May 20, 2024
Retail Digital Transformation Market

Retail Digital Transformation Market to Witness Strong Growth due to Increasing Adoption of Advanced Technologies

The retail digital transformation market has been gaining significant traction over the past few years owing to growing consumer preference for online shopping and rising focus of retailers on enhancing customer experience. Digital technologies enable retailers to seamlessly integrate online and offline channels and provide personalized experiences to customers. Advanced solutions like cloud computing, big data analytics, AI, IoT, and mobility solutions help retailers optimize inventory management, streamline operations, facilitate Omni channel selling, and gain real-time insights into customer behavior.

The Retail Digital Transformation Market Demand is estimated to be valued at US$ 8,329.62 million in 2024 and is expected to exhibit a CAGR of 6.7% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the retail digital transformation market are Bio Bidet, Kohler Co., Inc., HomeTECH, Toshiba, LIXIL Corporation, Coway Co., Ltd, Roca Sanitario SA, Panasonic Corporation of America, RinseWorks, Inc, Brondell Inc., and TOTO USA, Inc.

The growing adoption of AI and analytics, emergence of technologies like AR/VR, and changing consumer shopping preferences are opening up significant opportunities for players in the market. Digital technologies enable retailers to personalize experiences, optimize operations, and build stronger connections with customers.

North America currently dominates the global retail digital transformation market. However, Asia Pacific is expected to witness the fastest growth owing to rising internet penetration, growing e-commerce sector, and increasing investments by major retailers in digital initiatives in the region. Several global retailers are expanding their presence in Asia’s emerging markets to tap the potential of rising middle-class populations.

Market Drivers

The increasing adoption of advanced technologies like AI, cloud computing, big data analytics, IoT, and mobility solutions by retailers across the globe is a key factor driving the growth of the retail digital transformation market. Digital technologies help retailers optimize inventory levels, streamline warehouse operations, and gain real-time visibility into customer demand and behavior patterns. This enables enterprises to enhance operational efficiency, improve product management, facilitate omnichannel retailing, and provide more personalized experiences to consumers.

PEST Analysis
Political: Digital transformation policies and initiatives taken by governments across various countries are expected to contribute significantly to the growth of the retail digital transformation market. Privacy and data security laws will also impact solutions adopted by retailers.

Economic: The rising internet penetration and adoption of smartphones is driving the use of digital platforms for shopping. Customers expect seamless omnichannel experiences. Retailers are investing in digital strategies to engage customers and optimize operations.

Social: Younger demographics are more comfortable with digital and mobile technologies. Their preferences of online and mobile shopping are influencing retailers. Social media is playing a key role in product discovery and brand engagement.

Technological: Advancements in areas such as cloud, analytics, AI and IoT are enabling new solutions. Retailers can gain real-time insights into customer behavior and inventory to enhance supply chain and customer service. Technologies like AR/VR and robotics are being explored for innovative applications.

Geographical regions with high market concentration
The North America region dominated the global retail digital transformation market in terms of value in 2024, and is estimated to continue its dominance during the forecast period. This is attributed to the wide acceptance of advanced technologies across industry verticals in the region.

The Asia Pacific region is poised to witness the fastest growth during the forecast period. The growth can be attributed to the rising digitalization of retail sector and increasing investments by retailers in emerging countries such as China and India to enhance customer experience.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it