IoT is revolutionizing the way the retail sector operates.
It creates an ecosystem, wherein there is a fusion of the physical, and the digital world to improve the customers’ shopping experience.
This technology gives the retailer a comprehensive analytical report about various product performance.
It also guides him/her to formulate strategies to improve customer engagement.
The immense potential of this technology has attracted companies to invest in IoT technology.
It helps them to gather data through smart devices to make their processes much more efficient.
Furthermore, the amazing growth of the e-commerce companies thanks to a large smartphone user base has also played a huge role in the increased use of IoT technology in the retail sector.
The global market for the IoT, in 2018 was valued at $ 22.36 billion.
This figure is going to make a quantum jump of $ 69.25 billion by 2024.
This huge market of IoT shows the significance of this technology for the retail sector.
It can boost the Omni-channel experience of the customers and increase the ROI of the retail businesses.
As retail markets grow in operations and scale, there is an increased demand for data integration and analysis.
The data integration in turn has a positive impact on the utilization of IoT by businesses to make their operations efficient.
Key Points about the IoT Retail Growth Study
In the article, we have given you a comprehensive overview of IoT in retail growth.
The United States Leading the Pack
The forecast of retail businesses using IoT to streamline their business operations shows that the US market is leading the pack.
- The reason for this growth can be ascribed to the increased use of IoT devices by the consumers of the US market.
- The retail sale in the US market has topped $ 5.7 trillion in 2017.
- This is a 42% jump from the 2009 record of $ 4.06 trillion.
- The reason for this jump is due to increased use of modern technologies in the retail sector and changing consumer behavior.
- The revolution in the retail sector by using the latest tech to provide the best in-store experience for the consumers has also helped in improving the sales figure of the retail businesses.
- Retailers are increasingly relying on IoT technology to offer a more personalized shopping experience.
The IoT technology helps the retail chains to gather data regarding consumer behavior by analyzing their social media accounts.
This helps them to formulate a more customized marketing solution to improve their conversion rate.
Software, Hardware, and Services
The reasons for the adoption of IoT technology by the retail sector are many, some of which include the following.
- IoT is increasingly used to optimize supply chain management, reduce higher transaction costs, and cope with higher-order frequency.
- This technology is a great help in inventory management, reducing operational costs, and improving the customer’s experience.
- Latest sensors and technologies (like NFC) can be integrated with the IoT ecosystem to provide non-invasive opportunities for retailers to attract their target audience (smart shelf tags to give product information).
- Using NFC can boost the functionalities of IoT by overcoming the challenges thrown by the lack of network access.
Therefore, increasing the use of devices that offer NFC solutions has helped in expanding IoT in the retail market.
- Multiple software solutions are available for highly customized IoT solutions for different retail markets.
These software solutions include; ThinFilm NC solutions, Authentic or Not, Wise Shelf, Swirl, Queuehop, Gimbal, and many more.
At present, the IoT in the retail market is in the evolutionary stage.
However, more and more people are adopting the latest technologies like smart home environments, sensors in the warehouses, e-commerce technologies, and others.
This has opened opportunities for new players to create a space for themselves in this highly lucrative market.
With the rising product innovation and powerful software solutions, the use of IoT in the retail sector is only going to rise in the future.
Some of the top players in the sector include the following.
- Intel Corporation.
- IBM Corporation.
- Microsoft Corporation.
- Amazon Web Services Inc.
- SAP SE
The information we have shared with you in this article shows the extensive spread of the IoT in the retail business. If you want to know in detail how IoT can transform the retail industry, you can refer to these IoT use-cases in retail.
It is a highly competitive market that has several top-notch global brands in different verticals.
These verticals include platform management, component, and service providers.
Industry watchers are witnessing a trend wherein retail companies are using increasingly IoT and different digital platforms to optimize their supply chain.
This will help them to manage their inventory by creating a robust end-to-end supply system in place.