Internet Of Things (IoT) In Retail Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Offering (Hardware, Platform, Service), By Application (Smart Shelf, Asset Management, Customer Experience Management, and Geomarketing), By Region, By Competition Forecast, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 15.84 Billion
CAGR (2026-2031)	19.97%
Fastest Growing Segment	Smart Shelf
Largest Market	Asia Pacific
Market Size (2031)	USD 47.23 Billion

Market Overview

The Global Internet Of Things (IoT) In Retail Market will grow from USD 15.84 Billion in 2025 to USD 47.23 Billion by 2031 at a 19.97% CAGR. The Global Internet of Things (IoT) in Retail Market involves the deployment of interconnected devices, sensors, and software across physical stores and supply chains to facilitate real-time data exchange and automation. The primary drivers supporting market growth include the critical need for enhanced supply chain transparency and the drive for operational efficiency through automated inventory management. These technologies enable retailers to optimize stock levels and streamline logistics to meet consumer expectations for product availability. According to GS1 US, in 2025, companies that implement real-time tracking technologies are 68% more likely to report improved visibility and better inventory control.

Despite these operational advantages, the market faces a significant challenge regarding cybersecurity and data privacy. The rapid proliferation of connected endpoints expands the potential attack surface and leaves sensitive consumer financial and personal information vulnerable to breaches. Consequently, the substantial investment required to secure these complex networks against cyber threats acts as a major impediment to broader adoption for many retail enterprises.

Key Market Drivers

Rising Demand for Personalized and Interactive In-Store Experiences stimulates market expansion as retailers deploy IoT solutions to bridge the gap between physical and digital commerce. By integrating sensors, beacons, and smart displays, stores can now identify individual shoppers upon entry and deliver tailored product recommendations or dynamic pricing in real-time. This capability to curate the physical journey significantly enhances customer engagement and loyalty by replicating the customized nature of online shopping within a brick-and-mortar environment. According to TransPerfect, February 2025, in the 'Top 5 Personalization Trends in Retail for 2025' report, over 70% of consumers indicate they are more likely to shop with brands that recognize and address their individual preferences.

The Growing Necessity for Real-Time Inventory Visibility and Stock Optimization forces a shift from manual tracking to automated, sensor-based operational models. Retailers are increasingly adopting item-level RFID and computer vision technologies to maintain precise oversight of stock levels, thereby minimizing out-of-stock scenarios and enabling efficient omnichannel fulfillment strategies like buy-online-pickup-in-store. These automated systems are critical for reducing shrinkage and ensuring that supply chain logistics align perfectly with immediate consumer demand. According to Zebra Technologies, November 2025, in the '18th Annual Global Shopper Study', 84% of decision-makers now cite real-time inventory synchronization as a top priority for their organizations. Underscoring this operational pivot, according to Honeywell, in January 2025, more than 80% of retailers plan to increase their use of automation and artificial intelligence across their operations to enhance efficiency.

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Key Market Challenges

The expansion of the Global Internet of Things (IoT) in Retail Market is significantly hindered by escalating cybersecurity threats and data privacy concerns. As retailers integrate more interconnected devices and sensors into their physical and digital infrastructures, the attack surface available to cybercriminals widens considerably. This increased connectivity exposes sensitive consumer financial data and personally identifiable information to potential breaches. Consequently, retail enterprises are often forced to prioritize defensive measures over innovation, delaying the deployment of advanced IoT systems due to the immense reputational and financial risks associated with potential data theft.

The substantial investment required to fortify these complex networks further impedes market growth. Securing a vast ecosystem of endpoints demands rigorous protocols and continuous monitoring, which drives up operational costs and reduces the immediate return on investment for IoT projects. According to the Retail & Hospitality Information Sharing and Analysis Center (RH-ISAC), in its 2025 CISO Benchmark Report, ransomware was identified as the top cybersecurity risk by 70% of information security leaders in the retail and hospitality sectors. This high prevalence of critical threats compels retailers to divert capital toward security compliance and risk mitigation rather than expanding their IoT capabilities, thereby slowing the overall adoption rate within the industry.

Key Market Trends

The Expansion of Automated and Cashier-less Checkout Systems is reshaping the in-store payment process by eliminating traditional friction points through the deployment of smart carts and computer vision-enabled zones. These IoT-driven solutions not only enhance customer convenience by allowing immediate product scanning but also provide retailers with granular data on shopping behaviors that were previously untrackable. According to Capital One Shopping, February 2025, in the 'Self-Checkout Adoption & Theft Statistics' report, nearly 40% of grocery store registers in the U.S. are now self-checkout kiosks, highlighting the massive shift toward autonomous transaction models.

Implementation of Smart Energy Management for Sustainability has prioritized the integration of IoT sensors with HVAC and lighting systems to dynamically adjust consumption based on real-time foot traffic. This intelligent regulation enables retailers to significantly lower their carbon footprint and operational costs by identifying inefficiencies before they lead to energy wastage. According to Facilities Dive, November 2025, in the 'Schneider Electric sees energy management demand drive strong quarter' article, the energy management segment reported 10% year-over-year growth in Q3 2025, driven significantly by demand from retail customers for efficiency software.

Segmental Insights

Based on current market analysis, the Smart Shelf segment is identified as the fastest-growing category within the Global Internet Of Things (IoT) In Retail Market. This rapid expansion is primarily driven by the critical need for real-time inventory visibility and the automation of stock management processes. Retailers are increasingly adopting these intelligent solutions to mitigate out-of-stock scenarios and minimize shrinkage, which are significant sources of revenue loss. By utilizing weight sensors and RFID technology, smart shelves provide immediate data on product availability, thereby streamlining replenishment operations. Furthermore, the integration of electronic shelf labels enables dynamic pricing strategies, allowing businesses to respond instantly to market changes and enhancing overall store efficiency.

Regional Insights

Asia Pacific holds the leading position in the Global Internet of Things in Retail Market, driven by rapid urbanization and extensive investments in digital infrastructure. This dominance is largely attributed to the high adoption of mobile devices in major economies like China and India, which facilitates efficient digital payment systems and data-driven customer engagement. Retailers in the region actively implement automated inventory management and supply chain tracking to streamline operations. Additionally, supportive government frameworks promoting smart city projects further accelerate the integration of connected technologies within the retail sector, establishing the region's market leadership.

Recent Developments

• In October 2024, the materials science and digital identification solutions provider Avery Dennison initiated a strategic collaboration with the grocery retailer Kroger to implement RFID inventory automation technology. The project began in the bakery department, utilizing RFID-embedded labels to enable item-level digital identification for improved inventory visibility and freshness management. This IoT-driven approach was designed to automate manual tasks, thereby reducing waste and allowing store associates to focus more on customer service. The partnership marked a foundational step towards delivering a seamless and efficient experience across fresh food categories by leveraging precise data to ensure product availability on shelves.
• In July 2024, the e-commerce and technology company Amazon unveiled a new multi-modal foundation model for its Just Walk Out technology, representing a breakthrough in checkout-free retail systems. This advanced research development utilized generative artificial intelligence to analyze data from multiple sensors simultaneously, rather than sequentially, to achieve higher accuracy in complex shopping scenarios. The updated system was designed to handle variables such as camera obstructions and varying lighting conditions more effectively while simplifying the required hardware. This innovation allowed third-party retailers to implement the cashierless technology with greater ease, ensuring a seamless and reliable shopping experience for customers in various store formats.
• In April 2024, VusionGroup announced a significant amendment to its framework contract with the retail giant Walmart to accelerate the deployment of its IoT-based digital solutions across the United States. The agreement focused on the rollout of the EdgeSense and VusionCloud platforms, which utilize connected electronic shelf labels and sensor technologies to digitize physical stores. This functional extension aimed to enhance merchandising, optimize inventory management, and streamline e-commerce order preparation processes within the retailer's operations. The collaboration highlighted a major step in the digital transformation of physical retail, leveraging Bluetooth-based IoT operating systems to improve store efficiency and associate productivity.
• In January 2024, the technology corporation Microsoft launched the Retail Cloud Alliance in collaboration with leading industry partners to facilitate digital transformation in the retail sector. This initiative aimed to empower retailers by providing comprehensive resources and insights into emerging technologies, including the Internet of Things (IoT), cloud computing, and AI-driven supply chain optimization. The alliance focused on educating the market about modernizing operations and creating personalized customer experiences through advanced digital infrastructure. By uniting with forward-thinking technology companies, the alliance sought to address the challenges of the digital age and support future-proofing strategies for retail businesses globally.

Key Market Players

• IBM Corporation
• Cisco Systems, Inc.
• Intel Corporation.
• Microsoft Corporation
• SAP SE
• Amazon Web Services
• PTC Inc.
• Hewlett Packard Enterprise
• Oracle Corporation
• Siemens AG

By Offering	By Application	By Region
Hardware Platform Service	Smart Shelf Asset Management Customer Experience Management Geomarketing	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Internet Of Things (IoT) In Retail Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Internet Of Things (IoT) In Retail Market, By Offering:

• Hardware
• Platform
• Service

• Internet Of Things (IoT) In Retail Market, By Application:

• Smart Shelf
• Asset Management
• Customer Experience Management
• Geomarketing

• Internet Of Things (IoT) In Retail Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE