In-store analytics refers to the process of tracking in-store performance by analysing customer behavioural data. It provides critical insights into retail operations and customer or shopper behaviour. The ultimate aim of in-store analytics is to optimize store performance by improving commercial performance, sales, staff productivity, and customer experience with the help of data analytics. This in turn, helps retailers to gain competitive advantage over their competitors.
As a result, there has been a spurt in investment in R&D by vendors to offer data-driven solutions that can meet the requirements of retailers and give them a better understanding about changing customer preference. The size of the in-store analytics market is expected to reach USD3.2 billion by 2023, from USD 1.1 billion in 2018. The market is anticipated to grow at a CAGR of 22.5% during this period.
The factors that are driving the growth of the in-store analytics market are, increasing competition from e-commerce players, and the need for better customer service and shopping experience. The brick and mortar stores are witnessing intense competition from e-commerce players, which has taken a toll on their business growth. In-store analytics provide crucial insights required for building an effective strategy to improve operational efficiency. As a result, the adoption of in-store analytics software and services is growing across the globe.
Further, increased volume of data around in-store operations is also raising the demand for in-store analytics software and services. With the rising adoption of in-store analytics solutions, the retail industry is aiming at gaining competitive advantage, reducing operational costs, and increasing profitability. All these will eventually have a positive impact on the global in-store analytics market.
North America is likely to dominate the in-store analytics market, as it is home to major vendors like Scanalytics, Dor Technologies, RetailNext, and Celect. However, it is the Asia-Pacific region that is likely to exhibit the highest CAGR in the coming years. This can be mainly attributed to the growing digitalization in the region, high growth potential of the market, and a growing retail market.
Moreover, the growing inclination towards the adoption of technologies like AI and advanced analytics is also expected to boost the market growth. However, the growth of the global in-store analytics market in the Asia-Pacific region could be hindered by factors like privacy issues, lack of technological awareness, and limited technical expertise.
The major in-store analytics solution providers are RetailNext (US), SAP (Germany), Mindtree (India), Celect (US), Thinkinside (Italy), Scanalytics (US), Capillary Technologies (Singapore), Dor Technologies (US), InvenSense (US), Happiest Minds (India), Inpixon (US), and Walkbase (Finland), among others.