The retail industry is becoming more data rich as more of the businesses goes digital, establishment many more data capture opportunities. According to Google’s Zero Moment Of Truth (ZMOT) research, 70% consumers research online before purchasing in-store. Retail analytics gives insights into the business and processes of the organization along with detail insights on consumers with scope and need for improvement. This field goes beyond superficial data analysis, using techniques such as data discovery and data mining to filter datasets to produce actionable insights that can be applied in the short-term. Moreover, companies use retail analytics to create better snapshots of target customers. By harnessing data from retail analytics, companies can identify the ideal customers from a diverse range by age, gender, buying pattern, preference, and location.
Retail analytics optimizes the supply chain, uses existing data to increase conversion, and customizes shopping experiences with predictive modeling and micro-targeting/pricing. Therefore, technological advancements such as artificial intelligence, augmented reality, and machine learning in retail analytics are expected to bolster the growth of the retail analytics market throughout the forecast period. Furthermore, other prime factors positively impacting the retail analytics market include the utilization of social media, increase in online shopping, and rising use of smartphones. Social media allows retailers to better understand consumer preferences by tracking consumer behavior and predicting and anticipating future behavior. As per data by the e-commerce vendor Custora, 90% consumers try to reach out to brands on social media. Therefore, the prolific use of social media is a key driving factors for the retail analytics market. In addition, the latest trend in the retail analytics market is to personalize customer experience by predicting demand and footfall with the help of retail analytics.
The global retail analytics market is expected to grow at a CAGR 19.1% during the forecast period 2019–2026.
The retail analytics market can be segmented by component, application, business function, and end user.
On the basis of element, the market can be segmented into software and services. The services segment is expected to hold the largest market share, owing to the increasing use of professional and managed retail analytics services 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 the increasing dependence of vendors 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, store operations, and others. The store operation segment is projected to hold a significant market share as the number of organizations in the retail sector has been increasing.
On the basis of geography, the retail analytics market has been segmented into North America, Europe, Asia Pacific, and LAMEA.
North America is projected to hold the largest market share in the retail analytics market during the forecast period, due to high implementation rate of retail analytics in the region. Retail analytics solution deployment is high in North America for sophisticated systems and availability of high working capital at the disposal of several retailers in the region.
Europe is expected to grow at a significant rate, owing to the region’s expanding internet, smartphone, and other smart device user base, which is anticipated to have a positive impact on the retail analytics market. Furthermore, the growing number of retail companies in this region is also expected bolster market growth in the next few years.
Asia Pacific has emerged as the region exhibiting the fastest growth in the retail analytics market, due to increasing digitalization and the penetration of e-commerce in fast growing countries such as India and China. Furthermore, increasing use of Wi-Fi products that provide real time analytics of customer activity, Asia Pacific retailers are customizing the measures to provide the best appropriate products to the customers.
The LAMEA region is anticipated to grow at a significant rate in the retail analytics market, owing to the region’s growing retail industry and increasing urbanization. According to the Dubai Chamber of Commerce and Industry, UAE’S retail sector is projected to expand at a CAGR of 4.9%, which is expected to further create opportunities for the retail analytics market in the LAMEA region.
Some of the key players in the retail analytics market are 1010data (U.S.), BRIDGEi2i (India), Diaspark (U.S.), Fujitsu (Japan), IntelliVision (U.S.), IBM (U.S.), Microsoft (U.S.), Oracle (U.S.), RetailNext (U.S.), SAP (Germany), SAS Institute (U.S.), Trax (Singapore), Visual BI Solutions (U.S.), and Zebra Technologies (U.S.), and NEC Display Solutions of America, Inc. (U.S.)
In October 2018, NEC Display Solutions of America, Inc. announced the launch of NEC ALP, a powerful business intelligence analytics platform for retailers that delivers real-time content and data measurement.
Retail analytics is changing the face of the retail industry as technologies such as IoT, mobile apps, and new POS systems are allowing retailers to discover more about their customers, which in turn will facilitate more personal customer experiences. Retail analytics makes retailers incredibly competitive, due to which many have chosen to adopt this technology in their businesses. In November 2018, Nielsen and Microsoft released details around a newly developed enterprise data solution that democratizes one of the largest consumer data sets in the world.
The report covers detailed information on the factors influencing market growth (drivers, opportunities, and trends). In addition, we have given a detailed competitive analysis of major players operating in the industry. The following sections are specifically covered in the report.