- Summary
- Table Of Content
- Methodology
Smart Retail Market Size:
Smart Retail Market size is estimated to reach over USD 173.84 Billion by 2032 from a value of USD 40.02 Billion in 2024 and is projected to grow by USD 47.39 Billion in 2025, growing at a CAGR of 22.6% from 2025 to 2032.
Smart Retail Market Scope & Overview:
Smart retail refers to integration of IoT, AI, cloud computing, and big data analytics to enable improved shopping experiences, optimized operations, and improve customer engagement. Further, smart retail solutions include digital signage, smart shelves, automated checkout, and smart inventory management, which enables retailers to increase efficiency and reduce costs. The growing adoption of e-commerce, rising consumer demand for convenience, and real time data analytics are driving the adoption of advanced technologies for improved retail experience.
Smart Retail Market Dynamics - (DRO) :
Key Drivers:
Rising adoption of IoT in retail stores is driving the smart retail market growth
There is an increasing utilization of IoT technologies in retail sector to facilitate real time monitoring and data driven decisions. Further, IoT in retail includes smart shelves, RFID tag, sensors, near field communication, and others for tracking inventory, preventing stockout, and optimizing supply chain management. Additionally, data collected by IoT devices is used by retailers to understand customer behaviour which is used for creating personalized promotions or detailed product information.
- For instance, Qualcom offers IoT solutions in its product offerings for retail sector. It provides real-time insights through IoT in its product offerings by seamlessly integrating digital transformation from the stockroom to the shopping cart.
Thus, as per the analysis, the rising utilization of IoT such as sensors, cameras, and others in retail sector is further driving the market.
Key Restraints:
Factors such as high initial investment and maintenance cost are restraining the smart retail market growth
The primary restraining factors associated with smart retail technologies include high initial investment and maintenance cost. Moreover, the rising utilization of IoT, AI, an others require significant capital investment in infrastructure, hardware, and software.
Additionally, small and medium sized businesses may face significant challenge in adopting technologies such as smart shelves, advanced POS systems, and others due to budget constraints. Further, integrating new intelligent smart solutions with legacy systems can be complex and costly. Thus, as per the analysis, the high initial investment and maintenance cost are restraining the smart retail market expansion.
Future Opportunities :
Rising adoption of AI in retail outlets is expected to drive the smart retail market opportunities
The increasing integration of smart retail with AI is transforming the retail sector by enhancing customer behaviour analysis, optimizing inventory management, and improving marketing strategies. Further, AI systems analyze sales data in real-time and dynamically adjust inventory levels based on predicted future sales. Additionally, AI driven automation, such as cashier-less checkout systems and inventory management, improves operational efficiency and reduces costs.
- For instance, in December 2024, Walmart Chile collaborated with Shopic for the implementation of AI-powered smart carts equipped with two cameras. The smart cart recognizes variety of SKUs with more than 95 percent accuracy in product recognition.
Thus, as per the smart retail market analysis, rising integration of AI in retail stores is projected to drive the global smart retail market opportunities during the forecast period.
Smart Retail Market Segmental Analysis :
By Solution:
Based on the solution, the market is segmented into smart payment, smart shelves, security & surveillance, and others.
Trends in the solution:
- There is an increasing utilization of smart shelves for streamlining the stock management process.
- Increasing utilization of smart payment solutions such as card less payments for reducing manual tasks and errors.
Smart shelves segment accounted for the largest revenue in the total market in 2024.
- Smart shelves refer to the implementation of various technologies on retail shelves for streamlining the process of stocking and inventory along with improving the shopping experience.
- Further, smart shelves use a combination of RFID technology, management systems, cameras, sensors, digital shelf labels, and others for creating a dynamic and efficient process in retail outlet.
- For instance, in October 2023, e& launched EASE (Etisalat by e& Autonomous Store Experience), an autonomous telecom store powered by AI, machine learning, smart shelves, and others.
- Thus, the rising advancements in smart shelves for streamlining stocks and inventory are further driving the market.
Smart payment segment is anticipated to register a substantial CAGR growth during the forecast period.
- Smart payment solutions refers to mobile wallets and NFC-based contactless payments for enabling faster and secure transactions.
- Moreover, smart payment reduces the amount of time which businesses require to spend on manual payment tasks.
- For instance, in September 2024, Easebuzz launched B2B (Business-to-Business) invoice management and payments platform, which is a SaaS payments platform for retailers and shopkeepers.
- Thus, the rising developments associated with smart payments platform for retailers are further driving the smart retail market size.
By Technology:
Based on the technology, the market is segmented into IoT, artificial intelligence, augmented reality, and others.
Trends in the Technology:
- There is an increasing utilization of AI by retailers for customer behaviour prediction and personalized shopping
- Rising adoption of IoT by supermarkets, grocery stores, and others for improving retail operations.
IoT accounted for the largest revenue share of 38.55% in the total market in 2024.
- The IoT (Internet of Things) allows transformation of traditional retail operations into customer-centric, dynamic, and responsive environments.
- Further, IoT devices such as smart shelves and sensors are used in retail stores for continuously collecting data on customer traffic patterns, product availability, and more.
- For instance, in January 2025, Hewlett Packard Enterprise launched HPE Aruba Networking with new connectivity solutions to bolster IoT security for securing and managing retail environments.
- Thus, the rising advancements associated with IoT for facilitating intelligent retail solutions are further driving the smart retail market size.
Artificial intelligence segment is anticipated to register a substantial CAGR growth during the forecast period.
- The integration of AI in retail outlets particularly enables predicting customer behaviour, inventory and supply chain management, personalized shopping experiences, and others.
- Moreover, machine learning algorithms can be implemented for creating personalized shopping experiences for recommending products.
- For instance, in January 2025, Google unveiled generative AI tools for retailers for building AI intelligent agents to personalize the customer experience by offering tailored product recommendations.
- Thus, the rising adoption of AI in retail outlets for improving customer experience and operations are projected to boost the market during the forecast period.
By Component:
Based on the component, the market is segmented into hardware and software.
Trends in the Component:
- There is an increasing trend towards utilization of hardware such as cameras and sensors in carts and shelves for inventory management.
- Increasing utilization of inventory management software and data analytics platform for automating and optimizing operations in retail stores.
Hardware segment accounted for the largest revenue in the total smart retail market share in 2024.
- The hardware segment includes self-check systems, interactive kiosks, digital signage, smart shelves, POS terminals, and others, which are used in store for automation and customer engagement.
- Further, these devices help retailers optimize store operations, reduce checkout time, improve inventory management, and provide a seamless shopping experience.
- For instance, in December 2024, Cantaloupe Inc. launched cantaloupe smart store 600 and 700 models in its smart store series for maintaining diverse range of stock and reducing labor costs.
- Thus, the rising advancements in hardware segment for reducing cost and improving operations are driving the smart retail market trends.
Software segment is anticipated to register a substantial CAGR growth during the forecast period.
- The software segment includes cloud-based retail management platforms, AI driven analytics, inventory management software, and digital payment processing systems.
- Moreover, it offers various benefits to retailers such as real time data analysis, personalized marketing, automated pricing, supply chain optimization, and others.
- For instance, in September 2024, Huawei launched smart retail solution with AI-based lean operations throughout the production, R&D, supply, service processes, and sales.
- Thus, the rising advancements in software platforms for retail operations are expected to drive the smart retail market trends during the forecast period.
By Deployment Mode:
Based on the deployment mode, the market is segmented into on-premise and cloud.
Trends in the Deployment Mode:
- There is an increasing trend towards utilization of cloud based solutions for gaining real time insights on stocks, consumer behaviours, and more.
- Rising adoption of on premise systems by retailers for avoiding downtime due to service provider.
On-premise accounted for the largest revenue share in the total smart retail market share in 2024.
- The on premise deployment refers to installation and maintenance of retail management hardware and software on the retailer’s in-house servers.
- Further, on-premise deployment offers various advantages including data security, greater customization, and others.
- For instance, SAP offers on premise retail management suite in its product offerings. It offers various features including RFID-enabled stock movements, real-time inventory, and product look ups.
- Thus, the rising adoption of on premise systems for enabling intelligent retail solutions is further driving the market.
Cloud segment is anticipated to register a substantial CAGR growth during the forecast period.
- Cloud based intelligent retail solutions are hosted on external servers and accessed through internet.
- Moreover, cloud deployment offers various advantages including reduced cost due to less investment in hardware equipment.
- Further, cloud solutions facilitates real time monitoring of inventory and personalized customer experiences.
- For instance, in May 2024, AGR launched cloud-based inventory management product for retail for real-time updates and seamless integration across multiple users.
- Thus, the rising advancements in cloud based intelligent retail solutions is further driving the market.
By End-User:
Based on the end-user, the market is segmented into supermarkets, specialty stores, and others.
Trends in the End-User:
- There is an increasing utilization of AI driven analytics and automation tools in supermarkets.
- Rising adoption of self-checkout tools and smart shelves in specialty stores for enabling businesses to improve customer engagement and operational efficiency.
Supermarkets accounted for the largest revenue share in the total market in 2024.
- A smart supermarket refers to retail supermarkets that incorporate innovative solutions and advanced technologies to enhance the shopping experience.
- Further, smart supermarket utilizes technology and digital tools such as mobile apps, IoT (Internet of Things) devices, data analytics, personalization features, and other smart solutions.
- Additionally, intelligent retail solutions in supermarket offers various solutions for inventory management, payment, shopping experience, and others.
- For instance, in August 2021, Rakuten Group, Inc. launched Rakuten Zenkoku Super, an online supermarket platform which includes order management and online payments.
- Thus, the rising advancements associated with intelligent retail solutions for supermarkets are further driving the smart retail market.
Specialty stores segment is anticipated to register a substantial CAGR growth during the forecast period.
- Specialty stores refers to retail stores that sell unique product or product line, often offering brand-specific products.
- Further, there is a growing adoption of AI-driven inventory management systems, smart checkout solutions, and data analytical tools for improving operational efficiency in specialty stores.
- For instance, Amazon offers AI powered recommendation systems in its product offerings. The systems offers personalized experiences to the customers.
- Thus, the rising adoption of smart retail technologies such as digital payment, customer engagement, and others are projected to boost the market during the forecast period.
Regional Analysis:
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region is estimated to reach over USD 48.38 Billion by 2032 from a value of USD 10.78 Billion in 2024 and is projected to grow by USD 12.80 Billion in 2025. Out of this, China accounted for the maximum revenue share of 33.2%. As per the smart retail market analysis, there is an increasing adoption of smart solutions particularly in countries such as China, India, and Japan, in supermarkets for efficient crowd handling and swift operations. The rapid development and growing investments in AI powered analytics, IoT enabled inventory management, and automated systems are accelerating the smart retail market expansion.
- For instance, according to the IBEF (India Brand Equity Foundation), India’s retail trading sector attracted USD 4.68 billion FDIs from April 2000 to June 2024. This is further driving the adoption of advanced retail solutions, which in turn is propelling the market in the Asia-Pacific region.
North America was valued at USD 13.69 Billion in 2024. Moreover, it is projected to grow by USD 16.21 Billion in 2025 and reach over USD 59.49 Billion by 2032.
In North America, the growth of smart retail industry is driven by the rising demand for scalable and flexible retail systems for inventory management and improving customer experience. Rising adoption of real time analytics and inventory management are also driving the market. Further, increasing investments in digital transformation of retail outlets are contributing to the smart retail market demand.
- For instance, in January 2024, Walmart, Walmart announced its plan to build or convert more than 150 stores in United States. This is further driving the adoption of advanced retail solutions in supermarkets, which in turn is driving the market in North America.
Additionally, the regional analysis depicts that the rising investments in technology and automation industry and increasing adoption of AI and IoT solutions in retail sector are driving the smart retail market demand in Europe. Further, as per the market analysis, the primary factor driving the market in the Middle East and African region includes increasing investment in digital infrastructure and e-commerce sector. Further, the rising demand for modern serverless systems in supermarkets, speciality stores, and convenience stores are driving the market demand in the Latin America region.
Top Key Players & Market Share Insights:
The smart retail market is highly competitive with major players providing products to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the global smart retail market. Key players in the smart retail industry include -
- Huawei (China)
- Honeywell International Inc. (US)
- Google (US)
- NCR Corporation (US)
- NXP Semiconductors (Netherlands)
- LG Electronics (South Korea)
- Microsoft (US)
- IBM (US)
- Oracle (US)
- Amazon (US)
Recent Industry Developments :
Product Launch:
- In May 2024, AGR launched cloud-based inventory management product for retail, integrated with various features including AI forecasting, inventory management, and others.
Smart Retail Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 173.84 Billion |
| CAGR (2025-2032) | 22.6% |
| By Solution |
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| By Technology |
|
| By Component |
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| By Deployment Mode |
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| By End-User |
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| By Region |
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| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the smart retail market? +
The smart retail market was valued at USD 40.02 Billion in 2024 and is projected to grow to USD 173.84 Billion by 2032.
Which is the fastest-growing region in the smart retail market? +
Asia-Pacific is the region experiencing the most rapid growth in the smart retail market.
What specific segmentation details are covered in the smart retail report? +
The smart retail report includes specific segmentation details for solution, technology, component, deployment, end-user and region.
Who are the major players in the smart retail market? +
The key participants in the smart retail market are Huawei (China), Honeywell International Inc. (US), LG Electronics (South Korea), Microsoft (US), IBM (US), Oracle (US), Amazon (US), Google (US), NCR Corporation (US), NXP Semiconductors (Netherlands).
