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Retail Cloud Market Overview
The global retail cloud market is projected to exhibit a CAGR of 20.5% during 2017–2023 and reach a value of $40.7 billion by the year 2023. The growth would be a result of the surging demand for a digital customer experience, effective and efficient point-of-sale (POS) system, massive adoption of smartphones, rising preference for multi-channel marketing experience, and adoption of cloud-based solutions by brick and mortar stores as well as online retail stores, globally. Additionally, the rising requirement for compliance and collaboration by retailers and growing pressure among them to showcase new business capabilities for customers are also contributing in the growth of the market.
GLOBAL RETAIL CLOUD MARKET BY TYPE $M (2013–2023)
Retail cloud refers to a technology that is designed for retailers, which enables them to access real-time data in order to adapt to the changing preferences of customers, make their operations cost-effective and streamlined, provide a personalized experience, have the flexibility of scaling up and down the production process, as well as enjoy fast and flexible processing of data to speedily deliver their offerings.
The retail cloud market is substantially growing owing to the. Retail cloud solutions vary with vendors, most of whom offer solutions for both large enterprises and small and medium enterprises (SME).
On the basis of type, the retail cloud market is bifurcated into solution and service. Of these, the solution category held the larger share in the market in 2016. This is attributed to the increasing adoption of solutions such as supply chain management (SCM), customer management, and workforce management, which allow retailers to analyze customer insights in an accurate way.
Further, based on solution, reporting and analytics category is expected to grow fastest during the forecast period. Huge data generation in retail industry is driving the demand for data analytics. Retailers are seeking advanced reporting and analytics solutions to gather various consumer purchasing patterns and preferences from the available structured and unstructured data.
Globally, North America held the largest share in the retail cloud market in 2016. This was due to the adoption of the cloud technology by retailers at a faster pace and a shift toward personalizing the in-store experience of customers.
Retail Cloud Market Dynamics
The key factors responsible for the growth of the retail cloud market include the surging demand for digitalized customer experience, massive adoption of smartphones, increasing focus on compliance and partnerships, and rapid adoption of omni-channel marketing by retailers. A rapid penetration of smartphones is being noted globally, with these devices serving as efficient point-of-sale (POS) systems and supporting the management of the payment, handling of the inventory, and tracking of the location. Moreover, the integration of smartphones and cloud technology enables retailers to capture real-time information to adjust their product and service offerings as per the customers’ preferences and take advantage of new growth opportunities.
Due to the high demand for compliance and collaboration from retailers, retail cloud is being adopted for edge-to-edge compliance lifecycle management. It offers provides detailed product information during the sourcing and selection of various suppliers and the product manufacturing process and offers consistent customer service support. Advantages like these continue to drive the retail cloud market on a global level by increasing the solutions’ adoption.
Besides, with the changing lifestyle of customers, they expect more convenience, variety, and information, and better access to the products and services from retailers, which creates extreme pressure on supply chains. With the help of the retail cloud technology, retailers can manage their operations by mitigating a number of operational complexities in supply chain management, thereby building greater brand identity. This promotes the adoption of cloud, thereby driving the growth of the retail cloud market across the world.
One of the major opportunities in the retail cloud market is the rapid growth of internet of things (IoT) in the retail vertical. The adoption of efficient connected solutions in the retail vertical is expected to result in risk mitigation and reduction in production cost, product stocking, and inventory management. By using connected devices such as sensors, radio-frequency identification (RFID) chips, and cameras, retailers are able to collect critical in-store data, thereby making greater use of cloud technology which would support in taking better business decisions.
Retail Cloud Market Competitive Landscape
Presently, the competition is moderate in the retail cloud market. With the increasing demand for retail cloud solutions, industry players are focusing on product launches and advancing their current portfolio. Additionally, the rapid adoption of advanced technologies by vendors is also intensifying the degree of rivalry. However, with increasing complexities in business operations due to swift digitalization, a number of new players are entering the market, who are offering consumer-specific retail cloud solutions.
Some of the key players operating in the global retail cloud market are Microsoft Corporation, Epicor Software Corporation, retailcloud, Infor Inc., Oracle Corporation, International Business Machines Corporation, SAP SE, and Cisco Systems Inc.
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