Retail Analytics Market Size & Share 2023 to 2032
Market Size by Function (Customer Management, Merchandising, Store Operations, Supply Chain, Strategy & Planning), by Solution (Software, Services), Deployment Model, Enterprise Size, Field Crowdsourcing & Global Forecast.
Report ID: GMI319
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Published Date: November 2022
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Retail Analytics Market Size
Retail Analytics Market size surpassed USD 10 billion in 2022 and is anticipated to expand at over 24% CAGR between 2023 and 2032. Rapid urbanization and expanding e-commerce sector in developing countries will drive the industry demand. Innovation, digitization, and the development of next-generation analytics tools in developed economies will further accelerate the use of big data analytics in retail.
Companies are leveraging retail analytics to offer personalized shopping experiences via customer recommendations based on prior purchases to provide better customer services. Big data analytics allows e-commerce firms to understand buying patterns of customers to interpret and act on decisive data insights. Tech giants are launching advanced retail analytical tools to address the growing need for digital solutions.
Data privacy concerns may impede the adoption of retail analytics. The advent of big data analytics has resulted in a rise in sophisticated privacy breaches. However, several companies are using data masking to tackle privacy issues and customer data safe. Large IT firms are focusing on the development of resources and guidance pertaining to retail analytics solutions for the improvement of data privacy.
COVID-19 Impact
The COVID-19 pandemic has led to the onset of the digitization of retail businesses across the globe. The pandemic compelled a paradigm shift from traditional retail to modern e-commerce models based on advanced digital tools such as AI and analytics.
Owing to quarantine measures and strict lockdowns, retail customers rapidly switched to online shopping. The increasing prevalence of online consumption patterns further accelerated the need for innovation and digital disruption. Increasing use of AI to personalize shopping experiences, boost customer retention, and enhance sales efficiency will impel the market revenue.
Retail Analytics Market Analysis
The customer management segment is projected to exhibit around 25% growth rate through 2032. Customer management using analytics helps retailers to gain actionable insights from customer data and devise new strategies to improve customer loyalty via customized and buyer-centric offers. For instance, in August 2022, Monday.com, a cloud-based management software platform launched a fully customizable Monday Sales CRM to support teams working across project management, marketing, software development, and sales.
Integration and deployment service segment accounted for more than 40% share of the retail analytics market in 2022. Embedded analytics has penetrated the retail sector and has accelerated the integration and deployment of analytical solutions and data visualization capabilities into software.|
The advent of next-generation technologies such as AI and deep learning has allowed analytics service providers to correlate, assess, and evaluate retail business activities more effectively. Embedded retail analytics offers several advantages including improved decision-making, efficient analysis & data integration, and improved sales strategy. It also allows companies to predict future sales to boost profit.
On-shelf availability segment held more than 30% market share in 2022, due to their ability to effectively place re-orders and warn in case of critical stock shortages. Stockouts are a major concern for retailers worldwide. Approximately 50% of stockouts occur due to unproductive store practices such as store inventory, replenishment, ordering, and projecting. The COVID-19 pandemic dramatically fueled stockouts by 250%, accelerating the need for OSA solutions.
The cloud deployment mode segment is expected to witness growth of 25.5% from 2023 to 2032. Cloud-based data analytics is empowering the retail landscape with improved scope for the optimization of operations. It offers several advantages including business agility and better collaboration and communication with partner firms and customers. High preference for cloud platforms among retailers can be attributed to the on-demand computing power which allows them to deal with large volumes of data and deliver actionable insights in a limited period.
Europe retail analytics market is poised to grow at a CAGR of 23% during the forecast period, owing to changing customer preferences and rapid digitization. A sustainable rise in investments into AI-based digital tools to overcome inconsistencies in the supply chain and address retail shrinkage will offer lucrative opportunities for the providers of retail analytics. Europe also has a vast landscape of leading retail brands and companies boosting online presence.
Retail Analytics Market Share
Some of the key players in the market are
These companies are focusing on the development of novel analytics solutions. For instance, in June 2022, Amazon Inc. unveiled the Store Analytics service for brands offering anonymized and compiled insights on performance, ad campaigns, and promotions.
The retail analytics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:
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Market, By Function
Market, By Solution
Market, By Enterprise Size
Market, By Deployment Mode
Market, By Crowdsourcing
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →