Global Retail Cloud Market - Segmented by Type of Solution (Supply Chain Management, Workforce Management, Customer Management), Type of Model (Infrastructure as a Service, Platform as a Service, Software as a Service), Type of Deployment (Public Cloud, Private Cloud, Hybrid Cloud), Size of Organization (Small and Medium Enterprises (SMEs), Large Enterprises), and Region - Growth, Trends, and Forecast (2018 - 2023)
The global retail cloud market was valued at USD 13.24 billion in 2017 and is estimated to reach USD 40.75 billion by 2023, recording a CAGR of 20.61% over the forecast period of 2018–2023. The scope of the report is limited to the type of solution, model, deployment method, and organization size. The regions considered in the scope of the report include North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
The retail industry is undergoing tremendous change, and the business environment has become a truly multi-channel world. The increased volume of data that needs to be processed, to make crucial decisions, especially in deducing and utilizing the marketing and merchandising analytics has prompted the demand of cloud in the retail market.
Increasing adoption of smartphones and shift toward omni-channel experience are a few factors driving the retail cloud market, while the high cost of deployment is hindering the market growth.
Software as a Service
Software as a Service (SaaS) application is implemented for addressing various business functions, such as analytics and business intelligence, accounting and finance, collaboration, customer relationship management (CRM), human resources (HR), enterprise resource planning (ERP), and security.
The ever-changing business requirements are making retail industries less willing to integrate and maintain expensive on-premise solutions. Hence, the SaaS computing model is serving as one of the attractive cloud solutions for the companies looking to meet their diverse logistic needs and overcome economic challenges. In addition, to manage the demand for products, ensuring a balanced portfolio being offered to customers is boosting the adoption of SaaS-based resource management solutions. SaaS applications are increasingly being used in small & medium enterprises (SMEs), which are unlikely to be attracted by the prospect of deploying and managing on-premise infrastructure and applications.
Asia-Pacific to Register the Fastest Growth
Though North America was expected to hold the largest market share and dominate the retail cloud market in 2016, yet the Asia-Pacific region is expected to witness the highest growth rate during the forecast period, owing to developments in India and China. Over the last two years, the public cloud services market in India has seen phenomenal growth–reaching USD 1.8 billion in 2017, and this figure is expected to reach USD 4.1 billion by 2020. Today, India is second only to China as the largest and fastest-growing cloud services market in Asia-Pacific.
There is tremendous potential in the region for the adoption of cloud computing in the retail sector, to create better and productive business opportunities. The increasing adoption of retail cloud solutions in this region can be attributed to the economic outlook in Asia, which is poised to be favorable for retailers, owing to the developing cloud infrastructure in the region. The growing trend toward cloud-based solutions has also been giving rise to the growth of the retail cloud market in the region. The various factors contributing to this growth are, the increasing adoption of digital business strategies, organizations' shift toward cloud-based solutions and services and preference of enterprises to personalize the in-store experiences of consumers to provide them a better and more interactive shopping experience.
Key Developments in the Market
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