Smart retail refers to hybridization of conventional shopping procedures with different advanced technologies such as Internet of Things (IoT) in a bid to simplify different processes such as billing and ticketing.
Rising deployment of automation and robots in a bid to provide convenience to consumers is the key growth driver for global smart retail market.
Also, increased adoption of smart technologies by retailers due to changing customer demands is expected to help create revenue-generating opportunities for leading players in smart retail market, in the coming years.
Rising Number of Smart Retail Store could Stimulate Growth in Smart Retail Market in Years Ahead
In addition to this, surge in number of smart stores could increase the demand for self-delivery vehicles, which could help trigger the growth in overall smart retail market, in the years ahead.
IoT market surveys indicate the advanced technology to emerge as fastest growing one among all advanced technologies in future. Increased integration of IoT in smart retail solutions could help fuel demand and augment the growth in smart retail market, in years to come.
Growth in e-commerce sector, especially in developing countries is anticipated to fuel the growth in smart retail market in the coming years.
Government initiatives and measures, spreading awareness about the benefits of deploying smart retail solutions could help fuel the demand and stimulate the growth in overall market, in future.
Other factors such as rapid urbanization, especially in developing economies and rising disposable income among different population sections is also expected to help create revenue-generating opportunities for leading market players, in the years ahead.
COVID-19 Pandemic Outbreak Leads to Increased Demand for Contactless Payments, Augments Growth in Smart Retail Market
COVID-19 pandemic negatively impacted growth in several industries, worldwide. But the outbreak of the pandemic offered impetus to global smart retail market. Rising cases globally led to governments imposing stringent social distancing regulations and lockdowns in a bid to contain the spread of the virus.
This led to increased demand for contactless payment methods among consumers, which helped grow the smart retail market at a steady pace during the pandemic phase.
It is anticipated that owing to increased security and easy checkout procedure in e-commerce payment process, contactless payment process will remain in high demand with customers during the post-pandemic phase, too, leading to increased growth in overall market.
While smart retail solutions have proven beneficial to different consumer sections, some drawbacks could limit market growth in future.
Growing Risk of Consumer Data Thefts could Dent Growth in Global Smart Retail Market in Future
One of the restraining factors to the growth of smart retail market is they have increased risk of consumer data thefts which could lead to surge in demand for suitable alternatives that offer increased safety and security. Increased demand for alternatives could decrease the smart retail solutions demand and lower market growth.
Another factor that could negatively impact market growth in future is the high maintenance costs incurred, especially with high-end computing systems which could reduce the smart retail solutions demand and affect market growth.
Research and development undertakings could be key, revenue-generating growth strategy for prominent players in global smart retail market, in years to come.
Collaboration with smaller players could help leading smart retail market players expand their market presence and increase their revenue shares.
Leading market player Intel, in January 2020, collaborated with Las Vegas-based retail and entertainment complex ARENA15. The collaboration has helped significantly improve the consumer shopping experience in the last few years in the U.S.
Growth strategies such as launch of new smart retail solutions could help well-established players generate large amounts of revenue and gain a competitive edge over other players.