The Retail Digital Transformation Market is estimated to be valued at US$ 7230.57 Mn or in 2023 and is expected to exhibit a CAGR of 13.0 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Retail digital transformation involves implementation of technologies like big data analytics, Internet of Things, artificial intelligence and cloud computing by retailers to enhance customer experience and business operations. Emerging technologies are enabling retailers to gain real-time insights about customers, manage inventory efficiently, engage customers through digital channels and improve supply chain. Omni-channel retailing is a key trend in retail digital transformation with focus on seamless customer shopping experience across online and offline channels.
One of the major drivers for retail digital transformation is growing preference of customers towards online shopping. Changing demographic patterns and busy lifestyle of customers has driven the demand for convenient shopping options. Moreover, rise of m-commerce through mobile applications has increased the online purchasing habits of customers. This has compelled retailers to shift focus towards digital commerce to cater changing customer demands. Secondly, growing adoption of advanced technologies by major retailers is also fueling the market growth. Adoption of technologies like IoT, AI and cloud computing enable efficient supply chain management, real-time inventory tracking and enhanced customer experience. Use of big data helps retailers to gain valuable insights about customer behavior and preferences. This is helping retailers to customize product offering and adopt targeted marketing strategies.
The retail digital transformation market can be segmented based on component, business type, technology, and verticals. The services segment is dominating the market as it helps organizations implement new technologies and provide support and maintenance. The consulting and integration services sub-segments are witnessing high demand due to the need for digital expertise from retailers.
Political: Developing economies are focusing on digitalization to drive financial inclusion and provide easy access to services. This is boosting the adoption of digital technologies in retail.
Economic: The retail industry is under pressure due to changing consumer behavior and growing acceptance of online shopping. Retailers are investing in digital transformation to enhance operational efficiency and customer experience.
Social: Rising internet and smartphone penetration is increasing the preference for online shopping among consumers. This is fuelling the need for omnichannel integration and personalized digital experiences.
Technological: Emerging technologies like artificial intelligence, cloud, IoT, analytics are enabling new capabilities like predictive analysis, inventory management, and automation. This is helping retailers engage customers better.
The Global Retail Digital Transformation Market Share is expected to witness high growth, exhibiting 13% CAGR over the forecast period, due to increasing adoption of cloud-based technologies. The market size for 2023 is estimated to be US$ 7230.57 Mn.
North America dominates the market currently due to heavy investments by established retailers in advanced technologies. However, Asia Pacific is expected to witness the fastest growth fueled by rapid digitalization of retail sector in countries like China and India and presence of global as well as local players.
Key players operating in the retail digital transformation market are Amazon.com, Inc., MercadoLibre, Inc., eBay, Inc., Otto Group, Wal-Mart Stores, Inc., Snapdeal.com, Alibaba Group Holding Limited, Tesco PLC, and Rakuten, Inc. Walmart invested over $3.3 billion in e-commerce in 2021 to integrate stores and online business. Amazon continues to disrupt the retail landscape with initiatives like Just Walk Out technology and Amazon Go. Alibaba is dominating the China market through initiatives to aid digital transformation of small retailers.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it