Retail Analytics Market

Global Retail Analytics Market Size, Share & Trends Analysis Report By Deployment Mode, By Component (Solution, and Services) By Services Type, By Business Function, By Enterprise Size, By Application, By Regional Outlook and Forecast, 2024 - 2031

Report Id: KBV-22076 Publication Date: April-2024 Number of Pages: 373
2023
USD 6.9 Billion
2031
USD 39 Billion
CAGR
24.5%
Historical Data
2020 to 2022

Market Report Description

The Global Retail Analytics Market size is expected to reach $39 billion by 2031, rising at a market growth of 24.5% CAGR during the forecast period.

Merchandising analysis utilizes retail analytics to optimize product assortments based on customer preferences, market trends, and sales performance. Thus, the merchandising analysis segment captured 18.7% revenue share in the market 2023. Retailers can adapt assortments to satisfy a variety of client needs, find high-demand products, and determine the ideal SKU mix by examining historical sales data, inventory turnover rates, and customer segmentation.

Retail Analytics Market Size - Global Opportunities and Trends Analysis Report 2020-2031

The major strategies followed by the market participants are Partnership as the key developmental strategy to keep pace with the changing demands of end users. For instance, In September, 2023, MicroStrategy, Inc. came into partnership with Praesto Consulting, an IT Services and IT Consulting company. Through this partnership, MicroStrategy, Inc. would empower business users to make informed decisions and expedite the development of new analytic capabilities. Additionally, In May, 2023, Amazon Web Services, Inc. came into partnership with Healthy Together, a US-based health and human services company. Through this partnership, Amazon Web Services, Inc. would provide sophisticated analytics, machine learning, and artificial intelligence features to Healthy Together to enhance their software further.

KBV Cardinal Matrix - Market Competition Analysis

Based on the Analysis presented in the KBV Cardinal matrix; Microsoft Corporation is the forerunners in the Retail Analytics Market. In February, 2024, Amazon Web Services, Inc. came into partnership with o9 Solutions Inc., a software company. Through this partnership, Amazon Web Services, Inc. would enable digital transformations within large enterprises across various sectors globally. Companies such as IBM Corporation, Oracle Corporation, and Amazon Web Services, Inc., are some of the key innovators in the Market.

Retail Analytics Market - Competitive Landscape and Trends by Forecast 2031

Market Growth Factors

Security breaches and fraud incidents can damage a retailer's reputation and erode customer trust. Retail analytics solutions assist merchants in establishing customer trust by exhibiting a commitment to security and fraud prevention.

Additionally, Retail analytics solutions enable e-commerce retailers to monitor website performance, analyze user behavior, and identify areas for improvement to enhance the online shopping experience, reduce cart abandonment rates, and grow conversion rates. Hence, the rapid shift towards e-commerce platforms has been a pivotal factor in driving the growth of the market.

Market Restraining Factors

Cost-prohibitive solutions may prevent smaller retailers or businesses with limited budgets from adopting retail analytics solutions. These organizations may lack the financial resources to invest in expensive software licenses, infrastructure upgrades, and skilled personnel required for analytics initiatives. Thus, high cost and resource constraint can slow down the growth of the market.

Retail Analytics Market Share 2023

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are, Partnerships & Collaborations.

Driving and Restraining Factors
Retail Analytics Market
  • Fraud detection and risk management
  • Rising cross-selling and upselling opportunities
  • Rapid shift towards e-commerce platforms
  • High cost and resource constraint
  • Data quality and integration challenges
  • Growing investments in data infrastructure
  • Increasing voice of the customer (VoC) analysis
  • Adverse impact of regulatory uncertainty
  • Lack of standardization in retail analytics

By Deployment Mode Analysis

On the basis of deployment mode, the market is categorized into on-demand and on-premises. The on-premise segment acquired 32.8% revenue share in the market in 2023. On-premise retail analytics solutions offer retailers greater customization and control over their analytics environments.

By Component Analysis

On the basis of components, the market is segmented into solution and services. In 2023, the solution segment held 75.4% revenue share in the market. Retail analytics solution enables retailers to access real-time insights and analytics dashboards that provide up-to-date information on sales performance.

Retail Analytics Market Share and Industry Analysis Report 2023

By Services Analysis

Under services type, the market is divided into professional and managed. The managed segment acquired 33.9% revenue share in the market in 2023. Managed service providers offer access to specialized expertise in data analytics, technology, and industry best practices.

By Business Function Analysis

By business function, the market is bifurcated into supply chain, sales & marketing, strategy & planning, human resource (HR), in-store operations and others. In 2023, the supply chain segment dominated the market with 38.2% revenue share. Retail analytics helps retailers optimize inventory management by providing insights into inventory turnover, stock levels, and SKU performance.

By Application Analysis

Based on application, the market is categorized into inventory analysis, merchandising analysis, pricing analysis, yield analysis, performance analysis, customer management, and others. In 2023, the inventory analysis segment registered 29.8% revenue share in the market. Inventory analysis tracks inventory turnover rates and aging to identify slow-moving or obsolete inventory.

By Enterprises Size Analysis

By enterprise size, the market is segmented into small & medium enterprise and large enterprise. The small & medium enterprise segment garnered 31.7%revenue share in the market in 2023. Customers and SMEs frequently maintain more intimate relationships.

Free Valuable Insights: Global Retail Analytics Market size to reach USD 39 Billion by 2031

By Regional Analysis

Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the Asia Pacific region acquired 28.5% revenue share in the market. The Asia Pacific region is home to some of the fastest-growing retail industries in the world, fueled by rising incomes, urbanization, and the expanding middle class.

Market Competition and Attributes

Retail Analytics Market Competition and Attributes

The Retail Analytics Market is fiercely competitive, driven by a myriad of factors. Major players like Microsoft Corporation, Oracle Corporation, SAP SE, and others dominate the landscape, alongside a multitude of niche players and startups specializing in specific market segments. Technological advancements, particularly in AI, ML, and big data analytics, are reshaping the industry, empowering retailers to gain deeper insights into customer behavior and operational efficiency. Data integration and management play pivotal roles, with retailers seeking seamless integration of data from diverse sources like POS systems, e-commerce platforms, and social media.

Retail Analytics Market Report Coverage
Report Attribute Details
Market size value in 2023 USD 6.9 Billion
Market size forecast in 2031 USD 39 Billion
Base Year 2023
Historical Period 2020 to 2022
Forecast Period 2024 to 2031
Revenue Growth Rate CAGR of 24.5% from 2024 to 2031
Number of Pages 373
Number of Tables 643
Report coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives
Segments covered Component, Business Function, Enterprise Size, Deployment Mode, Application, Region
Country scope
  • North America (US, Canada, Mexico, and Rest of North America)
  • Europe (Germany, UK, France, Russia, Spain, Italy, and Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Australia, Malaysia, and Rest of Asia Pacific)
  • LAMEA (Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA)
Companies Included Amazon Web Services, Inc. (Amazon.com, Inc.), HCL Technologies Ltd. (HCL Enterprises), IBM Corporation, Microsoft Corporation, MicroStrategy, Inc., Oracle Corporation, Salesforce, Inc., SAP SE, SAS Institute, Inc., Teradata Corporation
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Recent Strategies Deployed in the Market

  • Feb-2024: SAS Institute, Inc. came into partnership with Carahsoft Technology Corporation, a privately held business located in Reston, VA that sells IT hardware, software, and consulting services. Through this partnership, SAS Institute, Inc. would introduce analytics, AI, and data management solutions to the public sector.
  • Feb-2024: Amazon Web Services, Inc. came into partnership with o9 Solutions Inc., a software company. Through this partnership, Amazon Web Services, Inc. would enable digital transformations within large enterprises across various sectors globally.
  • Jan-2024: SAP SE introduced AI capabilities "Predictive Demand Planning and Predictive Replenishment". The latest features incorporate SAP's unparalleled industry knowledge and integrated SAP Business AI technology, providing genuine end-to-end retail solutions.
  • Jan-2024: Microsoft Corporation introduced "Copilot Templates" on Azure OpenAI service. The Copilot templates aid retailers in creating personalized shopping experiences and enhancing store operations.
  • Sep-2023: MicroStrategy, Inc. came into partnership with Praesto Consulting, an IT Services and IT Consulting company. Through this partnership, MicroStrategy, Inc. would empower business users to make informed decisions and expedite the development of new analytic capabilities.
  • Sep-2023: Amazon Web Services, Inc. came into partnership with Anthropic, an American artificial intelligence startup company. Through this partnership, Amazon Web Services, Inc. would combine its industry-leading technology and expertise in safer generative artificial intelligence (AI) to expedite the advancement of Anthropic's forthcoming foundational models and ensure broad accessibility to AWS customers.

List of Key Companies Profiled

  • Amazon Web Services, Inc. (Amazon.com, Inc.)
  • HCL Technologies Ltd. (HCL Enterprises)
  • IBM Corporation
  • Microsoft Corporation
  • MicroStrategy, Inc.
  • Oracle Corporation
  • Salesforce, Inc.
  • SAP SE
  • SAS Institute, Inc.
  • Teradata Corporation

Retail Analytics Market Report Segmentation

By Deployment Mode

  • On-demand
  • On-premise

By Component

  • Solution
  • Services
    • Professional
    • Managed

By Business Function

  • Supply Chain
  • Strategy & Planning
  • Sales & Marketing
  • In-store Operation
  • Human Resource (HR) & Others

By Enterprise Size

  • Large Enterprise
  • Small & Medium Enterprise

By Application

  • Inventory Analysis
  • Yield Analysis
  • Performance Analysis
  • Merchandising Analysis
  • Customer Management
  • Pricing Analysis
  • Others

By Geography

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • UK
    • France
    • Russia
    • Spain
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Malaysia
    • Rest of Asia Pacific
  • LAMEA
    • Brazil
    • Argentina
    • UAE
    • Saudi Arabia
    • South Africa
    • Nigeria
    • Rest of LAMEA

Frequently Asked Questions About This Report

This Market size is expected to reach $39 billion by 2031.

Fraud detection and risk management are driving the Market in coming years, however, High cost and resource constraint restraints the growth of the Market.

Amazon Web Services, Inc. (Amazon.com, Inc.), HCL Technologies Ltd. (HCL Enterprises), IBM Corporation, Microsoft Corporation, MicroStrategy, Inc., Oracle Corporation, Salesforce, Inc., SAP SE, SAS Institute, Inc., Teradata Corporation

The expected CAGR of this Market is 24.5% from 2024 to 2031.

The On-demand segment is leading the Market by Deployment Mode in 2023; thereby, achieving a market value of $28.3 billion by 2031.

The North America region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $13.3 billion by 2031.

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