Retail Analytics Market Size By Function (Customer Management, Merchandising, Store Operations, Supply Chain, Strategy & Planning), By Solution (Software, Services [Training & Consulting, Integration & Deployment, Managed Services]), By Deployment Model (On-premise, Cloud), By Enterprise Size (Large Enterprises, SMEs), By Field Crowdsourcing (On-shelf Availability, Documentation & Reporting, Promotion Campaign Management, Customer Insights), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 – 2032

Industry Drivers

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.
 

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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.
 

Impact of COVID-19 pandemic on retail analytics market trends

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.
 

Advancements in customer management analytics

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.
 

Rapid use of embedded retail analytics for data integration

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.
 

Growing concerns associated with stockouts will propel the need for OSA solutions

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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.
 

Large volumes of data generation to fuel the demand for cloud retail analytics

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.
 

Rapid digitization in the European market

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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.
 

New product launches to augment industry development

Some of the key players in the market are SAP SE, Microsoft Corporation, IBM Corporation, SAS Institute, Inc., Salesforce (Tableau Software), Oracle Corporation, QlikTech International AB, Teradata Corporation, and Microstrategy Incorporated.
 

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:

Market, By Function

• Customer Management
• Merchandising
• Store Operations
• Supply Chain Management
• Strategy & Planning

Market, By Solution

• Software
• Service
  • Training & Consulting
  • Integration & deployment
  • Managed Service

Market, By Enterprise Size

• Large Enterprises
• SMEs

Market, By Deployment Mode

• On-premise
• Cloud

Market, By Crowdsourcing

• On-shelf availability
• Documentation & Reporting             
• Promotion Campaign Management
• Customer Insights   

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa