Retail Analytics Market Expected to Reach $58.4 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Retail Analytics Market," The retail analytics market was valued at $7.8 billion in 2022, and is estimated to reach $58.4 billion by 2032, growing at a CAGR of 22.6% from 2023 to 2032.

Retail analytics is the process of using software to gather and analyze data from offline, online, and inventory outlets to offer retail businesses an understanding of customer behavior and shopping trends. In addition, retail analytics can measure customer satisfaction, identify purchasing patterns, predict demand, and optimize store layouts. Moreover, data analytics solutions and services have been increasingly employed in the retail industry, with rising user data on physical as well as online platforms. In addition, retail analytics helps businesses to understand demand trends so they can have enough products in stock. Overall, the retail analytics industry is driven by the need for intelligent and analytical systems that can process and analyze vast amounts of data, which in turn allows organizations to take actions based on data-driven insights.

On the basis of deployment mode, the on- premise segment dominated the retail analytics market size in 2022 and is expected to continue this trend during the forecast period. As retailers can secure the confidentiality of information with on-premise solutions by storing the data within their own premises or dedicated infrastructure. These factors further drive the demand for the on-premise segment in the global market. However, the cloud segment is expected to exhibit the highest growth during the forecast period. Cloud-based solutions offer real-time assistance and insights, which further is expected to provide lucrative growth opportunities for the market during the forecast period.

By region, North America dominated the market share in 2022 for the retail analytics market, owing to its expanding investments in advanced technologies such as cloud computing, IoT, artificial intelligence (AI) and other digital technologies, which is expected to drive market growth in the region. In addition, growing adoption of retail analytics solutions across industries, such as e-commerce, consumer goods, electronics and technology, and others are expected to drive the growth of the retail analytics market during the forecast period. However, Asia-Pacific is expected to exhibit the highest growth during the forecast period. Increasing demands for retail analytics services and solutions in several sectors to improve productivity and business continuation with various business operations are expected to drive market revenue growth in the region and provide lucrative growth opportunities for the market in this region.

The COVID-19 pandemic has accelerated digital transformation and opened new technological opportunities for the retail analytics market. In addition, with the majority of the population confined in homes during the pandemic, businesses needed to optimize their business operations and offerings to maximize their revenue opportunities while optimizing their operations to support the rapidly evolving business environment post-outbreak of the pandemic. This enabled many businesses to invest in retail analytics solutions. Moreover, the post-pandemic period employs opportunities to leverage advanced analytics techniques such as machine learning (ML), artificial intelligence (AI), and predictive modeling. These factors have encouraged businesses to adopt various strategies to expand their product portfolio. For instance, in January 2021, Google Cloud launched product discovery solutions for retail. A suite of solutions built to help retailers around the globe enhance their e-commerce capabilities and deliver highly personalized consumer experiences in the first phase of their shopping journeys. Such instances supported the growth of the retail analytics market forecast.

Key Findings of the Study

• By component, the solution segment accounted for the largest retail analytics market share in 2022.
• By deployment mode, the on-premise segment accounted for the largest retail analytics market share in 2022.
• By organization size, the large enterprises segment accounted for the largest retail analytics market share in 2022.
• By business function, the customer management segment accounted for the largest retail analytics market share in 2022.   
• Region wise, North America generated the highest revenue in 2022.

The market players operating in the retail analytics market analysis are Amazon Web Services, Inc., HCL Technologies Limited, IBM Corporation, Microsoft Corporation, MicroStrategy Incorporated, Oracle Corporation, Salesforce.com Inc., SAP SE, SAS Institute Inc., and Teradata Corporation. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the retail analytics industry globally.