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Retail Analytics Market worth over $90Bn by 2032

  • Published Date: November 18, 2022

Retail Analytics Market size is estimated to reach USD 90 billion by 2032, according to a new research report by Global Market Insights Inc.

Increasing use of smartphones across developing economies is expected to provide a considerable boost to the retail analytics market size. Over the last few years, e-commerce and online retail have picked pace due to increasing consumer preference for online shopping. According to estimates, online shopping accounts for approximately 70% of all mobile transactions across APAC. The emergence of the COVID-19 outbreak has accelerated digital shopping trends along with the use of digital payment methods. Digitization and growing interest in technologies such as big data analytics and machine learning will positively influence the industry outlook.

Retailers switching to in-store analytics for enhancing operational capabilities

Retail analytics market share from store operations is anticipated to exhibit 25% growth during 2023-2032. Store retail analytics has become a viable solution to achieve a comprehensive overview of customer insights and execute store operations more efficiently. Retails are using advanced analytics tools to monitor consumer behavior and patterns to devise innovative strategies pertaining to the design and layout of stores. In-store analytical tools also help improve navigation capabilities and other store interiors.

Global Retail Analytics Market Size, By Function

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Browse key industry insights spread across 250 pages with 334 market data tables and 43 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 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” in detail along with the table of contents:

Advanced software solutions to complement market development

Software segment held more than 55% share of the retail analytics market in 2022. The development of sophisticated software solutions is helping retailers to enhance different aspects of business such as product placement & marketing and promotion. It also allows retailers to leverage customer data analytics to accelerate customer retention. Retail analytics software provides thorough analytical information on key performance indicators to track sales, transactions, units per customer, and return rates.

High dependence on in-house IT infrastructure to elevate the need for on-premise retail analytics

On-premise retail analytics accounted for 50% market share in 2022. This type of analytics depends on the IT infrastructures of retailers to organize and deliver crucial business data. These solutions help ensure complete control of the in-house IT teams on data. On-premise systems also offer full accessibility to data and reduce additional expenses on high-speed internet connection. Data available on servers can be easily accessed at any time even in case of internet failure. Unlike the cloud, on-premise solutions require one-time costs and eliminate recurring expenses.

Presence of tech giants to foster North America retail analytics industry development

North America retail analytics market dominated more than 38% revenue share in 2022. A solid footprint of technology giants in the U.S. such as Microsoft, Intel Corp, IBM, and Google will favour the market expansion. These tech giants are introducing novel market-oriented products to support the growing demand for state-of-the-art analytics solutions. For instance, in March 2022, Google unveiled a retail search tool offering precise search results while shopping for customers.

Improved promotion campaign management & customer retention using retail analytics

The promotion campaign management is expected to grow at 24% CAGR through 2032. Organizations use retail analytics for promotion campaign management by designing a brand’s image based on the requirements and catering to its target audience. Brand data is typically acquired through customer surveys and loyalty programs. Customer retention and acquisition are key for any business to achieve competitive advantage. According to the U.S. Chamber of Commerce, new customer acquisition costs 5-25 times more than the retention of existing connections.

Authors: Preeti Wadhwani, Smriti Loomba