According to a new market report published by Transparency Market Research the global IT spending in retail industry market is expected to reach a value of US$ 188.5 Bn by 2026, due to increasing adoption of advance technology by retail companies. The market is projected to expand at a CAGR of 6.5% during the forecast period from 2018 to 2026. North America is expected to hold the dominant position in the market followed by Europe and Asia Pacific during the forecast period.
Adoption of 5G Technology by E-commerce Companies Accelerating IT Spending in Retail Industry
5G provides significant speed compared to previous communication technologies. 5G enabled mobile networks are set to offer average speeds of around 1GBP, which is expected to significantly reduce latency, reduce power consumption, and support increased connection density of devices on the network. This is important for the increasing number of connected devices such as mobile phones and IoT devices. 5G is expected to greatly affect the adoption of Internet of Things (IoT) technology, with the increased speed, lower latency, and power requirements, facilitating machine to machine communication within a large network of low-cost sensors. Further, the emergence of private 5G networks are expected to provide retailers deeper capabilities to personalize in-store shopping experience such as streamlining payments, better inventory management, and tailored recommendations and offers. 5G communications technology is expected to drive mobile e-commerce further, with retailers providing their customers with media-rich interactions and personalized experiences across multiple touch points and channels – mobile, online, or in-store. According to Salesforce.com, Inc., 71% of shoppers used their mobile devices in-stores in 2018 (83% for shoppers aged 18-44), an increase from 62% in 2017. This enables retailers to provide a seamless customer experience. Early adopters of 5G technology in the retail industry are likely to provide their customers with revolutionary experiences and customized product offerings, along with rich content delivery mechanisms. This would provide a unique, personalized retail experience with greater chances of up-selling or cross-selling offerings to the customer.
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IT Spending in Retail Industry: Scope of the Report
The IT spending in retail industry market can be segmented based on component, organization size, deployment type, and region. On the basis of component, the market is segmented into application, services, and infrastructure software. According to the research, the application segment is anticipated to expand at the highest CAGR during the forecast period due to high adoption of advance technology solutions such as virtual and augmented reality, retail as a service, retail analytics solutions etc. For instance, Amazon’s – Amazon Go store, a fully automated grocery store that has no cashiers or checkout lines. In an Amazon Go store, customers can walk in, scan an Amazon Go app, pick up the items they want, and leave. Amazon automatically tracks items taken from or returned to shelves, and charges the customer’s account after they leave the store. Amazon charges the customer’s account, and sends a receipt subsequently – no checkout line involved. The application segment is divided into front-end and back-end application. The front-end application segment is further categorized into chatbots, marketing and advertising solutions, virtual & augmented reality, e-commerce platform, POS system, and retail analytics. Similarly, the back-end application is segmented into content management system, CRM, order management system, and inventory management system.
Global IT Spending in Retail Industry Market: Competitive Dynamics
The research study includes profiles of leading companies operating in the global IT spending in retail industry market. Key players profiled include Oracle Corporation, Informatica LLC, Microsoft Corporation, SAP SE, VMware, Inc, MicroStrategy Incorporated, Magstar Inc, JDA Software Group, Inc., International Business Machines Corporation, Cisco Systems, Inc.LS Retail ehf, Salesforce.com, Inc., Hewlett Packard Enterprise Company, and Epicor Software Corporation.