Internet Of Things (iot) In Retail Applications Market Size 2026-2030
The internet of things (iot) in retail applications market size is valued to increase by USD 123.75 billion, at a CAGR of 26.2% from 2025 to 2030. Advent of cloud-based RFID systems will drive the internet of things (iot) in retail applications market.
Major Market Trends & Insights
- APAC dominated the market and accounted for a 36.8% growth during the forecast period.
- By Technology - RFID segment was valued at USD 10.87 billion in 2024
- By Component - Hardware segment accounted for the largest market revenue share in 2024
Market Size & Forecast
- Market Opportunities: USD 154.15 billion
- Market Future Opportunities: USD 123.75 billion
- CAGR from 2025 to 2030 : 26.2%
Market Summary
- The internet of things (iot) in retail applications market is defined by the integration of connected devices and platforms to enhance store operations, customer engagement, and data-driven decision-making. Core technologies such as RFID, sensors, and NFC enable the collection of real-time data on everything from inventory levels to in-store customer behavior.
- This facilitates significant improvements in supply chain optimization, allowing retailers to automate replenishment and reduce stockouts. For instance, a large apparel retailer can use item-level RFID tags for complete inventory visibility, ensuring that online orders can be fulfilled from any store with near-perfect accuracy, thereby improving omnichannel fulfillment strategies.
- However, the market also faces challenges, primarily around data security and the complexity of integrating diverse hardware and software platforms. As retailers continue their digital transformation, the adoption of IoT solutions becomes critical for maintaining a competitive edge, enabling a personalized shopping experience and more efficient, intelligent store operations.
- The use of real-time analytics and on-floor analytics provides deeper insights that shape business strategy.
What will be the Size of the Internet Of Things (iot) In Retail Applications Market during the forecast period?
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How is the Internet Of Things (iot) In Retail Applications Market Segmented?
The internet of things (iot) in retail applications industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2026-2030, as well as historical data from 2020-2024 for the following segments.
- Technology
- RFID
- Sensors
- NFC
- Cloud services
- Others
- Component
- Hardware
- Software
- Services
- Application
- Smart checkout and payment systems
- Inventory management
- Customer experience and engagement
- Geography
- APAC
- China
- Japan
- India
- North America
- US
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Middle East and Africa
- UAE
- South Africa
- Saudi Arabia
- South America
- Brazil
- Argentina
- Colombia
- Rest of World (ROW)
- APAC
By Technology Insights
The rfid segment is estimated to witness significant growth during the forecast period.
RFID represents a foundational technology within the internet of things (iot) in retail applications, providing the real-time inventory visibility necessary for modern commerce.
This technology utilizes radio-frequency identification for precise asset tracking, enabling retailers to monitor products from the warehouse to the point of sale.
Unlike traditional methods, RFID allows for simultaneous scanning of multiple items, which drastically improves operational efficiency and supports omnichannel retail strategies by ensuring accurate stock data across all channels.
Deployments of such smart store technology have shown to improve inventory data accuracy by over 99%, a critical factor for effective automated inventory replenishment and reducing stockouts.
The integration of RFID with cloud platforms centralizes data, breaking down information silos and improving retail data analytics for more informed decision-making and a more connected retail environment.
The RFID segment was valued at USD 10.87 billion in 2024 and showed a gradual increase during the forecast period.
Regional Analysis
APAC is estimated to contribute 36.8% 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.
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The geographic landscape of the internet of things (iot) in retail applications market is characterized by varied adoption rates and strategic priorities. North America demonstrates mature adoption, focusing on optimizing existing retail IoT hardware and software platforms for greater efficiency.
In contrast, the APAC region is the primary engine of market expansion, accounting for over 36% of the incremental growth. This is fueled by rapid urbanization and a surge in digital transformation in retail across countries like China and India.
European retailers are concentrating on compliance and sustainability, using IoT to meet regulatory standards.
While North America shows a high adoption of advanced solutions, emerging economies in South America and the Middle East and Africa are leveraging IoT to build modern retail infrastructures from the ground up, improving supply chain optimization.
Market Dynamics
Our researchers analyzed the data with 2025 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.
- The strategic implementation of the internet of things (iot) in retail applications market addresses complex operational challenges and unlocks new efficiencies. Understanding the impact of IoT on retail supply chains is crucial, as integrated systems provide unprecedented visibility from manufacturing to the sales floor.
- Key to this is exploring the benefits of RFID for inventory management, where automated tracking replaces manual counts, reducing labor costs and error rates. The use of AI-powered analytics in smart retail allows businesses to translate raw data into actionable insights for personalized marketing and demand forecasting.
- However, a primary hurdle remains the challenges of integrating legacy retail systems with modern IoT platforms, a process that requires significant investment and expertise. Another focus is on using AR to enhance customer experience, offering virtual try-ons and interactive product displays that boost engagement. Effective IoT solutions for omnichannel fulfillment are essential for unifying online and in-store operations.
- Furthermore, a thorough cost-benefit analysis of retail IoT often reveals that while initial setup is costly, long-term gains from operational improvements, such as a reduction in shrinkage that is more than double that of traditional methods, provide a strong return on investment.
- Securing customer data in connected stores is a non-negotiable aspect, demanding robust cybersecurity frameworks to protect sensitive information and maintain consumer trust.
What are the key market drivers leading to the rise in the adoption of Internet Of Things (iot) In Retail Applications Industry?
- The advent of cloud-based Radio Frequency Identification (RFID) systems is a key driver for the market, enabling enhanced inventory visibility and supply chain efficiency.
- A primary driver for the internet of things (iot) in retail applications market is the adoption of cloud-based systems, which significantly enhances supply chain optimization and real-time inventory visibility.
- These platforms allow for the seamless integration of data from various sources, enabling predictive stock management that reduces overstock situations by up to 30%.
- The rising need for effective store monitoring and inventory management is pushing retailers toward data-driven retail decisions. This shift is facilitated by IoT software platforms that provide actionable insights from collected data, streamlining omnichannel fulfillment strategies.
- The deployment of these technologies results in tangible benefits, with some retailers reporting a 25% improvement in inventory accuracy within the first year of implementation.
What are the market trends shaping the Internet Of Things (iot) In Retail Applications Industry?
- The evolution of artificial intelligence and augmented reality is reshaping retail by transforming customer interactions and operational management. This trend merges data from IoT sensors with AI models to create dynamic in-store experiences.
- The evolution of the internet of things (iot) in retail applications market is increasingly shaped by the convergence of artificial intelligence and augmented reality, transforming the in-store experience. Retailers are moving beyond basic data collection to deploy AI-driven customer footfall analysis, which has improved store layout effectiveness by up to 20%.
- The use of AR for interactive product visualization is enhancing customer engagement platforms, leading to higher conversion rates. This trend is supported by robust retail data analytics that process information from various touchpoints, creating a seamless, personalized shopping experience.
- As part of this shift, retail operational efficiency is a key focus, with intelligent systems enabling dynamic pricing and on-demand promotions, which have been shown to increase sales of targeted items by 15%.
What challenges does the Internet Of Things (iot) In Retail Applications Industry face during its growth?
- Data security concerns in IoT retail applications represent a significant challenge, impacting adoption rates and overall industry growth due to increased cyber threat vulnerabilities.
- Despite its potential, the internet of things (iot) in retail applications market faces significant challenges, primarily revolving around data security and the high cost of implementation. Securing the vast amounts of sensitive customer data generated by connected devices is a major concern, as breaches can lead to severe financial and reputational damage.
- The initial capital outlay required for deploying comprehensive frictionless checkout solutions and other IoT infrastructure can be substantial, with hardware and software integration costs accounting for over 50% of the total project budget for mid-sized retailers.
- Additionally, a lack of in-house technical skills to manage and analyze IoT data hinders the ability of many organizations to derive valuable insights and achieve a positive return on investment from their automated inventory replenishment systems.
Exclusive Technavio Analysis on Customer Landscape
The internet of things (iot) in retail applications 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 internet of things (iot) in retail applications 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 of Internet Of Things (iot) In Retail Applications Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, internet of things (iot) in retail applications market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Amazon.com Inc. - Leverages extensive cloud infrastructure to deliver scalable internet of things (iot) in retail applications, enabling data-driven operational enhancements for enterprise clients.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- Amazon.com Inc.
- AT and T Inc.
- Ayla Networks Inc.
- Cisco Systems Inc.
- Fujitsu Ltd.
- General Electric Co.
- Hewlett Packard
- Hitachi Ltd.
- Honeywell International Inc.
- Huawei Technologies Co. Ltd.
- IBM Corp.
- Impinj Inc.
- Intel Corp.
- Microsoft Corp.
- Nedap NV
- NXP Semiconductors NV
- Oracle Corp.
- Robert Bosch GmbH
- Siemens AG
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 industry 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.
Recent Development and News in Internet of things (iot) in retail applications market
- In January 2025, Xemelgo launched its Smart Retail Suite, a cloud-based RFID software solution designed to improve inventory accuracy and streamline supply chain workflows for retailers.
- In March 2025, Huawei, in collaboration with SOLUM, unveiled a built-in IoT solution that integrates Bluetooth IoT hardware and software containers to support electronic shelf labels and 5G backhaul on a unified network.
- In May 2025, Tillys announced the deployment of the Nedap iD Cloud platform across 240 of its stores to enhance inventory accuracy and support its omnichannel strategies through real-time item tracking.
- In September 2025, Target Corporation launched an accessible self-checkout experience across its stores, integrating advanced checkout technology to streamline payments and improve customer convenience.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Internet Of Things (iot) In Retail Applications Market insights. See full methodology.
| Market Scope | |
|---|---|
| Page number | 310 |
| Base year | 2025 |
| Historic period | 2020-2024 |
| Forecast period | 2026-2030 |
| Growth momentum & CAGR | Accelerate at a CAGR of 26.2% |
| Market growth 2026-2030 | USD 123747.6 million |
| Market structure | Fragmented |
| YoY growth 2025-2026(%) | 21.7% |
| Key countries | China, Japan, India, South Korea, Australia, Indonesia, US, Canada, Mexico, UK, Germany, France, Spain, Italy, The Netherlands, UAE, South Africa, Saudi Arabia, Egypt, Turkey, Brazil, Argentina and Colombia |
| Competitive landscape | Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The internet of things (iot) in retail applications is rapidly moving from operational support to a core strategic asset, fundamentally altering boardroom decisions on capital allocation and risk management. Technologies such as rfid, sensors, nfc, and cloud services are no longer siloed investments but integral components of a unified smart store technology strategy.
- The deployment of edge computing and on-floor analytics provides real-time data that directly informs business intelligence. For example, the integration of smart checkout systems, asset tracking, and in-store analytics has enabled some retailers to achieve a 20% reduction in checkout times while simultaneously improving loss prevention.
- This level of granular insight, derived from computer vision, smart cameras, bluetooth low energy, and cellular iot, transforms how retailers approach everything from supply chain logistics to personalized customer interactions. Consequently, investment in automated checkout processes and advanced real-time analytics is now a key consideration for maintaining competitive agility and achieving sustainable operational excellence in a data-centric retail landscape.
What are the Key Data Covered in this Internet Of Things (iot) In Retail Applications Market Research and Growth Report?
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What is the expected growth of the Internet Of Things (iot) In Retail Applications Market between 2026 and 2030?
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USD 123.75 billion, at a CAGR of 26.2%
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What segmentation does the market report cover?
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The report is segmented by Technology (RFID, Sensors, NFC, Cloud services, and Others), Component (Hardware, Software, and Services), Application (Smart checkout and payment systems, Inventory management, and Customer experience and engagement) and Geography (APAC, North America, Europe, Middle East and Africa, South America)
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Which regions are analyzed in the report?
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APAC, North America, Europe, Middle East and Africa and South America
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What are the key growth drivers and market challenges?
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Advent of cloud-based RFID systems, Data security concerns in IoT retail applications
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Who are the major players in the Internet Of Things (iot) In Retail Applications Market?
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Amazon.com Inc., AT and T Inc., Ayla Networks Inc., Cisco Systems Inc., Fujitsu Ltd., General Electric Co., Hewlett Packard, Hitachi Ltd., Honeywell International Inc., Huawei Technologies Co. Ltd., IBM Corp., Impinj Inc., Intel Corp., Microsoft Corp., Nedap NV, NXP Semiconductors NV, Oracle Corp., Robert Bosch GmbH and Siemens AG
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Market Research Insights
- The market for internet of things (iot) in retail applications is driven by the pursuit of operational excellence and enhanced customer engagement. Retailers are implementing frictionless checkout solutions that have been shown to reduce transaction times by over 40%, directly improving shopper satisfaction.
- The adoption of customer footfall analysis tools provides insights that lead to store layout optimizations, increasing basket sizes by up to 15%. Furthermore, predictive stock management, powered by real-time data from in-store sensors, helps decrease inventory holding costs. These data-driven retail decisions are central to modern commerce, allowing businesses to achieve greater retail operational efficiency.
- The strategic use of IoT for loss prevention and intelligent store operations is becoming a standard practice for creating a resilient and responsive retail ecosystem.
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