IoT in Retail Market Analysis

IoT in Retail Market Analysis

The network management platform in the IoT in retail market is expected to grow at over 21% CAGR from 2017 to 2024. The platform offers opportunities to service providers to serve the consumers better by managing the complex network issues. Network management platforms are gaining popularity to cater to the increasing demands for connected network and devices. The electronic devices, such as computers & printers in the IoT solutions, require timely monitoring and maintenance owing to the connectivity threats. Companies offer efficient network management platforms to IoT consumers, aiding them in saving maintenance costs and keeping the IoT networks upgraded. For instance, in February 2019, Cisco announced the launch of its IoT-enabled hardware, which offers intent-based networking and can be operated through the Cisco DNA Center.

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IoT platforms deliver large amounts of data to the connected devices and communication networks by deploying several sensors such as temperature, image, proximity, pressure, chemical, level, and IR sensors. Different sensing components offer varied advantages in several applications including automotive, retail, electronics, etc. The declining cost of sensors across the globe enables companies to deploy them in even smaller internet-based solutions. The key function of these components in enhanced devices is to collect the surrounding information and forward it to management systems. For instance, image sensors in the retail industry monitor customer visits in stores through the connected network and notify the staff to provide better customer assistance.
 

Companies providing IoT platforms and solutions offer several professional services that include installation, consulting, and training for the retailers. These companies also provide managed services such as maintenance, upgrades, and repairing of the IoT offerings. These managed services are provided to global customers through the company’s direct facilities or third-party dealers. A major segment in service provision is independent IoT service providers that include certified personnel and trained individuals. For instance, IBM Corporation provides enterprise asset management & facilities management services for the retail segment through its professional and expert employees.
 

Smart shelves and doors segment are expected to grow at a CAGR of over 16% from 2017 to 2024. These are increasingly deployed in the supermarkets, shopping malls, and grocery stores to gain an advantage of the automated product tracking systems. RFID readers, tags, and antenna are the key components of smart shelves that provide real-time in-store inventory data to retailers. These solutions automatically alert store managers to refill the inventory & dispose the expired products. The smart shelves also provide customer behavior insights to the retailers by monitoring information about product movements. The information is used to judge customer purchase and aid them in improving future purchases.
 

The European retail sector is witnessing the impact of IoT solutions in terms of logistics & inventory management and an enhanced shopping experience. The deployment of IoT-based devices, such as sensors, self & automated checkout systems, and Wi-Fi-enabled machines, offers better connectivity in retail stores. To overcome challenges such as heterogeneous demands and low levels of customization options, retailers in Europe are adopting IoT solutions. Additionally, the development of the retail industry, which includes companies providing food, DIY, electronics, fashion, etc., in Western Europe is driving the implementation of these solutions. The developments in the European retail industry are due to changes in demographic structures such as increased population, convenient shopping options, and the emergence of e-commerce. IoT-based retail solutions are deployed in the major retail stores such as Walmart, Tesco, The Home Depot, Target Corp., etc.