The smart retail market is expected to grow from $13.07bn in 2018 to $38.51bn by 2023, at a CAGR of 24.12% from 2018 to 2023
Major drivers for the market are the increasing adoption of smartphones, growing need for better customer service and shopping experience, decreasing cost of electronic components, and emerging new technologies create new revenues for retailers. The major restraint for the market is data security and privacy concerns with new advanced technologies.
Of all the applications, the robotics expected to grow at the highest CAGR in the smart retail as robots make shopping experience easier for consumers as it simplifies the process of finding the product one is looking for, as well as manages back-end and shelf-keeping inventory up-to-date for a retailer. Also, the robot uses inventory scanning and auditing software with autonomous navigation capabilities and uses voice recognition software.
The hardware market is expected to hold the largest share for smart retail. The higher growth rate of the market for hardware can be attributed to the increasing need for hardware platforms with high computing power to run various AI software for robots and, the presence of major robotics companies that mainly invest in hardware components for use in AI-based robots for smart retail.
Europe is expected to hold the largest share and dominate the smart retail market from 2018 to 2023. Europe, being technologically advanced, is a leader in the market. Europe is the early adopter of the latest technology. The smart retail market in Europe is driven by various drivers, such as the need for advanced retail, faster retail process, and sophistication in shopping. Germany, France, the UK, Spain, and Italy are the major countries contributing to the growth of the smart retail market in Europe.
The smart retail market in North America is expected to grow at the highest CAGR during the forecast period. The customers’ need for sophisticated and efficient retail services, the need to save time, need for accuracy, and high living standards are the factors driving the market in North America. In addition, the presence of prominent technology providers, such as IBM (US), Google (US), Microsoft (US), NVIDIA (US), Intel (US), and Amazon (US), is complementing the growth of the market in this region.