Connected Retail Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Component:

Based on the component, the market is classified into hardware, software, and services.

Trends in the Component:

• Consulting services are also in demand to help retailers develop effective connected retail strategies.
• Growing trend towards the adoption of managed services, where third-party providers handle the ongoing management of connected retail infrastructure.

Hardware accounted for the largest revenue share of 54.43% in the market in 2024.

• Retailers are adopting IoT devices like sensors, RFID tags, and smart shelves to gather real-time data on inventory, customer behavior, and store conditions, thereby driving the connected retail market share.
• Digital signage and interactive displays are used to provide product information, personalized promotions, and engaging customer experiences, which enhance in-store communication and drive sales.
• Moreover, mobile point-of-sale (POS) systems are gaining traction, allowing retailers to process transactions anywhere in the store, which enhances customer convenience and reduces checkout times.
• For instance, in November 2024, KUBRA, in partnership with Ingenico launched an upgraded point-of-sale (POS) solution that integrates with their existing KUBRA EZ-PAY platform, bringing enhanced payment capabilities to walk-in centers. The new solution streamlines transactions by eliminating manual processes and supporting a wider range of payment methods, including credit and debit cards, EMV Chip and PIN, contactless payments, and digital wallets.
• Thus, as per the connected retail market analysis, the aforementioned factors are driving the hardware segment demand.

Software is predicted to register the fastest CAGR during the forecast period.

• Software are incorporating AI and machine learning to analyze customer data, predict behavior, and deliver personalized recommendations, driving the connected retail market share.
• Advanced analytics platforms provide retailers with actionable insights into customer preferences, inventory management and sales trends, hence driving the connected retail market size.
• Retailers are adopting software that integrates online and offline channels, providing a unified customer experience, including solutions for managing inventory, orders, and customer data.
• For instance, in Jan 2025, SymphonyAI unveiled its CINDE Connected Retail Platform, a solution leveraging predictive, generative, and autonomous AI to revolutionize retail operations. The platform provides AI-powered software suites for merchandising, store and shelf management, and supply chain optimization, offering retailers unprecedented insights and seamless connectivity.
• Consequently, the aforementioned factors are driving the software segment.

By Technology:

Based on the technology, the market is classified into ZigBee, Bluetooth Low Energy, NFC (Near Field Communication), Wi-Fi, and others.

Trends in the Technology:

• Wi-Fi's high bandwidth supports data-intensive applications like video analytics, digital displays, and real-time inventory tracking.
• Growing trend towards the adoption of ZigBee for controlling and automating in-store lighting and energy management systems is reducing costs and improving sustainability.

Bluetooth Low Energy (BLE) accounted for the largest revenue share in 2024.

• BLE is used to track customer movement within a store, allowing retailers to optimize store layouts and manage queues more efficiently, thereby driving the connected retail market trend.
• BLE enables interactive product displays that provide customers with detailed information and personalized recommendations.
• Moreover, BLE is used to create highly personalized in-store experiences, such as personalized greetings, product recommendations, and special offers.
• BLE can be used to streamline "click and collect" services, allowing customers to easily locate and retrieve their online orders.
• Thus, as per the connected retail market analysis, the aforementioned factors are driving the Bluetooth Low Energy (BLE) segment demand.

NFC (Near Field Communication) is predicted to register the fastest CAGR during the forecast period.

• NFC streamline loyalty programs by allowing customers to tap their smartphones on terminals to redeem points or access digital coupons.
• NFC can simplify the pairing of devices, such as connecting smartphones to in-store Wi-Fi or Bluetooth speakers, which enhances the customer experience by reducing friction.
• NFC can be used to instantly deliver digital receipts and product warranties to customers' smartphones, eliminating the need for paper receipts and simplifies warranty management.
• For instance, in Feb 2025, Flexa has launched a new feature allowing cryptocurrency payments via "Tap to Pay" using NFC-enabled hardware wallets, a first for the industry. This innovation enables direct blockchain transactions in physical stores without relying on smartphones or internet connectivity.
• Consequently, the aforementioned factors are driving the growth of NFC (Near Field Communication) segment.

By Application:

Based on the application, the market is categorized into apparel, electronics and appliances, food and beverage, home and personal, sporting goods and toys, and others.

Trends in Application:

• AR/VR technologies enable virtual try-ons, allowing customers to visualize clothing on themselves before purchasing.
• Growing trend towards the integration of connected appliances and electronics with smart home ecosystems, enabling seamless control and automation.

Food and Beverage accounted for the largest revenue share in 2024 and is also projected to register the fastest growth during the forecast period.

• Automated checkout systems and self-service kiosks reduce wait times and enhance customer convenience. "Grab-and-go" concepts utilize sensor technology to track items taken and automatically charge customers.
• The implementation of blockchain technology and IoT sensors facilitates end-to-end supply chain visibility, ensuring food safety and traceability. The technology enables consumers to access detailed product information through QR codes or NFC tags, driving the market size.
• AI-powered apps and platforms provide personalized meal planning and recipe recommendations based on dietary restrictions, preferences, and available ingredients, further contributing to the connected retail market growth.
• For instance, in Dec 2024, HungerRush introduced "Order Notifications," a new feature that automates personalized text updates for delivery and pickup orders, aiming to enhance customer satisfaction and streamline restaurant operations. By providing real-time order status, this feature reduces customer inquiries, allowing staff to focus on essential tasks and improving overall efficiency.
• Therefore, as per the market analysis, the aforementioned benefits are bolstering the connected retail market.