Connected Retail Market Size, Share, and COVID Impact Analysis, by Solution (Hardware, Software, and Services), By Connectivity (Wi-Fi, Bluetooth LE, ZigBee, NFC, and Others (Thread, etc.)), and Regional Forecast, 2024-2032

Connected retail refers to the use of technology to integrate various aspects of the retail industry, such as sales, inventory management, customer experience, and supply chain management, to create an interconnected shopping experience for consumers. It involves the use of technologies such as cloud computing, IoT sensors, mobile applications, data analytics, and artificial intelligence to deploy real-time insights into inventory levels, sales trends, and customer traffic for enhanced retailing experiences.

The connected retail market is expected to demonstrate significant growth in the upcoming years, driven by the increasing implementation of IoT devices and the emergence of omnichannel retailing. According to GSMA, IoT connections are expected to increase by more than 25 billion by 2025.  The IoT implementation in the retail industry for the utilisation of GPS and RFIS technologies, enhanced consumer experience and content delivery are boosting the growth of the connected retail market.

• On February 2023, Sonak Group, a Philippine-based company which distributes, imports, and sells sporting goods in Southeast Asia, partnered with Mulesoft to enhance its retail platform. Through this collaboration, Sonak Group aims to implement a connected and efficient retail experience for the brands and consumers, spanning multiple sales channels.

Impact of COVID-19 on the Connected Retail Market:

The covid-19 pandemic significantly impacted the connected retailing market growth, which refers to the use of digital technology to enhance the retail experience for consumers. With lockdowns and social distancing measures, many consumers shifted their shopping habits towards online shopping and e-commerce. According to a U.S.-based consultancy firm Korcomptenz, the pandemic has expedited retail enterprises' need to embrace a cohesive digital transformation project, which caters to customer requirements and establishes a flexible groundwork essential. It has resulted in surging investments towards online platforms and digital technologies to meet the increased consumer demand and implement data analytics to enhance industry growth.

Retailers utilize data analytics to gain insights into consumer behaviour and preferences, enabling them to personalise the shopping experience and offer targeted promotions and recommendations. The pandemic highlighted the importance of offering a seamless shopping experience across multiple channels, enhancing the utilization of omnichannel retailing, which involves online and offline channels to streamline the platform. Thus, the market experienced a slight decline in the initial pandemic era due to supply chain disruption. However, the accelerated adoption of digital technologies in the retail sector fuelled the market's growth in the post-pandemic period.

Segmentation

By Solution – Connected retail involves deploying various devices and equipment that gathers data analytics, enhancing the consumer retailing experience. Such devices include RFID tags, which manage inventory and prevent stock-outs. Major players also implement interactive displays and smart mirrors to enhance the consumer experience.

For software and services, retailers implement data analytics and other technologies such as artificial intelligence (AI) and virtual and augmented reality (VR/AR), among others, to gain insights into consumer behaviour and preferences, which are used to develop personalised marketing strategies and recommendations. Additionally, increasing usage of buy-online-pickup-in-store (BOPIS), mobile applications, and digital wallets has driven the demand for connected retailing solutions, propelling the market growth.

By Connectivity – By connectivity, the market is distributed between Bluetooth, Wi-Fi-, Zigbee and NFC, and others. Bluetooth is widely used in commercial retail for proximity-based marketing, close vicinity and advertising benefits. Similarly, Wi-Fi provides free network access and gathers analytics, which is used to analyse market trends.

Zigbee connectivity is utilized in consumer retailing, providing real-time inventory management and tracking. Zigbee sensors are also used to track inventory levels and optimize supply operations. NFC is primarily utilised for contactless payments and transactions. It enables consumers to transact using mobile devices, avoiding cash-based and card payment methods. These connectivity types are utilised in connected retailing systems, which collectively augment the customers' shopping experience and boost the market growth.

Key Insights

The report will cover the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by the Key Players


• Impact of COVID-19 on the Global Connected Retail Market


• Consolidated SWOT Analysis of Key Players

Regional Analysis

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The global connected retail market is distributed into five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

As of 2022, North America holds the largest share in the market, contributing to the rapid internet penetration and presence of many key players and leading suppliers in the region, such as Zebra Corporation, Intel Corporation, Honeywell International PLC, Microsoft Corporation, Cisco Systems Inc., and IBM Corporation, and others.

Europe is expected to grow significantly due to rapid internet penetration and investments in BOPIS consumer stores.

The distribution of the global connected retail market by region of origin is as follows:

• North America – 32%


• South America – 7%


• Europe – 29%


• Middle East and Africa – 12%


• Asia Pacific – 20%

Key Players Covered

The key players in this market include Zebra Corporation, ARM Holdings PLC., Amazon Inc., Intel Corporation, Honeywell International PLC, Atmel Corporation, Microsoft Corporation, Cisco Systems Inc., Fujitsu Limited, NXP Semiconductors NV, SAP SE, and IBM Corporation, and others.

Report Scope & Segmentation

Key Industry Developments

• November 2022: Tesco, a major retail service provider, announced the expansion of its GetGo cashless stores to more locations in London and Birmingham.  The expansion enables customers to shop without scanning products or using a checkout while offering self-service and attended checkout options.


• February 2022: Sonata Software, a global IT service and technology provider, partnered with Microsoft to implement Microsoft Cloud for Retail and enhance its services. The partnership also strengthened their existing relationship as companies because Sonata Software has been a partner for over a year.