The news comes from website Retail Dive and it is based on market analysis conducted by Grand View Research. The survey is titled “Internet of Things (IoT) in Retail Market Size, Share & Trends Analysis Report By Solution, By Hardware (Beacons, RFID Tags, Sensors, Wearables), By Service, By Technology, And Segment Forecasts, 2018 – 2025.”
This follows on from an earlier study from Aruba Networks which assesses that around half of retail organizations worldwide had adopted IoT to some degree or other.
Market value
Headlines from the survey from Grand View Research are, first, with the market value of Internet of Things technology. This is a market that has been growing steadily and is, based on current projections, anticipated to hit $94 billion by 2025. In 2016, the market valuation was a paltry, by comparison, $16.36 billion. Unsurprisingly, North America is envisioned to emerge as a leading regional market, followed by France and the U.K.
Rate of growth
The second key finding is with the extent of growth. The $94 billion valuation assumes an annual compound growth of 21.5 percent for the years between 2016 and 2025. The primary driver for this is with traditional retail going online, either partly or wholly, and the inevitable investment in digital technology that this transition requires.
In stores a key change is through the adoption of Payment-as-a-Service (PaaS) solutions. These processes provide terminal management services and gateway solutions. For internet transactions, PaaS is designed to allow merchants and other market participants to utilize local, regional and global payments options through a single interface.
Some sectors growing faster than others
The third finding is that some portions of the retail Internet of Things market will see bigger climbs that others. With technologies designed to enhance in-store experience and which are capable of sending customers promotional offers and messages, these applications will see an annual growth rate in excess of 23 percent, again over the 2016 and 2025 timeframe.
As an example, digital sensors located in retail stores enable Machine to Machine communication, which allows product information, coupons, and discount codes to be sent to customers. In a different example of senor application, Walmart has deployed IoT sensors in refrigeration units in 5,000 stores to detect food spoilage. Walmart states that the technology will save $2 billion in food waste over the next five years.
Main technologies and providers
The fourth and final finding of interest is with the types of technologies themselves which developers will be creating and which retail outlet owners will be investing in. These are: sensors, radio-frequency identification (RFID) tags, beacons and wearables. Of these, RIFD tags aid retailers with in-stock product positioning and suitable product assortments. Key players in supply led side of the retail technology industry include IBM Corporation; Impinj Inc.; Allerin Tech Pvt Ltd.; and RetailNext Inc.
Growth technologies include those geared towards contactless payment systems, and which are similar to those used in credit cards and electronic ticket smartcards. The difference is that the technologies allow mobile payment to replace/supplement these systems. A leading example is with Near Field Communication (NFC), which combines contactless smart card technology with the convenience of smartphones.
For example, pharmacy store and grocery outlets are deploying NFC-based applications in higher numbers as so to accelerate check-out processes. Also growing is Bluetooth Low Energy, which works similarly, facilitating design of single-mode chips that can be integrated in cheaper battery-powered devices.
