Enjoy complimentary customisation on priority with our Enterprise License!
The in-store analytics market size is forecast to increase by USD 7.5 billion at a CAGR of 24.26% between 2023 and 2028. The market is witnessing significant growth due to the increasing importance of enhancing customer experiences and operational effectiveness for merchants. The market is driven by the growing volume and complexity of data in the retail industry, which necessitates data-driven decision-making. Intelligent location-based analytics using real-time data enables merchants to gain insights into consumer behavior, foot traffic, and product interactions. With the increasing volume of data generated from customer services, shopping experience, and foot traffic, cloud-based analytics software has become a popular solution for merchants in the retail technology space. The adoption of artificial intelligence (AI) in retail is a major trend, as it facilitates advanced analytics and automation, leading to improved operational efficiency. However, privacy and security concerns of customers remain a challenge, necessitating strong data protection measures. Overall, the market is expected to continue its growth trajectory, driven by the need for actionable insights to optimize in-store operations and enhance customer experiences.
In-store analytics refers to the use of data and technology to enhance customer experiences and improve operational efficiency in physical retail spaces. These solutions leverage AI and smartphones to collect real-time data on consumer behavior and product interactions. Large enterprises are increasingly adopting in-store analytics to gain a competitive edge through customized marketing strategies and operational effectiveness. Omnichannel integration is a key trend in this market, allowing retailers to connect online and offline data for a more comprehensive view of customer behavior.
However, security concerns are a major challenge in the market. Technical solutions must be vital and secure to protect sensitive customer data. Operational effectiveness is another key benefit, with in-store analytics providing merchants with data-driven insights to make intelligent decisions in real-time. Overall, in-store analytics is transforming the retail landscape by providing valuable insights into consumer behavior and operational efficiency.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The software segment is estimated to witness significant growth during the forecast period. The market's software segment encompasses solutions for marketing management, customer management, merchandising analysis, in-store operations management, and sales forecasting. These software applications enable retailers, particularly omnichannel retailers, to effectively manage and monitor sales data to discern customer preferences and deliver relevant business insights. Additionally, the software analyzes industry trends and challenges, providing valuable insights for end-users like supermarkets and retail brands to formulate strategic business plans. The integration of advanced technologies, such as artificial intelligence (AI), is expected to bolster the software's capabilities, allowing for earlier demand forecasting and improved customer experience. Cloud computing providers play a crucial role in delivering these solutions to retailers, ensuring skilled personnel can access real-time data and insights from anywhere.
Get a glance at the market share of various segments Request Free Sample
The software segment was valued at USD 858.92 million in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions Request Free Sample
The market in North America is projected to dominate the global market due to the region's advanced retail industry and high consumer engagement. With a significant presence of both brick-and-mortar and e-commerce retailers, the region generates vast amounts of data from customer behavior in physical stores. Retailers in North America recognize the importance of this data in optimizing operations and improving customer experiences. The region's technological innovation, particularly in AI, machine learning, and big data analytics, enables retailers to extract valuable insights from this data. As omnichannel retailers continue to prioritize customer satisfaction, cloud computing solutions provide a cost-effective and efficient way to implement in-store analytics. Skilled personnel and cloud providers in North America support the implementation and management of these solutions, making the region a hub for in-store analytics adoption.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing data volume and complexity in the retail industry are the key drivers of the market. The retail sector generates substantial data volumes from multiple sources such as online and offline transactions, customer interactions, supply chains, and social media. This data is a valuable asset for retailers, offering insights that can enhance their competitive position. With the increasing use of smartphones and the internet, cloud-based analytics software and AI have become essential tools for processing and analyzing this data. Customer service and shopping experience are key areas where these insights can be leveraged. By analyzing customer data, retailers can gain deep insights into consumer behavior, preferences, and shopping patterns. These insights enable retailers to offer personalized experiences, tailor their offerings, and optimize marketing strategies to meet individual customer needs.
Consulting services can also provide valuable expertise in implementing and utilizing advanced analytics technologies effectively. Overall, the use of data analytics in retail is transforming the industry, enabling retailers to deliver more personalized and effective customer experiences.
Increasing adoption of AI in the retail sector is the upcoming trend in the market. In-store analytics, driven by artificial intelligence (AI), empowers retailers to examine substantial volumes of customer data, encompassing purchase histories, browsing patterns, and preferences. This information is harnessed to craft customized shopping experiences, propose product suggestions, and execute targeted marketing initiatives. By deciphering customer behaviors, merchants can fine-tune their offerings, foster customer loyalty, and stay competitive. AI algorithms assess market trends, rival pricing strategies, customer demands, and inventory levels to implement real-time dynamic pricing. This approach optimizes revenue generation while maintaining competitiveness. Furthermore, AI-driven chatbots and virtual assistants facilitate instant customer service, addressing queries, suggesting products, and even processing transactions. These AI-infused interactions elevate the shopping experience and streamline customer service interactions.
Privacy and security concerns of customers are key challenges affecting the market growth. In today's digital age, the volume of customer data generated through various channels, including smartphones and the internet, has significantly increased. End-users, particularly those in the retail sector, are leveraging this data to optimize their operations and deliver superior shopping experiences. However, managing and analyzing such large data sets comes with challenges, including data security and regulatory compliance. Cloud-based analytics software, AI, and consulting services have emerged as crucial solutions to address these concerns. These technologies enable end-users to process and analyze data in real-time, ensuring timely insights and informed decision-making. Moreover, they offer advanced security features and adhere to data protection regulations, instilling trust among customers.
Customer trust is a vital asset for any business, and data breaches and cyberattacks can lead to significant financial losses, reputational damage, and legal consequences. By implementing strong data security measures and adhering to data protection regulations, end-users can build trust with their customers and foster long-term brand loyalty. In conclusion, the use of advanced analytics technologies, such as AI and cloud-based solutions, is essential for end-users to effectively manage customer data, maintain compliance, and deliver exceptional shopping experiences.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to the increasing data volume generated by customer services and shopping experience in physical retail spaces. The use of smartphones and the internet has made cloud-based analytics software, powered by AI, an essential technology for retail brands and omnichannel retailers. These AI systems help retailers gain insights into customer behavior and satisfaction, enabling them to offer customized marketing strategies and personalized experiences. Cloud computing and privacy concerns are major factors driving the adoption of in-store analytics. Retail corporations are leveraging cloud providers for data security and software updates, while addressing privacy concerns through data security measures.
Unstructured data from sources like video analytics from surveillance cameras and consumer behavior data are being analyzed to enhance store performance and operational efficiency. The retail technology space is witnessing innovation with the integration of AI systems, IoT devices, and mobile apps, providing real-time data on foot traffic, product interactions, and customer experiences. Merchants are using this data to make data-driven decisions, improve operational effectiveness, and increase brand loyalty. However, operational effectiveness and security concerns remain key challenges for large enterprises in the retail sector. Omnichannel integration and customized marketing strategies are crucial for retailers to compete in the online world, where bargaining power lies with consumers.
Intelligent locations and real-time data are transforming physical retail spaces into intelligent, data-driven environments.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
97 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 24.26% |
|
Market growth 2024-2028 |
USD 7.50 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
23.45 |
|
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
|
Performing market contribution |
North America at 34% |
|
Key countries |
US, China, India, UK, and Germany |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Alphabet Inc., Amazon.com Inc., Amoobi, Capgemini Service SAS, Capillary Technologies, Circana, Dor Technologies Inc., Happiest Minds Technologies Ltd., Inpixon, International Business Machines Corp., Larsen and Toubro Ltd., Microsoft Corp., Nike Inc., Oracle Corp., Salesforce Inc., SAP SE, SAS Institute Inc., Scanalytics Inc., SEMSEYE, STRATACACHE, TDK Corp., and Thinkin |
|
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
|
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Get the report (PDF) sent to your email within minutes.
Complimentary full Excel data with your report purchase.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
