Store Operation Business Function Segment to Hold the Largest Share of Retail Analytics Market During the Forecast Period, Backed by Prolific Organizations in Retail Sector

Introduction

Retail Analytics is used to optimize inventory management, reducing wasted space, and associated overhead costs. Apart from inventory management, many companies use retail analytics to identify customer trends and changing preferences by combining data from different areas. The need for accurate forecasts and optimized business solutions has increased in recent years. In addition, the growth of Internet of things and big data analytics is also expected to provide impetus to market growth.

Market Segmentation

The retail analytics market can be segmented by component, application, and business function.

On the basis of component, the market can be segmented into software & services. The services segment is anticipated to hold the largest market share during the forecast period. By application, the retail analytics market can be segmented into merchandising analysis, customer analysis, and performance analysis. The predictive analysis segment is anticipated to grow at the highest CAGR, due to the increasing vendor dependence on predictive analytics for accurate forecast and decision making. Based on business function, the retail analytics market can be segmented into finance, sales, marketing, supply chain and store operations, and others. The store operation segment is projected to hold a significant market share with prolific organizations in the retail sector.

Regional Analysis

On the basis of geography, the retail analytics market has been segmented into North America, Europe, Asia Pacific, and Latin America and the Middle East and Africa (LAMEA).

North America is expected to hold the largest market share within the forecast period, due to the increasing need to reduce operational expenses and capital expenses across the retail sector.  Further, rapid adoption of social media analytics, Internet of things (IoT) platform, and cloud technologies is also boosting market growth in North America. Increasing adoption of omnichannel for business models is also expected to fuel the growth of the retail analytics market in coming years.

Europe has emerged as a prominent market for retail analytics, due to the region’s growing entrepreneurship spirit alongside the rising adoption and spending on cloud-related services. In addition, online retail is growing exponentially, particularly in Southern Europe.

Asia Pacific is expected to grow at the highest CAGR within the forecast period, with an increase in the number of eCommerce retailers, owing to increasing digitalization and growing internet penetration. The region is witnessing high demand for retail analytics solutions from prolific small and medium retailers.

The LAMEA region is projected to grow at a significant rate due to the increasing demand for automated & mobile retail services, growing adoption of location analytics, and growing deployment of public Wi-Fi systems across various retail stores.

Key Highlights

Prominent market participants are offering solutions such as merchandising, marketing, customer analytics, supply chain management, in-store analytics, strategy, and planning. These players are significantly investing in research and development to incorporate new technologies and develop new product to excel in the global retail analytics market.

• In Nov 2017, IBM and Salesforce announced the expansion of their partnership to deliver new Artificial Intelligence predictive analytics
• In Oct 2018, NEC Display Solutions of America, Inc. announced the launch of the NEC ALP, a powerful business intelligence analytics platform for retailers that delivers real-time content and data measurement

Competitive Players

1. 1010data (U.S.)
2. BRIDGEi2i (India)
3. Diaspark (U.S.)
4. Fujitsu (Japan)
5. IntelliVision (U.S.)
6. IBM (U.S.)
7. Microsoft (U.S.)
8. Oracle (U.S.)
9. RetailNext (U.S.)
10. SAP (Germany)
11. SAS Institute (U.S.)
12. Trax (Singapore)
13. Visual BI Solutions (U.S.)
14. Zebra Technologies (U.S.)
15. NEC Display Solutions of America, Inc. (U.S.)

Recent Developments

• August 2023 - The business plans for 2023 and 2024 were presented by Vsblty, a company whose goal is to introduce biometrics into the retail sector. With real-time facial recognition, the Vancouver-based company intends to extend the use of its retail analytics technology for security and theft prevention. In order to provide real-time targeted advertising, Vsblty integrates cameras into digital displays to detect and classify faces.
• March 2022 - Snowflake released Retail Data Cloud, which combines the company's data platform, Snowflake, partner-delivered solutions, and industry-specific datasets. The retail data cloud enables retailers, manufacturers, distributors, and industry technology providers to leverage their own data, access new data, and collaborate throughout the retail sector.

Segmentation

1. By Components
   1. Software 
   2. Services
2. By Applications
   1. Merchandising Analysis 
   2. Customer Analysis
   3. Performance Analysis
   4. Inventory Analysis
   5. Others
3. By Organizations
   1. Large Enterprises 
   2. Small and Medium Enterprises
4. By Business Functions
   1. Finance
   2. Sales and Marketing
   3. Supply Chain
   4. Store Operations
   5. Others