud is a cloud-based retail solution that combines data analytics and artificial intelligence (AI), enabling retailers to create products that are responsive to customer feedback. Retailers can use cloud computing to gather data from the internet to satisfy the needs of their customers. Supply chains and logistics can be streamlined, and cloud computing enables the provision of seamless, high-quality client experiences.

According to the India Brand Equity Foundation (IBEF) report, the Indian smartphone market experienced a 10-fold increase from 14.5 million shipments in 2011 to 150 million in 2020. Therefore, the rapid adoption of smartphones will propel the retail cloud market.

Market Dynamics:

Driver:

Rapid adoption of smartphones

The soaring demand for a digitalized customer experience, the widespread use of smartphones, the increased emphasis on compliance and partnerships, and the quick uptake of omni-channel marketing by retailers are the main drivers of the retail cloud market's expansion. The use of smartphones as effective point-of-sale (POS) systems that support the management of payments, handling of inventory, and location tracking has been observed across the globe. Additionally, by combining smartphone technology with cloud computing, retailers can gather real-time data to modify their product and service offerings to better suit the needs of their customers and seize new growth opportunities.

Restraint:

Integrating cloud-based systems with legacy systems

One of the main obstacles to the adoption of cloud computing systems in the retail sector is the integration of cloud systems with legacy systems. Over the years, many retailers have invested in legacy systems, which frequently handle crucial tasks like inventory management, order processing, and payment processing. It can be difficult to integrate these systems with cloud-based systems. Older technologies, on which legacy systems are frequently based, may not be compatible with more recent cloud-based systems. This may lead to problems with data exchange and migration, which may affect the system's work as a whole. Such factors restrict the market's growth.

Opportunity:

Rapid technological advancements

A key trend that is becoming increasingly popular in the retail cloud market is technological advancement. The demand for cloud computing technology that enhances customer experiences while streamlining processes and reducing IT costs is being seen in the market. To improve their market position, major players in the retail cloud market are concentrating on offering cutting-edge solutions. For instance, a US-based cloud company called Snowflake introduced a retail data cloud in March 2022 to promote collaboration, deliver exceptional customer experiences, and streamline retail operations. This encourages cloud adoption, which fuels the expansion of the retail cloud market globally.

Threat:

Cloud data security issues

Unfortunately, there are many data breaches in the retail sector. Due to the dynamic nature of cloud infrastructure and services, risk factors can easily compound in a cloud environment. A hybrid cloud environment's total attack surface can be expanded beyond conventional on-premises frameworks thanks to new permissions to access the growing number of CSP services, which can also increase the potential for mistakes. Attacks can be extremely damaging if the right databases and cloud storage systems are breached, making retailers a prime target for attackers due to the sensitive information they hold.

Covid-19 Impact

COVID-19's widespread spread has significantly impacted consumer behavior, product demand, retail store, factory, and logistics service operations. However, depending on the demand from various businesses, the impact on the retail cloud varies. For instance, low demand has had a significant negative impact on the electronics and fashion sectors, but food, home goods, and pharmaceuticals have seen a significant shift in demand and are now looking for an omnichannel presence, which is driving up the demand for retail cloud.

The reporting and analytics segment is expected to be the largest during the forecast period

During the forecast period, the reporting and analytics segment is expected to witness the largest market share. Retail cloud analytics solutions gather information on consumer behavior and preferences from a variety of data sources, including point-of-sale systems, customer loyalty programs, and social media. The data can be examined to find patterns and trends and produce insights that can help with business decisions. Accessing real-time data from any location with an internet connection is one of the main advantages of using cloud-based reporting and analytics solutions. As a result, managers and other interested parties will find it simple and quick to access data and insights and can base their decisions on the most recent information, which contributes to the expansion of the market.

The small and medium-sized enterprises (SMEs) segment is expected to have the highest CAGR during the forecast period

Over the course of the forecast period, small and medium-sized enterprises (SMEs) segment is expected to have the highest CAGR. Small and medium-sized businesses (SMEs) are more constrained by resources than large corporations and need better ways to handle complexity in order to improve the efficiency of their business processes. Due to their accessibility and adaptability, cloud services have become a crucial component of business operations for SMEs, and in the years to come, their adoption is anticipated to increase. Small and medium-sized businesses (SMEs) are increasingly adopting retail cloud solutions and services as they try to streamline their business processes and stay competitive in the quickly changing retail sector.

Region with largest share:

Due to the growing adoption of cloud-based solutions across the retail sector in developed economies like Canada and the United States. The presence of retailers like Walmart, Costco, Kroger, The Home Depot, and Target makes North America's retail market one of the largest in the world. The demand for retail cloud solutions is strongest in North America. In comparison to many other regions, the region has one of the most innovative retail environments. Additionally, specialty stores in the area use cloud solutions very frequently, and the expansion of regional government initiatives is assisting the market's rapid growth over the course of the forecast period.

Region with highest CAGR:

The retail cloud market is anticipated to experience the fastest growth in the Asia-Pacific region over the forecast period. Investment in digital transformation initiatives in nations like China, Japan, and India is anticipated to occur in the Asia-Pacific region. Asia Pacific had the highest edge computing equipment footprint among regions in 2020, with a total of 187 MW, according to the State of the Edge report. Many cloud service providers are also collaborating with retailers to improve customer engagement, streamline operations, and spur innovation. One of the biggest cloud service providers in Asia Pacific, for instance, is Alibaba Cloud, which has been collaborating with local retailers to offer cloud-based services for supply chain management, logistics, and e-commerce. The region's use of retail cloud solutions will probably increase as a result of these factors.

Key players in the market

Some of the key players profiled in the Retail Cloud Market include Flux7, Infor Inc, Accenture, Alibaba Group, Amazon Web Services, Inc, Baidu, Cisco Systems Inc., Epicor Software Corporation, Fujitsu Limited, Google Inc, IBM Corporation, JDA Software Group, Microsoft Corporation, Netmagic Solutions, Nutanix, Oracle Corporation, RapidScale Inc., SAP SE, Syntel Inc. and T-Systems.

Key Developments:

In November 2022, Wipro Limited, a technology services and consulting company, declared new retail solutions built on the Microsoft Cloud and Cloud for Retail and a new Retail Innovation Experience in Mountain View, California. This physical, virtual, and hybrid Experience would deepen collaboration between Microsoft and Wipro to accelerate the delivery of new solutions that would enable retailers to grow their business and build stronger customer relationships.

In March 2022, Snowflake, the Data Cloud company, declared the introduction of the Retail Data Cloud, which primarily unites Snowflake- and partner-delivered solutions, Snowflake's data platform, and industry-specific datasets. The Retail Data Cloud mainly empowers manufacturers, retailers, consumer packaged goods (CPG) vendors, distributors, and industry technology providers to leverage their data, access new data, and seamlessly collaborate across the entire retail industry.

Solutions Covered:
• Supply Chain Management
• Customer Management
• Merchandizing
• Workforce Management
• Reporting and Analytics
• Data Security
• Omni-Channel
• Other Solutions

Service Types Covered:
• Infrastructure as a service (IaaS)
• Software as a service (SaaS)
• Platform as a service (PaaS)

Organization Sizes Covered:
• Larger Enterprises
• Small and medium-sized enterprises (SMEs)

Deployments Covered:
• Public Cloud
• Private Cloud
• Hybrid Cloud

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements