Global Retail Analytics Market: Current Analysis and Forecast 2021-2027

Over the past decades, data analytics has emerged as an innovation technique to analyze the sentiments and behavior of customers, to fulfill all the customer needs and demands. Retail sector is no exception, retailers (both online and offline retailers) are using analytics tools and big data to interpret customers shopping frequency and kind of products they purchase. With this the retailers can plan their store arrangement and placement of goods. At present, there is an uprise in data warehouses where companies stored information about their customers and production processes at a single centralized repository. Retailers around the world are investing in analytics on a large scale, to leveraged both predictive and prescriptive analytics. In addition, retailers are emphasizing the value of both external and internal data sources, which is expected to generated increased demand for powerful tools to increase profit. Retailers can use analytics solutions to allocate their budget strategically, increasing productivity and scheduling while improving recruitment, retention, and development activities. Furthermore, analytics solution also help the retailers to align the supply of labor and forecast the demand, taking into consideration the availability and preferences of personal with abilities and skills.
Retailers around the world are recognizing the impact the analytic solutions can offer them in long run and are investing in analytics and big data to enhance their customer experience.
49% of retailers believe strategic, actionable insights based on customer analytics is vital for company's success
62% of retailers use of analytics, to creates a competitive edge over its competitor. Despite this, major retailers fight to make the most of their data
74% of retailers, reported they want to be data-driven, but only 29% have adopted analytics to action
Of the 700 million websites that exists, 72% fail to consistently engage users or increase customer retention. Retailers who are implementing analytics are experiencing numerous benefits including:
Highly data-driven organizations are 3 times more likely to report significant improvement in decision-making
Retailer who dominates the use of retail analytics are 6.5 times more likely to retain customers, 7.4 times more likely to outperform their competitors on making sales to existing customers and nearly 19 times more likely to achieve above-average profitability
50% of retailers who experience in the art of analytics are expected to have sales significantly above their competitors

Automation, leveraging artificial intelligence and other technologies has opened ample opportunities in various industrial verticals inclusive of retail sector. It has been estimated that in 2018, around 57% of 1300 institutions have adopted artificial intelligence while around 18% were planning to enter the respective arena in 2019. Ability to deliver faster service, increased flexibility and scalability, improved quality coupled with greater traceability and increased savings and productivity has enhanced the adoption of analytics in Retail sector. The influence of internet specifically via social networking to analyze people's purchasing behavior has grown over the years. Retailers have started adopting social media as it extends beyond generating visibility and has become one of the major channels to generate revenues. It has been observed that retail social media strategy is essential for enhancing in store as well as online sales, developing relationship with clients paired with establishing the brands. Furthermore, benefits of social media for retail business are also analyzed via number of users. Around 68% of US use Facebook, with more than 70% visit You tube. Social media sites such as Instagram, Twitter, Pinterest, and Snapchat feature a rising number of new users each day. To add on, 6 Billion mobile subscription, 1.01 Billion Facebook users worldwide along with 400 Million Tweets per day with 84 million users access Twitter via mobiles has led to explosion in smartphone use and social media addiction.
Scope of Big Data and Retailing have increased:
Retailing is already a big data industry. At the macro level, thousands of stores sell hundreds of thousands of SKUs to millions of customers through billions of transactions. For instance, Walmart, operates more than 11,000 stores in more than 25 countries, serves more than 35 million customers, and sells around 140,000 items in most of its supercenters. At a micro level, individual consumers have become walking data generators that leave a data trail each time they make a purchase with their credit card, use a loyalty card, send a text message, or search the web.
Insights Presented in the Report
"Currently service segment dominates the market with 52.4% share in 2019."
Based on component, the Retail Analytics Market is bifurcated into Software and service. Currently, service segment dominates the market, however, post 2022 software segment is expected to overtake the service segment, as majority of the retailer would deploy analytics solutions inhouse.
"Retail analytics solution is major deployed over Cloud."
Based on deployment type, the global Retail analytics market is bifurcated into Cloud and On-premises deployment. Currently, Cloud deployment model dominates the market, with more than 80% share. High cost associated with on-premises is the major driver for the Cloud deployment technique. With the growing popularity of cloud computing models, organizations are producing a variety of cloud deployment strategies designed to address specific infrastructure challenges that organizations face.
"Big Retailers are using analytics or big data solutions majorly for Customer Management, followed by Merchandising Analytics."
Based on the application area, the global Retail analytics market is segmented into Customer Management, Merchandising Analytics, Supply Chain, In-Store Operations Analytics, Others (Strategy & Planning). In 2019, Customer Management segment dominated the market, generating revenue of US$ 1,350.3 million. Other applications include maintaining procurement levels and making crucial marketing decisions. Retail analytics also provide retailers with detailed customer insights, followed with key insights on business and processes of the organization with scope and suggestion for improvement if needed.
"North America dominated the Retail Analytics Market, accounting for 46.9% share in 2019."
For a better understanding of the overall adoption of retail analytics solutions among big retailers, a detailed analysis was conducted for the major region/country including North America (US, Canada); Europe (UK, Germany, France, Spain, Italy); Asia-Pacific (China, Japan, India, South Korea, Australia) and Rest of the World. Asia-Pacific is expected to witness highest CAGR growth of 22.2% during the forecast period 2021-2027.
Top 10 Competitive Players
Some of the major players operating in the market include Cisco Systems Inc., SAP SE, Microsoft Corporation, Oracle Corporation, IBM Corporation, Tableau Software, Adobe Systems Inc., SAS Institute Inc., Domo, MicroStrategy. The industry has witnessed emergence of several analytics solution providers who are coming up with innovative retail solutions for the retail companies.
Reasons to buy this report:
- The study includes current, and demand forecast of Retail analytics solutions trend
- The report presents a quick review of overall industry performance at one glance.
- The report covers in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
- The study comprehensively covers the retail analytics demand and stakeholders' approach in limiting its gap
- Deep dive regional level analysis of retail analytics market
Customization Options:
The global Retail Analytics Market can further be customized as per the requirements. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.