Retail Edge Computing Market

Opening up new opportunities for retail possibility is driving the market growth

There are a wide range of use cases that merchants can take into consideration right now where edge computing can be deployed whenever the speed, volume, and privacy of data matter. Already, some fast-food chains and merchants are making investments to upgrade their mission-critical point-of-sale systems (POS) with edge capabilities in order to achieve higher uptime and reliability. According to retail professionals surveyed, edge-enabled, real-time video analytics are assisting retailers in enhancing security and making demand-based inventory selections that have decreased shrinkage by as much as 20%.

Alerts that inform workers of potential security hot spots and items needing restocking or price reductions are produced via cloud analysis of data from hand-held RFID devices and video footage.

Additionally, brands are realizing the necessity of providing individualized, edge-powered in-store experiences that are on par with those provided online. A mobile app on the customer's device initiates real-time offers based on the customer's location in the store and their prior purchases using in-store Bluetooth beacons powered by edge servers. According to interviewees, these encounters increased market basket sizes by 20 to 50%.

According to interviews, cashier-less checkout made possible by computer vision, artificial intelligence (AI), and machine learning (ML) increased sales in convenience and grocery stores by 4% to 5%. consumers are tracked by sensors and cameras while they choose things, and transactions are instantly charged through apps on consumers' phones, resulting in a quick, touchless transaction. Retailers are seeing positive effects, including a 20 to 30% increase in store traffic, thanks to interactive experiences that let customers of home improvement stores view and test products like kitchen cabinetry, appliances, tile, and power tools using in-store AR/VR technology.

Offering dynamic content on digital displays, such as movies, graphics, and animations, is how food and beverage firms are pushing the envelope to engage customers at the point of purchase. For instance, when digital signs were incorporated into social media ad campaigns, brands surveyed by McKinsey reported a 20% or higher boost in brand recognition. These advanced applications require an infrastructure that is digitally ready, quick, safe, easily scalable, and built to handle new use cases supported by next-generation technology. Thus, driving the Retail Edge Computing market revenue.

The proliferation of Internet of Things (IoT) devices significantly influences the Global Retail Edge Computing Market Industry. Retailers deploy various IoT sensors and devices to gather data on customer behavior, inventory levels, and supply chain logistics. This influx of data necessitates edge computing solutions to process information locally, reducing latency and improving operational efficiency. The anticipated growth in the market, reaching 41.7 USD Billion by 2035, underscores the importance of integrating IoT with edge computing to harness actionable insights and drive business strategies.

Regulatory compliance and data security concerns significantly impact the Global Retail Edge Computing Market Industry. Retailers must adhere to stringent data protection regulations, necessitating robust security measures for customer data. Edge computing offers enhanced security by processing sensitive information locally, reducing the risk of data breaches during transmission. As businesses prioritize compliance and security, the demand for edge computing solutions is expected to rise, further driving market growth as retailers seek to safeguard customer trust and maintain regulatory standards.

Cost efficiency remains a pivotal factor in the Global Retail Edge Computing Market Industry. By processing data closer to the source, retailers can reduce bandwidth costs and minimize latency, leading to improved operational efficiency. Edge computing solutions enable businesses to streamline processes, such as inventory management and supply chain logistics, ultimately driving down operational costs. This focus on cost optimization is likely to propel market growth, as retailers seek to maximize profitability while enhancing service delivery in an increasingly competitive landscape.

The Global Retail Edge Computing Market Industry experiences heightened demand for real-time data processing capabilities. Retailers increasingly rely on immediate insights to enhance customer experiences and optimize inventory management. For instance, edge computing allows for faster data analysis at the point of sale, enabling retailers to adjust pricing dynamically based on demand. This trend is reflected in the projected market value of 6.46 USD Billion in 2024, indicating a robust growth trajectory as businesses seek to leverage technology for competitive advantage.

Personalization emerges as a critical driver in the Global Retail Edge Computing Market Industry. Retailers leverage edge computing to analyze customer data in real-time, enabling tailored marketing strategies and personalized shopping experiences. For example, edge computing facilitates targeted promotions based on individual preferences, enhancing customer engagement and loyalty. As the market evolves, the ability to deliver personalized experiences is likely to become a key differentiator, contributing to the projected CAGR of 18.47% from 2025 to 2035, as businesses invest in technologies that foster deeper customer connections.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Retail Edge Computing Market dominated this market in 2022 (45.80%). IIoT and edge computing convergence is creating ideal conditions for American manufacturers to transition to connected manufacturing. A number of businesses have also developed to provide platforms for creating edge-enabled products, which are projected to accelerate the growth of the local market. Further, the U.S.

Retail Edge Computing market held the largest market share, and the Canada Retail Edge Computing market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: RETAIL EDGE COMPUTING MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Retail Edge Computing market accounted for the healthy market share in 2022. The increasing presence of major firms with headquarters in Europe has a significant impact on the local market. These players include, among many others, IBM, Intel, and Microsoft. By combining with and buying small businesses, these corporations have been carefully extending their geographic reach and clientele. Further, the German Retail Edge Computing market held the largest market share, and the U.K Retail Edge Computing market was the fastest growing market in the European region.

The Asia Pacific Retail Edge Computing market is expected to register significant growth from 2023 to 2032. This is due to the growing use of edge solutions in nations like China, India, and Japan. Government policies that assist IT infrastructure have also accelerated market expansion in the region. Moreover, China’s Retail Edge Computing market held the largest market share, and the Indian Retail Edge Computing market was the fastest 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 Edge Computing market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global 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, Retail Edge Computing Industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Retail Edge Computing Industry to benefit clients and increase the market Application. In recent years, the Retail Edge Computing Industry has offered some of the most significant advantages to medicine.

Major players in the Retail Edge Computing market, including Cisco, AWS, Dell Technologies, Google, HPE, Huawei, IBM, Intel, Litmus Automation, Microsoft, Nokia, ADLINK, Axellio, Capgemini, ClearBlade, Digi International, Fastly, StackPath, Vapor IO, GE Digital, Moxa, Sierra Wireless, Juniper Networks, EdgeConnex, Belden, Saguna Networks, Edge Intelligence, Edgeworx, Sunlight.io, Mutable, Hivecell, Section, and EdgeIQ, are attempting to increase market demand by investing in research and development operations.

IT infrastructure services are provided by Amazon Web Services, a cloud-based web platform. The business offers a range of services, including cloud computing, compute, networking, storage and content delivery, databases, analytics, application services, deployment and administration, mobile services, and investments, on a scalable cloud computing platform. In doing so, it makes it possible for e-commerce firms to launch and grow their cloud businesses while increasing their online sales.

Google LLC (Google), an affiliate of Alphabet Inc., provides online search and advertising services. The company's primary business segments include advertising, search, platforms and operating systems, enterprise products, and hardware. These are just a few of the products and services it provides: Google Search, Google Chrome, Google Docs, Google Calendar, Google Photos, Google Meet, Google Drive, Google Finance, Google Play Books, Google News, Google Earth, Google Ad Manager, Google Play, AdMob, Google Maps, AdSense, Gmail, Google Groups, and YouTube. The business has operations in the Americas, Europe, Asia-Pacific, Middle East, and Africa.

Google's main office is located in Mountain View, California, in the United States.