Global Connected Retail Market Insights Forecasts to 2033

• The Global Connected Retail Market Size was estimated at USD 30.81 Billion in 2023
• The Market Size is Expected to Grow at a CAGR of around 12.18% from 2023 to 2033
• The Worldwide Connected Retail Market Size is Expected to Reach USD 97.25 Billion by 2033
• Asia Pacific is expected to grow the fastest during the forecast period.

The Global Connected Retail Market Size is expected to cross USD 97.25 Billion by 2033, growing at a CAGR of 12.18% from 2023 to 2033. Growing customer consciousness about sustainability is impacting retail procedures and has driven the connected retail market.  

Market Overview 

The incorporation of digital technologies into physical retail places is referred to as the global connected retail market. Customers can shop through both online and physical channels owing to it. Demand for this integration is rising because it improves consumer satisfaction and engagement through tailored interactions and expedited procedures. As consumer expectations shift toward smooth, customized purchasing experiences across many channels, this market has grown crucial. The tendency to improve customer experience is one of its primary drivers. IoT devices, AI-operated analytics, and mobile apps are all used to provide digital payment methods, real-time promotion, and analog recommendations in connected retail. Modern consumers who desire efficiency, convenience, and privatization in their purchasing experiences are fulfilled by these qualities. By offering more individual and interesting experiences, businesses can create a strong relationship with consumers, which will ultimately repeat trade and loyalty.

Also, governments aid in the expansion of the connected retail market for instance, the Indian government, Open Network for Digital Commerce (ONDC) is a notable government project in connected retail space. By establishing an open network for the exchange of products and services, ONDC, which was launched by the Department for Promotion of Industry and Internal Trade (DPIIT0), Ministry of Commerce, Government of India, seeks to democratize digital commerce.

Report Coverage

This research report categorizes the connected retail market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the excavator bucket market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the connected retail market.

Driving Factors

The quick growth of internet procurement has encouraged physical installations to include technology. Connected retail solutions are important as customers require individual purchasing experiences, ease, and immediate access to product details. The connected retail market expansion because of component price reductions in recently developing markets presents an ideal opportunity. Connected purchasing is becoming more and more popular as a result of the growth of omnichannel commerce, in which customers shop across platforms that are always connected, such as desktop, tablet, and mobile. The market expansion is because retail vendors worldwide are expanding the market by improving consumer experience through continuous communication about pricing, product availability, and customer aid in all connections. The market is attributed because it allows shops to provide focused marketing, encouragement, and individual recommendations, AI is becoming more and more popular for privatization, which increases sales and consumer satisfaction. Another driving factor is that connected retail solutions appeal to tech-savvy customers by providing many channels, real-time inventory access, mobile payment options, and comfortable purchasing experiences in personal marketing.

Restraining Factors

One of the issues impeding the growth of the market under research is the absence of basic IoT standards to regulate data flow and enhance data security and privacy. The adoption of connected retail solutions by SMEs may be restricted by the substantial upfront infrastructure investments that connected technologies frequently need. Retailers must successfully manage stringent rules and consumer concerns to implement connected retail strategies since the increasing reliance on connected technology has prompted worries about data security and privacy.

Market Segmentation

The connected retail market share is classified into component, technology, and application.  

• The hardware segment held the largest share of 50.33% in 2023 and is estimated to grow at a CAGR of 11.74% throughout the projection period.

Based on the component, the global connected retail market is categorized into software, hardware, and services. Among these, the hardware segment held the largest share of 50.33% in 2023 and is estimated to grow at a CAGR of 11.74% throughout the projection period. The demand for a hardware component is operated by the rapidly growing retail applications of the Internet of Things (IoT). For spontaneous communication between physical and digital retail places, IOT technology mostly depends on hardware elements such as sensors, RFID tags, and smart gadgets. Retailers use these elements to improve service distribution and streamline business procedures by collecting real-time data on inventory levels, consumer behavior, and operational effectiveness. In addition, the requirement for hardware that facilitates a connected retail environment has increased due to the increasing use of the omnichannel retail strategy.

• The Bluetooth low energy segment accounted for the largest market share in 2023 and is estimated to grow at a CAGR of 10.83% throughout the projection period.

Based on the technology, the global connected retail market is classified into ZigBee, Bluetooth low energy, NFC (near field communication), wi-fi, and others. Among these, the Bluetooth low energy segment accounted for the largest market share in 2023 and is estimated to grow at a CAGR of 10.83% throughout the projection period. The segment expansion because of Bluetooth low energy has become primarily popular due to smooth and effective communication convenience between various platforms and equipment using limited power. This segment is attributed to BLE beacons strategically placed around the store by retailers, to deliver promotions, sequential offers, and targeted messages to customers' cell phones. Providing relevant information, enhancing foot traffic, and promoting timely and relevant engagement, improves close-based marketing customer experience.

• The food and beverage stores segment held a significant market share in 2023 and is anticipated to grow at the fastest CAGR during the forecast period.

Based on the application, the global connected retail market is divided into food and beverage, home and personal, electronics and appliances, sporting goods and toys, apparel, and others. Among these, the food and beverage stores segment held a significant market share in 2023 and is anticipated to grow at the fastest CAGR during the forecast period. This segment expansion is because food and beverage brands benefit from connected retail by increasing consumer engagement and providing a consistent brand experience that fulfills consumer preferences. For instance, in February 2023, according to the Food and Beverages Federation, a UK-based group that promotes and counsels UK food and drink producers, increased food and drink exports by 31% in 2022 compared to 2021.

Regional Segment Analysis of the Connected Retail Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the connected retail market over the predicted timeframe.

North America is anticipated to hold the largest share of the connected retail market over the predicted timeframe. The connected retail market is estimated to have a large-scale market share in North America as the region is a major player in the rapidly growing IOT region. Market research in the North American region is expected to be driven by the growing demand for connected products and services from retailers due to its many benefits, including connected consumers, lower operating costs, and increased employee productivity. The North American market is significantly impacted by me-tailing, which is another driving factor. Me-tailing has improved brand experience by enabling a high level of consumer focus. The market expansion is driven by consumers increasing preference for seamless shopping experiences that combine digital and physical channels. Additionally, the use of connected retailers has increased due to e-commerce. Retailers enhance inventory management and guarantee the availability of products on online and offline platforms using technology such as RFID (radio-female-funding identity) tags and analytics operated by Artificial Intelligence.

Asia Pacific is expected to grow at the fastest CAGR growth of the connected retail market during the forecast period. The region's expansion is because of the rapid adoption of cell phones and digital technologies in a primary factor. There is a sizable population of tech-savvy consumers due to the rise in internet access and smartphone usage in countries such as India, China, and Southeast Asia. Additionally, the Asia Pacific region is home to some of the world’s biggest e-commerce markets, such as China and India, where online retail giants like Flipkart, JD.com, and Alibaba have completely changed how consumers purchase. Another driving factor is retailers are using technologies such as virtual reality (VR), Augmented Reality (AR), and the Internet of Things (IoT) to improve inventory control, personalize consumer interactions, and improve shopping experiences.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the connected retail market along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market. 

List of Key Companies

• NXP Semiconductors NV
• Honeywell International Inc.
• Rockwell Automation, Inc.
• UiPath Inc.
• Cisco Systems, Inc.
• GE Digital
• MindTree Ltd.
• PTC Inc.
• International Business Machines Corporation (IBM)
• SAP SE
• Intel Corporation
• NCR Corporation
• Accenture
• Fujitsu Limited
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Recent Development

• In January 2025, Cognizant introduced the launch of Strores 360, a complete retail system created to optimize store operation, boost employee productivity, and enhance consumer experiences. The solution, created in partnership with ServiceNow, supports each touchpoint in the retail value chain and makes use of the Cognizant Neuro® AI platform and the generative AI-powered Now Assist solution to facilitate smooth and effective operations.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the connected retail market based on the below-mentioned segments: 

Global Connected Retail Market, By Component

• Software
• Hardware
• Services

Global Connected Retail Market, By Technology

• ZigBee
• Bluetooth Low Energy
• NFC (Near Field Communication)
• Wi-Fi
• Others

Global Connected Retail Market, By Application

• Food and Beverage
• Home and Personal
• Electronics and Appliances
• Sporting Goods and Toys
• Apparel
• Others

Global Connected Retail Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa