Retail Analytics Market worth $20bn by 2026
Published Date: February 11, 2020 Authors: Preeti Wadhwani, Sachin Kasnale
Retail Analytics Market size is poised to surpass USD 20 billion by 2026, according to a new research report by Global Market Insights, Inc.
The retail analytics market growth is supported by increasing popularity of analytical tools among retailers to make data-driven decisions to decide promotions and devise new merchandising strategies. With the increasing proliferation of e-commerce, physical store retailers are under immense pressure to seek value from customer data and are adopting analytical solutions to personalize in-store promotion strategies.
Retailers laying stress on supply chain analytics to optimize product supply
The supply chain segment held a market share of around 15% in 2019 and is set to witness a growth rate of over 10% through 2026. This is owing to growing interest of retailers to reduce inventory costs and conduct efficient logistics operations through advanced data analytics solutions. Improvement in inventory planning and accurate forecasts are few of the benefits offered by supply chain analytics, helping large retailers to optimize supply chain operations.
Retail analytics solutions also help retailers in predicting the effect of economic impacts on the market, such as fluctuating fuel costs and increasing logistics tariffs, thus devising new strategies accordingly. New & innovative analytical tools spurred by increasing R&D capabilities of analytic solution providers will create new avenues for the retail analytics market.
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Managed services gaining market traction to complement in-house retail analytics
The managed services segment held around 35% of the market in 2019 and will register over 25% gains from 2020 to 2026. The increasing market share is attributed to rapid outsourcing of analytics technology by retailers to gain business intelligence capabilities and actionable insights. Managed analytics providers enable enterprises to reap the benefits of easy to grasp dashboards & reports without making large upfront investments in time and financial resources. The deployment of managed services by retailers will witness a sharp increase over the forecast timeline as machine learning and AI are positively impacting the industry.
Browse key industry insights spread across 230 pages with 331 market data tables and 26 figures & charts from the report, “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 Enterprise Size (Large Enterprises, SMEs), By Deployment Model (On-Premise, Cloud), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020– 2026” in detail along with the table of contents:
Increasing focus on data analytics is expanding the market share of SMEs
The SME segment accounted for over 20% market revenue share in 2019 and will expand at over 20% till 2026. SMEs are increasingly turning toward data analytics, as a powerful tool, to bridge the gap between customer expectation and actual customer service. The proliferation of cloud technology has made it viable for small enterprises to deploy advanced retail analytics solutions within limited financial resources. SMEs operating in the retail industry are expected to increasingly uptake customer engagement and in-store analytical solutions to accelerate the market growth.
Data security concerns driving the adoption of on-premise analytics
The on-premise segment held over 60% retail analytics market share in 2019 and is expected to grow at 15% CAGR during the next six years. On-premise retail analytics solutions are being extensively deployed by several large & small retailers due to better data security and control. These solutions enable retailers to organize and display important business data using the retailer’s IT infrastructure. However, huge upfront costs, low scalability, and inefficiency in handling huge volumes of data are expected to hinder market demand.
Presence of technologically mature retailers augmenting North America market growth
In 2019, the North America retail analytics market accounted for over 40% share and is poised to witness more than 20% growth during the forecast period impelled by rising demand among large retailers, such as Walmart, Costco, and Kroger, to offer a differentiated customer experience coupled with the high adoption rate of advanced data analytics technologies. In addition, the changing shopping habits of customers and the rising trend of omnichannel sales platforms are expected to boost the market revenue.
The key players operating in the market are majorly focusing on embedding technologies, such as Artificial Intelligence (AI) and machine learning, to enable retailers to have intelligent customer insights. Advanced customer relationship solutions are being integrated with AI technologies for effective data management. Retail analytics solution providers, such as Microsoft and IBM, are concentrating on providing private cloud-based solutions to retailers.
Some of the major industry players operating in the retail analytics market include 1010Data, Adobe Systems, Inc., Angoss Software, Bedrock Analytics Corporation, FLIR Systems, Inc., HCL Technologies, IBM Corporation, Information Builders, Microsoft Corporation, MicroStrategy Incorporated, Oracle Corporation, Qlik Technologies, Inc., Salesforce.com, Inc., SAP SE, SAS Institute, Tableau Software, Teradata, and TIBCO Software, Inc.
The dynamic nature of consumer preferences and the growing demand for one-click shopping has pressurized retailers to devise new strategies for enhanced customer experience. Retail analytics solutions assist retailers in addressing these challenges by offering data-driven insights to strategize promotional activities and stay competitive in the retail industry.