The global Internet of Things (ioT) in retail market size is estimated to reach $488,53-billion by 2033, registering to grow at a CAGR of 24,5% from 2025 to 2033 according to a new report by Grand View Research.
The market growth is attributed to enhanced customer experience, operational efficiency gains through automation and data-driven insights, supply chain optimisation, and cost-effective implementation due to declining hardware costs.
In addition, rising technological advancements and increasing competition in the market are expected to present opportunities for market growth.
IoT technologies are revolutionising the retail industry by providing a seamless omnichannel shopping experience. Customers can now interact with brands across multiple touchpoints without any hassle. For instance, IoT-enabled mobile apps can offer personalised recommendations, enable mobile payments, and provide in-store navigation assistance, creating a cohesive experience that spans both online and offline channels.
This integration ensures consistency and continuity throughout the customer journey, regardless of the channels or devices used, thereby enhancing customer satisfaction and loyalty.
The data generated by IoT devices can provide retailers with crucial insights into customer behavior, preferences, and trends. This information can empower them to make data-driven decisions that optimize operations and drive business growth.
By using advanced analytics and machine learning algorithms, retailers can gain actionable intelligence from IoT data, such as predicting demand, optimizing pricing strategies, and identifying opportunities for cross-selling and upselling.
These insights enable retailers to stay ahead of market trends, anticipate customer needs, and deliver products and services that resonate with their target audience, ultimately driving revenue and profitability of the market.
Highlights from the IoT in retail market report include:
- Based on component, the hardware segment dominated the market in 2024. The growing focus of retail businesses on data-driven decision-making and the need for real-time insights is driving the demand for IoT hardware to collect, process, and transmit data from physical environments, enabling retailers to make informed decisions and drive business growth.
- Based on technology, the Near Field Communication (NFC) segment dominated the market in 2024 due to the increasing consumer preference for mobile-centric shopping experiences and the growing availability of NFC-enabled smartphones and payment terminals in retail environments.
- Based on application, the asset management segment dominated the market in 2024 due to the growing focus of retailers on optimizing asset utilisation and operational efficiency.
- Based on deployment, the cloud segment dominated the market in 2024 owing to the scalability, flexibility, and accessibility of the cloud model, enabling retailers to deploy and scale IoT initiatives quickly without significant upfront investments.
- North America accounted for a significant market share in 2024 owing to the region’s mature and technologically advanced retail market, robust infrastructure, favorable regulatory environment, strong consumer demand for personalized experiences, and a culture of innovation and entrepreneurship fostering rapid IoT adoption and evolution in the retail sector.