According to a recent report published by Allied Market Research, titled, “Big Data Analytics in Retail Market by Component, Deployment, Enterprise Size and Application: Opportunity Analysis and Industry Forecast, 2020-2027,” the global market was valued at $4.43 billion in 2019, and is projected to reach $17.85 billion by 2027, growing at a CAGR of 20.4% from 2020 to 2027.
Big data describes a large volume of data that is used to reveal patterns, trends, and associations, especially relating to human behavior and interactions. For the retail industry, big data is used for getting greater understanding of consumer shopping habits and how to attract new customers. Big data analytics in retail enables companies to create customer recommendations based on their purchase history, resulting in personalized shopping experiences. These big data analytics solutions also help in forecasting trends and making strategic decisions based on market analysis.
Rapid growth of the e-commerce sector, growing need to leverage customer data for making data driven business strategies, proliferation of advanced CRM systems among retail companies, and rising investment on big data analytics tools are some of the factors that majorly boost the growth of the big data analytics in retail market. Furthermore, AI-based big data analytics in retail software are expected to experience high demand to help predict future trends in the retail industry. Demand for predicting analytics in retail is expected to offer lucrative opportunities for this market.
According to component, the software segment holds majority of the big data analytics in retail market share in 2019 due to the factors such as its capabilities to enable social media analysis, product pipeline tracking, market basket analysis, pricing analysis. In addition, big data analytics solutions used in retail also help in formulating effective marketing strategies to improve revenue. The rise in need for analyzing historic data to formulate more accurate business decisions, increase in demand for analyzing customer purchasing patterns and predicting trends is further fuelling the growth of this market.
By application, the supply chain operations management segment accounted for the highest share in big data analytics in retail market in 2019, owing to its need for demand forecasting, inventory management, analysing supplier performance and more. However, the customer analytics segment is expected to witness highest growth rate in big data analytics in retail industry.
As per region, the global big data analytics in retail market size was dominated by North America in 2019. Factors such as major presence of leading market vendors developing big data analytics solution for retail industry in North America region and early adoption of big data technology in this region are the major drivers for the big data analytics in retail market growth. In addition, the need of retail companies to manage valuable data stream and transform it into significant information is further propelling the market demand in this region. The adoption of big data analytics in retail has increased in each stage of the retail process to predict market demands, understand the customer behavior, and optimize the pricing.
The outbreak of COVID-19 is anticipated to have a trivial impact on the growth of the big data analytics in retail market. Although, the retail industry is majorly hit by lockdown imposed in many countries, the spending on big data analytics by retail companies is expected to be maintained as planned as per the study conducted by Sisense. Retail industry is witnessing diverging trends for essential and non-essential retail items in most of the countries, particularly in countries such as the U.S., and India, which are the most affected by the pandemic. For instance, in the U.S., sales of clothing retailers dropped by 89.3% in April 2020 year-on-year, and the sales of grocery stores increased by 13.2% according to the Census Bureau. Lockdown and social distancing measures have affected retailers with physical stores more than online retailers, and may in turn accelerate the ongoing shift from brick-and-mortar to online retailing.
Key Findings Of The Study
- By component, the services segment is expected to witness the highest CAGR during the forecast period.
- On the basis of deployment mode, the on-premise segment accounted for the highest big data analytics in retail market share in 2019.
- Depending on enterprise size, the large enterprises segment is accounted for the highest big data analytics in retail market size in 2019.
- As per application segment, the customer analytics segment is anticipated to grow at the highest CAGR during the forecast period.
- Region wise, North America accounted for the highest revenue in 2019; however, Asia-Pacific is anticipated to exhibit highest growth during the big data analytics in retail market forecast period.
The global big data analytics in retail market analysis includes some of the key market players such as Alteryx Inc., IBM, Microsoft, Microstrategy Inc., Oracle Corporation, Qlik Technologies Inc., RetailNext, SAP SE, SAS institute, and Teradata.