Australia Smart Retail Market Overview, 2030

The Australian Smart Retail Market is driven by rapid technological advancements and a shift in consumer behavior towards digital-first shopping experiences. The widespread use of smartphones, along with robust telecommunications infrastructure, is propelling retailers to integrate technologies such as AI, IoT, and big data analytics. These tools enable smarter inventory management, personalized shopping experiences, and improved operational efficiency. Companies like Woolworths, Coles, and Kogan.com are leveraging AI for demand forecasting and smart inventory systems, enhancing the accuracy of product availability while reducing waste. Additionally, IoT-enabled smart shelves and contactless payment systems are becoming essential components of the market, ensuring real-time inventory tracking and frictionless customer transactions. Major cities like Sydney and Melbourne are leading the demand for these innovations, as consumers seek faster deliveries and ethically sourced products. Blockchain technology is gaining traction as it ensures transparency in supply chains, aligning with growing consumer concerns about sustainability. With omnichannel retail strategies gaining momentum, businesses are successfully integrating online and offline shopping experiences, offering consumers seamless access to products across platforms. This convergence of digital and physical retail is helping retailers stay competitive in a rapidly evolving landscape. Government-supported digital transformation initiatives further encourage retailers to invest in integrated solutions, enhancing market competitiveness and enabling both large and small players to thrive in Australia’s dynamic smart retail landscape.

According to the research report Australia Smart Retail Market Overview, 2030, published by Bonafide Research, the Australia Smart Retail Market is anticipated to grow at more than 27.94% CAGR from 2025 to 2030. The market is fueled by the continuous evolution of smart technologies and supportive regulatory frameworks that ensure fair and secure practices within the retail sector. The Australian Smart Retail Market thrives with innovations like AI-driven personalization, IoT-enabled inventory systems, and smart payment solutions. However, to sustain this growth, it’s essential for retailers to comply with regulations such as the Australian Consumer Law (ACL) and cybersecurity standards, which protect consumer rights and maintain trust. These regulations prevent unfair practices like misleading pricing, which is carefully monitored by the Australian Competition and Consumer Commission (ACCC). Retailers must also adopt certifications such as ISO 27001 for cybersecurity and embrace government-backed trade programs, like digital transformation grants, which assist small and medium-sized enterprises (SMEs) in reducing the financial burden of adopting advanced technologies. These grants enhance market competitiveness by allowing SMEs to integrate cutting-edge solutions like AI and blockchain for supply chain transparency. As the demand for seamless, secure, and personalized shopping grows, these regulatory and technological advancements ensure that the Australian Smart Retail Market remains dynamic and responsive to the needs of both retailers and consumers.

Hardware solutions include Internet of Things-enabled devices such as smart shelves, advanced point-of-sale terminals, and facial recognition systems, which enable real-time inventory management, streamlined checkouts, and personalized in-store promotions. Major retailers like Woolworths and Coles deploy these technologies in high-traffic urban centers like Sydney and Melbourne to optimize store operations and enhance customer engagement. Software solutions comprise artificial intelligence-driven platforms, data analytics tools, and inventory management systems, which empower retailers to harness consumer data for accurate demand forecasting, dynamic pricing, and targeted marketing strategies. Kogan.com, for example, leverages software to enhance its e-commerce platform, ensuring competitive pricing and operational agility in a rapidly growing online retail environment. Services, including system integration, consulting, and ongoing managed support, are critical for deploying and maintaining complex smart retail ecosystems, particularly for smaller retailers transitioning to digital frameworks. Service providers deliver expertise in integrating hardware and software, ensuring scalability and adherence to regulatory requirements such as the Australian Consumer Law, which mandates fair trading practices, and cybersecurity standards like ISO 27001 to protect consumer data. The demand for services is fueled by the technical complexity of smart retail technologies, with consulting services guiding retailers through data privacy and compliance challenges. Hardware solutions anchor physical store enhancements, while software drives e-commerce and omnichannel capabilities, reflecting Australia’s high smartphone penetration and increasing online retail activity. Services facilitate seamless adoption across diverse retail formats, bridging technical and operational gaps.

IoT devices, such as smart shelves and beacons, are widely implemented by retailers like Woolworths to enable real-time inventory tracking and personalized customer interactions, optimizing store efficiency in urban centers like Sydney and Melbourne. AI facilitates advanced demand forecasting, dynamic pricing, and facial recognition for targeted promotions, with Coles leveraging AI to streamline supply chain operations and enhance customer experiences. Cloud computing provides scalable infrastructure for data storage and processing, supporting omnichannel retail by integrating e-commerce platforms with physical stores, as demonstrated by Kogan.com’s cloud-based systems. Big data analytics processes extensive consumer datasets to generate actionable insights for hyper-personalized marketing and operational optimization, aligning with Australia’s tech-savvy consumer base. Robotics, including automated checkout systems and warehouse automation, improves speed and accuracy in order fulfillment, particularly in high-demand metropolitan areas. Emerging technologies further enhance the market’s capabilities: blockchain ensures transparent supply chains, addressing consumer demand for ethical sourcing; 5G supports faster mobile payments and seamless in-store connectivity, leveraging Australia’s advanced telecommunications infrastructure; AR/VR enables immersive online shopping experiences like virtual try-ons; edge computing delivers low-latency data processing for real-time applications; and digital twins, though in early stages, offer potential for optimizing store layouts. These technologies collectively drive efficiency and meet consumer expectations for rapid delivery and personalized services. Compliance with the Australian Consumer Law and cybersecurity standards like ISO 27001 ensures data security, fostering trust in technology-driven retail ecosystems.

On-premise deployments involve locally hosted infrastructure, including point-of-sale systems, inventory management servers, and security hardware, providing retailers like Woolworths and Coles with enhanced control over data and system customization. This mode is preferred by large retailers in urban hubs like Sydney and Melbourne, where high transaction volumes and sensitive consumer data demand robust security and tailored configurations to meet specific operational needs. On-premise solutions ensure compliance with the Australian Consumer Law, which mandates fair trading practices, and cybersecurity standards like ISO 27001, mitigating risks of data breaches and ensuring operational reliability. However, on-premise deployments require significant capital investment and ongoing maintenance, posing challenges for smaller retailers. Cloud-based deployments, by contrast, offer scalable, cost-efficient solutions hosted on remote servers, enabling seamless integration of e-commerce and physical retail operations. Kogan.com leverages cloud platforms to support dynamic pricing and omnichannel strategies, aligning with Australia’s tech-savvy consumers who prioritize rapid delivery and personalized experiences. Cloud solutions facilitate real-time data analytics, artificial intelligence-driven personalization, and inventory synchronization, capitalizing on Australia’s advanced telecommunications infrastructure for low-latency performance. They reduce IT overhead, making them accessible to startups and mid-sized retailers seeking agility. Compliance with data protection regulations remains paramount, with cloud providers incorporating advanced security features to address privacy concerns and build consumer trust. Both deployment modes support technologies like blockchain for transparent supply chains, addressing consumer demand for ethical sourcing. Government-supported digital transformation initiatives, such as grants for technology adoption, encourage cloud-based solutions among smaller retailers, enhancing market accessibility.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Smart Retail Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Solution Type
• Hardware
• Software
• Services

By Technology
• IoT
• Artificial Intelligence (AI)
• Cloud Computing
• Big Data Analytics
• Robotics
• Others (AR/VR, blockchain, 5G, edge computing, and digital twins)

By Deployment Mode
• Cloud-Based
• On-Premise

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.