Internet of Things (IoT) in Retail Market By Component (Hardware, Software, Services), By Technology (Near Field Communication, Radio-Frequency Identification, Bluetooth Low Energy, Wi-Fi, Zigbee), By Application (Smart Shelves, Inventory Management, Customer Experience Management, Supply Chain Management, Asset Tracking, Energy Management), By End-User Industry (Supermarkets & Hypermarkets, Specialty Stores, Department Stores, E-Commerce), and By Region; Global Insights & Forecast (2023 – 2030)

As per Intent Market Research, the Internet of Things in Retail Market was valued at USD 61.8 Billion in 2024-e and will surpass USD 293.7 Billion by 2030; growing at a CAGR of 29.7% during 2025-2030.

The Internet of Things (IoT) is revolutionizing the retail industry by providing innovative solutions that improve inventory management, enhance customer experience, and optimize supply chain operations. IoT technologies enable retailers to collect and analyze real-time data from interconnected devices, which in turn enhances operational efficiency and personalization of services. The IoT in retail market is witnessing rapid growth, driven by the increasing adoption of connected devices, sensors, and smart technologies. The global market is expected to expand significantly, with a projected compound annual growth rate (CAGR) of over 20% from 2024 to 2030, owing to the increasing demand for automation and data-driven decision-making processes in the retail sector.

Hardware Segment is Largest Owing to Expanding IoT Ecosystem

In the IoT in retail market, the hardware segment dominates due to the crucial role of connected devices such as sensors, RFID tags, and smart shelves in enabling real-time data collection and asset tracking. These devices are essential for automating operations, reducing human error, and enhancing inventory management in retail environments. As retailers continue to invest in technology to enhance operational efficiency, the demand for advanced hardware solutions is expected to rise. Furthermore, the integration of these devices with other IoT technologies, such as cloud computing and AI, is fueling the growth of the hardware segment, making it the largest contributor to the market.

The hardware subsegment includes devices like smart shelves, RFID tags, beacons, and sensors that support the retail ecosystem. As the retail industry embraces automation and data analytics, the demand for these connected devices is expected to grow exponentially. The enhanced customer experience, optimized inventory management, and improved supply chain efficiency provided by IoT hardware are driving their widespread adoption across supermarkets, hypermarkets, and e-commerce platforms.

Radio-Frequency Identification (RFID) is Fastest Growing Due to Efficiency Gains

Radio-Frequency Identification (RFID) is the fastest-growing technology in the IoT in retail market due to its ability to enhance inventory visibility, improve supply chain management, and enable seamless checkout experiences. RFID technology offers several advantages over traditional barcode systems, such as faster scanning, greater range, and the ability to track multiple items simultaneously. As retailers seek to improve operational efficiency, RFID is becoming an essential technology in their IoT infrastructure, providing real-time data on inventory levels and enabling automatic reordering of stock.

RFID is being widely adopted for asset tracking, inventory management, and customer experience management. Retailers are increasingly utilizing RFID to streamline their operations and deliver personalized experiences to customers. This technology is also being integrated with other IoT solutions, such as cloud computing and data analytics, to optimize retail operations and improve decision-making processes. The growing need for efficient, data-driven systems in the retail sector is fueling the rapid growth of RFID technology in the IoT market.

Inventory Management is Largest Application Driving IoT Adoption

Inventory management is the largest application segment in the IoT in retail market, as it directly impacts operational efficiency, cost reduction, and customer satisfaction. IoT-enabled inventory systems allow retailers to track stock levels, monitor product movement, and automate reordering processes in real-time. This technology helps prevent stockouts and overstocking, which can lead to lost sales or excess inventory costs. As a result, retailers are increasingly adopting IoT solutions for inventory management to ensure accurate stock levels, improve supply chain efficiency, and enhance the overall customer experience.

Supermarkets & Hypermarkets Lead the Way in IoT Adoption

Supermarkets and hypermarkets are the largest end-user segment in the IoT in retail market, driven by the need for enhanced operational efficiency and better customer service. These large retail chains are increasingly implementing IoT technologies to improve inventory management, streamline checkout processes, and personalize the shopping experience. The scale of operations in supermarkets and hypermarkets makes IoT solutions essential for optimizing processes across the supply chain, ensuring real-time visibility of stock, and reducing operational costs.

With the rising demand for automation, IoT solutions such as RFID, smart shelves, and automated checkout systems are becoming integral to large retail operations. Additionally, these technologies help supermarkets and hypermarkets enhance customer experience through personalized promotions, smart carts, and faster checkout processes. As competition in the retail market intensifies, IoT adoption is becoming crucial for supermarkets and hypermarkets to maintain operational efficiency and meet evolving consumer expectations.

North America Leads the IoT in Retail Market

North America is the largest region in the IoT in retail market, driven by the adoption of advanced technologies, robust retail infrastructure, and high consumer demand for personalized shopping experiences. The region's retail landscape is characterized by large supermarkets, hypermarkets, and e-commerce platforms, all of which are investing heavily in IoT solutions to enhance their operations and improve customer engagement. Additionally, North America boasts a high level of technological readiness, with retailers increasingly adopting IoT-enabled devices and systems for inventory management, supply chain optimization, and customer experience enhancement.

The presence of major retail players such as Walmart, Target, and Amazon further supports the growth of the IoT in retail market in North America. As these companies continue to invest in IoT technologies to streamline operations and deliver innovative services, the region is expected to maintain its leadership position in the global IoT in retail market.

Competitive Landscape and Leading Companies

The competitive landscape of the IoT in retail market is highly dynamic, with numerous global and regional players offering innovative solutions to meet the growing demands of the retail industry. Leading companies in the market include major technology providers such as Cisco Systems, IBM Corporation, Intel Corporation, Microsoft Corporation, and Honeywell International, all of which provide IoT platforms, connectivity solutions, and analytics tools for the retail sector.

Recent Developments:

• AWS launched advanced IoT analytics tools for retailers, focusing on real-time data insights to optimize operations and improve customer engagement.
• Cisco acquired ThousandEyes to strengthen its IoT offerings, focusing on enhancing network monitoring and connectivity for retail applications.
• Microsoft collaborated with Walmart to implement IoT-based solutions for inventory management and customer experience enhancement.
• Zebra Technologies unveiled its new smart shelf technology to improve inventory accuracy and reduce stock-outs in retail stores.
• Intel introduced a new IoT-based energy management system designed to help retailers reduce operational costs and improve sustainability efforts.

List of Leading Companies:

• Amazon Web Services (AWS)
• Intel Corporation
• IBM Corporation
• Microsoft Corporation
• Cisco Systems, Inc.
• SAP SE
• Google LLC
• Oracle Corporation
• Zebra Technologies
• PTC Inc.
• Honeywell International Inc.
• NXP Semiconductors N.V.
• Fujitsu Limited
• AT&T Inc.
• Verizon Communications Inc.

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