PUBLISHER: The Business Research Company | PRODUCT CODE: 1499922
PUBLISHER: The Business Research Company | PRODUCT CODE: 1499922
Retail analytics software and services encompass tools and solutions utilized by retail businesses to gather, analyze, and interpret data pertaining to their sales, inventory, customers, and market trends. These tools play a vital role in enabling retailers to make data-driven decisions aimed at optimizing strategies, enhancing sales performance, and improving customer experiences. The primary objective of retail analytics is to boost business performance by identifying areas for optimization, predicting future outcomes, and uncovering growth opportunities.
The key components of retail analytics software and services include both solutions and services. Solutions within the retail analytics market comprise comprehensive software packages tailored to address specific challenges encountered by retailers. These solutions find application in diverse areas such as merchandising analysis, pricing analysis, customer analytics, promotional analysis and planning, yield analysis, and inventory analysis. They are distributed through various channels, including online and offline platforms, catering to businesses of all sizes across different functional areas such as finance, marketing and sales, human resources, and operations.
The retail analytics software and services market research report is one of a series of new reports from The Business Research Company that provides retail analytics software and services market statistics, including retail analytics software and services industry global market size, regional shares, competitors with a retail analytics software and services market share, detailed retail analytics software and services market segments, market trends and opportunities, and any further data you may need to thrive in the retail analytics software and services industry. This retail analytics software and services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The retail analytics software and services market size has grown rapidly in recent years. It will grow from $1.77 billion in 2023 to $2.08 billion in 2024 at a compound annual growth rate (CAGR) of 17.3%. The expansion observed in the historic period can be attributed to several key factors, including the proliferation of E-commerce platforms, the exponential growth of data, increasing demand for personalized experiences, heightened competition in the retail sector, efforts to optimize supply chain operations, and the adoption of omnichannel retailing strategies.
The retail analytics software and services market size is expected to see rapid growth in the next few years. It will grow to $4 billion in 2028 at a compound annual growth rate (CAGR) of 17.8%. The anticipated growth in the forecast period is expected to stem from several key factors, including a transition towards cloud-based solutions, increased utilization of artificial intelligence and machine learning technologies, the proliferation of Internet of Things (IoT) devices, augmented reality (AR) and virtual reality (VR) applications, blockchain integration, and the rise of voice commerce. Additionally, major trends expected in this period include the adoption of advanced analytics and artificial intelligence (AI) for enhanced decision-making, predictive analytics to anticipate future trends and behaviors, hyper-personalization to cater to individual customer preferences, unified commerce platforms to provide seamless shopping experiences across channels, a focus on ethical and responsible analytics practices, and collaborative analytics efforts to leverage collective insights and expertise.
The surge in the retail and e-commerce sectors is poised to drive the expansion of the retail analytics software and services market in the foreseeable future. The retail and e-commerce sectors encompass businesses that directly sell goods and services to consumers through physical stores or online platforms, facilitating transactions and product distribution. This growth in retail and e-commerce is attributed to enhanced convenience and accessibility for consumers, coupled with technological advancements enabling seamless online transactions and personalized shopping experiences. Retail analytics software and services empower retailers and e-commerce businesses to optimize operations, improve customer experiences, and boost sales through data-driven insights and decision-making. For example, in February 2024, the United States Census Bureau reported that total e-commerce sales in 2023 reached an estimated $1,118.7 billion, marking a 7.6% increase compared to 2022. Additionally, total retail sales for 2023 experienced a 2.1% increase compared to the previous year, with e-commerce sales constituting 15.4% of total sales, up from 14.7% in 2022. This upward trend in retail and e-commerce is a key driver behind the growth of the retail analytics software and services market.
Leading companies in the retail analytics software and services market are innovating with technologies such as smart store analytics to enhance their offerings and solutions. Smart Store Analytics is a data platform that enables retailers to deploy autonomous shopping technology cost-effectively. For instance, in January 2023, AiFi Inc., in collaboration with Microsoft Corporation, launched smart store analytics, a tracking service for cashierless outlets. This platform utilizes AiFi's computer vision algorithm to recognize shopper behaviors, including item selection and cart interactions, automatically processing payments when customers check out. Smart store analytics provides valuable insights into customer shopping behaviors, foot traffic patterns, product interactions, and other metrics without relying on facial recognition or biometric data.
In June 2022, ToolsGroup, a US-based supply chain planning software provider, acquired Onera to extend its retail platform from planning to execution, addressing challenges posed by shifts in consumer shopping preferences due to COVID, prolonged shipping crises, geopolitical dynamics, and inflation. Onera, a US-based provider of real-time inventory availability and fulfillment software solutions, complements ToolsGroup's capabilities in serving retailers' evolving needs.
Major companies operating in the retail analytics software and services market are Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, SAP SE, Infosys Limited, Square Inc., Wipro Limited, Dassault Systemes SE, Shopify Inc., The Sage Group plc, Lawson Software Inc., Epicor Software Corporation, Zoho Corporation Pvt. Ltd., Manhattan Associates Inc., Lightspeed POS Inc., Kinaxis Inc., Retalix Ltd., BluJay Solutions LLC, Retail Pro International LLC, Logility Inc., Fishbowl Inventory LLC, Brightpearl Limited, Wasp Barcode Technologies LLC, Archon Systems Inc., HighJump Software Inc., Aldata Solutions, Ordoro Inc
North America was the largest region in the retail analytics software and services market in 2023. The regions covered in the retail analytics software and services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the retail analytics software and services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The retail analytics software and services market consists of revenues earned by providing services such as point-of-sale (POS) analytics, assortment planning, and market basket analysis. The market value includes the value of related goods sold by the service provider or included within the service offering. The retail analytics software and services also includes sales of Wi-Fi access points, digital signage displays, servers and data storage devices, and networking equipment. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Retail Analytics Software And Services Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on retail analytics software and services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for retail analytics software and services? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The retail analytics software and services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.