Internet of Things in Retail Market Size, Share, By Component (Hardware and Software), By Hardware (Beacons, RFID tags, Sensors, and Wearable), By Service (Remote Device Management, Professional Services, and Managed Service), By Technology (Zigbee, Bluetooth Low Energy, Near Field Communication, and Wi-Fi), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Trends, Analysis and Forecast till 2034

Report Code: PMI35519 | Publish Date: January 2024 | No. of Pages: 167

Global Internet Of Things In Overview

Internet of Things in the Retail Market Size was valued at US$ 52 billion in 2024 and is projected to grow at a CAGR of 23.70% to reach US$ 437.7 billion by 2034.

The Internet of Things (IoT) in retail suggests using sensor and device networks to increase the growth of retail businesses. Specialized software that collects, organizes, and handles data is a powerful tool for retail IoT networks. Retailers can find new possibilities and improve their return on investment by utilizing the actionable insights provided by IoT-powered retail solutions. Integrating digital and in-store activities in the retail sector is responsible for this rise. Customers may now quickly and swiftly complete their purchases in stores thanks to the installation of self-checkout automation, which is anticipated to fuel the rise of the Internet of Things in the retail industry throughout the projection period.

Wide-ranging uses of the Internet of Things (IoT) may be found in the retail industry. IoT facilitates bidirectional real-time consumer engagement within and outside stores, effectively connecting the physical and digital worlds. It provides valuable benefits like monitoring, dynamic pricing, inventory management, and customized suggestions. Retailers can also use it to monitor customer mobility and gather information about their purchasing habits.

One of the main things driving the market's expansion is the increasing automation of the retail industry to reduce labor expenses. Retailers also emphasize introducing cutting-edge goods and services while ensuring security to prevent data breaches. Their traditional brick-and-mortar stores will also undergo a digital makeover. Retailers now use Internet of Things (IoT) technology, including smart lighting, vending machines, digital signs, and payment systems. Furthermore, companies use in-store Wi-Fi to identify repeat consumers and promote digital interaction, radio-frequency identification (RFID) for asset tracking in stores and warehouses, sensors and cameras for checking product status and customer traffic, and more. Even with the propelling factors, implementation costs and privacy issues with these technologies are two obstacles that may prevent the market from expanding. 

Global Internet Of Things In Dynamics

Internet of Things in Retail Market Drivers:

An increase in the retail sector's use of connected technologies 

  • Over the projected period, the Internet of Things (IoT) in retail is anticipated to grow fastest due to the industry's connecting technologies. Retailers using these technologies can enhance customer satisfaction, streamline processes, and boost productivity to obtain a competitive advantage. Digital signs, beacons, price tickers, and on-shelf displays are examples of connected technologies that give businesses a plethora of information on the preferences and behavior of their customers while they purchase in-store or offline. Retailers can improve the overall consumer experience and personalize their goods by using these technologies to collect data on foot traffic, product interactions, and purchase history.

Growing demand for enhanced retail automation 

  • Automation is another element propelling the Internet of Things (IoT) in the retail industry. Automation improves service and boosts competitiveness by reducing manual labor and eliminating inefficiencies. Numerous mundane duties, including predictive maintenance, inventory auditing, and security monitoring, can be carried out by modern IoT devices without human participation. Employee attention can then be directed towards more strategic tasks like maintaining and serving clients.

Internet of Things in Retail Market Restrains:

Significant implementation costs and privacy issues

  • Regardless of the positive factors, certain obstacles could prevent the industry from expanding, such as the high implementation costs and privacy issues related to these technologies. The initial outlay for hardware, software, and system integration might be substantial for certain shops. Moreover, some shops may be discouraged from implementing IoT solutions due to security breaches and worries about consumer data protection.

Global Internet Of Things In Segmentation

Internet of Things in the Retail Market is segmented by component, hardware, service, technology, and region.

Component Insights

  • Hardware: The biggest portion went to the hardware category. This increase results from retailers extensively using RFID tags and sensors in the sector. Additionally, the market is anticipated to develop due to the falling costs of IoT sensors and an increase in connected devices in retail spaces.
  • Software: The software sector acts as the engine behind the whole thing. It can analyze data gathered from hardware and enable functions like data Analytics, which offers insights into customer behavior, inventory levels, and operational efficiency. System integrity is guaranteed, and sensitive customer data is safeguarded.

Hardware Insights

  • Beacons: Retailers that use trustworthy Beacon Solutions can provide customers with a far more satisfying shopping experience. When a customer walks into a store, these microcomputers can quickly determine their interest. They can also identify returning customers and new customers. Retailers now have the chance to give customers a far more engaging experience by using their cellphones to deliver important, hyper-local, contextually relevant communications and adverts. In order to improve the shopping experience, beacon systems will link online and physical shopping by gathering and transmitting customer data to merchants and vice versa.
  • RFID tags: Tags that hold data about a specific object, readers that can scan the tags and interpret the data, and software that connects everything are the standard components of an RFID system. RFID technology can deter theft in physical retail establishments. Additionally, it can manage the following duties: accounting for incoming and outgoing transactions, inventory automation, and item position identification in warehouses.
  • Sensors: Many people believe a sensor to be the fundamental component of an IoT ecosystem. A physical server or a central cloud repository receives data from IoT sensors, which are then processed and analyzed further. With a sensor, shops can keep an eye on the state of their items and guarantee their workplace security, depending on the sensor's intended use.
  • Wearables: A wearable is a piece of apparel or an accessory that senses, gathers, and sends different data types from its wearer or surroundings. Retailers can employ wearables for various everyday tasks, such as providing discounts and exclusive deals, promoting and selling products, and sending messages and notifications.

Service Insights

  • Remote Device Management: With a single, centralized platform for remote device management, users can access, control, track, and handle tablets, mobile devices, and Internet of Things devices. All of the store's IoT devices can be centralized for controlling and monitoring purposes.
  • Professional Services: Professional services provide implementation and advising for establishing and maintaining IoT solutions, which are still very important.
  • Managed Service: Retailers can save money by opting for Managed Service, which is provided by outside companies that oversee the complete Internet of Things infrastructure.

Technology Insights

  • Zigbee: Zigbee is a standards-based wireless protocol designed to provide low-power, low-cost wireless networks for the Internet of Things (IoT) and machine-to-machine (M2M) communication. The standard is a packet-based protocol meant for low-cost, battery-powered goods and gadgets. Thanks to the Zigbee IoT protocol, devices may transfer data effortlessly in a range of network topologies with very little power consumption.
  • Bluetooth Low Energy: The Bluetooth Low Energy (BLE) technology segment is anticipated to expand at the fastest rate over the projected period. The technology's low cost and low power solution is mostly to blame for this. BLE devices are perfect for retail settings where a lot of devices are needed because they can run on tiny batteries for a long time.
  • Near Field Communication: Radio waves are used in Near Field Communication (NFC), a subset of RFID technology, to transmit data between two nearby devices. When two devices come into range of one another, these connections usually initiate automatically. With an NFC-enabled smartphone, consumers may pay for their products at the register without carrying cash or credit cards. Generally speaking, NFC supports three primary work regimes. In contrast to QR codes, which must be scanned with a camera and a specialized program, NFC tags can be instantly read when a device enters the target area of another device. This includes smartphones and tablets equipped with NFC technology and can easily exchange data.
  • Wi-Fi: Wi-Fi will be necessary for applications like video analytics that demand a lot of bandwidth. Thanks to WiFi foot traffic monitoring and videos enabled by the Internet of Things, businesses can now determine whether customers tend to linger over particular product areas. Personalized digital marketing strategies may now be used within the stores.

Internet of Things in Retail Market Regional Insights

  • The North American market is anticipated to experience a notably high revenue share throughout the forecast period. This is due to the region's e-commerce expansion, which has enabled major retailers to succeed in their commercial operations.
  • The Asia Pacific market is predicted to have the fastest revenue share, with China leading the way in retail's use of the Internet of Things. Rising investments in the retail sector are predicted to propel India's economy, which is expected to support market expansion. Regional market growth is also anticipated to be aided by the growing use of real-time systems and location-based services.
  • The European market is growing fast as European retailers prioritize convenience and personalization. IoT solutions with features like self-checkout and location-based promotions are popular.
  • The Latin American market is a developing area with a growing middle class and rising disposable income, where the retail industry is expanding significantly.
  • The Middle East and Africa market is still in its early phases. Major investments are being made in the MEA region's retail industry, emphasizing implementing new technology and modernizing infrastructure.

Internet of Things in Retail Market Report Scope:

Attribute

Details

Market Size 2024

US$ 52 billion

Projected Market Size 2034

US$ 437.7 billion

CAGR Growth Rate

23.70%

Base year for estimation

2023

Forecast period

2024 – 2034

Market representation

Revenue in USD Billion & CAGR from 2024 to 2034

Market Segmentation

By Component - Hardware and Software

By Hardware - Beacons, RFID tags, Sensors, and Wearable

By Service - Remote Device Management, Professional Services, and Managed Service

By Technology - Zigbee, Bluetooth Low Energy, Near Field Communication, and Wi-Fi

Regional scope

North America - U.S., Canada

Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe

Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific

Latin America - Brazil, Mexico, Argentina, Rest of Latin America

Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study, has segmented the Internet of Things in Retail Market report based on component, hardware, service, technology, and region:

Internet of Things in Retail Market, By Component:

  • Hardware
  • Software

Internet of Things in Retail Market, By Hardware:

  • Beacons
  • RFID tags
  • Sensors
  • Wearable

Internet of Things in Retail Market, By Service:

  • Remote Device Management
  • Professional Services
  • Managed Service

Internet of Things in Retail Market, By Technology:

  • Zigbee
  • Bluetooth Low Energy
  • Near Field Communication
  • Wi-Fi

Internet of Things in Retail Market, By Region:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East & Africa

Global Internet Of Things In Key Players

The key players operating the Internet of Things in the Retail Market include RetailNext, Inc., Losant IoT, Inc., Intel Corporation, Impinj, Inc., Allerin Tech Pvt. Ltd., Cisco Systems Inc, IBM Global Services U.S., SAP SE, PTC Inc, and Carriots S.L.

Global Internet Of Things In Key Issues Addressed

  • In January 2023, Google Cloud introduced four new and updated technologies to help merchants improve their e-commerce websites and in-store shelf-checking procedures.
  • In December 2022, Google Cloud teamed up with KORE to assist businesses in developing valuable IT services and reaping the rewards of Internet of Things technology in the retail industry.

Global Internet Of Things In Company Profile

  • RetailNext, Inc.*
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • Losant IoT, Inc.
  • Intel Corporation
  • Impinj, Inc.
  • Allerin Tech Pvt. Ltd.
  • Cisco Systems Inc
  • IBM Global Services U.S.
  • SAP SE
  • PTC Inc
  • Carriots S.L.

“*” marked represents similar segmentation in other categories in the respective section.

Global Internet Of Things In Table of Contents

Research Objective and Assumption

  • Preface
  • Research Objectives
  • Study Scope
  • Years Considered for the study
  • Assumptions
  • Abbreviations

Research Methodology

  • Research data
  • Primary Data
    • Primary Interviews
    • Primary Breakdown
    • Key data from Primary Sources
    • Key Thickness Insights
  • Secondary Data
    • Major Secondary Sources
    • Secondary Sources
  • Market Estimation
  • Top-Down Approach
    • Approach for estimating Market Share by Top-Down Analysis (Supply Side)
  • Bottom-Up Approach
    • Approach for estimating market share by Bottom-up Analysis (Demand Side)
  • Market Breakdown and Data Triangulation
  • Research Assumptions

Market Preview

  • Executive Summary
  • Key Findings—Global Outlook for medical carts Strategies
    • Key Questions this Study will Answer
    • Market Snippet, By Component
    • Market Snippet, By Hardware
    • Market Snippet, By Service
    • Market Snippet, By Technology
    • Market Snippet, By Region
  • Opportunity Map Analysis
  • Executive Summary—3 Big Predictions

Market Dynamics, Regulations, and Trends Analysis

  • Market Dynamics
    • Drivers
    • Restrains
    • Market Opportunities
    • Market Trends
  • DR Impact Analysis
  • PEST Analysis
  • Porter’s Five Forces Analysis
  • Opportunity Orbit
  • Market Investment Feasibility Index
  • Macroeconomic Factor Analysis

Market Segmentation, By Component, Forecast Period up to 10 Years, (US$ Bn)

  • Overview
    • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Hardware
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Software
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Hardware, Forecast Period up to 10 Years, (US$ Bn)

  • Overview
    • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Small-Scale
    • Beacons
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • RFID Tags
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Sensors
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Wearables
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Service, Forecast Period up to 10 Years, (US$ Bn)

  • Overview
    • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Remote Device Management
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Professional Services
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Managed Service
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Market Segmentation, By Technology, Forecast Period up to 10 Years, (US$ Bn)

  • Overview
    • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Segment Trends
  • Zigbee
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Bluetooth Low Energy
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Near Field Communication
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years
  • Wi-Fi
    • Overview
    • Market Size and Forecast (US$ Bn), and Y-o-Y Growth (%), Forecast Period up to 10 Years

Global Market, By Region, Forecast Period up to 10 Years, (US$ Bn)

  • Overview
    • Market Value and Forecast (US$ Bn), and Share Analysis (%), Forecast Period up to 10 Years
    • Y-o-Y Growth Analysis (%), Forecast Period up to 10 Years
    • Regional Trends
  • North America
    • Market Size and Forecast (US$ Bn), By Component, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Hardware , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Service , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Technology , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
      • U.S.
      • Canada
  • Europe
    • Market Size and Forecast (US$ Bn), By Component, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Hardware , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Service , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Technology , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
      • UK
      • France
      • Germany
      • Russia
      • Italy
      • Rest of Europe
  • Asia Pacific
    • Market Size and Forecast (US$ Bn), By Component, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Hardware , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Service , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Technology , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
      • India
      • Japan
      • South Korea
      • China
      • Rest of Asia Pacific
  • Latin America
    • Market Size and Forecast (US$ Bn), By Component, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Hardware , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Service , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Technology , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
  • Brazil
  • Mexico
  • Rest of Latin America

 

  • Middle East & Africa
    • Market Size and Forecast (US$ Bn), By Component, Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Hardware , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Service , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Technology , Forecast Period up to 10 Years
    • Market Size and Forecast (US$ Bn), By Country, Forecast Period up to 10 Years
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East

Competitive Landscape

  • Heat Map Analysis
  • Market Presence and Specificity Analysis

Company Profiles

  • Retail Next, Inc.
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • Losant LoT Inc.,
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • Intel Corporation
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • Impinj, Inc.,
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • Allerin Tech Pvt. Ltd,
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • Cisco System Inc.,
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • Global Services U.S.,
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • SAP SE
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • PTC Inc
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies
  • Carriots S.L.
    • Company Overview
    • Product Portfolio
    • Key Highlights
    • Financial Performance
    • Business Strategies

The Last Word

  • Future Impact
  • About Us
  • Contact