Big Data Analytics in Retail Market - Growth, Trends and Forecast (2019 - 2024)
SKU ID : INH-14245435 | Publishing Date : 01-May-2019 | No. of pages : 120
The global big data analytics in retail market was estimated at USD 3.45 billion in 2018. This market is expected to reach USD 10.94 billion by the end of 2024, registering a CAGR of 21.20% during the forecast period (2019 - 2024). The retail industry is witnessing a major transformation through the use of advanced analytics and Big Data technologies. With the growth of ecommerce, online shopping, and high competition for customer loyalty, retailers are utilizing Big Data analytics to stay competitive in the market.
- Costco, an American retail company contacted all of its customers who shopped for stone fruits to warn them of possible listeria contamination. This was only possible as the company uses Big Data to track what the customers buy.
- Recently, fashion retailer H&M started using Big Data to tailor its merchandising mix in its brick-and-mortar stores. The fashion retailer is using algorithms to gain insights from returns, receipts, and data from loyalty cards to enhance its bottom line.
- Also, Walmart, one of the largest retailer in the world, is undergoing a digital transformation. It is in the process of building the world’s largest private cloud system, which is expected to have the capacity to manage 2.5 petabytes of data every hour.
- Therefore, as Big Data is helping retailers to cater to the customers in a more personalized way via targeted advertising, product recommendations, and pricing, the technology is being increasingly preferred by the retailers.
Scope of the Report
In the retail sector, Big Data analytics is being used at every stage of the retail process to understand the customer behavior, predict demand, and optimize pricing. Most of the Big Data applications in retail are for system-wide cost reduction, improving online and in-store customer experience, data-driven adaptive supply chains, and real-time analytics and targeting. In terms of application, big data analytics in retail sector is being segregated as merchandising & supply chain analytics, social media analytics, customer analytics & operational intelligence which is being used in small and medium enterprises & large-scale organizations.
Key Market Trends
Merchandising and Supply Chain Analytics Segment Expected to Hold Significant Share
- E-commerce has had an impact on the traditional brick and mortar retailers reducing their significance marking the data-driven revolution in the retail sector.
- An efficient supply chain, the optimised movement of goods from supplier to warehouse to store to customer, is very critical to every business. Therefore, big data analytics is at the core of revolutionising retail supply chain i.e tracking and tracing product flow and stock levels in real-time, leveraging customer data to predict buying patterns, even using robots to tirelessly fulfil orders in vast automated warehouses.
- In th UK, the supply chain Big Data analytics for retail is expected to grow significantly over the forecast period following manufacturing and energy sector.
- Owing to this, it is further expected that predictive analytics and machine learning AI will revolutionize the retail supply chain.
North America Region Expected to Hold the Largest Share
- The retail sector in the region is huge and is witnessing an increase in the sales. In the US, according to the National Retail Federation (NRF), retail sales are expected to rise between 3.8% and 4.4% to more than USD 3.8 trillion in 2019, citing high consumer confidence, low unemployment and rising wages.
- Besides, North America is among the leading innovators and pioneers, in terms of adoption, for Big Data analytics. The region boasts of a strong foothold of Big Data analytics vendors, which further contributes to the growth of the market. Some of them include IBM Corporation, SAS Institute, Inc., Alteryx, Inc., and Microstrategy Incorporated among others.
- With this increase in the creation and consumption of data in retail (with increased sales) that continues to grow rapidly calls for more significant investments in big data analytics hardware, software, and services.
The big data analytics in retail market is fragmented. The growth of e-commerce, online shopping, and high competition for customer loyalty, provides lucrative opportunities in the big data analytics in retail market. Overall, the competitive rivalry among existing competitors is high. Moving forward, different kind of innovation strategies of large companies boosting the market growth effectively. Some of the key developments in the area are:
- May 2019 - Oracle partnered with Gap Inc. to deploy Oracle Retail Merchandising Cloud Service and Oracle Retail Integration Cloud Service, powered by Oracle Cloud Infrastructure, to drive operational agility and furnish the Banana Republic business teams with better intelligence to meet the evolving needs of our global customers and providing them with an excellent platform for shopping.
- May 2019 - SAP SE announced that NPC International (NPC), the world’s largest Pizza Hut and Wendy’s franchisee, has implemented SAP SuccessFactors solutions for human capital management (HCM) and SAP S/4HANA Cloud for enterprise resource planning (ERP). With the solutions rolled out to 40,000 U.S. employees, NPC has successfully streamlined operations and created a digital path for the future.
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