Global Retail Analytics Market By Function (Costumer Management, Merchandising, Store Operation, Supply Chain Management, and Strategy & Planning), By Solution, By Deployment Mode, By Enterprise Size, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Retail Analytics Market size is expected to be worth around USD 39.6 Billion by 2032 from USD 5.7 Billion in 2022, growing at a CAGR of 22% during the forecast period from 2023 to 2032.

The purpose of retail analytics is to provide the retailer with data such as consumer expectations, inventory levels, chain movements, and sales. Retail analytics are used to understand the value and number of products sold in average order. Innovations, digitalization, and the development of next-generation analytics tools in developed economies are anticipated to drive the market during the forecast period. The retail analytics industry’s rising demand is due to the rising adoption of cloud computing and the growing demand for dashboards for data visualization. Retail analytics helps to find true demand from consumers.

Function Analysis

The Customer Management Segment is Dominant in the Market

Based on function, the market is classified into customer management, merchandising, store operation, supply chain management, and strategy & planning. The customer management segment is dominant in the market, with the largest market share of 25%, and is expected to dominate the market during the forecast period. Retail analytics is useful for retailers to get valuable insights from customer data and build new strategies to improve customer services through customized and buyer-centric offers.

Retail analytics in customer management provides a prescriptive analytics system and good recommendations for marketing which is responsible for the growth of the segment. Retail analytics is helpful in merchandising to derive actionable insights using external data such as social sentiments and market trends. It identifies specific needs and product gaps and provides personalized offerings through private labels. Retail analytics refers to big data analysis to enhance supply chain processes.

Solution Analysis

The Services Segment is Dominant in the Market

By solution, the global retail analytics market is segmented into software and services. The services segment was dominant in the market, with the largest market share, more than 56% in 2022. Retail analytics helps the retail industry to understand the common needs of customers and target areas that have high demand, which is the main growth factor of this segment. Services in the retail analytics market report help companies create recommendations based on customers’ purchase history, which provides a personalized experience and improves customer service.

Deployment Analysis

The Cloud segment is Dominant

Based on deployment, the global retail analytics market is divided into on-premises and cloud. The cloud segment is dominant in the market, with the largest market share of 63%, and it is anticipated to hold the dominant position during the forecast period. Cloud services provide real-time assistance and good services for customer satisfaction. Also, it provides user-friendly, safe, and secure services, which is the main growth factor of this segment.

On-premises segment is also expected to show significant growth during the forecast period as it provides high-security assurance as compared to others. Growing issues regarding cyber security and attacks retailers are expected to deploy on-premises retail software.

Enterprise Size Analysis

Large Enterprise Segment is Dominant in the Market

On the basis of enterprise size market is segmented into large enterprises and small & medium enterprises. The large enterprise segment was dominant in the market with the largest market share in 2022 and is anticipated to remain dominant during the forecast period. Retail analytics is much beneficial to large enterprises because it helps to create customer recommendations which is the primary growth factor in segment growth.

Key Market Segments:

Based on Function

• Customer Management
• Merchandising
• Store Operation
• Supply Chain Management
• Strategy & Planning Based

Based on Solution

• Software
• Services

By Deployment Mode

• Cloud
• On-premises

By Enterprise Size

• Small & Medium Enterprise
• Large Enterprise

Driving Factors:

Increasing Consumer Demand to Provide Good Services

Increasing consumer demand and growing competition among retailers to provide goods and services for customer personalization are driving the demand for retail analytics solutions. Companies are started adopting retail analytics solutions that enhance customer experience and stay connected with the business for a long timeframe. Increasing use of customer relationship management (CRM) solutions in the industries is also the main factor for market growth. Companies are also starting the collection of new data to provide more effective decisions using retail analytics solutions.

Growing Applications in Enterprises

Retail analytics is also helpful in optimizing in-store operations for providing deep information into customer activity within the shop. All retail businesses, from single stores to larger enterprises, track their customers’ shopping habits using retail analytics. Retail analytics helps businesses to figure out product launching and demand for the product launch in the market. In addition, the growing number of smartphones and increasing use of e-commerce also boost the market growth. Also, the introduction of machine learning, blockchain, and artificial intelligence in retail analytics is making the market grow.

Restraining Factors

Strict Regulations Regarding Privacy Data

Implementation of the general data protection regulation (GDPR) has a negative impact on retail solutions that uses big data technology. Due to this, it becomes more challenging to gather costumer’s personal data owing to high-security regulations made by data privacy regulations. It is also spiking awareness regarding privacy among consumers hampering the growth of the retail analytics market.

Opportunities

Introduction to New Technologies Will Create Lucrative Growth Opportunities in Market

The retail analytics market is becoming more and more competitive advantages, and it has become crucial to optimize business strategies for the satisfaction of customers’ expectations. Retailers are shifting towards blockchain to streamline their supply chain movement. Thus, the introduction of blockchain will create lucrative growth opportunities in the market.

Trending Factors

Retailers are Started Gathering Deep Information on Consumers’ Expectations to Provide Personalized Experience

Businesses in retail analytics have started the implementation of advanced technologies such as the internet of things(IoT), RFID, in-store Wi-Fi, and cloud-based application. Most retailers are finding effective ways to utilize second and third-party databases to increase their businesses. Managements are tracking customer analytics interactions on a granular level that allows them to gather much information to understand the needs of consumers and their expectations. Big companies in the retail analytics market are steadily moving toward consolidation through joint ventures, collaborative partnerships, and mergers & acquisitions. Such trends are currently being witnessed in the retail analytics market, thereby bolstering the demand for retail analytics.

COVID-19 Impact Analysis

COVID-19 Pandemic Increased Demand for Retail Analytics in E-commerce

During the outbreak of COVID-19, retail stores are shifted from on-premises to cloud and e-commerce businesses. COVID-19 increased demand for e-commerce businesses owing to online grocery shopping. This resulted in a high need for retail analytics for customer insights management. Governments across the world have encouraged people to stay at home and implemented social distancing, which has further driven the growth of online shopping. This has significantly driven the demand for retail analytical solutions during the COVID-19 pandemic.

Regional Market Analysis

North America Region Holds Largest Market Share in Global Retail Analytics Market

North America is estimated to be the most lucrative market size in the global retail analytics market, with the largest market share of 38% in 2022. In North America, the technological advancements in R&D facilities and the technological adoption rate is greater. As such, the market for retail analytics is anticipated to grow. The rapid adoption of e-commerce services by large organizations is anticipated to drive the market in this region. In addition, big retail establishments in the United States and Canada are adopting advanced retail analytics solutions to provide better consumer experience and operational efficacy, which is anticipated to drive the market.

The retail analytics market in the Asia Pacific region is expected to increase due to growing large enterprises and the implementation of e-commerce services and the cloud-based analytics sector in several emerging economies such as Brazil, India, South Africa, and China.

Europe is anticipated to gain the largest share during the forecast period owing to major key companies in Italy, France, Germany, and Spain. The Middle East and Africa region will show steady growth owing to big data development and data explosion in Microsoft.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis:

Emerging key players are focused on a variety of strategic policies to develop their respective businesses in foreign markets. Businesses in the retail analytics market are developing expansion strategies through investments and mergers, and acquisitions. Some of the major players in retail analytics markets are Microsoft Corporation, Clickworker GmbH, Field Agent Inc., MicroStrategy Incorporated, Oracle Corporation, QlikTech International AB, Salesforce, Inc, SAS Institute Inc, Teradata Corporation, TIBCO Software Inc., Adobe Inc., Altair Engineering Inc., IBM Corporation, BeMyEye Holdings Ltd., Javelin Group, SAP SE, Vemco Group, HCL Technologies Limited, Wipro Limited, and Other Key Players

Market Key Players:

Listed below are some of the most prominent retail analytics company players.

• Microsoft Corporation
• Clickworker GmbH
• Field Agent Inc.
• MicroStrategy Incorporated
• Oracle Corporation
• QlikTech International AB
• Salesforce, Inc
• SAS Institute Inc
• Teradata Corporation
• TIBCO Software Inc.
• Adobe Inc.
• Altair Engineering Inc.
• IBM Corporation
• Enhanced Retail Solutions
• BeMyEye Holdings Ltd.
• Javelin Group
• SAP SE
• Vemco Group
• HCL Technologies Limited
• Wipro Limited
• Fractal Analytics Inc.
• RetailNext, Inc.
• Other Key Players

Recent Developments:

• In June 2021, Wipro Limited partnered with Levi Strauss & Co., a clothing brand, to increase user experience and customer satisfaction through experience in the retail sector.
• In May 2021, Nielsen Consumer LLC introduced Byzzer, a retail analytics customer intelligence platform for emerging and small consumer packaged goods(GCP) companies.

Report Scope