Smart Retail Devices Market Size, Share & Trends Analysis Report By Technology (Digital Signage, Smart Labels, Smart Payments, Smart Carts, Electronic Shelf Labels, Others), By Application (Transportation, Predictive Equipment Maintenance, Inventory Management, Smart Fitting Room, Foot Traffic Monitoring, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global smart retail devices market was valued at USD 42.23 billion in 2023. It is expected to reach USD 176.18 billion in 2032, growing at a CAGR of 17.2% over the forecast period (2024-2032). The global smart retail devices market is driven by advancements in IoT technology, enabling retailers to enhance customer engagement and operational efficiency. Increasing demand for personalized shopping experiences and real-time analytics drives adoption. Moreover, the integration of AI and machine learning in retail operations further boost market growth. 

The term smart retail refers to the combination of "old school" shopping practices with "smart" retail technologies. The internet of things allows for data collection utilizing communication between various implanted devices and computers. As a direct consequence, customers get an experience that is more tailored, quicker, and more intelligent. The internet of things facilitates the operation of smart retail gadgets. Smart devices and IoT in retail enable businesses to improve the customer experience and increase consumer engagement, drastically altering store operations. Energy management, fraud protection, in-store management, and customer interaction are benefits of implementing IoT in retail.

Retailers use modern technologies such as cloud, mobile, RFID, and beacons to provide linked retail services and a more enjoyable shopping experience for customers. For example, store owners are embedding sensors in essential areas of retail stores and connecting them to the cloud via a portal that enables real-time data analysis regarding products, sales, and customers. The major factors affecting the growth of the global smart retail devices market are an increase in the use of robotics and automation in the retail industry, increasing usage of big data analytics and the internet of things in the retail industry, an increase in customer purchasing power, and overall economic growth.

One of the key trends escalating global smart retail devices market growth is the increasing integration of augmented reality, virtual reality, artificial intelligence, and the internet of things to improve store operations, enable accurate inventory management, and enhance the consumer's shopping experience.

Market Dynamics

Global Smart Retail Devices Market Drivers

Rising Deployment of Robotics and Automation in the Retail Industry

Customers want fast service; therefore, businesses opt for automated gadgets and robotics to save manual labor. The self-service machines' faultless operation increases customer satisfaction. Increased demand for automated systems such as kiosks, vending machines, and electronic shelf labels is anticipated to upsurge demand in the global smart retail devices market. These automated systems save operational time and physical effort in each service area.

The digital advancement of automation in the retail industry has proven advantageous for retailers. In addition, retail automation is driving the introduction of electronic shelf labeling in supermarkets, hypermarkets, specialty stores, and non-food retail businesses. Moreover, installing this technology in a retail store provides a solution for dynamic pricing, which reduces labor input by eliminating manual procedures.

Widescale Adoption of Big Analytics & IoT in the Retail Industry

By incorporating analytical methodologies into automated systems, technological developments have gained traction and are increasing rapidly. In addition, some incumbent retailers are considering large-scale investments in automation, IoT, and AI technologies to improve the staff and customer experience. In addition, the increase in the creation of dynamic systems with web scraping and data mining is anticipated to enable real-time big data analytics to automate operation, pricing, and promotions. Therefore, automating time-intensive processes can allow suppliers to spend more time on strategic activities and assist them in generating corporate value, which will boost the global market for smart retail devices throughout the forecast period.

Global Smart Retail Devices Market Restraint

Increased Maintenance Cost of High-End Devices

Smart retail gadgets have a high return on investment due to the comparatively long time necessary to generate earnings. Thus, retailers with limited resources for migration are lagging in implementing comprehensive smart solutions, which is anticipated to inhibit the global smart retail devices market growth. Additionally, the expense of deploying an electronic shelf label (ESL) system may appear excessive to unorganized shops. A smart retail store's expansion necessitates the installation of more shelves, each of which requires a unique ESL tag. Consequently, installation costs for each electrical shelf are increased. This creates restrictions for retailers to install the system, thus pushing back the global retail devices market.

Moreover, enhanced automation approaches result in technological complexity that necessitates high-risk implementation, huge investments, transformation projects, and extended payback times, which are significant factors restraining the global market for smart retail devices.

Global Smart Retail Devices Market Opportunities

Underlying Market Opportunities Due to Rising Number of Smart Stores

The introduction of intelligent technologies, such as artificial intelligence, machine learning, and the Internet of Things (IoT), is transforming the retail industry. These technologies enable immersive, seamless experiences and quick access to individualized choices. Mechanical elements such as self-identification of consumers, product details, product selection, in-store navigation, and self-checkout are used by smart stores to improve the customer experience.

In economically prosperous regions, smart stores have already been implemented. Emerging regions such as Asia-Pacific and LAMEA are migrating toward automation and smart technology, creating a significant market potential for smart retail equipment.

Regional Analysis

The regional segmentation of the global smart retail devices market share is done as North America, Asia-Pacific, Europe, and LAMEA.

Asia-Pacific Surpasses Other Regions

Asia-Pacific commands the largest position in the market and is expected to grow at a CAGR of 20.5% during the forecast period. This is owing to technological breakthroughs and automotive quality growth in developing nations like India, China, and Indonesia. Asia-Pacific is the world's fastest-growing region. Due to the availability of advanced and enhanced technology, the rise in popularity of smart electronics, and the expansion of manufacturing businesses, it is the most attractive market for smart retail devices.

In addition, numerous non-profit organizations that promote packaging innovations contribute to expanding the smart retail devices market. Organizations across all industries recognize the significance of smart retail devices for ensuring productive working conditions. Furthermore, the increased presence of retail giants with greater customer interest and the cheap availability of processing machinery contribute to the expansion of the Asia-Pacific smart retail devices market.

Europe is the second-largest region and is expected to generate USD 35,501 million at a CAGR of 14.9% during the forecast period. Europe offers industry participants lucrative opportunities in the global smart retail devices market. Primarily, the smart retail devices market is driven by the growth of the European economy and the expanding penetration of Chinese goods in Western and Eastern Europe. Europe is a significant market for advanced semiconductors.

High-profile players are acquiring tiny businesses to bolster their market position and supply the technology of the future generation. To cope with the tight rules, significant companies in the retail industry are adopting innovative technologies. Pricer, in Europe, introduced electronic shelf labels (ESL) for shops that incorporate infrared (IR) technology and offer automated pricing updating technology. This is anticipated to create an attractive potential for the market for electronic shelf labels in this region.

Segmental Analysis

The global smart retail devices market share is classified into three segments: technology, application, and region.

The classification based on technology consists of Digital Signage, Smart Labels, Smart Payments, Smart Cards, Electronic Shelf Labels, and Others.

Electronic Self-Labels are expected to acquire the largest market share, growing at a CAGR of 18.8% during the forecast period. Electronic shelf labels form a dynamic display system that retailers employ to showcase information about the product in retail stores. This system updates product information on the central server over the gateway utilizing a low-power radio frequency. The electronic shelf label market is expanding rapidly and constitutes an innovative technology that can eliminate paper labels and is replaced automatically every week.

Additionally, it provides the freedom to make instantaneous price adjustments. Moreover, each electronic shelf label (ESL) system has an LCD or E-ink display that displays the product's price and UPC. The move toward digitalization in the smart retail business is the primary reason driving the market's growth for electronic shelf labels. Furthermore, the need for a less expensive and less time-consuming option for paper labels drives overall growth. Also, enhanced operational efficacy with real-time product positioning due to electronic shelf labels contributes to the expansion of the global smart retail devices market.

Smart Payment methods are undergoing fast evolution in terms of the worldwide paradigm shift toward expanding interconnectivity and digital transformation. Employing scan-and-go apps, mobile wallets, and Bluetooth connectivity, smart payments are developing beyond smart POS (point of sale) systems and radio technologies to make virtual payments that need no contact between the consumer and the retailer. Technologies such as optical scanning, smart point-of-sale systems, near field communication (NFC), radio-frequency identification (RFID), and Bluetooth low energy (BLE) are making processes quicker, simpler, and more convenient, hence growing the market for smart payments. China's payment platforms, such as Alibaba's AliPay and Tencent's WeChat, have encouraged the development of optical reader technologies such as QR codes.

The classification based on application consists of Smart Transportation, Predictive Equipment Maintenance, Inventory Management, Smart Fitting Room, Foot Traffic Monitoring, and Others.

Inventory Management is estimated to hold a massive market share, growing at a CAGR of 19.6% throughout the forecast period. The term "inventory" refers to the commodities stored for later use. Every retail chain has its storehouse for storing products used when existing stock is replenished. The objective of inventory management is to optimize the product range. A limited inventory improves stock management, reduces warehouse expenses, and eliminates the danger of goods expiring or becoming more difficult to sell. With smart retail devices, a digital inventory management method will allow businesses to keep track of orders, shipping, delivery information, finances, and associated costs. The technology aids in predicting demand based on inventory levels, historical information, and user inputs. Modern inventory management solutions have cloud-based features that enable on-demand and real-time process management.

Foot Traffic Monitoring analyzes the number of potential customers who visit a store, where they go, and how long they remain. IoT-enabled foot traffic monitoring solutions enable retail managers to comprehend why customers may not be engaging, what customers see, and when a store is busiest. Traffic monitoring solutions use sensors to monitor the number of consumers who pass through the doors and IoT-enabled cameras or heat sensors to track the movement of customers within the business. Traffic statistics can be utilized to analyze a store's conversion rate. This indicator compares visitors who made purchases to those who left without making a transaction. Moreover, footfall data can evaluate the efficacy of new marketing campaigns. Visitor traffic changes following the campaign's debut indicate its reception.

Impact of covid-19

The COVID-19 pandemic has affected a number of economies in different ways, such as by hurting companies' finances, upsetting markets and supply chains, and changing how much is made and how much is spent. Supply chain problems like not getting raw materials and ingredients from third-party logistics caused a lot of trouble and affected both the market's operational and financial performance. Due to the fact that many countries around the world shut down for long periods of time, both the demand for finished products and the manufacturing plants suffered.

 So, both ends of the supply chain had an effect on the market. As Doctors are putting more effort into treating Covid-19, the demand is not likely to have gone away completely. This is because chondroitin sulfate is used in nutraceuticals and pharmaceuticals to treat and manage conditions like dry eyes, heart disease, osteoarthritis, and urinary tract infections. Since chondroitin sulfate will be used in research and development in the coming years, the market is expected to grow a lot. Also, as the global vaccination campaign moves forward and the virus spreads less, the market is likely to grow because there will be more demand for end-user products.

Recent Developments

• January 2024 -AWS and Siemens integrated Amazon Bedrock with Siemens' Mendix platform, enabling industries to access generative AI tools more efficiently. This integration aims to streamline software development and enhance application capabilities across various sectors.
• January 2024 - GE introduced a smart indoor smoker with features like Active Smoke Filtration and Precision Smoke Control, allowing users to smoke food indoors without the usual smoke-related issues. The smoker offers customizable settings and remote control via the SmartHQ app.