Global Internet of Things (IoT) in Retail Market Size Study & Forecast, by Component (Hardware, Platform, and Services), Application (Operations Management, Customer Experience Optimization, Asset Management, and Advertising & Marketing), Deployment Mode

The Global Internet of Things (IoT) in Retail Market is valued approximately at USD 57.3 billion in 2024 and is anticipated to grow with a growth rate of more than 25.9% over the forecast period 2025-2035. IoT in retail refers to the integration of connected devices, sensors, and intelligent platforms to streamline operations, enhance customer experiences, and optimize supply chain efficiency. From smart shelves and RFID-enabled inventory systems to personalized digital signage and AI-driven analytics, IoT technologies are reshaping how retailers interact with consumers and manage backend operations. This market is driven by rising digital transformation initiatives across the retail sector, growing adoption of cloud-based IoT solutions, and the increasing demand for real-time data to improve operational decision-making and consumer engagement.

The accelerating shift toward omnichannel retail has intensified the need for connected ecosystems, creating significant opportunities for IoT adoption. Retailers are deploying IoT solutions to enable contactless payments, predictive inventory management, and immersive in-store experiences that align with evolving consumer expectations. According to industry data, the surge in global e-commerce sales and heightened consumer reliance on digital shopping channels are compelling retailers to invest in IoT-enabled infrastructure. Moreover, the proliferation of 5G networks, coupled with advances in AI and machine learning, further amplifies IoT capabilities by providing low-latency, high-bandwidth environments for seamless device connectivity. However, challenges around cybersecurity risks, data privacy concerns, and the high cost of deployment may restrain growth in certain regions during the forecast period.

The detailed segments and sub-segments included in the report are:

By Component:
• Hardware
• Platform
• Services

By Application:
• Operations Management
• Customer Experience Optimization
• Asset Management
• Advertising & Marketing

By Deployment Mode:
• On-Premises
• Cloud

By Retail Format:
• Brick-and-Mortar Stores
• E-commerce

By Region:

North America
• U.S.
• Canada

Europe
• UK
• Germany
• France
• Spain
• Italy
• ROE

Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• RoAPAC

Latin America
• Brazil
• Mexico

Middle East & Africa
• UAE
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Cloud Deployment is Expected to Dominate the Market

Cloud deployment mode continues to account for the largest market share in IoT in retail, owing to its scalability, flexibility, and cost-effectiveness. Retailers are increasingly migrating to cloud-based platforms to enable faster deployment of IoT applications, enhance collaboration across distributed operations, and manage data more efficiently. Cloud solutions are especially critical for integrating omnichannel strategies and ensuring seamless connectivity between in-store and online systems. While on-premises deployment remains relevant for enterprises seeking greater control and security, the widespread preference for cloud services positions it as the dominant model moving forward.

Hardware Leads in Revenue Contribution

When segmented by component, hardware solutions such as smart sensors, RFID tags, connected cameras, and beacons hold the largest revenue share. These devices form the physical backbone of IoT infrastructure, enabling retailers to gather critical real-time insights and automate key functions like inventory tracking and shopper analytics. However, platforms and services are projected to grow at a faster pace, driven by demand for advanced data analytics, AI integration, and managed IoT services that help retailers derive actionable insights from connected ecosystems. This dynamic creates a market landscape where hardware remains the revenue leader, while services and platforms fuel long-term growth.

The key regions considered for the Global Internet of Things (IoT) in Retail Market study include Asia Pacific, North America, Europe, Latin America, and the Middle East & Africa. North America is expected to dominate the market in 2025, supported by a strong base of retail technology adoption, presence of global retail chains, and significant investments in digital transformation. The region benefits from early adoption of AI, analytics, and cloud services that enhance IoT deployment. Meanwhile, Asia Pacific is projected to witness the fastest growth during the forecast period, driven by the rapid expansion of e-commerce, increasing smartphone penetration, and favorable government initiatives supporting smart retail infrastructure in markets such as China, India, and Japan. Europe is also witnessing robust growth due to evolving consumer expectations for personalized experiences and the push for sustainability-focused retail operations.

Major market players included in this report are:
• IBM Corporation
• Cisco Systems Inc.
• Intel Corporation
• Google LLC
• Microsoft Corporation
• Amazon Web Services Inc.
• SAP SE
• Qualcomm Technologies Inc.
• Samsung Electronics Co. Ltd.
• Oracle Corporation
• PTC Inc.
• AT&T Inc.
• Huawei Technologies Co. Ltd.
• Hewlett Packard Enterprise
• Software AG

Global Internet of Things (IoT) in Retail Market Report Scope:
• Historical Data – 2023, 2024
• Base Year for Estimation – 2024
• Forecast period - 2025-2035
• Report Coverage - Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
• Regional Scope - North America; Europe; Asia Pacific; Latin America; Middle East & Africa

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained below:

Key Takeaways:
• Market Estimates & Forecast for 10 years from 2025 to 2035.
• Annualized revenues and regional-level analysis for each market segment.
• Detailed analysis of the geographical landscape with country-level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of the competitive structure of the market.
• Demand side and supply side analysis of the market.

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