Global Statistics Representing In-Store Analytics Market Scenario
In-store analytics is the analysis of data on inventory, sales, consumer demand, and others to offer insights on customer behavior. It mainly focuses on optimizing store performance to increase foot count and sales along and enhance customer experience. In-store analytics provides retailers an opportunity to better understand customer demand through open management of products and resources. The technology allows data sharing systematically and efficiently, which in turn drives the growth of the in-store analytics market globally. The prolific adoption of advanced technologies such as cloud and analytical and decision-making tools is also expected to foster market growth. For instance, in April 2019, Walmart deployed AI technology to monitor retail stores in real time. The company is digitizing its stores with an aim to offer a better shopping experience.
The global In-store analytics market is expected to grow at a CAGR of 22.4% during the forecast period, 2019–2026.
Solution Segment to Account for a Larger Market Size in Retail Analytics
The integration of new technologies such as AI and AR with various software solutions is rapidly being adopted among brick and mortar retailers for an omnichannel retail approach to enhance customer in-store experience and predict customer demand in real-time. For instance, Sephora, a beauty retailer, introduced the omnichannel expansion of its new bricks-and-mortar connected boutique in the U.S., facilitated with mobile-enabled experiences such as browsing products on in-store iPad stations and providing customized digital makeover suggestions over emails to customers. Thus, the solution segment by component in the in-store analytics market is expected to register healthy growth as these solutions enable stores to monitor sales for identifying customer preferences to develop business plans accordingly.
Merchandising Analytics to Drive Retail In-Store Analytics
On account of the growing competition among retailers, there exists significant demand for effective analysis to best fit varying customer demands, utilizing AI to increase the availability of merchandise in-store. For instance, in January 2019, Carrefour, a multinational retailer, chose SAS Viya to optimize its supply chain management and minimize food wastage by collecting and processing data from stores, warehouses, and e-commerce sites. Using advanced technology such as AI, the company plans to better meet customer expectations with a unique online and in-store shopping experience.
Europe to Record Significant Growth, With Retailers Straying from the Traditional Brick and Mortar Concept
Geographically, the in-store analytics market has been segmented to North America, Europe, Asia Pacific, and Latin America and the Middle East and Africa (LAMEA).
North America is expected to witness dynamic growth in the in-store analytics market owing to the presence of well-established retailers in the region. Retailers across the region are leaning towards innovation integrated retail businesses and high investment strategies to sustain high-end stores. For instance, Amazon introduced its self-checkout grocery store, 'Amazon Go’ across several locations in the U.S. The retailer’s ‘Just Walk Out’ technology is powered by an AI technology involving computer vision, sensor fusion, and deep learning – offering insights to the future of traditional retail through the Technology Vision “Internet of Thinking” trend.
Europe is expected to witness significant growth in the in-store analytics market with retailers across the region rapidly moving towards advancing the concept of retail from brick and mortar. Rapid embracement of technological advancements such as AI, cloud, and others with deep learning algorithms, computer vision, and sensor fusion, among others are driving the demand for in-store analytics. Additionally, established retailer players such as Amazon are focusing on business expansion outside the U.S., which has further been accelerating the demand for in-store analytics. For instance, Amazon plans to expand its grocery store business in the U.K. by bringing a cashier-less shopping experience.
Asia Pacific is expected to grow at an accelerated pace in the in-store analytics market on account of the growing retail business in the region. Retailers in the region are rapidly adopting digital transformation over the traditional retail business to offer an improved offline shopping experience. Countries such as India, China, and South Korea are at the forefront of digitalization according to Bain & Company. Alibaba is expanding its offline retail store, Hema Supermarket, throughout China. The store uses a technology-driven approach for its in-store purchases, in-store consumption, and online delivery.
The LAMEA region is expected to witness considerable growth in the in-store analytics market on account of growth in emerging economies and ongoing infrastructure development in the region. Adoption of analytics in convergence with technologies such as AI, cloud, and others for offline retailing is pegged to be a key factor creating several opportunities for in-store analytics in the region.
Some of the prominent players in the global in-store analytics market are RetailNext, SAP, SAS Institute, Inc., Thinkinside, Mindtree, Happiest Minds, Celect, Capillary Technologies, Scanalytics, Inpixon, Retail Solutions, Dor Technologies, SEMSEYE, InvenSense, Walkbase, and Amoobi.
In-Store Analytics Market Segmentation
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Our report covers insights on the in-store analytics market, focusing on recent developments in the market across different regions and the varied development strategies employed by market participants. Moreover, the following sections are specifically covered in the report.