Global Retail Analytics Market - 2021-2028
The global retail analytics market size was worth US$ XX billion in 2020 and is projected to show significant growth by reaching up to US$ XX billion by 2028, growing at a CAGR of XX% within the forecast period (2021-2028).
Retail analytics provides analytical data critical for marketing and procurement decisions on inventory levels, supply chain movement, customer demand, pricing, etc. The demand and supply data analytics can be used to sustain the standard of procurement and make marketing decisions. Retail analytics offered customer analytical insights coupled with insights into the organization's business and process with the scope and required need for improvement.
The retail industry has shown an unprecedented shift that has changed customer expectations, and technological developments are rapidly revolving around the retail landscape day by day. In recent times customers are demanding rich shopping experiences that are hyper-connected, engaging, and personalized. The growing expansion of sales and marketing channels such as social commerce and mobile are transforming the retail industry's growing trend.
Few examples of how retail businesses that have successfully leveraged retail analytics to improve decision-making and increase market share are leveraging data to optimize the customer experience, streamlining the relationship between data and customer, gaining a 360-degree view of customer need, and delivering self-service, real-time access to data are few examples
The global retail analytics market is driven by increasing technological advancements such as machine learning, artificial intelligence, and augmented reality. Increasing internet penetration and the adoption of big data analytics and cloud-based services in retail processes to increase retailing's productivity and efficiency is creating demand for retail analytical tools in recent times. Vendors of retail analytics deliver cost-effective, scalable, and versatile solutions that are expected to further fuel the global retail analytics industry's growth.
Increasing technological advancements such as machine learning, artificial intelligence, and augmented reality
The growing advancements in technologies such as the arrival of machine learning, artificial intelligence, and augmented reality in retail analytics can attain a variety of business goals that include customer value, supplier management, and optimized revenue generation. Artificial intelligence and machine learning offer retailer intelligence insights that can improve sales coupled with customer experience. The integration of advanced technology with retail analytics helps gain insights from big data on retail to optimize customer operation and business operation. The technology also offers tracking of customer data from customer contact with online channels improves e-commerce strategies. On the other hand, machine learning and big analytics help to analyze the data and draw insights about the quality, price, and sales to reach the target customers.
For instance, in October 2018, Oracle corporation improved its Oracle retail insights cloud service suite by introducing three new services into the cloud. The improvement is made to provide a wide spectrum of analytics that would support the retail industry's key performance indicators. The advanced cloud service suite offers several advantages: a better understanding of the customer context, leveraging artificial intelligence, revealing merchandising intelligence, and machine learning.
Increasing internet penetration and the adoption of big data analytics and cloud-based services in retail processes to increase retailing's productivity and efficiency is creating demand for retail analytical tools in recent times.
The growing use of the internet in retail processes has increased the retailing's productivity and efficiency and generates demand for retail analytics resources. It allows retailers to gain insights into important data, consumer purchasing habits, improve customer experience, and provide real insight to enhance all in-store operations that create a huge demand for retail analytics tools. Increasing online shopping, utilization of social media, consecutive growth in big data and proliferation of smartphones owing to online shopping have uplifted the market of retail analytics in recent times. Additionally, due to the ease of shopping and mobile penetration in the market, which is expected to improve the market, the usage of e-commerce platforms is increasingly growing. Over the forecast era, the growing need for data analysis and incorporation of analytics is expected to propel the Internet of Things industry.
Stringent data regulation imposed by different governments across the globe is expected to hamper the retail analytics market's growth.
The government's general data protection regulation is expected to affect the retails solutions that use big data technology. Without breaking the data privacy, no retailer would be able to take efficient advantages even after introducing big data service in their business module. Hence, it made it difficult for the retailers to attain desirable goals despite the security protocols set by the data privacy regulations. These regulations are directly impacting the growth of many multinational companies and international retailers in recent times. Besides, lack of knowledge in some regions, high analytics expense, and inability to understand consumers' offline market behavior are hampering the global retail analytics market's growth. Furthermore, complex systems integration is a problem that is expected to hamper the development of the global market for retail analytics.
COVID-19 Impact Analysis
All aspects of the technology industry have been affected by COVID-19. Due to disturbances in the hardware supply chain and decreased manufacturing activities, IT infrastructure's construction has slowed down. The health crisis has had an unprecedented effect across sectors on businesses; although some are suffering, others prosper. Also, due to the lockdowns implemented worldwide, retail analytics companies are experiencing a slowdown in growth. As most upcoming analytics ventures have been placed on hold due to the pandemic, the competition between key retail analytics companies is expected to intensify. Businesses have also begun to make attempts to return to normal and face numerous consumer and organizational challenges. New practices, such as work-from-home and social distancing, have contributed to the need for remote patient and asset health tracking and smart payment technologies and to build digital infrastructures for large-scale implementations of technology. The implementation of lockdowns has led to an increased reliance on cloud-based solutions.
The global retail analytics market is segmented on component, deployment, application, retail store type and region.
Cloud-based retail analytics tools give retailers with on-demand computing capacity to manage vast amounts of data and provide valuable insights, thus expected to dominate the future retail analytics market.
In terms of deployment, the global retail analytics market is bifurcated into two types on-premise and cloud. Out of the two, the cloud segment is expected to show significant growth during the forecast period as cloud applications for retail analytics help organizations become flexible and able to maximize collaboration and connectivity with business partners and consumers. In a short timeframe, cloud-based retail analytics tools give retailers with on-demand computing capacity to manage vast amounts of data and provide valuable insights. In addition, current innovation in the retail landscape often combines the cloud and hybrid-cloud solutions with advanced data analytics to make the business more competitive for the key players. The cloud also establishes highly scalable and pay-for-use subscription models that are gaining popularity across various small retail chains.
On the other side, the traditional on-premise analytical model expects to show moderate adoption in the forecast period due to security assurance.
For instance, in May 2020, the European multi-brand fashion retailer Sportia Group adopted oracle cloud-based retail solutions to break the obstacle between brand and geographies, consecutively optimizing the customers' inventory availability. The above solution is estimated to provide full visibility about the inventory availability across channels, which would lower the transfer cost and increase stock rotation.
The high implementation rate of retail analytics solutions on account of sophisticated systems and the increasing availability of high working capital at the disposal of several retailers in the North America region
North-America is expected to dominate the retail analytics market in the forecast period due to the high implementation rate of retail analytics solutions on account of sophisticated systems and the increasing availability of high working capital at the disposal of several retailers in the region. Most of the larger hypermarkets, supermarkets, and retail chains are showcasing their presence across different North-America countries. The large retail market giants such as Kroger, Walmart have majorly adopted retail analytical solutions to compete with other retail chains.
On the other side, APAC is expected to record the highest CAGR in the conjecture time span, as it is home to many developing and emerging economies, which offer significant opportunities for retail store growth and technology advancement. China, India and Japan focus on data management to facilitate data-based business decisions and improve retail brand business processes.
The retail analytics market is highly competitive with the presence of local as well as global companies. Some of the key players contributing to the market's growth include Microsoft, Oracle, Salesforce, IBM, Bridgei2i, Information Builders, SAS Institute, Adobe Systems, Teradata Corporation, MicroStrategy Incorporated and others.
The key players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to the retail analytics market's growth globally. However, company expansion and collaboration are the prime growth strategies followed by the market's major players.
Overview: The company is among the leading players in delivering advanced retail solutions the retailers. The company is a multinational American computer technology corporation headquarter based in Texas. The company focuses on developing a retail solution platform by introducing predictive analytical, cloud, artificial intelligence, and others. Oracle is strengthening its retail solution platform by combing multiple retail solutions and services on Oracle Retail Solution Suite.
The global retail analytics market report would provide access to an approx.: 69 market data table, 65 figures and 252 pages.
Target Audience 2022
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