The Global Smart Retail Market Size Was Valued At US$ 24.2 Bn. In 2022, And It Is Expected To Reach US$ 111.19 Bn By 2030, At A CAGR Of 21.0% In The Forecast Period.

Smart Retail Market Overview

One trend that is driving market growth is the growing use of technologies like Artificial Intelligence (AI), Virtual Reality (VR), Augmented Reality (AR), and the Internet of Things (IoT) to improve the shopping experience for customers, make it easier to keep track of inventory, and improve store operations. AR is changing the retail business in particular because it lets brands interact with customers through their mobile devices. When AR is used in marketing, it helps build relationships with customers, improves the customer experience, and drives sales. For example, shoe brand Airwalk uses augmented reality (AR) and geolocation to create a virtual pop-up shop to promote the relaunch of Airwalk Jim. The demand for advanced technologies is also being driven by a big rise in the number of retail stores in many places.

Smart retail is a way for both customers and retailers to save money and make money because of better supply chain management. But COVID-19 has hurt the supply chain of smart retail by making it harder for goods to move because of logistics and travel restrictions. Both stores and customers have had their deliveries put off. This effect on the supply chain will only last as long as safety measures keep things from getting worse. A smart retail supply chain will be very important in the long run. Even before the COVID-19 outbreak, the smart retailing industry had a healthy CAGR. Since the COVID-19 outbreak, the industry has grown quickly. As the pandemic situation is uncertain and can't be predicted for the next few months, regulatory bodies are taking a lot of different safety steps. Contactless operations and social distance are giving customers access to alternative retailing solutions. This is where smart retail plays an important role in everyday life.

Many retailers, especially small and medium-sized businesses, don't have the money to pay for advanced business platforms. In the business world, there is a growing consensus that stores need to keep digitising with IoT devices and focusing on better shopping experiences to stay competitive and bring customers back into stores. Aside from the pandemic, smart retail innovations like the ability to buy finished goods with your voice are also helping the industry gain more customers. This smart retail will make it easier to buy things and get more people to use it. Companies are now adapting to the world around them by using digital technology and smart retailing services. Small and large market players alike are realising how important smart retailing is and putting digital solutions in place to improve the customer experience. Aside from big players in smart retailing like Alibaba and Amazon, smaller companies also want to take advantage of this chance. For example, the phone company Vivo made Vivo Smart Retail to help retailers in India see how much demand there was for smartphones. Amazon and IKEA are also using AR-Kit to show how their furniture would look in the user's home.

Digital payment methods like debit cards, credit cards, prepaid cards, electronic wallets, and other digital platforms are likely to gain a lot of popularity in the coming years. The growth of the smart retail market over the next few years is expected to be driven by consumers' growing preference for cashless transactions and the rise in the use of digital payment solutions in retail stores like specialty stores, supermarkets, and department stores.

Digitalization can help retailers in many ways, such as by bringing in new customers and cutting down on operational costs. Digitalization can also be very inspiring for the people who work for retailers. In the end, digitalization can help bring in more money. In 2020, there was a lot of growth in non-store retailing. Over the next few years, advances in technology, the introduction of new sensors, better connectivity, and the availability of seamless communication solutions are expected to help online retail stores grow the market in a big way.

Market Dynamics

Drivers

Increasing consumption of Smart Retail across the globe

Smart Retail is one of the drinks that people around the world drink the most. North America has a big share of the Smart Retail market. In the US, almost 71% of the people use Smart Retail every day. In Europe, the Smart Retail market is getting bigger because specialty Smart Retail and single-serve methods are becoming more and more popular. According to the International Smart Retail Organization (ICO), the number of Smart Retail bags exported around the world in February 2020 was 11.11 million, up from 10.83 million in February 2019. This is an increase of 2.6% in one year. According to the most recent data from the International Smart Retail Organization (ICO), Europe ruled the global market in terms of how much people bought. Asia-Pacific and North America are two other key areas where Smart Retail is used the most. Also, an ICO report says that the amount of Smart Retail used in Europe has grown by 2.6% from 2016/17 to 2019/20. In the same way, between 2016/17 and 2019/20, Smart Retail consumption went up by 2.7% in North America and 2.1% in Asia Pacific. A big reason for the rise in demand for Smart Retail is that people all over the world are learning more about how it can help their health. Also, in emerging economies, where people are moving to cities quickly and disposable income per person is going up, many Smart Retail companies are launching new products to take advantage of growth opportunities. A lot of South East Asian countries, like Indonesia, the Philippines, Thailand, and Malaysia, are seeing a rise in the number of people buying things from Smart Retail. The growth of the Smart Retail market is also helped by the fact that there are more cafes and places to buy drinks all over the world. So, the growing trend of more people using Smart Retail around the world is likely to help the market during the review period.

Restraint:

Fluctuating prices of Smart Retail beans

Smart Retail is one of the things that is traded the most around the world. Smart Retail is being used more and more in countries that make it and countries that don't. But it is hard to deal with the fact that there isn't enough supply to meet the growing demand for Smart Retail. Also, changes in the weather have an effect on the productivity of Smart Retail, which makes price changes bigger. The plant disease called "Smart Retail rust" or "la roya," which is caused by a fungus that attacks the leaf and kills the branch and the Smart Retail cherry, tends to spread when the temperature goes up. So, plant diseases, pests, and flaws in Smart Retail beans make it hard for the market to get enough of them. This difference between what people want and what is available makes prices go up.

On the other hand, when there is too much of something, prices go down. For example, the International Smart Retail Organization (ICO) says that bigger supplies in Smart Retail in 2017/18 led to more shipments in August 2018, when global exports went up 6.3% to 11.1 million bags. In 2017/18, the world used about 1.8% more Smart Retail bags, or 162.23 million bags. But Smart Retail made 2.58 million more bags than they were supposed to. Because of this surplus, Smart Retail prices have been low during this time.

Changes in prices affect the cost of making a product, which in turn affects the price of the product. This could make it harder for the manufacturers to make money. So, the Smart Retail market can't grow if the prices of Smart Retail beans go up and down.

Opportunities:

Rising consumer preferences for organic Smart Retail

The market for organic Smart Retail is growing quickly. This growth is mostly due to changes in technology, competition, and new ways of marketing, especially in places with a lot of competition. People around the world are also becoming more concerned about their health, which has made them prefer organic food products. People have been more likely to buy organic Smart Retail, which is made without using any man-made chemicals like most pesticides, herbicides, and fertilisers. Organic Smart Retail is becoming popular because it has many health benefits and is free of toxic residues from synthetic fertilisers, herbicides, pesticides, artificial flavours or colours, and preservatives. Also, organic Smart Retail is thought to be good for the environment because no chemicals are used in its production, processing, or packaging, so it doesn't harm the environment.

So, the fact that people want organic products opens up a chance for companies in the global Smart Retail market. For example, Australia is thought to be the country that buys the most organic Smart Retail in the world. Because of this, the Smart Retail brand Lavazza chose Australia as the first market for its organic Smart Retail, Tierra! Bio-Organic, which came out in August 2018. Not only in developed countries, but also in some developing countries, the demand for organic Smart Retail is on the rise. This gives market players a chance to grow and expand.

Challenges:

Limited Product Awareness

Smart Retail is becoming more popular around the world, but pods and capsules aren't being used as much in developing countries. Even though Asia-Pacific is a major producer of Smart Retail, most of what is grown there is shipped to the US and Italy to be put into capsules or pods. In Asia-Pacific, Indonesia, Vietnam, East Timor, Laos, Myanmar, the Philippines, and Thailand are some of the countries that make the most Smart Retail. But Smart Retail pods and capsules aren't used as much in these countries as they are in North America and Europe. Smart Retail capsules and pods aren't widely known about or used in developing countries because they aren't easy to find, there aren't many market players in rural areas, and fresh Smart Retail capsules and pods cost a lot. Smart Retail manufacturers must find ways to deal with these problems if they want to keep their places in a growing market. They can do this by focusing on marketing strategies and making more products available at prices that middle-class consumers can afford.

Segment Overview

Solution Insights

In 2020, hardware was the most important part of the market and made up more than 65% of the global revenue. The market is split up into hardware and software based on the type of solution. The growth of the segment is being helped by the increasing use of Augmented Reality (AR) and Virtual Reality (VR) devices, point of sale (POS) systems, Bluetooth beacons, and Radio-frequency identification (RFID) systems to give customers a smooth in-store shopping experience.

During the forecast period, the software segment is expected to grow at the fastest rate, with a CAGR of 29.9%. One of the most important things driving the growth of the segment is that retailers all over the world are using analytics software more and more to learn about their customers' needs and behaviours. This helps them improve customer engagement and the shopping experience. With more money going into retail, there is also a greater need to study how customers' tastes are changing and put more emphasis on marketing that is focused on the customer. This will likely open up a lot of doors for analytics in smart retailing.

Application Insights

In 2020, visual marketing was the most important part of the market and made up more than 25% of the global revenue. Based on how it is used, the market is divided into visual marketing, smart labels, smart payment systems, intelligent systems, and others (Robotics, analytics). Retailers are also looking at appealing storefronts, digital signage, interior displays, and state-of-the-art lighting as important parts of a smart retail solution to keep customers interested. Social media marketing has also helped a lot with getting the attention of millennials. It has let stores focus on making shopping as easy as possible, with little interference from social media. So, in 2020, the majority of the market was made up of visual marketing. Also, the growth of e-commerce has given brick-and-mortar stores a number of new ways to make money. These kinds of stores are using pictures and videos of their products and services as a way to attract customers and get more attention on e-commerce websites.

During the forecast period, the smart payment system segment is expected to grow a lot. The growth can be explained by efforts to promote digital payments and a growing need to improve the customer experience. Also, the need for POS solutions, e-payment systems, mobile payment apps, and other payment systems is being driven by the rise of cashless transactions. Over the next few years, this segment is also likely to grow because the number of people using mobile wallets is growing quickly.

Regional Analysis

In 2021, North America had the largest share of the global market in terms of revenue. The smart retail industry is growing because there is a growing demand for high-quality and expensive products across the region, and consumer tastes are changing toward products that are easier to use and better made. Also, the fact that there are so many department stores, hypermarkets or supermarkets, and other types of retail stores means that there are more retrieval systems, POS solutions, automatic storage, and self-checkout systems in place. North America is one of the first places to use the newest solutions on the market, so these factors help the market there grow.

Also, it is expected that Asia Pacific will have the highest CAGR in the world market in the near future. China and Japan are driving the growth of the smart retail regional market by using more smart retail solutions like shopping guide robots, big data analytics, reception robots, and smart dressing mirrors. Also, both big and small retailers are using this platform to improve how they run their businesses. For example, Vivo, a company that makes smartphones, set up a smart retail network in India to help retailers keep track of how much demand there is for smartphones. Also, the major companies' increasing number of mergers and acquisitions is a factor that is gaining a lot of attention across the region.

Scope Analysis:

Recent Developments

• In January 2020, Intel Corporation worked with ARENA15, an immersive shopping and entertainment complex. ARENA15 wants to make it easier for customers to buy things by using Intel's technology and solutions.
• In November 2019, Mars Wrigley, a company that makes chocolates, chewing gum, mints, and fruity candies, teamed up with Standard Cognition to give them automated checkout solutions.

Market Segmentation

This portion of the study on the Smart Retail Market gives detailed data on the segments at the country and regional level, thereby aiding the strategist in determining the target demographics for the relevant product or service and the impending opportunities.

By Solution:

• Hardware
• Software

By Application:

• Visual Marketing
• Smart Label
• Smart Payment System
• Intelligent System
• Others (Robotics, analytics)

By Companies

• Intel Corp.
• International Business Machines Corp.
• Samsung Electronics Service Co.Ltd.
• Microsoft Corp.
• SoftBank Group Corp.
• Ingenico Group.
• VeriFone Inc.
• NCR Corp.