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The Retail Analytics Market size is estimated to grow at a CAGR of 21.15% between 2022 and 2027. The market size is forecast to increase by USD 11.81 billion. The market's expansion hinges on various factors, including the escalating volume and intricacy of data produced by retail operations, the burgeoning e-commerce sector, and the escalating emphasis on enhancing customer experience. The retail landscape is experiencing a data explosion, necessitating advanced analytics tools to derive meaningful insights. The e-commerce boom is reshaping retail dynamics, with businesses striving to stay competitive by leveraging data-driven strategies. Customer experience has become a focal point, with retailers using data analytics to personalize offerings and improve engagement. As retailers navigate these trends, the market for data analytics solutions in the retail sector is poised for significant growth, driven by the need to stay agile and responsive to evolving consumer demands.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market research report extensively covers market segmentation by application (in-store operation, customer management, supply chain management, marketing and merchandising, and others), component (software and services), and geography (North America, Europe, APAC, Middle East and Africa, and South America).
The in-store operation segment is estimated to witness significant growth during the forecast period. The in-store operations segment mainly focuses on using data analytics to optimize different aspects of brick-and-mortar retail operations. This segment comprises several activities across the physical stores that focus on improving customer experiences, increasing operational efficiency, and driving overall business success.
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The in-store operation segment was the largest segment and was valued at USD 877.09 million in 2017. One of the essential aspects of retaining customers in the retail sector is offering them with enhanced customer experience. Therefore, there is an increasing adoption of the in-store operation segment to analyze in-store data that enables retailers to understand customer behavior, preferences, and pain points, allowing them to tailor the shopping experience and create a seamless journey. The main advantage of using these analytics is that it helps retailers make informed choices that result in better resource allocation, optimized processes, and better overall performance. Hence, such factors are expected to fuel the growth of this segment, which in turn will drive the market growth during the forecast period.
The increasing adoption of the software segment across retail industries will increase market growth. The software segment comprises different software solutions, including business intelligence (BI), supply chain analytics, and point-of-sale (POS) analytics software that retailers extensively use to collect, process, analyze, and interpret data related to their operations, customer behaviors, and market trends. The main advantage of this segment is that it enables retailers to make informed decisions, optimize processes, and enhance customer experiences. Hence, such factors are expected to fuel the growth of the segment, which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 30% 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. One of the main factors that is significantly contributing to the growth of the global retail analytics market in North America is its well-developed retail industry with a strong presence of both brick-and-mortar and e-commerce retailers. The presence of such infrastructure in the region fuels the demand for sophisticated retail analytics solutions to optimize operations and enhance customer experiences. There is a vast amount of data being generated due to high consumer engagement and online shopping habits.
Therefore, retailers analyze these data to extract actionable insights by leveraging artificial intelligence (AI), machine learning, and big data analytics to gain a competitive edge and offer personalized experiences. Furthermore, retail analytics enable North American retailers to gain meaningful insights into consumer behaviors, preferences, and purchasing patterns and make informed marketing strategies, product offerings, and customer engagement initiatives. Hence, such factors are expected to drive market growth in North America during the forecast period.
Retail analytics plays a crucial role in understanding customer behavior patterns and preferences, aiding in business insights. It helps optimize product inventory management and shelf space allocation in both physical retail stores and virtual stores. Through micro-level analysis, retailers can improve assortment planning and mitigate out-of-stock situations and obsolescence. Retail analytics also enhances multi-channel order performance and supply chain processes, including shelf space management and supply chain movements. It influences marketing decisions, pricing strategy, and promotional campaigns, ultimately impacting store layout and design. The integration of blockchain further enhances transparency in procurement levels and supply chain operations.
One of the key factors driving the market growth is the increasing volume and complexity of data generated by retail businesses. Some of the main sources of data generation in the retail sector include online and offline transactions, customer interactions, supply chains, social media, and more. These data can be used by retailers to get a competitive edge in the market by gathering insights with the help of analytics.
Retailers are indeed leveraging data analytics to extract valuable insights into consumer behavior, preferences, and shopping patterns. These insights inform various aspects of retail operations, including customer behavior patterns, customer preferences, marketing decisions, pricing strategy, and promotional campaigns. By analyzing data, retailers can make informed decisions to optimize their strategies and enhance the overall shopping experience for customers. With the help of these insights, several retailers curate their offerings, and marketing strategies as per consumer needs and preferences. Hence, such factors are positively impacting the market which in turn will drive the growth of the market size during the forecast period.
A key factor shaping the market size growth is the increasing adoption of AI in the retail sector. The main advantage of AI-driven retail analytics is that it allows retailers to analyze huge volumes of customer data such as purchase history, browsing behavior, and preferences and gain insights into the same. By leveraging these insights, retailers offer personalized shopping experiences, tailor product recommendations, and deliver targeted marketing campaigns.
Moreover, there is an increasing adoption of AI-driven retail analytics as it helps retailers to understand customer behaviors optimize their offerings, and thereby increase customer loyalty. Some of the key metrics the AI algorithm analyzes include market dynamics, competitor prices, customer demand, and inventory levels to adjust prices in real-time. Hence, such factors are positively impacting the market which in turn will drive the market growth during the forecast period.
Privacy and security concerns of customers are one of the key challenges hindering the market growth. Several retailers in the market are collecting vast amounts of data on consumers to enhance their operations and improve customer experiences but these retail sectors have to maintain compliance with data protection regulations. Additionally, the sensitive customer data collected by retailers is prone to data breaches and cyber security attacks.
Moreover, data breaches of customer data can result in financial losses, reputational damage, and legal consequences. Furthermore, if customer information is compromised they will lose trust in retail sectors which can negatively impact the market. Hence, such factors are expected to hinder the market growth during the forecast period.
The market 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 growth strategies.
Global Market 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.
Accenture Plc: The company offers retail analytics such as Retail Artificial Intelligence.
Alphabet Inc: The company offers retail analytics under the subsidiary of Google LLC.
Amazon.com Inc: The company offers Retail Analytics and Automation which helps unlock demand forecast automation, ad and pricing optimization, and manage product information.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Retail analytics leverages data mining to analyze sales performance and customer preferences, especially in the context of mobile apps and online grocery shopping. It employs customer-level analytics and machine learning (ML) to develop self-learning computer algorithms while adhering to data privacy regulations. Both cloud-based and on-premise solutions offer real-time assistance to retail chains for strategy and planning, staff management, and pricing management. By understanding customer personas and using cutting-edge technologies like smartphones, retailers gain valuable customer insights and create effective target market profiles based on buying patterns.
Furthermore, this aids in addressing the needs of the unorganized retail sector and adapting to the e-commerce trend through digital transformation. Customer satisfaction is improved through real-time data analysis, scenario analysis, and predictive learning algorithms. Visualization tools aid in customer segmentation, demand forecasting, pricing strategies, and merchandising analysis for both large enterprises and small and medium enterprises in various industries, including finance and sales and marketing.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.15% |
Market growth 2023-2027 |
USD 11.81 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
20.01 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 30% |
Key countries |
US, China, India, the UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Alphabet Inc., Amazon.com Inc., Capillary Technologies, Cisco Systems Inc., Domo Inc., Fujitsu Ltd., HCL Technologies Ltd., International Business Machines Corp., Manthan Software Services Pvt. Ltd., Microsoft Corp., MicroStrategy Inc., NCR Corp., Oracle Corp., Salesforce Inc., SAP SE, SAS Institute Inc., Symphony Innovation, LLC, Thoma Bravo LP, and TIBCO Software Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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