With rising rents and the challenge of e-tailing, the retail market was already feeling the effects of a shifting global landscape before social isolation orders were enacted throughout most of the world. Technology will undoubtedly provide both opportunities and challenges for bricks and mortar retailers.
Recently, a report from ResearchandMarkets looks at the “Smart Retail Market by System (Smart Payment Systems, Intelligent Vending Machines), Application (Foot-traffic Monitoring, Inventory Management), Retail Offering (Fast-moving Consumer Goods, Hardlines & Leisure Goods), & Geography – Global Forecast to 2025.”
The global smart retail market is estimated to grow from US$21.6 billion in 2020 to US$62.5 billion by 2025; growing at a CAGR of 23.6%. The increasing adoption of robotics and automation in the retail sector is one of the key factors fueling the growth of this market.
Among systems, the market for robotics is expected to grow at the highest CAGR during the forecast period. Robots simplify the process of finding suitable products for customers. Thus, the growth of this segment can be attributed to the increase in the deployment of robots in supermarkets, hypermarkets, and other retail stores to make the shopping experience easy for consumers.
Smart fitting rooms are specially designed rooms wherein customers can try clothes without wearing them. This reduces the shopping time, as well as the displeasure of customers. Moreover, smart mirrors in these rooms also recommend different colors and patterns to customers and enhance their experience. Owing to this, the market for smart fitting rooms is expected to grow at the highest CAGR during the forecast period.
The smart retail market for fast-moving consumer goods is expected to grow at the highest CAGR during the forecast period. The growth of this segment can be attributed to the rising demand for fast-moving consumer goods from the continuously increasing global population.
Europe was the second-largest market for smart retail solutions in 2019. The growth of the local retail market and the increased number of consumers purchasing products from supermarkets and hypermarkets are factors driving the growth of the market in the region.
Among the sectors biggest growth drivers are:
- Increasing use of robots and automation to offer shopping convenience to customers
- Rising adoption of big data analytics, machine learning, blockchain, and artificial intelligence technologies by retailers
- Changing customer expectations leading to increased use of smart technologies by retailers.
Factors that may restrain market growth include increased maintenance costs of advanced high-end computing systems and high risks of customer data thefts.
The Increase in the number of smart stores should lead to a rise in adoption of self-delivery vehicles, as well as increase in the use of technologies by retailers to directly connect with end-users. Challenges include an increased risk of shoplifting.
Major players profiled in the report include:
- Intel Corporation
- Cisco Systems, Inc.
- NXP Semiconductors N.V.
- Huawei Investment & Holding Co., Ltd.
- NVIDIA Corporation
- Samsung Electronics
- Google Inc.
- PTC, Inc.
Source: Research and Markets