COVID and general digital trends have accelerated adoption rates for analytics across the board
According to new research from Allied Market Research, big data analytics in the retail market is set to grow at a CAGR of 20.4% from 2020 to 2027, reaching a whopping $17.85 billion.
The report identifies North America as the major driver of growth and is expected to maintain its market share until 2027. Asia-Pacific, on the other hand, is estimated to portray the fastest CAGR of 23.5% from 2020 to 2027. The adoption of cloud-enabled big data analytics in retail software, an increase in popularity of fast internet connectivity, ever growing smartphone penetration, and the rising popularity of ecommerce companies are the major factor propelling the growth in this region.
Also read: Valuates: Retail Analytics Market To Grow at a CAGR of 12.66% by 2025
What Is Driving the Demand for Big Data Analytics in Retail?
The report states that an increase in spending on big data analytics tools, a surge in need to deliver personalized customer experience to increase sales, and a rise in the growth of the ecommerce sector are key growth drivers. However, issues in collecting and collating the data from disparate systems and challenges in capturing customer data restrain the growth to some extent. On the other hand, the integration of new technologies such as IoT, AI, and machine learning in big data analytics in retail and the growing demand for predictive analytics in retail would create new opportunities in the coming years.
Analytics has also helped retailers discover new ways to acknowledge channel and product preferences, which has particularly been critical during the extended COVID crisis. Additionally, retailers looked to optimize their business continuity plans.
Also read: Oracle Adds New Enhancements in Reporting and Analytics to Advance Retail Supply Chain Management
The global big data in the retail market is fragmented and often has multiple players who are influencing the dynamics of the market. To gain an edge in the market, players have consistently focused on bringing innovative solutions for customers. For instance:
- In May 2019, Oracle joined hands with Gap. Inc. to deploy its integration and merchandising services, Oracle Retail Integration Cloud Services and Oracle Retail Merchandizing Cloud Service, respectively. Both services are powered by Oracle Cloud Infrastructure. This allowed Gap. Inc. to have better operational agility and customer satisfaction.
- In Early 2019, SAP SE provided its human capital management (HCM) solutions SAP SuccessFactors and SAP S/4HANA Cloud for enterprise resource planning (ERP) to NPC International, Pizza Hut, and Wendy’s franchisee.
Also read: Designing Delightful Omni-Shopping Experiences: How Walmart Is Changing the Retail Game
Some of the major players of global big data analytics in the retail market are SAP SE, Oracle Corporation, IBM Corporation, Teradata, and Qlik Technologies Inc.