Digital Transformation in Retail Market

The Digital transformation in retail market size is forecast to reach USD 483.65 billion by 2030, after growing at a CAGR of 14.75% during the forecast period 2024-2030. The development of digital technology for information collecting, storage, analysis, and distribution has given rise to new dynamics in the retail market's digital transformation. due to the expansion of liberal trade policies and end consumers around the world, these digital technologies have also created a wide range of new opportunities for suppliers serving the market. the objective of digital transformation in the retail market is to improve operational effectiveness and cut costs while also delivering a better experience for clients, staff, partners, and suppliers. an important aspect of the market's growth throughout the forecast period is the rapidly increasing internet penetration. a rise in smart devices and small-scale technological developments will open the door for market expansion by increasing the technology's accessibility to small- and medium-sized retail businesses.

The report “Digital Transformation in Retail Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Digital Transformation in the Retail market.

By Accessibility: Mobile Application, Website.

By Product: Consumer Electronics, Media and Entertainment, Apparel, Food and Beverage, Furniture and Home Décor, Beauty and Personal Care, and Others.

By Geography:  North America, South America, Europe, APAC, and RoW.

North American market accounted for the majority share of the total global digital transformation in retail market share in 2023.  Due to the increasing growth of small and medium-sized businesses and the ongoing expansion of the service sector, North America is expected to capture a sizeable portion of the global market. In the area, online shopping is expanding as more and more merchants use the internet to market their goods. Many businesses use retail analytics to offer a personalized experience in order to survive the fierce industry competition.

For instance, in September 2022, Cigniti Technologies, one of the leading providers of AI and IP-led digital verification and digital development services, strengthened its relationship with a major American retailer by advancing its digital aspirations and offering superior digital service to its customers.

In industrialized nations like China, US, UK, Japan, and Germany (followed by others), which are snatching up the lion's share, the retail industry has seen phenomenal expansion. Shopping activity among those between the ages of 18 and 50 contributes to the expansion of the personal care and cosmetics market. Together, these trends provide the market for personal care and beauty products with a foundation for expansion.

Mobile applications dominated the digital transformation in retail in 2023, in recent years, it has become abundantly evident that everything is moving online. and stores are more vulnerable to this than anyone else. the adoption of mobile devices by customers and store responses have drastically altered the retail industry. as mobile shopping turns into a continuous rather than a discrete activity for consumers, retailers must engage with their customers at critical touch points in the decision-making process. 

The retail industry has undergone a considerable paradigm shift as a result of this shift in emphasis from the chosen outcome to the decision process. according to a poll on retail mobile applications, 57.5% of consumers find mobile apps more convenient than conventional channels for making purchases. because of their convenience, lower costs, and straightforward user interfaces, customers prefer using mobile applications for shopping. by enabling users to make purchases whenever and wherever they choose, mobile apps improve customer convenience.

Consumer electronics dominated the digital transformation in retail in 2023. The introduction of innovative consumer electronics products with new technologies such as AI and IoT space in the market is set to boost the market growth. Samsung electronics is accelerating digital transformation by using 'Smart Things', an IoT platform. the key is to provide customized home appliance services after collecting and analyzing user data through 'Smart Things as well as various home appliances. currently, smart signs not only control interlocking devices, but also provide additional services such as pet management, presentation of optimal recipes, energy management, and air quality management.

 Apple was one of the first companies to openly set up a direct-to-consumer presence and successfully make use of digital transformation. Apple has the most business apps and ready-to-use solutions, and the company also makes it easier for developers and data engineers to perform their jobs, with both iOS and macOS designed to be compatible with management solutions.

North America Digital Transformation in the Retail market generated a revenue of $42.83 billion in 2023 and is projected to reach a revenue of $56.37 billion by 2030 growing at a CAGR of 14.73% during the forecast period 2024-2030. Retail manufacturing contributes more than 10% of the GDPs of both the United States and Canada, and the retail industry in the region is expanding quickly. Wal-Mart, Costco, Kroger, Home Depot, and Target are just a few of the companies that started in North America's retail industry, which is one of the largest.

The retail industry in North America is one of the largest across the world based on global retail companies such as Walmart, Costco, Kroger, The Home Depot, and Target and international e-commerce companies including Amazon, eBay, Etsy, and so forth. In addition, the region has a rich ecosystem of federal agencies and governmental offices supporting digital-transformation efforts. thus, both the United States and Canada could benefit from a centralized coordinating body to set overarching strategies and coordinate inter-agency digital-transformation efforts.

In addition, technology partnerships in the retail sector are increasing in the United States, which will eventually fuel the digital transformation market growth in retail. advances in artificial intelligence (AI), cloud technology and other enterprise software have helped retailers transform their operations. In 2022, Microsoft launched Microsoft Cloud for Retail.  by providing a holistic view of the consumer to help retailers better understand and elevate consumer experiences, it aims for accelerating business growth by providing trusted retail industry solutions that integrate with retailers’ existing systems.

Businesses are more likely to embrace IoT technology to boost sales, reduce expenses, boost productivity, and enhance customer experiences. these two industries, as well as supply chain management, logistics, and inventories, as well as end users, have been altered by the IoT. it has made a lot of things simpler and better. it has aided humans in decision-making, data collection and analysis, workflow automation, and other activities. IoT adoption is now even more crucial. The cause is the ongoing evolution of corporate environments and changing lifestyles.

The ability to give a personalized experience in e-commerce is enhanced by possessing the most pertinent information about the customer, which boosts revenue and loyalty. Data gathered from smart home devices is quite helpful in these circumstances. IoT in retail and e-commerce is growing in popularity as a result of all the advantages it offers the industry. The technology supports the analysis of consumer behavior, the creation of novel corporate strategies, and productivity enhancement.

The competitive dynamics of the logistics service sector have fundamentally changed as a result of the quick development of digital technology, forcing established logistics service providers (LSPs) to go digital. As many LSPs continue to struggle with developing their digital transformation (DT), the goal of this study is to identify organizational components and related leading practices that may be used to overcome these hurdles and ensure DT success at LSPs.

More than 70% of deliveries are still carried out by large E-retailers' internal logistical departments. the captive arms of e-retailers are now actively offering services to other external e-retailers, in addition to being guaranteed high internal volumes. furthermore, e-retailers rely on their own captive logistic arms for deliveries of complicated and/or expensive products like jewels and furniture. because of this, the players now control about 50% of the market. to meet the rising demands of both internal and external clients, e-retailers are investing a significant amount of money in their captive logistics units to boost capacity, extend facilities and reach, engage more staff, and establish fulfillment centers across India.

Supply chains are operating in a way that is changing quickly. entrepreneurs are creating novel new digital technologies and capabilities as a result of improvements in computing memory and processing. advanced mobile logistics management is required because these technologies, such as sensors, artificial intelligence (AI), machine learning (ML), and cognitive computing, lay the groundwork for analytics and the translation of the physical world into the digital one. As a result, traditional, linear supply chains become connected, intelligent, scalable, customizable, and nimble supply networks.

To keep up with the shifting environment, organizations urgently need to alter their technical architecture and operating strategy. the value captured through physical stores can be completely redesigned thanks to digital. the store of the future must be a destination format that is fully integrated with the consumer's digital journey, from raising awareness to searching for and comparing options to prompting a purchase to foster loyalty - all of which are simple and convenient enabled by automation, analytics, and digital technologies. retailers will need to dramatically relearn in order to accomplish this, demolish their current business structures, and update their value offering with a focus on improving customer pleasure through the appropriate application of digital enablers.

Projects are frequently not revolutionary enough, even when they are in progress. these efforts only provide a brand-new website or mobile application that somewhat enhances the user experience. the choice to carry out digital transformation in a company goes beyond ideation, too. the ability to follow the initiative with assurance, the emphasis at the leadership level, and a guarantee of money and resources are all necessary. the digital revolution is too complex for retailers to handle on their own. the workload may be reduced through outsourcing, but businesses must be careful when choosing their partners. a novel kind of interaction is required to jointly establish all consumers', stakeholders', and business entities' digital journeys. identification of these digital moments in a retailer's operational path and customer experience is required to make a revolutionary influence.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Digital Transformation in Retail. In 2023, major players in the Digital Transformation in Retail are Amazon Corporation, Microsoft, Fujitsu, AliExpress Ltd., SAP SE, Flipkart Inc., Oracle Corporation, Honeywell International Inc., eBay Corporation, Accenture, IBM Corporation, Google, and Others.

In September 2022 Honeywell launched its Data Center Suite, a portfolio of outcome-based software solutions that provide better visibility to sustainability KPIs while assisting data center managers and owners in optimizing uptime, worker productivity, essential asset health, and operational expense.

In October 2021 IBM in collaboration with its business partner in Saudi Arabia Brmaja Commercial Company (Brmaja), announced that Virgin Megastore KSA, as part of its hybrid cloud strategy, one of the leading entertainment retailers in the Kingdom of Saudi Arabia is moving its SAP ERP application workloads to IBM Cloud. To help the shop improve operational efficiency and give its customers a platform for new digital offerings, they are migrating from an on-premises to a cloud environment.

In June 2021, GK Software Collaborates with IBM to Accelerate Retail Innovation and Enhance Customer Omni-Channel Experience with Hybrid Cloud Technology.