Driving IoT’s growth is the fact that retailers are seeking a seamless shopping experience that IoT can provide.
Retailers will soon integrate IoT into every element, from back end to customer-facing applications, of their operations. That’s according to a recent market research report by Grand View Research.
Specifically, the report found that the increasing adoption of connected technologies, such as Bluetooth Low Energy (BLE) and Near-Field Communication (NFC), will drive global IoT in the retail market. That market is predicted to grow at a CAGR of 28.4% from 2023 to 2030. It is expected to reach $297.44 billion by 2030.
Driving this growth is the fact that retailers are seeking a seamless shopping experience that IoT can provide. That includes enhancing the payment process and support in back-end operations, enabling effective logistics operations and supply chain management.
Additionally, retailers are pursuing the perfect customer experience, leveraging technology to support every single step of the customer journey and even before through digitally transformed operations. The study cites several key findings that highlight this overarching goal:
- The services component will expand: Expected growth of CAGR of 31.1% is the result of significant adoption of IoT in the sector, as well as demand for infrastructure and application management services.
- Mobile wallets will drive further innovation: The NFC technology segment accounted for over 32% of revenue share in 2022 due to innovation in payment methods.
- Personalization is behind customer management tools growth: The customer management application segment is expected to grow at the highest CAGR of 33.1% as it allows retailers to deliver a customized shopping experience.
- Retailers want more control over data: The on-premise deployment segment accounted for a revenue share of over 48% in 2022 due to control over data security and privacy, reliability, cost savings, and customization options.
- Asia Pacific region will take the lead: This region is expected to grow at the fastest CAGR of 32.7% during the forecast period due to rising investments in the retail sectors of developing countries in the region.
IoT needed to combat the lingering impact of COVID-19
The pandemic has significantly impacted worldwide spending, including the retail industry. To help combat this disruption, retailers have implemented IoT technologies such as mobile payment systems, autonomous cleaning robots, and contactless checkout kiosks to reduce human interference and curb the spread of the virus, as well as entice customers to return to stores. Advanced technologies such as AI, cloud services, and automation are also augmenting growth in the retail industry post-pandemic.
Continued innovations will help bring customers back to their favorite stores. It will also help retailers adapt to new standards and practices in retail thanks to changes in customer behavior and disruptions in the supply chain.