Global Retail Analytics Market Overview
The key drivers impacting the retail analytics market are the increasing adoption of online shopping, point-of-sale, IoT, RFID, and other smart devices consecutively increase in big data, and utilization of social media, and expanding smartphone usage has made shopping convenient for customers. The rising consumer preferences towards proactive health-minded buying, daily use essentials, and pantry stockpiling activated the customized retail analytics solutions demand to know dynamic consumer behavior and raise profits. The considerable technological advancements in this market are anticipated to increase the retail analytics value, thus positively impact market growth. Moreover, the utilization of social media contributes to retail analytics market demand in the later years.
According to Value Market Research, the global Retail Analytics market size was valued at about USD 4.5 billion in 2020 and is estimated to grow at a CAGR of around 21.5% during the forecast period 2021 to 2027.
The increasing demand for retail analytics in inventory management and planning and customer purchasing monitoring will be likely to augment retail analytics demand in the forecast period. The growing digitalization to enhance customer experience and retail operations are expected to drive market growth. However, the high cost of analytics with the inability to comprehend the offline market behavior of consumers hampers the market in the long run. In addition, the lack of technology adoption by the unorganized retail sector is negatively influencing market growth. Nevertheless, the market trends, such as the mounting adoption of cloud services in retail and expanding data analytics to understand customer data, might provide considerable opportunities to the market's leading players.
The retail analytics market is widespread, with many local and international players. The market leaders follow diverse strategies such as amalgamation, extending product portfolio, acquisitions, contracts, product upgrades to strengthen their market share globally. The key players in the report are ALTEN Calsoft Labs Private Limited, Fractal Analytics Inc, IBM Corporation, Oracle Corporation, Salesforce.com, Inc., Tableau Software, LLC, FLIR Systems, Inc., HCL Technologies Limited, Microsoft Corporation, QlikTech International A.B., SAP SE, and Wipro Limited.
In this research report, the retail analytics market is segmented by component, organization size, business function, application, and region.
Analysis by Component:
By component, the report is divided into services and software. The software segment dominates the component segment, with the highest share in 2020. It is due to the ability of the software to provide detailed analytical data on key performance indicators of the business that is expected to drive the market growth for the software segment. Moreover, the software component is constantly engaged with innovation and experimentation, which leads to the union of new technologies that solve problems related to retail business more effectively is contributing to the growth of the software segment.
Analysis by Organization Size:
By organization size, the report is segregated into large enterprises and small and medium-sized enterprises (SMEs). The large enterprise segment dominates the organization size segment, with the highest share in 2020.It is due to the increasing focus of enterprises to enhance their customer engagement through the adoption of retail analytics. Moreover, the Large enterprises carry firm financial backup and hence, are able to invest in advanced technologies such as retail analytics, contributing to the growth of the large enterprise's segment.
Analysis by Business Function:
By business function, the report is segmented into finance, marketing and sales, human resources, and operations. The operations segment dominates with the highest market share in the forecast period. It is due to the rising need of retailers to generate deeper insights across the entire value chain of retail operations, including procurement, supply chain, sales and marketing, store operations, and customer management, adding growth to the operations segment in the forecast period.
Analysis by Application:
By application, the report is segmented into merchandising analysis, pricing analysis, customer analytics, promotional analysis and planning, yield analysis, inventory analysis, and others (order management, transportation management, assortment and cluster planning, and real-estate planning). The inventory analysis segment dominates the application segment with the highest share in 2020. It is due to the companies across the retail industry using advanced technologies to leverage customer insights from huge data volumes of store-based operations. Moreover, the growing need to enhance business processes by keeping track of stocked goods and ensure surplus inventory is contributing to the growth of the inventory analysis segment growth.
Analysis by Region:
In the regional outlook of the global retail analytics market, the North America region dominates with the largest market share in 2020. It is due to the high implementation rate of retail analytics solutions on account of sophisticated systems and operations availability of increased working capital at the disposal of several retailers in the region. Moreover, the rising demands for customized retail analytics solutions to forecast and understand customer insights and rising adoption of retail analytics to improvise business processes thus contribute to the huge market growth across North America.
Market Segmentation covered in the Report:
By Component
- Solutions
- Services
- Professional Services
- Managed Services
By Organization Size
- Large Enterprises
- Small and Medium-Sized Enterprises (SMES)
By Business Function
- Finance
- Marketing And Sales
- Human Resources
- Operations
By Application
- Merchandising Analysis
- Pricing Analysis
- Customer Analytics
- Promotional Analysis And Planning
- Yield Analysis
- Inventory Analysis
- Others (Order Management, Transportation Management, Assortment and Cluster Planning, and Real-Estate Planning)
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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