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Retail Analytics Market Size, Share & Industry Analysis, By Deployment (On-Premise and Cloud), By Retail Store Type (Hypermarkets and Supermarkets, and Retail Chains), By Function (Customer Management, Supply Chain, Merchandising, Strategy and Planning, and In-store Operations), and Regional Forecast, 2024-2032

Last Updated: July 01, 2024 | Format: PDF | Report ID: FBI101273


Retail Analytics Market Analysis- 2027

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The global retail analytics market size was valued at USD 7.56 billion in 2023 and is projected to grow from USD 8.75 billion in 2024 to USD 31.08 billion by 2032, exhibiting a CAGR of 17.2% during the forecast period (2024-2032). North America accounted for a market value of USD 2.98 billion in 2023. Retail analytics covers advanced technologies, such as big data and data mining, to gain meaningful business insights and evaluate massive datasets. It aids businesses in drawing effective strategies for their activities based on customer behavior patterns. The need to improve sales performance and revenue generation and identify customer preferences and trends will likely propel market growth. Retail solutions integrated with Artificial Intelligence (AI) deliver intelligent insights to fuel sales and enhance customer experience. For instance,

  • March 2023: Adobe announced the launch of Adobe Product Analytics, a new tool in Adobe Experience Cloud that combines customer experience understandings across marketing and products to benefit vendors dedicated to customer experiences.

Due to the coronavirus outbreak, physical retail stores rapidly shifted to virtual stores by using e-commerce and mobile apps. The pandemic boosted the growth of e-commerce businesses due to online grocery shopping. The rising online shopping trend augmented the demand for customer-level analytics. Also, due to limited logistics services and a rise in online demand, various retailers implemented advanced solutions to track inventory and supply chains.

Retail Analytics Market Trends

Surging Focus on Product Inventory Management & Shelf Space Allocation is a Vital Trend

Product inventory management and shelf space allocation are a retailer’s key resources. Retail analytics refers to using analytics to provide products at the right place in the right quantity to the right customers. This trend has continued to gain strength in the retail industry to improve micro-level analysis and assortment planning.

Inventory management helps retailers minimize inventory costs by reducing carrying and storage costs for surplus merchandise. It also helps to reduce out-of-stock situations with the help of tools that aid in determining stock availability and other real-time data on stock and sales. With such tools, retailers can take action quickly by transferring stock from another location, reordering, or dropping orders to the customer. Other benefits of product inventory include better profit margins, prevention of obsolescence and spoilage, enhanced omnichannel and multi-channel order performance, easing supply chain processes, and facilitating overall growth.

The demand for efficient shelf space management is growing to cater to the specific preferences of customers visiting retail stores and reduce the financial impact of several assortments. For instance,

  • In January 2023, EY launched EY Retail Intelligence, a solution that enhances the customer shopping experience using Microsoft Cloud and Cloud for Retail. This solution offered omnichannel, personalized shopping, product sustainability information, and step-change improvements in decision-making.

Thus, the growing trend of managing shelf space and product inventory in retail stores is expected to drive the retail analytics market growth.

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Retail Analytics Market Growth Factors

Increasing Integration of Advanced Technologies to Drive Market Growth

Retail is assumed to be one of the largest sectors to implement advanced technologies, such as blockchain, artificial intelligence, machine learning, and others. AI offers improved data management, personalized experience, predictive analysis abilities, and real-time assistance. Other AI applications, such as chatbots, virtual assistants, and more, are helping retailers stay connected with their customers. This feature streamlines the business workflow by handling several requests automatically and improves companies’ profitability by informing customers about promotions and sales. AI has enabled businesses to offer personalized customer experiences by collecting and analyzing data from purchase history to help retailers improve their customers' shopping experience. For instance,

  • In January 2023, Microsoft partnered with AiFi to launch a Smart Store Analytics cloud service to provide retailers with shopper and operational analytics by using AiFi’s autonomous shopping technology. Smart Store Analytics pulls data from AiFi’s database to deliver insights on store layouts, customer behavior, and inventory management.

ML (machine learning) in retail includes the implementation of self-learning computer algorithms developed to run huge datasets to recognize appropriate metrics, recurring anomalies, patterns, or cause-effect relations over variables. Thus, retailers get a deeper knowledge of the dynamics contributing to the industry and the frameworks where retailers function.

The implementation of machine learning mechanisms helps retailers to offer personalized recommendations, demand forecasting, inventory management, consumer behavior analysis, and many more. Several enterprises, such as Amazon, Netflix, Google, and Spotify, among others, leverage the power of machine learning to offer personalized recommendations and other customizations to their customers.

Similarly, blockchain is reliable, efficient, and faster than traditional practices and enhances the retail life cycle. It helps retailers with cloud storage, strengthens supply chain management, and enables businesses to run a loyalty program. Thus, these advanced technologies will further fuel the market growth.


Stringent Data Privacy Regulations May Restrain Market Growth

The implementation of the General Data Protection Regulation (GDPR) is affecting retail solutions that use big data technology. It has become challenging for retailers to gain access to customers’ data owing to stringent data privacy regulations. Growing awareness regarding consumer privacy in the retail sector is hampering the profit margins of many multinational companies and international retailers. Furthermore, these regulations prevent retailers from offering more personalized experiences as they restrict their access to sufficient data. Thus, the complexity of adapting tools as per these regulations reduces reliability, indirectly affecting the adoption of retail platforms.

Retail Analytics Market Segmentation Analysis

By Deployment Analysis

Cloud-based Retail Analytics to be Widely Used to Gain Real-time Assistance

By deployment, the market is bifurcated into on-premise and cloud. The cloud segment is expected to dominate the retail analytics market share and record a strong CAGR. The real-time assistance and insights offered by cloud-based retail analytics can boost customers’ satisfaction while shopping. Further, it offers a competitive edge to market players who use the analytical data to attain greater business intelligence with user-friendliness, security, and safety compliance.

On the other hand, the traditional on-premise retail analytics model may also showcase an average adoption rate due to its security assurance. The growing cyberattacks on the cloud platform might compel retailers to deploy on-premise retail software.

By Retail Store Type Analysis

Complex Inventory Management to Drive Demand for Analytics in Retail Chains

By retail store type, the market is categorized into hypermarkets & supermarkets and retail chains.

The retail chain segment is expected to dominate the market share. International retail giants, such as Walmart, Kroger, and others are strengthening their customer base by enhancing their customer experience. The retail analytics solutions are helping these chains maintain their inventory, supply chain, in-store operations, and strategies to augment their business growth.

Similarly, hypermarkets and supermarkets are shifting to advanced retail tools. Its support in shelf management, inventory management, supply chain, customer experience, and more will likely surge the demand for retail analytics in supermarkets.

By Function Analysis

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Retail Analytics to be Widely Deployed in Customer Management Function to Boost Customer Satisfaction

Based on function, the market is segmented into customer management, supply chain, merchandising, strategy & planning, and in-store operations.

The customer management segment is expected to capture maximum market share during the forecast period. The changing customer demand is key to driving better sales and revenue. Therefore, most retail chains implement analytical tools to understand customers’ preferences and overall market trends. Similarly, the demand for the solution to improve the merchandising process is growing. It enables retailers to align their merchandising decisions with the customers’ expectations.

The strategy & planning segment is expected to witness rapid growth in the market for retail analytics during the forecast period. Analytical platforms offer meaningful insights and interactive dashboards, which can help retailers plan their next strategy. Similarly, the solution helps retailers control the on-ground fleet management and logistics through route and network optimization. Henceforth, the supply chain segment is expected to record steady growth.

Similarly, factors such as staff management, inventory management, pricing management, and many more are also affecting the overall performance of the retail sector. So, retail analytics models are helping businesses optimize in-store operations and staff performance, which will contribute to business growth.


Geographically, the market for retail analytics is fragmented into five major regions: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

North America Retail Analytics Market Size, 2023 (USD Billion)

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During the forecast period, North America is anticipated to hold the maximum market share. The rapid adoption of e-commerce services by many organizations across the region will likely drive market growth. Furthermore, retailers in the U.S. and Canada are adopting advanced technologies to provide advanced customer experience, improve operational decision-making efficiency, and identify trends in the market.

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Asia Pacific is set to witness remarkable growth in the market. The growing trend of online shopping will drive the adoption of analytical tools in China, India, Singapore, Japan, and more Asian countries. Mobile connectivity, digitalization, the rise of e-commerce, and social commerce, among others, are expected to offer vast growth opportunities to the market.

Europe is expected to gain significant growth in the market during the forecast period. Retailers from Germany, France, Italy, and Spain are the major contributors to the growth of retail solutions.

List of Key Companies in Retail Analytics Market

Continuous Product Development is a Key Strategy for Companies to Strengthen Market Positions

The major companies in the market are integrating advanced technologies, such as blockchain, machine learning, cloud computing, artificial intelligence, and more, with retail analytics solutions. Through these developments, the retailers are focusing on offering dedicated analytics solutions to enhance the customer experience.

List of the Key Companies Profiled:


  • February 2024: Kroger collaborated with Intelligence Node, an AI retail analytics company, to drive marketplace listings. With the partnership, Kroger is aiming to offer clearer and more instructive product guides for third-party vendors.

  • January 2024: Microsoft announced the launch of new GenAI tools for the retail industry. The tech company is adding industry-precise features in Data Fabric with GenAI Copilots developed to enhance personalized shopping experiences and help forefront workers in real-time.

  • October 2023: Omnicommerce introduced retail media and retail analytics platform. The platform helps brands view how their products are performing on the shelf against competitors across 30 marketplaces and retailers.

  • May 2023: NIQ introduced a Connected Collaboration platform empowered by data assets of Rite Aid and NIQ's top data science and software. The all-inclusive platform offers manufacturers and retailers a single solution across different use cases, from market understandings to supply chains to loyalty/customer, everything in one solution at Rite Aid.

  • April 2023: Infosys partnered with Walmart Commerce Technologies to implement Store Assist, a cloud-based solution that offers omnichannel experiences, such as pickup, shipping from stores, and delivery for staff and consumers, improving consumer and employee experiences.


An Infographic Representation of Retail Analytics Market

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The market reports leading regions across the world to understand the market better. Furthermore, it offers insights into the latest market trends and evaluates technologies used at a large scale globally. It further highlights a few growth-stimulating factors and restraints, thereby helping the reader gain in-depth knowledge about the market.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD billion)

Growth Rate

CAGR of 17.2% from 2024 to 2032


By Deployment

  • On-Premise

  • Cloud

By Retail Store Type

  • Hypermarkets and Supermarkets

  • Retail Chains

By Function

  • Customer Management

  • Supply Chain

  • Merchandising

  • Strategy and Planning

  • In-Store Operations

By Region

  • North America (By Deployment, By Retail Store Type, By Function, and By Country)

    • U.S. (By Function)

    • Canada (By Function)

  • Europe (By Deployment, By Retail Store Type, By Function, and By Country)

    • U.K. (By Function)

    • Germany (By Function)

    • Italy (By Function)

    • France (By Function)

    • Spain (By Function)

    • Rest of Europe

  • Asia Pacific (By Deployment, By Retail Store Type, By Function, and By Country)

    • China (By Function)

    • Japan (By Function)

    • India (By Function)

    • Southeast Asia (By Function)

    • Rest of Asia Pacific

  • Middle East & Africa (By Deployment, By Retail Store Type, By Function, and By Country)

    • GCC (By Function)

    • Egypt (By Function)

    • South Africa (By Function)

    • Rest of the Middle East & Africa

  • Latin America (By Deployment, By Retail Store Type, By Function, and By Country)

    • Brazil (By Function)

    • Argentina (By Function)

    • Mexico (By Function)

    • Rest of Latin America

Frequently Asked Questions

The market is projected to reach USD 31.08 billion by 2032.

In 2023, the market value stood at USD 7.56 billion.

The market is projected to record a CAGR of 17.2% during the forecast period.

The retail chain segment is likely to lead the market growth.

The rising integration of advanced technologies is set to drive the market’s growth.

Microsoft Corporation, HCL Technologies Limited, FLIR Systems, Inc., IBM Corporation, Oracle Corporation, SAP SE, Wipro Limited, and Nielsen Consumer LLC are the top players in the market.

North America is expected to hold the largest market share.

The strategy & planning segment is expected to record a significant CAGR.

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