How Are Market Dynamics And Regional Growth Patterns Influencing The Connected Retail Market?
What Major Growth Indicators And Market Expansion Forecasts Define The Connected Retail Market Through 2030?
The connected retail market size has grown rapidly in recent years. It will grow from $51.32 billion in 2025 to $61.24 billion in 2026 at a compound annual growth rate (CAGR) of 19.3%. The growth in the historic period can be attributed to growth of e-commerce platforms, demand for seamless shopping experiences, adoption of digital payment systems, rise of customer analytics tools, expansion of retail automation.
The connected retail market size is expected to see rapid growth in the next few years. It will grow to $123.94 billion in 2030 at a compound annual growth rate (CAGR) of 19.3%. The growth in the forecast period can be attributed to integration of ai-driven personalization, adoption of iot-enabled retail systems, growth of contactless payments, demand for data-driven merchandising, expansion of smart retail stores. Major trends in the forecast period include omnichannel retail integration, smart in-store technologies, personalized customer engagement platforms, connected payment and checkout systems, real-time inventory visibility solutions.
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Which Drivers Are Playing A Pivotal Role In Shaping The Connected Retail Market’s Growth Outlook?
The increasing adoption of the Internet of Things (IoT) is expected to propel the growth of the connected retail market going forward. The Internet of Things (IoT) is a networked system of interconnected computing devices, mechanical and electronic machinery with unique identities (UIDs), and the capacity to transfer data without needing human-to-human or human-to-computer contact. The rise of IoT adoption is due to businesses and consumers seeking real-time connectivity, automated operations, and smarter decision-making through seamless device integration and data-driven insights. The Internet of Things (IoT) enables connected retail by utilising interconnected devices to gather real-time data, enhance customer experiences, and optimise operational efficiency. For instance, in February 2025, according to Ubisense, an England-based software company, in 2023, connected Internet of Things (IoT) devices reached 16.6 billion, a 15% increase from 2022. Therefore, the increasing adoption of the Internet of Things is driving the growth of the connected retail market.
How Is The Connected Retail Market Broken Down Based On Its Critical Segment Classifications?
The connected retail market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Technology: ZigBee, NFC (Near Field Communication), Bluetooth Low Energy, Wi-Fi, Other Technologies
3) By Application: Electronics And Appliances, Home And Personal Care, Food And Beverage, Apparel, Sporting Goods And Toys, Other Applications
Subsegments:
1) By Hardware: Point Of Sale (POS) Systems, IoT Devices, Digital Signage, Self-Service Kiosks
2) By Software: Inventory Management Systems, Customer Relationship Management (CRM) Software, Analytics And Reporting Software, Payment Processing Software
3) By Services: Consulting Services, Integration Services, Support And Maintenance Services, Managed Services
What New Trends Are Beginning To Take Shape Within The Connected Retail Market?
Major companies operating in the connected retail market are focusing on developing advanced solutions, such as digital product interaction, to enhance customer engagement, provide transparent product information, and improve shopping experiences. Digital product interaction refers to a technological feature that allows consumers to access detailed product information, origin, and sustainability data directly through a digital interface, helping them make informed purchasing decisions. For instance, in October 2024, Carrefour SA, a France-based retail company, introduced “QR Codes powered by GS1” on its private-label wine range. The rollout gives shoppers transparent product details and origin information at scan and prepares stores for POS compatibility with next-generation 2D symbols that support richer customer engagement and supply chain visibility.
Which Firms Hold A Significant Competitive Position In The Connected Retail Market?
Major companies operating in the connected retail market are Microsoft Corporation; Zebra Technologies Corporation; Intel Corporation; PTC Inc.; SAP SE; Cisco Systems Inc.; International Business Machines Corporation; Google LLC; NXP Semiconductors N.V.; Softweb Solutions Inc.; Honeywell International Inc.; Sonata Software Limited; iVend Retail; Avanade Inc.; Fujitsu Limited; Verizon Enterprise Solutions; Amazon Inc.; ARM Holdings PLC.; Belatrix Software Private Limited; Samsung Electronics Co. Ltd.; Toshiba Corporation; Siemens AG; Wipro Limited; Accenture plc; Capgemini SE; Infosys Limited; NEC Corporation; Tata Consultancy Services Limited; DXC Technology Company
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Which Locations Are Showing Rapid Adoption And Strong Growth Indicators In The Connected Retail Market?
North America was the largest region in the connected retail market in 2025. Asia-Pacific is expected to be the fastest-growing region in the global connected retail market during the forecast period. The regions covered in the connected retail market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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