The Retail Analytics Market is projected to grow from USD 2.45 billion in 2024 to USD 7.39 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.76% during the forecast period (2024 - 2032). Additionally, the market size for Retail Analytics was valued at USD 2.1 billion in 2023.
Increased demand for a better customer experience and increasing adoption of advanced technology are the key market drivers enhancing growth of the market.
Figure 1: Retail Analytics Market Size, 2024 - 2032 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
Market CAGR for retail analytics is being driven by the rising demand for better customer experiences. Retail analytics provides tangible and actionable insights into the behavior of the customer. Retail analytic services emphasize offering personalized attention to every user. The increasing competition and changing consumer demands among retailers for user loyalty prompted companies to opt for data-driven retail analytic solutions, keeping the customers engaged for a longer period of time.
Retailers can analyze customer data and predict the demand and needs of customers with the help of retail predictive analytics. It assists in targeting the right customers and holding on the loyal customers; it can also analyze the customer's buying pattern and pull new customers through profitable offers. The rise in the adoption of the customer relationship management solutions in the retail industry is improving customer experiences. There is increasing adoption of point-of-sale, IoT, RFID, and other smart devices, which will lead to the generation of big data that can be utilized by retailers to discover the buying performance of customers and hidden insights of customers; this will eventually fuel the demand for retail analytic services and software. Moreover, retailers are using retailer analytic solutions to enhance their streamlined business processes and operations in order to raise their business productivity.
The rising inclusion of advanced technology like artificial intelligence, big data, and machine learning with retail analytics is anticipated to assist retailers in offering an improved business portfolio. Machine Learning and the data analytics can be used by retailers to analyze the data and give insights about the quantity, sales, and price of products to target the right customer. Retail analytics is the main factor of the digital transformation of the section as it is the base of AI technology that allows retailers to adopt price-optimization strategies, rationalize inventory, improve communication, and offer consistent shopping experiences throughout the channels. Thus, driving the Retail Analytic market revenue.
However, strict data regulations can hamper the growth of the market. The integration of general data protection regulation is affecting retail solutions utilizing big data technology. The rising awareness among users regarding consumer privacy in retail is restraining several multinational market players' international business retailers. Hence, the restriction in the adoption of tools according to rules minimizes reliability, thus affecting the adoption of retail platforms.
The Retail Analytic market segmentation, based on component type, includes Services and Solutions. The solutions segment dominates the market, accounting for the largest market revenue. The retail analytic solution emphasizes providing information on sales, customers, inventory, and other essential factors that retailers must examine when making decisions. The discipline collates various minute categories to generate a broad picture of the health and sales of retailers and also the opportunities for reinforcement and development. There is an increasing requirement for retail analytics by different enterprises as it helps to make better decisions, provide better customer services, and manage organizations, thus driving the market growth.
The Retail Analytic market segmentation, based on organization size, includes Large Enterprises and Small and Medium Enterprises. Large enterprises segment dominate the market owing to their rising emphasis on enhancing the interaction of consumers through the utilization of retail analytics. Large market players can invest in innovative technology, like retail analytics, due to their strong financial standing. On the other hand, the SME segment accounts for moderate growth as the SMEs are rapidly realizing the potential of analytics. Therefore, they are trying to include retail analytics more quickly to remain competitive and improve their business operations.
Figure 2: Retail Analytics Market, by Organization Size, 2022 & 2032 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study offers market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Retail Analytic market area dominates the market as the region is the early adopter of technology, with the large market players spending largely on different technologies to remain competitive. A number of companies are investing to generate innovative smart stores that are anticipated to boost market growth in the region of North America.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, Japan, India, China, Australia, South Korea, and Brazil.
Figure 3: RETAIL ANALYTIC MARKET SHARE BY REGION 2022 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Retail Analytic market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to increasing collaborations and launches of new products by the key market players in the region. Further, the German Retail Analytic market held the largest market share, and the UK Retail Analytic market was the rapid growing market in the European region.
The Asia-Pacific Retail Analytic Market accounts for the second-largest market revenue due to the presence of numerous rising and developing economies apt for retail store expansion and technological development. Moreover, China’s Retail Analytic market held the largest market share, and the Indian Retail Analytic market was the rapid-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Retail Analytic market grow even more. Market participants are also undertaking a various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Retail Analytic industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Retail Analytic industry to benefit clients and increase the market sector. In recent years, the Retail Analytic industry has offered some of the most significant advantages to customer service. Major players in the Retail Analytic market, including IBM Corporation, MRI Software, Tech Mahindra, Retail Insights, Snowflake Inc., NielsenIQ, Salesforce.Com Inc., Oracle Corporation, Wipro Limited, Fractal Analytics Inc., and others, are attempting to increase market demand by investing in research and development operations.
Snowflake Inc., founded in 2012, is a cloud computing-based data cloud company. The company provides cloud-based data storage and analytic service, termed "data-as-a-service." it allows corporate customers to store and analyze the data with the use of cloud-based hardware and software. Snowflake service's prime features are separation of storage and commute, on-the-fly scalable compute, data cloning, data sharing, and third-party tools support for scaling with its enterprise customers. In March 2022, Retail Data Cloud was introduced by Snowflake. This cloud brings together the data platform of the company, industry-specific datasets, and Snowflake and partner-delivered solutions. The manufacturers, retailers, distributors, and industry technology providers can utilize the retail data cloud to use their own data and new data access and cooperate across the retail section.
NielsenIQ is a company providing data analytic and measurement services. The company provides data science and analysis, advertising, marketing plan, package design and etc. The company is the world's leading consumer intelligence company, revealing novel pathways for retailers and consumer goods manufacturers. The company provides operations in more than 100 countries, offering the clearest and complete understanding of the users buying behavior via an advanced business intelligence platform with integrated predictive analytics. In May 2021, The company launched Byzzer, which is groundbreaking, offering useful information to new and small Consumer Packaged Goods (CPG) companies, inclusive of alcoholic beverage, beauty, cannabis, food, and pet industries. Buzzer was developed to provide the needs of new CPG brands; clear, actionable retail data which fuels faster development without an army of analysis.
MRI Software
Tech Mahindra
Retail Insights
Snowflake Inc.
NielsenIQ
Salesforce.Com Inc.
Wipro Limited
Fractal Analytics Inc.
As part of its initiative to embrace a variety of free and internal concepts, in January 2024, IBM reported expanding the functionalities of its Watson AI and data platform to include the well-known open-source Mixtral-8x7B large language model (LLM) provided by Mistral AI.
In January 2024, IBM partnered with SAP in order to work on products that integrate generative AI tools with supply chain, finance, sales and services and that would appeal specifically to CPG and retail clients.
Salesforce released in January 2024 Einstein 1 Studio, which includes low-code solutions for Salesforce copilot that aids Salesforce administrators and developers in embedding artificial intelligence into every app needed for customers and employees.
Microstrategy has promised in its announcement that Microstrategy ONE will be provided in the AWS Marketplace in November 2023. Now, customers using Amazon Web Services (AWS) are provided with a simple approach to the deployment of reliable artificial intelligence (AI) instructed by analytics since the company’s highly reliable BI and AI capabilities can be fully integrated with the resources and framework offered by AWS.
In September 2023. Oracle, in its official version threat said that it has new ai enhanced features in Oracle Analytics Cloud. These analytics self-service users now require data scientists or IT team assistance less often at a faster pace to perform advanced analytics and make enhanced business choices due to the newly launched features powered by the Oracle Cloud Infrastructure Generative AI service.
February 2024: Kroger partnered with AI retail analytics Solutions provider Intelligence Node to enhance marketplace listings. Gone are the days of Kroger trying to assist third-party vendors with poorly formulated and vague product descriptions thanks to the partnership.
In October 2023, Omnicommerce launched a retail media and retail analytics platform. This allows them to monitor their product across 30 different marketplaces and retailers all at once while filing their items against their competition.
May 2023: NIQ, along with some selected data assets from Rite Aid and their most qualified data science and software, decided to go with a connected collaboration platform. All this means that Rite Aid is able to supply all the manufacturers and retailers with a comprehensive platform, which allows for solutions with distinct applications, such as market understanding to supply chains to loyalty/customer programs.
In April 2023, the Indian IT firm Infosys entered into a collaboration with Walmart Commerce Technologies with the aim of implementing the Store Assist system. Store Assist is an IT software system that is used to bolster the experience of shoppers and stores’ like-clients, as it enables the consumers and employees to engage in activities such as order pickup, shipping from stores and delivery to consumers.
Services
Solutions
Large Enterprises
Small and Medium Enterprises
US
Canada
Germany
France
UK
Italy
Spain
Rest of Europe
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Middle East
Africa
Latin America
| Attribute/Metric | Details |
| Market Size 2023 | USD 2.1 Billion |
| Market Size 2024 | USD 2.45 Billion |
| Market Size 2032 | USD 7.39 Billion |
| Compound Annual Growth Rate (CAGR) | 14.76% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component Type, Organization Size, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | IBM Corporation, MRI Software, Tech Mahindra, Retail Insights, Snowflake Inc., NielsenIQ, Salesforce.Com Inc., Oracle Corporation, Wipro Limited, Fractal Analytics Inc. |
| Key Market Opportunities | Growing utilization of data analytics to understand customer data. |
| Key Market Dynamics | Increased demand for the enhanced customer experience. |
Retail Analytics Market Highlights:
Frequently Asked Questions (FAQ) :
The Retail Analytic market size was valued at USD 2.1 Billion in 2023.
The market is foreseen to grow at a CAGR of 14.76% during the forecast period, 2024-2032.
North America had the largest share of the market
The key players in market are IBM Corporation, MRI Software, Tech Mahindra, Retail Insights, Snowflake Inc., NielsenIQ, Salesforce.Com Inc., Oracle Corporation, Wipro Limited, and Fractal Analytics Inc.
The solution category dominated the market in 2022.
Large enterprises had the largest share of the market.
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Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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