Internet of Things (IoT) in Retail

Global Internet of Things (IoT) in Retail Market to Reach US$138.2 Billion by 2030

The global market for Internet of Things (IoT) in Retail estimated at US$47.1 Billion in the year 2024, is expected to reach US$138.2 Billion by 2030, growing at a CAGR of 19.7% over the analysis period 2024-2030. Software, one of the segments analyzed in the report, is expected to record a 20.7% CAGR and reach US$72.0 Billion by the end of the analysis period. Growth in the Hardware segment is estimated at 18.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$13.3 Billion While China is Forecast to Grow at 18.6% CAGR

The Internet of Things (IoT) in Retail market in the U.S. is estimated at US$13.3 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$20.6 Billion by the year 2030 trailing a CAGR of 18.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 17.5% and 16.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.2% CAGR.

Global Internet of Things (IoT) in Retail Market - Key Trends and Drivers Summarized

How Is the Internet of Things (IoT) Transforming the Retail Industry?

The Internet of Things (IoT) is significantly reshaping the retail industry by enhancing both operational efficiency and the customer experience. IoT technologies enable retailers to optimize inventory management, automate supply chains, and provide personalized shopping experiences. With IoT-enabled devices such as smart shelves, RFID tags, and connected point-of-sale systems, retailers can monitor inventory levels in real-time, preventing stockouts and improving inventory accuracy. Moreover, IoT solutions like beacon technology and smart shopping carts are used to deliver personalized promotions to customers based on their shopping habits and preferences. As a result, IoT is helping retailers not only streamline operations but also build stronger relationships with customers by offering tailored shopping experiences.

How Are Technological Advancements Driving IoT in Retail?

Technological advancements, including artificial intelligence (AI), machine learning (ML), and sensor technology, are accelerating the adoption of IoT in the retail sector. AI and ML are being integrated into IoT platforms to analyze vast amounts of data from connected devices, providing insights that retailers can use to optimize store layouts, predict demand, and improve customer engagement. Advanced sensor technologies, such as RFID and NFC, are enabling real-time tracking of products throughout the supply chain, offering greater visibility and control over inventory. Additionally, advancements in facial recognition and mobile payment technologies are enhancing in-store security and creating frictionless checkout experiences. These technologies are making IoT solutions more efficient, scalable, and adaptable to the evolving needs of the retail industry.

How Do Market Segments Define the Growth of IoT in Retail?

Components include hardware such as sensors, smart shelves, and connected point-of-sale terminals; software platforms for inventory management, customer analytics, and security; and services such as system integration and support. Key applications of IoT in retail include supply chain management, inventory tracking, personalized marketing, and smart checkout solutions, with inventory management and personalized marketing leading the market due to the focus on optimizing operations and enhancing the customer experience. Geographically, North America dominates the market due to early adoption of IoT technologies, while Asia-Pacific is expected to see rapid growth as retailers in the region embrace digital transformation to stay competitive in a fast-evolving retail landscape.

What Factors Are Driving the Growth in the IoT in Retail Market?

The growth in the IoT in retail market is driven by several factors, including the increasing demand for operational efficiency, advancements in connected device technologies, and the growing focus on enhancing the customer experience. Retailers are adopting IoT solutions to streamline inventory management, reduce costs, and improve supply chain transparency. Technological innovations such as AI-driven analytics and advanced sensors are enabling retailers to gain real-time insights into customer behavior, helping them deliver personalized shopping experiences. Additionally, the rise of omnichannel retail strategies and the growing need for seamless in-store and online integration are pushing retailers to invest in IoT technologies to stay competitive in an increasingly digital retail environment.

SCOPE OF STUDY:

The report analyzes the Internet of Things (IoT) in Retail market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Software, Hardware, Services); Application (Operations Management, Asset Management, Customer Experience Management, Advertising & Marketing)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 37 Featured) -

• Accenture
• Allerin
• Amazon Web Services
• AT&T
• Bosch.Io
• Cisco
• Google
• Happiest Minds
• Huawei
• IBM
• Intel
• Microsoft
• NEC Corporation
• Oracle
• PTC
• SAP
• Sierra Wireless
• Software AG
• Telit
• Vodafone

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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