Market Overview
The Global
Retail Analytics Market is projected to reach
USD 9.5 billion in 2024 and grow at a compound annual
growth rate of 17.8% from there until 2033 to reach a
value of USD 41.5 billion.
Retail analytics is the process of obtaining and providing analytical data on inventory levels, supply chain movement, consumer demand, sales, etc., which are important for marketing & procurement decisions. It also provides complete customer insights, along with insights into the business and processes of the organization, with the scope and needs for improvement.
The US Retail Analytics Market
The US Retail Analytics Market is projected to reach USD 3.4 billion in 2024 at a compound annual growth rate of 16.7% over its forecast period.
The retail analytics market in the US provides many growth opportunities through the quick expansion of e-commerce, increased adoption of AI and machine learning, and the transformation towards omnichannel retailing. Retailers are using data analytics to enhance customer experiences, simplify supply chains, and enhance operational efficiency, driving the need for advanced solutions that can support real-time decision-making and personalized services.
Further, a key growth driver for the retail analytics market is the growth of e-commerce and the adoption of AI-driven tools to improve customer experience and operational efficiency. However, a major restraint is the high cost of implementing advanced analytics solutions, which can be a challenge for smaller retailers with limited budgets.
Key Takeaways
- Market Growth: The Retail Analytics Market size is expected to grow by 30.5 billion, at a CAGR of 17.8% during the forecasted period of 2025 to 2033.
- By Offerings: The Software segment is anticipated to get the majority share of the Retail Analytics Market in 2024.
- By Enterprise Size: The large enterprises segment is expected to be leading the market in 2024
- By Retail Store Type: The retail chain is expected to get the largest revenue share in 2024 in the Retail Analytics Market.
- Regional Insight: North America is expected to hold a 40.6% share of revenue in the Global Retail Analytics Market in 2024.
- Use Cases: Some of the use cases of Retail Analytics include price optimization, inventory management, and more.
Use Cases
- Customer Behavior Analysis: By tracking shopping patterns, preferences, and demographics, retailers can customize marketing strategies, improve customer experience, and boost loyalty programs.
- Inventory Management: Retail analytics can forecast demand, optimize stock levels, reduce overstock or stockouts, and streamline supply chains to avoid losses.
- Pricing Optimization: Analyzing competitors, market trends, and customer sensitivity to price changes helps set optimal prices, offer promotions, and maximize profits.
- Store Performance Analysis: Data-driven insights on store operations (sales per square foot, staff efficiency, foot traffic) support enhancing layout, staffing, and overall operational efficiency across retail locations.
Market Dynamic
Driving Factors
Increased Adoption of Omni-channel RetailingAs retailers integrate online and offline channels, the demand for complete data analytics grows. Retail analytics helps businesses unify customer data across platforms, providing insights for customized experiences and driving sales growth.
AI and Machine Learning Integration
The expanding usage of AI and machine learning in retail analytics allows businesses to automate demand forecasting, optimize pricing strategies, and improve customer engagement through real-time insights, making analytics tools more valuable and widely adopted.
Restraints
Data Privacy and Security Concerns
With the increasing collection of customer data, retailers face increased concerns around data breaches and privacy regulations. Ensuring compliance and safeguarding sensitive information can be challenging, potentially limiting data usage.
High Implementation Costs
Advanced retail analytics solutions mostly require major investments in infrastructure, software, and skilled personnel. For smaller retailers or those with limited budgets, the high initial costs may create a barrier to adoption.
Opportunities
Growth of E-commerce and Digital Retail
As online shopping continues to expand, retailers have more access to digital consumer data. Retail analytics can support e-commerce businesses to optimize the customer journey, customize recommendations, and enhance supply chain efficiency, creating new growth opportunities.
Expansion of Predictive Analytics and AI
The development of predictive analytics and AI-driven tools provides retailers the ability to forecast trends, optimize pricing, and enhance demand planning with greater accuracy. These technologies provide a huge opportunity for retailers to gain a competitive edge through data-driven strategies.
Trends
Shift Toward Real-time Analytics
Retailers are highly adopting real-time analytics to gain immediate insights into customer behavior, inventory levels, and sales trends, which allows quick decision-making on pricing, promotions, and stock replenishment, enhancing responsiveness to market changes.
Focus on Hyper-personalization
Retailers are using advanced analytics to provide highly personalized shopping experiences. By inspecting granular customer data, businesses can customize marketing efforts, product recommendations, and promotions to individual preferences, driving customer loyalty and higher conversions.
Research Scope and Analysis
By Offerings
Software plays a major role in the growth of the retail analytics industry and is expected to have the highest revenue share in 2024, as it is important for transforming large volumes of data into practical insights that support retailers in making smarter decisions. In the present market, which heavily depends on data, retail analytics software provides a wide range of tools for understanding customer behavior, managing inventory, and predicting sales trends.
These solutions allow retailers to track how customers shop, adjust stock levels efficiently, and forecast demand more accurately. With the growing transformation toward digital retail operations, there’s a major need for specialized analytics software that can handle the complexity of modern retail. As more retailers move online or use omnichannel strategies, software becomes even more important in managing data from multiple sources, making smooth operations, and supporting businesses to stay competitive.
Advanced analytics tools can help retailers not only improve their customer service but also optimize pricing and marketing efforts, which is one of the key reasons software remains at the lead of the retail analytics market.
By Business Function
Operations & supply chain management play a vital role in the growth of the retail analytics market. Retailers depend on efficient operations to keep their stores running smoothly & ensure products are available when & where customers need them. Retail analytics support optimizing these processes by providing insights into inventory levels, the need for forecasting, and logistics.
For supply chains, analytics provides real-time visibility into every stage of product movement, from manufacturing to store shelves, which helps retailers reduce costs, lowering stockouts, and enhance overall supply chain efficiency. By utilizing data to streamline operations, retailers can make better decisions on restocking, delivery routes, and warehouse management, which ultimately boosts profitability & customer satisfaction.
As retailers highly transform to omnichannel strategies, managing a more complex network of suppliers and distribution points becomes mainly. Analytics help ensure that these operations are in line with customer demand, enhancing the overall shopping experience.
By Application
The retail analytics market is categorized into several key application areas, including customer management, supply chain, merchandising, strategy & planning, and in-store operations. Among these, the customer management segment is anticipated to hold the largest market share in 2024 and is expected in the coming years, which is highly due to the change in the demands of customers, which directly impact sales and revenue.
To keep up, many retail businesses are highly using analytical tools to gain a deeper understanding of customer preferences and overall market trends. These tools help retailers customize their offerings to meet customer demands more effectively. Further, in customer management, the demand for solutions that enhance merchandising processes is also growing. Retailers are adopting analytics to align merchandising decisions with customer expectations, which leads to better product placement, pricing, and inventory decisions.
Further, the strategy & planning segment is anticipated to get rapid growth in the retail analytics market during the forecast period. Retailers are using advanced analytical platforms that provide valuable insights through interactive dashboards, supporting them in planning their strategies more efficiently.
These tools not only guide businesses in making informed decisions but also help in managing logistics and fleet operations through route and network optimization, which is important for smooth supply chain management. As a result, the supply chain segment is expected to see steady growth. In addition, factors such as staff management, inventory control, and pricing strategies play a major role in the performance of the retail sector.
By Enterprise Size
Large enterprises are expected to dominate the retail analytics market in 2024 due to their large operations and complex data environments. With the infrastructure and financial resources to invest in advanced analytics solutions, these organizations can easily handle the large amounts of data generated across many channels and regions.
By using retail analytics, large companies gain valuable insights into supply chain performance, market trends, and customer behavior, enabling them to make better decisions and stay competitive in global markets, which is key to strategic planning and operational efficiency. In addition, large enterprises often use advanced analytics tools, such as AI and predictive modeling, to drive innovation, improve customer experiences, and optimize their business processes.
These advanced capabilities give them a various advantage in understanding market dynamics and adapting quickly to changing customer needs, further strengthening their position in the retail industry.
By Retail Store Type
The retail analytics market is categorized into two under retail stores, i.e., hypermarkets & supermarkets and retail chains. The retail chain segment is expected to take the lead in market share throughout the forecast period, as major global retail players, like Kroger and Walmart, are focused on expanding their customer base by enhancing the overall shopping experience.
Retail analytics solutions play a major role for these chains by supporting them to manage inventory, optimize supply chains, enhance in-store operations, and develop effective business strategies to drive growth. By using data, these retailers can better understand their customers' demands and adjust their products & offerings accordingly, creating higher sales and customer loyalty.
Further, hypermarkets & supermarkets are also adopting advanced retail analytics tools to enhance their operations. These tools support in various aspects, like shelf management, inventory control, supply chain optimization, and improving customer experiences. As supermarkets recognize the value of data-driven decision-making, the need for retail analytics solutions in this segment is anticipated to grow significantly.
By using these analytics, hypermarkets can streamline their processes, reduce waste, and ensure that they have the right products available for their customers at the right time, as the transformation toward more specialized analytics tools in both retail chains and hypermarkets demonstrates the importance of data in driving business success in the retail industry.
The Retail Analytics Market Report is segmented on the basis of the following
By Offerings
- Software
- Analytics Type
- Descriptive Analytics
- Diagnostic Analytics
- Predictive Analytics
- Prescriptive Analytics
- Deployment Mode
- Services
- Consulting & Advisory
- Integration & Deployment
- Support & Maintenance
- Training & Education
By Business Function
- Sales & Marketing
- Operations & Supply chain
- Finance & Accounting
- HR
By Application
- Customer Management
- Merchandising
- In-Stores Operations
- Supply Chain
- Strategy & Planning
- Others
By Enterprise Size
By Retail Store Type
- Hypermarkets & Supermarkets
- Retail Chains
Regional Analysis
North America is anticipated to lead the retail analytics market, as it is expected to account for 40.6% of the total market share by 2024, which is driven by the fast adoption of e-commerce services across the region, as more businesses in North America transition to online platforms. Retailers in the U.S. and Canada are using advanced technologies to improve customer experience, enhance operational efficiency, and track market trends.
These technologies support businesses to make better decisions, customize customer interactions, and streamline their operations, all of which contribute to the region's dominance in the retail analytics market. Further, in the Asia-Pacific region, major growth is anticipated to be largely driven by the growing popularity of online shopping. Countries like India, China, Singapore, and Japan are leading the charge in adopting retail analytics tools to better manage the surge in e-commerce activity.
The growth of mobile connectivity, digitalization, and social commerce are creating many opportunities for growth in this region. As more consumers use online shopping, retailers are turning to analytics to optimize their supply chains, enhance inventory management, and deliver personalized customer experiences. In addition, Europe is also projected to see steady growth in retail analytics, with France, Germany, Italy, and Spain being key contributors as retailers in these countries highly adopt data-driven solutions to improve their market competitiveness and operational efficiency.
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The retail analytics market's competitiveness is driven by the growing demand for data-driven decision-making in the retail sector. Key players are aiming to develop advanced solutions that incorporate AI, machine learning, and real-time analytics to meet evolving retailer needs. There is a major emphasis on providing customizable tools that help retailers optimize customer experience, inventory management, and pricing strategies.
Smaller companies are also entering the market, providing niche solutions. Overall, competition centers around innovation, ease of use, scalability, and providing actionable insights to help retailers stay competitive.
Some of the prominent players in the Global Retail Analytics are
- Microsoft
- IBM
- HCL
- ThinkINside
- AWS
- Salesforce
- Trax
- Retail Zipline
- Sisense
- RetailNext
- Other Key Players
Recent Developments
- In May 2024, RetailNext announced its partnership with pass_by, an AI-powered geospatial insights platform, which offers retailers a complete understanding of how internal and external factors, like inventory levels and upcoming events, influence current and future store performance, as it integrates advanced hardware analytics with advanced predictive software. RetailNext’s proprietary Aurora sensors provide real-time and historical analytics, measuring occupancy, monitoring trends, and helping in loss prevention. pass_by improves this setup by integrating its predictive capabilities to provide forecasts up to 90 days in advance with 90% accuracy and also provides deeper insights into competitor activities and market shifts.
- In May 2024, Data Impact a subsidiary of NielsenIQ and Unilever, one of the world’s largest consumer goods companies, announces their strategic partnership focused on curating enhanced online retail experiences for consumers, which will use Data Impact’s advanced analytics capabilities and Unilever’s market expertise to drive innovation and unlock new opportunities for growth in the digital space.
- In May 2024, Walmart Luminate, a data analytics product suite, announced the international expansion of the Walmart Luminate platform, beginning with Walmex in Mexico, followed by Walmart Canada, which mirrors the strategy used in the US, which will be a phased launch, starting with shopper behavior followed by channel performance and customer perception, and will provide an incredible opportunity for our multi-market suppliers, who will now be able to leverage our platform outside the US and make an even greater impact in these markets
- In April 2024, Invent Analytics reported that it secured USD 17 million in Series B funding, which was led by LFX Venture Partners, in partnership with current investors European Bank for Reconstruction and Development (EBRD) and Collective Spark. Invent Analytics is helping leading brands maximize profits by using its AI-powered SaaS solutions for demand forecasting, inventory planning, replenishment, allocation, returns positioning, and pricing.
- In January 2024, Agilence Inc unveiled new advanced artificial intelligence (AI) features for its Analytics and Case Management offerings launching in 2024, which will quickly and efficiently pinpoint theft, fraud, and operational issues, and detect their patterns to support & solve their root causes, as it is set to debut its innovative Case Linking feature, which leverages machine learning (ML) algorithms to discover correlations between incidents.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 9.5 Bn |
| Forecast Value (2033) |
USD 41.5 Bn |
| CAGR (2024-2033) |
17.8% |
| Historical Data |
2018 – 2023 |
| The US Market Size (2024) |
USD 3.4 Bn |
| Forecast Data |
2025 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Offerings (Software and Services), By Business Function (Sales & Marketing, Operations & Supply chain, Finance & Accounting, and HR), By Application (Customer Management, Merchandising, Stores Operations, Supply Chain, Strategy & Planning, and Others), By Enterprise Size (Large Enterprises and SMEs), By Retail Store Type (Hypermarkets & Supermarkets and Retail Chains) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Microsoft, IBM, HCL, ThinkINside, AWS, Salesforce, Trax, Retail Zipline, Sisense, RetailNext, and Other Key Players |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users) and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Retail Analytics Market size is expected to reach a value of USD 9.5 billion in 2024 and is expected to reach USD 41.5 billion by the end of 2033.
North America is expected to have the largest market share in the Global Retail Analytics Market with a share of about 40.6% in 2024.
The Retail Analytics Market in the US is expected to reach USD 3.4 billion in 2024.
Some of the major key players in the Global Retail Analytics Market are Microsoft, IBM, HCL, and others.
The market is growing at a CAGR of 17.8 percent over the forecasted period.