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The Digital Transformation in Retail Market size is projected to increase by USD 253.84 billion, at a CAGR of 17.15% between 2023 and 2028. The market's growth hinges on various factors, notably the imperative to boost operational efficiency in retail, the rising integration of IoT, and the widespread adoption of cloud services. Additionally, there's a growing emphasis on delivering seamless omnichannel experiences to customers. These trends underscore the industry's evolution toward more streamlined operations and enhanced customer engagement. As businesses strive to stay competitive and meet evolving consumer demands, investments in technologies facilitating efficiency and connectivity become increasingly paramount.
Moreover, the market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Accenture Plc, Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Capgemini Service SAS, Carmatec IT Solutions Pvt. Ltd., DXC Technology Co., H2O.ai Inc., Infosys Ltd., Intel Corp., International Business Machines Corp., Microsoft Corp., N-iX LTD, Oracle Corp., Salesforce Inc., SAP SE, Siemens AG, Tata Consultancy Services Ltd., TIBCO Software Inc., and UST Inc. Additionally, Accenture Plc provides digital transformation solutions for the retail industry, including Accenture's real-time data and analytics platform, aimed at enhancing customer experiences and optimizing supply chain operations.
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The market share growth by the IoT segment will be significant during the forecast period. The Internet of Things (IoT) is revolutionizing business models in retail, enabling consumer spending analysis through mobile devices and big data. Retailers utilize IoT for predictive equipment maintenance, inventory management, and enhancing customer experience. IoT applications include augmented reality for self-checkout, machine learning for predictive analytics, and marketing automation. Store managers gain insights into customer behavior and preferences, enabling effective customer strategies.
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The IoT segment was the largest and was valued at USD 26.86 billion in 2018. Large retailers leverage IoT for safety stock management, order fulfillment, and reducing lead times. Technologies like Lightspeed Retail, cloud computing, and artificial intelligence optimize sales growth and operational efficiency. Data analytics and ecommerce platforms provide real-time insights, while machine learning and mobile applications enhance customer experience. IoT also offers cost optimization, improved decision-making capabilities, and advanced cybersecurity features like encryption protocols, two-factor authentication, and intrusion detection. With these applications driving IoT growth, the market is poised for significant expansion in the forecast period
The consumer electronics segment holds the largest market share in the global digital transformation market in the retail sector. The digital transformation market in retail is predominantly driven by the consumer electronics segment, which encompasses hardware resources for non-commercial use. The prevalence of consumer electronics, such as smartphones, in households has significantly increased due to their miniaturization and portability. This trend is further fueled by the rising disposable income of consumers, leading to an impulsive buying behavior. Multivendor marketplaces play a crucial role in digital commerce by providing cutting-edge consumer electronics to a wide customer base. Business owners benefit from predictive engines, inventory control, taxation, and integration with shipping providers like Aramax, Delhivery, ShipRocket, and ShipDelight for seamless shipment tracking. Customer engagement is enhanced through conversational bots and chatbots, reducing support costs and integration times. Virtual reality technology is revolutionizing industries such as automotive and fashion retail, offering virtual showrooms and real-time simulators for corporate employees. Hence, owing to the high advancements in electronic products, the consumer electronics segment is expected to grow significantly, which will fuel the growth of the market during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the digital transformation market in retail Industry forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The digital transformation market in North America's retail sector is experiencing significant growth due to the adoption of cloud computing services and the presence of major vendors, including IBM, Google, Microsoft, and Amazon Web Services. Retailers are increasingly utilizing automation solutions to analyze vast amounts of data for business insights and real-time customer engagement. Hardware resources are being optimized, and multivendor marketplaces are expanding digital commerce opportunities. Impulsive buying behavior is being targeted through advanced technologies like predictive engines and conversational bots.
Aramax, Delhivery, ShipRocket, and ShipDelight are among the logistics providers enhancing customer reach and shipment tracking. Business owners benefit from inventory control, taxation solutions, and integration with various platforms. Cutting-edge technologies, such as virtual reality, are revolutionizing industries like automotive and fashion retail, offering virtual showrooms and real-time simulators. Corporate employees are also experiencing improved decision-making processes and support costs reduction. Such factors are expected to drive the regional market growth during the forecast period
The Digital Transformation Market is experiencing significant growth as large retailers embrace technology to gain insights into customer behavior. Big data and machine learning are key drivers, enabling predictive analytics to optimize customer strategy and inventory control. Augmented reality and virtual reality technologies are revolutionizing the shopping experience, with self-checkout and conversational bots streamlining the customer journey. Fitness enthusiasts benefit from health supplement recommendations based on personal data. Delivery services like Delhivery and ShipRocket utilize predictive engines for shipment tracking and customer reach. Business owners must consider compliance aspects and taxation in their digital transformation strategies. Integration times and support costs are crucial factors in the adoption of new technologies. Overall, the Digital Transformation Market is transforming the way businesses engage with customers and manage operations.
Increasing penetration of IoT and adoption of cloud services is notably driving market growth. In the retail industry, operational efficiency is key to boosting profitability. Factors such as insufficient inventory and high employee turnover can significantly impact business functions and consumer spending. To enhance efficiency, large retailers are embracing digital transformation. They are leveraging technologies like mobile devices, big data, and machine learning for data and insights, inventory management, and order fulfillment.
Augmented reality and self-checkout systems are improving customer experience and behavior, while predictive analytics and marketing automation optimize customer strategy. Fitness enthusiasts and health supplement companies are also adopting digital solutions, from promotional campaigns to machine learning and predictive analytics. Cloud computing, artificial intelligence, and data analytics are powering ecommerce platforms and mobile applications for sales growth. Cost optimization, cybersecurity, and infrastructure improvements are essential components of this digital shift, ensuring decision-making capabilities, network security, and lead time reduction. Thus, the increased focus of retailers on adopting cloud-based solutions and IoT technologies is anticipated to drive the growth of the market during the forecast period.
Increasing technology partnerships in the retail sector is an emerging trend shaping market growth. The digital transformation market is witnessing significant growth as large retailers adopt advanced technologies such as AI, cloud computing, and enterprise software to enhance business models and cater to evolving consumer spending trends. Mobile devices and big data are key drivers, enabling retailers to gain valuable data and insights for informed decision-making and personalized customer strategies.
Augmented reality, self-checkout, and predictive analytics are transforming customer behavior and store management. Machine learning and marketing automation streamline inventory management, order fulfillment, and lead times, while safety stock and cost optimization ensure operational efficiency. Lightspeed Retail and other ecommerce platforms, along with mobile applications, are essential tools for sales growth and improved customer experience. Cloud computing, data analytics, and AI enable retailers to optimize costs, enhance cybersecurity with encryption protocols, two-factor authentication, intrusion detection, and robust infrastructure and networks. Thus, the increasing number of partnerships between retailers and digital transformation technology providers is expected to support the growth of the market during the forecast period.
Lack of awareness of online payment is a significant challenge hindering market growth. In the retail industry, business models are evolving as large retailers adopt advanced technologies such as big data, AI, and machine learning to enhance consumer spending and improve operational efficiency.
Mobile devices are playing a significant role in this digital transformation, enabling self-checkout, augmented reality, and customer behavior analysis. Data and insights are crucial for effective customer strategy, and store managers require expertise in programming, machine learning, and predictive analytics for inventory management and order fulfillment. Ecommerce platforms and mobile applications are essential tools for sales growth and customer experience, while cloud computing ensures cost optimization and decision-making capabilities. Cybersecurity measures like encryption protocols, two-factor authentication, and intrusion detection are necessary to protect sensitive data. Lightspeed Retail, AI, and data analytics are key technologies driving this transformation. Which as a result will decrease the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, 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 and trends 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.
Alibaba Group Holding Ltd. -The company offers digital transformation in retail solutions such as Alibaba Cloud for Retail that enable retailers to grow by providing comprehensive, end-to-end retail industry solutions integrated with their existing technology.
Market analysis and report of 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 research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Digital Transformation refers to the integration of technology into all areas of a business, fundamentally changing how it operates and delivers value to customers. This market is significant as businesses seek to stay competitive in an increasingly digital world. The Consumer sector is a major contributor to the digital transformation market, with companies focusing on mobile applications, personalized marketing, and self-service portals. The Services sector also plays a crucial role, with a shift towards cloud-based solutions, automation, and digital workplaces. The Manufacturing industry is undergoing a digital revolution, with the adoption of IoT, robotics, and predictive analytics. The Retail industry is leveraging technology to enhance customer experience, with the use of AI, AR, and VR. The Transportation sector is embracing digital transformation through the use of telematics, autonomous vehicles, and ride-sharing apps. Overall, digital transformation is a key driver of business growth and innovation.
Market Scope |
|
Report Coverage |
Details |
Page number |
194 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 17.15% |
Market Growth 2024-2028 |
USD 253.84 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
16.32 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Capgemini Service SAS, Carmatec IT Solutions Pvt. Ltd., DXC Technology Co., H2O.ai Inc., Infosys Ltd., Intel Corp., International Business Machines Corp., Microsoft Corp., N-iX LTD, Oracle Corp., Salesforce Inc., SAP SE, Siemens AG, Tata Consultancy Services Ltd., TIBCO Software Inc., and UST Inc. |
Market dynamics |
Parent market growth analysis, Market growth inducers and obstacles, 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 |
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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 Technology
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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