Global Retail Analytics Market - Segmented By Type (Solutions, Services), Mode of Deployment (On-premise, On-demand), Module Type (Strategy & Planning, Financial Management, Supply Chain Management) and Geography - Growth, Trends, and Forecasts (2018 - 2023)
The global retail analytics market was valued at USD 3.78 billion in 2017, and is projected to reach USD 10.34 billion by 2023, registering a CAGR of 18.26% over the forecast period of 2018-2023.
Retailers have to analyze terabytes of data to accurately understand consumer needs. Retail analytics helps predict a range of consumer preferences, from simple demands to unique tastes. Organizations in the retail sector are using business intelligence (BI) and retail analytics tools, in areas of customer intelligence, merchandising intelligence, and operational intelligence. Factors, such as the need to develop competitive strategies and reduce expenses and operational costs are driving the market. This has accelerated the interest of organizations in the retail sector, in assessing the performance of business operations, such as the supply chain, human resources, and financial performance, from the perspectives of enterprises as well as consumers.
Increased Emphasis on Predictive Analytics
The requirement of accurate forecasts and optimized business processes has increased after the 2008-2013 global economic recession. Most vendors have introduced applications to integrate statistics, predictive analytics models, and forecasting algorithms, into reports, dashboards, and analytics applications. Predictive analytical tools in the retail sector offer customer interaction, in addition to more capabilities for managing back-end activities, such as order management, warehouse logistics, CRM, data analytics, mobile support, and tracking. The growth of the Big Data and Internet of Things is further boosting the use of predictive analysis in the retail analytics market.
Store Operation Segment Accounts for a Significant Market Share
Retail analytics solutions allow organizations to monitor store performance, analyze multiple store functions, improve category management, and increase the efficiency of sales management and marketing promotions, operations, and budgeting. Organizations in the retail sector focus on store operations, in order to access detailed reports in a timely manner and make actionable decisions based on labor planning, store performance management, store profitability, general ledger, category management, inventory, and sales and margins.
Asia-Pacific Occupied a Significant Market Share
Asia-Pacific is expected to lead in terms of growth rate. An increase in the number of organizations in the retail sector has directly impacted the demand for analytics tools. In countries such as India and China, the retail sector is growing and companies are trying to achieve a competitive advantage with the help of innovative technologies. The constant need for organizations in the retail sector to obtain insights about current trends and new market opportunities, together with a complete view on suppliers, distributors, and customers, is driving the demand for retail analytics. IoT is predicted to undergo massive growth in Asia-Pacific in the coming years, and analytical tools play a vital role in enabling the growth of the retail analytics market.
Key Developments in the market