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Connected Retail Market by Offering (Hardware, Services, Software), Application (Checkout & Billing, Consumer Engagement, Inventory Management), Enterprise Size - Global Forecast 2026-2032

Publisher 360iResearch
Published Jan 13, 2026
Length 193 Pages
SKU # IRE20746075

Description

The Connected Retail Market was valued at USD 42.29 billion in 2025 and is projected to grow to USD 48.40 billion in 2026, with a CAGR of 15.73%, reaching USD 117.61 billion by 2032.

A concise orienting overview that frames how digital and physical experiences are converging to redefine retail operations and customer expectations globally

The retail sector is undergoing a rapid and sustained transformation as digital capabilities converge with physical storefronts, reshaping consumer expectations and operational imperatives. Advances in connected technologies are enabling retailers to synchronize inventory, personalize customer interactions, and automate checkout experiences while extracting richer insights from in-store behavior. These developments are not isolated; rather, they reflect an industry-wide shift toward seamless omnichannel experiences where physical and digital touchpoints operate as a unified ecosystem.

In practical terms, retailers are prioritizing technologies that strengthen real-time visibility across supply chains and enhance the in-store experience. The proliferation of sensors, digital displays, and cloud-based software has lowered barriers to integrating data streams that were previously siloed. Consequently, investments are shifting from point solutions toward integrated platforms that support customer engagement, inventory accuracy, and operational efficiency. This report synthesizes these dynamics and offers decision-grade insights designed to help leaders align strategy, execution, and investment to the new realities of connected retail.

In-depth analysis of systemic shifts reshaping retail strategy where customer experience, automation, and platform economics converge to redefine vendor and retailer relationships

Over the last several years, the landscape of retail has been altered by transformative shifts that extend beyond singular technologies to encompass new business models and ecosystem partnerships. Consumer demand for frictionless purchasing and enhanced personalization is catalyzing adoption of in-store digital signage, contactless payment solutions, and inventory visibility tools. Simultaneously, supply chain volatility and labour market pressures are accelerating interest in automation and managed services that reduce operational complexity while preserving service levels.

Another fundamental shift is the maturation of software-driven services that turn hardware deployments into recurring revenue streams. For example, beacon hardware and digital signage are increasingly bundled with analytic platforms and content management capabilities that deliver ongoing value beyond the initial deployment. Edge computing and lightweight AI are also enabling richer in-store analytics without excessive dependence on centralized processing, thereby improving responsiveness and privacy controls. As a result, technology vendors, systems integrators, and retailers are forming closer partnerships to co-design solutions that address both consumer-facing experiences and back-end efficiencies. These shifts are reshaping procurement patterns, contract structures, and the metrics by which success is measured, emphasizing lifecycle value and interoperability over simple feature sets.

A carefully reasoned review of how recent United States tariff developments are altering sourcing, design choices, and supplier strategies for hardware-centric retail deployments

Policy developments and tariff adjustments introduced by the United States in recent cycles have introduced another layer of complexity for global sourcing strategies, particularly for hardware-intensive segments of connected retail. Tariff actions can affect the landed cost of beacon devices, digital signage displays, RFID tags and readers, and the discrete components that feed into those assemblies. Importantly, the cumulative impact of tariff measures is not only a direct cost consideration but also a catalyst for operational adjustments such as supplier diversification, nearshoring of manufacturing, and redesign of product BOMs to mitigate exposure.

In response to tariff-driven cost pressures, many procurement teams have begun reassessing supplier footprints and accelerating qualification of alternative vendors across different geographies. This is accompanied by increased collaboration between product design and sourcing teams to understand where component substitution or modular design can reduce tariff exposure without degrading performance. Additionally, professional and managed services providers are adapting commercial models to absorb some implementation risk while offering phased deployment approaches that smooth capital expenditures. Consequently, organizations that proactively evaluate total-cost-of-ownership and supply chain resilience are better positioned to preserve margin and maintain rollout timelines, even as trade policy adds variability to the procurement calculus.

Comprehensive segmentation-driven insights drawing connections between offering types, practical applications, and enterprise scale to inform differentiated deployment and investment priorities

Insightful segmentation reveals differentiated growth pathways and adoption dynamics when the connected retail landscape is viewed through offering, application, and enterprise size lenses. Based on offering, the ecosystem spans hardware, services, and software where hardware encompasses beacon devices, digital signage displays, and RFID tags and readers; services cover managed services and professional services; and software includes customer relationship management platforms, inventory management applications, and point-of-sale systems. Each offering category brings distinct procurement cycles and commercial models: hardware often requires upfront investment and integration, services create recurring operational relationships, and software is increasingly delivered as subscription-based solutions that enable continuous feature evolution.

Based on application, deployments align to checkout and billing, consumer engagement, and inventory management where checkout and billing manifest through mobile payment solutions and modern point-of-sale systems; consumer engagement is realized via digital signage solutions and loyalty management systems; and inventory management leverages stock monitoring systems alongside supply chain management solutions. These application groupings illustrate how capabilities intersect to deliver end-to-end experiences: for example, inventory accuracy driven by RFID and stock monitoring supports quicker checkout and more relevant consumer engagement through real-time availability signals. Based on enterprise size, adoption profiles differ between large enterprises and small and medium-sized enterprises, with larger organizations prioritizing scalability, standardization, and multi-site orchestration while smaller operators favor rapid time-to-value, simplified integration, and cost-effective managed services. Together, these segmentation perspectives clarify where investments should be prioritized to unlock operational efficiencies and customer-facing improvements.

Regional dynamics and operational realities across the Americas, Europe Middle East & Africa, and Asia-Pacific that shape adoption, sourcing, and implementation strategies for retail technology

Regional dynamics influence technology adoption pathways, supply chain resilience strategies, and the pace of ecosystem maturation across the Americas, Europe, Middle East & Africa, and Asia-Pacific. In the Americas, retail technology investment is frequently driven by customer experience differentiation and omnichannel integration, supported by dense urban markets and advanced payments infrastructure. This region also demonstrates a high degree of systems integration activity where large-scale pilots translate into multi-site rollouts, albeit with significant focus on regulatory compliance and data privacy considerations.

In Europe, Middle East & Africa, adoption patterns are heterogeneous, with Western European markets emphasizing sustainability, energy-efficient displays, and privacy-aware analytics, while emerging markets within the same region prioritize affordable hardware and managed service models that lower operational burdens. The Asia-Pacific region continues to lead in scale and innovation velocity, exhibiting rapid adoption of contactless payment ecosystems, advanced digital signage networks, and vertically integrated manufacturer-supplier relationships that compress development cycles. Across all regions, regional trade policies and local supply chain capabilities are shaping decisions about where to source hardware, how to structure service contracts, and which software architectures best support cross-border operations. These distinctions underscore the importance of tailoring engagement models and technical roadmaps to regional realities rather than relying on a one-size-fits-all approach.

Competitive landscape analysis highlighting how hardware specialists, software platforms, systems integrators, and service providers collaborate to deliver end-to-end retail solutions

The competitive landscape in connected retail is defined by a mix of specialized hardware manufacturers, software platform providers, systems integrators, and service firms that together form value chains delivering integrated solutions. Hardware manufacturers compete on device reliability, power efficiency, and ease of integration, while software providers differentiate through analytics capability, API richness, and the ability to unify customer and inventory data. Systems integrators and managed services firms play a critical role in bridging product capability with operational execution, offering deployment expertise, change management, and ongoing support.

Strategic partnerships and channel models are increasingly important as vendors seek to accelerate adoption through joint go-to-market arrangements and co-developed solutions. Simultaneously, product convergence is encouraging cross-disciplinary competence, where successful firms not only provide technology but also deliver domain expertise in retail operations, merchandising workflows, and consumer engagement strategies. For buyers, vendor selection hinges on demonstrated interoperability, long-term support commitments, and the ability to articulate quantified operational benefits. As such, competitive advantage accrues to firms that invest in open architectures, robust partner ecosystems, and proven deployment playbooks that reduce implementation risk for retail clients.

Actionable, operationally grounded recommendations to align procurement, technology, and organizational processes for resilient and scalable retail transformation

Industry leaders must adopt pragmatic strategies that align technology selection with operational objectives and risk tolerance while preserving flexibility for future innovation. Begin by prioritizing interoperability and open standards when selecting vendors, since solutions that integrate cleanly with existing POS, inventory, and CRM systems reduce both project friction and total lifecycle risk. In parallel, establish cross-functional governance that includes procurement, IT, operations, and merchandising to ensure that technology deployments are accompanied by process redesign and staff enablement that capture targeted value.

To address supply chain and cost variability, diversify supplier relationships and evaluate modular hardware designs that permit component substitution without wholesale reengineering. Consider managed services partnerships to accelerate deployments and shift day-to-day operational burdens to experienced providers, thereby enabling internal teams to focus on strategy and customer experience. Finally, experiment with phased rollouts and rigorous measurement frameworks to validate assumptions, refine configurations, and scale incrementally. These steps reduce implementation risk while preserving the agility needed to adapt to evolving consumer behavior and regulatory constraints.

Transparent mixed-methods research approach combining primary interviews, technical due diligence, and secondary-source synthesis to produce actionable and reproducible findings

The research employed a mixed-methods approach that combined primary interviews, technical due diligence, and secondary-source synthesis to ensure a robust evidence base. Primary inputs included structured interviews with retail operators, procurement leaders, solution architects, and service providers to capture deployment realities, pain points, and decision criteria. Technical due diligence reviewed product specifications, integration patterns, and deployment architectures to assess interoperability and operational overhead. Secondary research compiled publicly available regulatory guidance, technology standards, and industry white papers to contextualize trends and validate thematic findings.

Qualitative insights were triangulated with vendor literature and deployment case examples to ensure that conclusions reflect implementable practices rather than theoretical models. Throughout the research, attention was paid to data governance, privacy frameworks, and regional regulatory differences to provide recommendations that are sensitive to compliance risk. The methodology emphasizes transparency and reproducibility, and interested stakeholders can request methodological appendices that detail interview protocols, vendor selection criteria, and the rubric used for comparative assessment.

A forward-looking synthesis that distills strategic priorities and organizational prerequisites for converting connected retail technologies into durable business outcomes

Connected retail is at an inflection point where technological maturity, changing consumer expectations, and operational imperatives converge to create significant opportunities for differentiation. The most successful adopters will be those that marry thoughtful technology selection with investments in organizational readiness, supply chain resilience, and measurable KPIs that track both customer outcomes and operational efficiency. Importantly, the emphasis should be on modular, interoperable solutions that reduce vendor lock-in and enable continuous improvement across the retail value chain.

Looking ahead, retailers and solution providers that prioritize privacy-aware analytics, sustainable hardware choices, and flexible deployment models will have a distinct advantage in balancing customer experience with cost and compliance demands. By combining rigorous vendor selection, phased implementation, and strong cross-functional governance, organizations can capture the upside of connected retail while managing the complexities of procurement, integration, and regulatory change. This study serves as a practical guide for decision-makers seeking to translate technological potential into durable business results.

Note: PDF & Excel + Online Access - 1 Year

Table of Contents

193 Pages
1. Preface
1.1. Objectives of the Study
1.2. Market Definition
1.3. Market Segmentation & Coverage
1.4. Years Considered for the Study
1.5. Currency Considered for the Study
1.6. Language Considered for the Study
1.7. Key Stakeholders
2. Research Methodology
2.1. Introduction
2.2. Research Design
2.2.1. Primary Research
2.2.2. Secondary Research
2.3. Research Framework
2.3.1. Qualitative Analysis
2.3.2. Quantitative Analysis
2.4. Market Size Estimation
2.4.1. Top-Down Approach
2.4.2. Bottom-Up Approach
2.5. Data Triangulation
2.6. Research Outcomes
2.7. Research Assumptions
2.8. Research Limitations
3. Executive Summary
3.1. Introduction
3.2. CXO Perspective
3.3. Market Size & Growth Trends
3.4. Market Share Analysis, 2025
3.5. FPNV Positioning Matrix, 2025
3.6. New Revenue Opportunities
3.7. Next-Generation Business Models
3.8. Industry Roadmap
4. Market Overview
4.1. Introduction
4.2. Industry Ecosystem & Value Chain Analysis
4.2.1. Supply-Side Analysis
4.2.2. Demand-Side Analysis
4.2.3. Stakeholder Analysis
4.3. Porter’s Five Forces Analysis
4.4. PESTLE Analysis
4.5. Market Outlook
4.5.1. Near-Term Market Outlook (0–2 Years)
4.5.2. Medium-Term Market Outlook (3–5 Years)
4.5.3. Long-Term Market Outlook (5–10 Years)
4.6. Go-to-Market Strategy
5. Market Insights
5.1. Consumer Insights & End-User Perspective
5.2. Consumer Experience Benchmarking
5.3. Opportunity Mapping
5.4. Distribution Channel Analysis
5.5. Pricing Trend Analysis
5.6. Regulatory Compliance & Standards Framework
5.7. ESG & Sustainability Analysis
5.8. Disruption & Risk Scenarios
5.9. Return on Investment & Cost-Benefit Analysis
6. Cumulative Impact of United States Tariffs 2025
7. Cumulative Impact of Artificial Intelligence 2025
8. Connected Retail Market, by Offering
8.1. Hardware
8.1.1. Beacon Devices
8.1.2. Digital Signage Displays
8.1.3. Rfid Tags & Readers
8.2. Services
8.2.1. Managed Services
8.2.2. Professional Services
8.3. Software
8.3.1. Customer Relationship Management Software
8.3.2. Inventory Management Software
8.3.3. Point-of-Sale Software
9. Connected Retail Market, by Application
9.1. Checkout & Billing
9.1.1. Mobile Payment Solutions
9.1.2. Point-of-Sale Systems
9.2. Consumer Engagement
9.2.1. Digital Signage Solutions
9.2.2. Loyalty Management Systems
9.3. Inventory Management
9.3.1. Stock Monitoring Systems
9.3.2. Supply Chain Management Solutions
10. Connected Retail Market, by Enterprise Size
10.1. Large Enterprises
10.2. Smes
11. Connected Retail Market, by Region
11.1. Americas
11.1.1. North America
11.1.2. Latin America
11.2. Europe, Middle East & Africa
11.2.1. Europe
11.2.2. Middle East
11.2.3. Africa
11.3. Asia-Pacific
12. Connected Retail Market, by Group
12.1. ASEAN
12.2. GCC
12.3. European Union
12.4. BRICS
12.5. G7
12.6. NATO
13. Connected Retail Market, by Country
13.1. United States
13.2. Canada
13.3. Mexico
13.4. Brazil
13.5. United Kingdom
13.6. Germany
13.7. France
13.8. Russia
13.9. Italy
13.10. Spain
13.11. China
13.12. India
13.13. Japan
13.14. Australia
13.15. South Korea
14. United States Connected Retail Market
15. China Connected Retail Market
16. Competitive Landscape
16.1. Market Concentration Analysis, 2025
16.1.1. Concentration Ratio (CR)
16.1.2. Herfindahl Hirschman Index (HHI)
16.2. Recent Developments & Impact Analysis, 2025
16.3. Product Portfolio Analysis, 2025
16.4. Benchmarking Analysis, 2025
16.5. Amazon.com, Inc.
16.6. C.H. Robinson Worldwide, Inc.
16.7. Carrefour S.A.
16.8. CEVA Logistics by CMA CGM Group
16.9. Costco Wholesale Corporation
16.10. DHL International GmbH by Deutsche Post AG
16.11. JD.com, Inc.
16.12. Kroger Co.
16.13. Lineage, Inc.
16.14. Target Corporation
16.15. Tesco PLC
16.16. The Home Depot, Inc.
16.17. Walgreens Boots Alliance, Inc.
16.18. Walmart Inc.
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