5G Smart Retail Market Size 2024-2028
The 5G smart retail market size is forecast to increase by USD 25.31 billion at a CAGR of 29.7% between 2023 and 2028.
- The market is experiencing significant growth, driven by the demand for faster Internet access and the integration of augmented and virtual reality technologies. This technological advancement is revolutionizing the retail industry, particularly in sectors such as tufting and the silk road trade network. The adoption of 5G technology enables process automation, leading to increased efficiency in manufacturing workflows and the production of flexible, high-quality cloth using both artificial materials and natural fibers. 5G will facilitate the integration of advanced technologies such as IoT sensors, AI, and machine learning.
- While the investment needed to implement these technologies is significant, the potential benefitsâsuch as enhanced customer experience and greater market competitivenessâare equally substantial. This trend mirrors the ongoing industrial revolution, where technology is reshaping traditional industries and unlocking new opportunities.
What will be the 5G Smart Retail Market Size During the Forecast Period?
- The textile industry, a significant contributor to the global economy, traces its roots back to prehistoric times. From weaving clothing and creating carpets to the intricate manufacturing processes of the modern era, textile production has played a pivotal role in human comfort, survival, and culture. However, the industry has faced challenges, including exploitation of factory workers and safety concerns, such as the Rana Plaza collapse in 2013. In the present day, textile production processes encompass various stages, including fiber production, spinning, weaving, dyeing, printing, and finishing. Inventory management is crucial to ensure seamless production and delivery of high-quality textiles.
- In addition, traditional textile manufacturing relied on manual processes, which were time-consuming and inefficient. The advent of 5G technology is set to revolutionize textile production, enabling real-time communication and automation. This technology will optimize each stage of the textile production process, from fiber to finished clothing. These technologies will optimize fiber production by monitoring environmental conditions, ensuring consistent quality and reducing wastage. The spinning process will benefit from real-time monitoring, enabling adjustments to maintain optimal conditions and increase efficiency. The dyeing and printing stages will experience significant improvements with 5G.
How is this market segmented and which is the largest segment?
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.
- Application
- 5G store
- 5G smart retaurant
- 5G smart business hall
- Others
- Component
- Hardware
- Software
- Services
- Geography
- APAC
- China
- India
- Japan
- South Korea
- North America
- Canada
- US
- Europe
- Germany
- UK
- Spain
- Middle East and Africa
- South America
- APAC
By Application Insights
- The 5G store segment is estimated to witness significant growth during the forecast period.
In the realm of 5G smart retail, the implementation of advanced hardware solutions is pivotal for facilitating uninterrupted and secure connectivity in retail environments. A 5G wireless edge networking solution serves as an economical and adaptable substitute for conventional wired connections, especially for retailers managing multiple storefronts. These advanced solutions encompass essential functionalities such as Software-Defined Wide Area Network (SD-WAN) capabilities, effortless Virtual Private Network (VPN) setup, Wi-Fi integration, routing, and integrated security services like firewalls. Retailers reap the rewards of cloud-based network management tools, enabling centralized monitoring and problem-solving, thereby diminishing the requirement for on-site service calls and minimizing downtime.
In addition, with the advent of 5G technology, retailers can swiftly introduce services such as point-of-sale (POS) systems in new locations, offering the freedom to establish operations in diverse locations with ease. By adopting these innovative 5G solutions, retailers can elevate their fashion offerings, from artificial fibers in thread to fashionable shoes, while minimizing the environmental impact by recycling torn and damaged textiles, ultimately reducing the volume of textiles that would otherwise end up in landfills.
Get a glance at the market report of share of various segments Request Free Sample
Market Dynamics
Our market 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.
What are the key market drivers leading to the rise in adoption of 5G Retail Market?
Efforts for faster Internet access is the key driver of the market.
- The demand for swift Internet connectivity is significantly propelling the expansion of the market. This growth is driven by the increasing requirement for dependable high-speed networks to support data-heavy applications, such as cloud computing, IoT devices, and video streaming. In the textile industry, for instance, the need for real-time inventory management and seamless communication between factory workers and suppliers is becoming increasingly essential. The Rana Plaza collapse in 2013 highlighted the importance of transparency and efficiency in textile production, from fiber to yarn, fabric dying, printing, and clothing manufacturing. To meet this need, numerous organizations are investing in expanding broadband and 5G networks.
- In addition, for example, Bharti Global and the UK government-backed OneWeb recently launched 36 communications satellites to provide high-speed internet in India by mid-2022. This is part of a broader initiative to offer global services from a constellation of Low Earth Orbit (LEO) satellites, with service availability expanding to regions such as the UK, Northern Europe, and parts of Canada. By enhancing connectivity, the 5G smart retail industry aims to streamline operations, reduce costs, and improve overall productivity.
What are the market trends shaping the 5G Retail Market?
Merging of augmented and virtual reality technologies is the upcoming trend in the market.
- The market is experiencing a significant transformation as augmented reality (AR) and virtual reality (VR) technologies merge, providing consumers with enhanced shopping experiences. This fusion, made possible by the high-speed and flexible 5G networks, enables customers to participate in mixed reality interactions, such as virtually testing clothing options in 3D without the necessity for numerous physical alterations. This feature not only saves time but also boosts customer satisfaction. Beyond enriching virtual fitting rooms, retailers are incorporating smart carts and self-checkout kiosks, empowering customers to complete transactions efficiently without extended wait times. The convenience of mobile payment applications and credit card swipes further simplifies the shopping process.
- In addition, the industrial revolution of the retail sector is underway, with process automation and advanced technologies like Tufting, a weaving technique, and the integration of artificial materials and natural fibers, such as silk, into the trade network. This evolution is poised to revolutionize the way we produce and consume goods, offering a more flexible and efficient shopping experience.
What challenges does 5G Retail Market face during the growth?
Significant investment requirements is a key challenge affecting the market growth.
- The integration of 5G technology in retail is a significant investment, necessitating substantial resources for infrastructure development. IoT devices, automation solutions, and advanced security systems are among the technologies requiring investment. The cost of creating a mobile application for retail businesses starts at approximately USD 50,000. Beyond app development, retailers must also account for the expenses related to purchasing, installing, and configuring various smart technologies. For example, the price range for smart mirrors, which are gaining popularity in retail environments, varies based on features, size, and brand. High-end smart mirrors featuring advanced functionalities like voice assistants and gesture controls can cost between USD 500 and USD 2,000 per unit.
In addition, textile production processes, such as spinning, dyeing, knitting, bonding, embroidery, and felting, can also benefit from 5G technology's enhanced connectivity and speed. However, the initial investment required for implementing these technologies may pose a challenge for some retailers.
Exclusive Customer Landscape
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 market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, market forecast, 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:
- AT and T Inc.
- Cisco Systems Inc.
- EMARKETER Inc
- Fibocom Wireless Inc.
- Hitachi Energy Ltd.
- Huawei Technologies Co. Ltd.
- Intel Corp.
- MobileCorp
- Movandi Corp.
- Oracle Corp.
- Qualcomm Inc.
- Reliance Jio Infocomm Ltd
- Singapore Telecommunications Ltd.
- T Mobile US Inc.
- Tata Consultancy Services Ltd.
- Telefonaktiebolaget LM Ericsson
- Telit Cinterion
- Vapor IO Inc.
- Verizon Communications Inc.
- Wipro Ltd.
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.
Research Analyst Overview
In the realm of commerce, the textile industry holds a significant place in human history, tracing back to prehistoric times when people wove clothing from natural fibers like wool and cotton. Over the centuries, textile production evolved from manual weaving to complex manufacturing processes, leading to an increase in comfort and cultural expression. However, this progress came with its challenges, including the exploitation of factory workers and the Rana Plaza collapse, highlighting the need for ethical business practices. Today, the smart retail market is revolutionizing textile production with advanced technology. From fiber to finished garments, every stage of the process is being automated, from spinning and dyeing to knitting and embroidery.
Furthermore, natural fibers like cotton, wool, and silk are being blended with artificial materials to create flexible, durable, and fashionable textiles. The textile industry's future lies in sustainable practices, with a focus on recycling and reusing textile waste. Clothes that are torn or damaged can be sorted, graded, and reused, while industrial wipers, sound insulation panels, and mattress fillings can be made from reclaimed fibers. The textile industry's cultural significance continues to grow, with technology playing a crucial role in preserving traditional techniques and creating new ones.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
204 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 29.7% |
|
Market growth 2024-2028 |
USD 25.31 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
28.4 |
|
Key countries |
China, Japan, South Korea, India, Germany, UK, Spain, US, Canada, and United Arab Emirates |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
What are the Key Data Covered in this Market Research and Growth Report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
- Precise estimation of the size of the market and its contribution of the market in focus to the parent market
- Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
- Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
- Thorough analysis of the market's competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the growth of market companies
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch