The Evolution and Outlook of the Global Retail Industry Market Size
The retail sector continues to grow, with total retail sales in the United States, including motor vehicle and parts, surpassing $5 trillion in 2017. The U.S. retail industry directly employs about 29 million people and supports more than 42 million jobs.
Emergence and Growth of Retail Analytics
The global retail analytics market is projected to grow from USD 3.14 billion in 2016 to USD 8.64 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 19.7%. This market traction is driven by the vast amounts of data flooding the retail industry and the need for actionable insights from customer data. Today’s retail environment is more competitive than ever before, and retailers are exploring new ways to cater to customer needs. Retail analytics has become crucial for strategic decision-making and competitive advantage.
Key Components of Retail Analytics
Retail analytics involves providing analytical data on sales, supply chain movements, consumer demand, and more. Despite the generation of vast amounts of raw and unstructured data from multiple systems, segmentation analysis and finding patterns in data remain key challenges for providing critical business decisions. Retail analytics plays a key role in overcoming these challenges and offering proven solutions for merchandising, customer management, and other retail functions.
Market Segmentation and Key Players
The global retail analytics market can be segmented into several categories, including:
Application by business function Component by system and software Deployment model by cloud and on-premises Organization size by small, medium, and large enterprises End-user by retail stores, e-commerce websites, and service providers Region by North America, Europe, Asia-Pacific, and othersNorth America holds the largest share of the global retail analytics market, primarily due to large investments in digital capabilities and analytic solutions to align with changing consumer preferences. Major players in this market include:
International Business Machines Corporation Microsoft Corporation Manthan Software Services Private Limited Fujitsu Limited BRIDGEi2i Analytics Solutions Private Limited Capillary Technologies Angoss Software Corporation Diaspark Inc. FLIR Systems Inc.Competitive Landscape and Future Outlook
The retail sector continues to face increasing competition, with customers demanding one-click solutions and personalized experiences. Retailers have embraced retail analytics to gain insights into consumer behavior, improve supply chain management, and enhance customer engagement. The adoption of cloud-based retail analytics solutions is expected to drive market growth, offering scalable and cost-effective solutions to retailers of all sizes.
As digital transformation accelerates, the role of retail analytics will become even more critical. Retailers need to leverage the massive data generated by online clicks to strategize promotional activities and trade promotions effectively. The forecast period between 2017 and 2022 is a critical time for the global retail analytics market, with significant opportunities for innovation and growth.