Internet of Things (IoT) in Retail Market Size, Growth, and Forecast 2026-2034

Market Overview:

The internet of things (IoT) in retail market is experiencing rapid growth, driven by demand for hyper-personalized shopping journeys, optimization of core retail operations, and expansion of seamless omnichannel retail. According to IMARC Group's latest research publication, "Internet of Things (IoT) in Retail Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034”, The global internet of things (IoT) in retail market size reached USD 78.3 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 267.8 Billion by 2034, exhibiting a growth rate (CAGR) of 14.64% during 2026-2034.

This detailed analysis primarily encompasses industry size, business trends, market share, key growth factors, and regional forecasts. The report offers a comprehensive overview and integrates research findings, market assessments, and data from different sources. It also includes pivotal market dynamics like drivers and challenges, while also highlighting growth opportunities, financial insights, technological improvements, emerging trends, and innovations. Besides this, the report provides regional market evaluation, along with a competitive landscape analysis.

Download a sample PDF of this report: https://www.imarcgroup.com/internet-of-things-in-retail-market/requestsample

Our report includes:

• Market Dynamics
• Market Trends and Market Outlook
• Competitive Analysis
• Industry Segmentation
• Strategic Recommendations

Growth Factors in the Internet of Things (IoT) in Retail Market

• Demand for Hyper-Personalized Shopping Journeys

The primary driver is the intense retail focus on enhancing customer experience through hyper-personalization, moving beyond basic loyalty programs. IoT devices, such as beacons and smart digital signage, facilitate the collection of real-time, in-store customer behavior data, including dwell times and traffic patterns. This stream of data allows retailers to deliver highly targeted promotions and product recommendations directly to a customer's mobile device or an in-store display, significantly boosting engagement. For instance, in-store camera-sensor bundles at specific retail chains have been shown to lift conversion rates for certain product categories by a significant percentage after adjusting environmental factors like lighting in response to live customer analytics. This ability to tailor the physical store experience instantly is essential for maintaining a competitive edge against e-commerce giants.

• Optimization of Core Retail Operations

The second major factor is the substantial operational efficiency and cost reduction achieved by automating core processes like inventory and supply chain management. The adoption of Radio-Frequency Identification (RFID) technology and smart shelves is foundational to this growth. RFID inlays are now sophisticated enough to tag a far higher percentage of stock-keeping units (SKUs) in a typical store, extending coverage well beyond the historical limitation on liquids and metals. This enhanced capability drives automated stock accuracy gains and simultaneously cuts the need for manual stock checks. Major retailers, including some of the largest grocery and general merchandise corporations, actively invest in this technology to reduce out-of-stock incidents, combat shrinkage (theft/loss), and prevent spoilage in temperature-sensitive goods.

• Expansion of Seamless Omnichannel Retail

The push for a unified shopping experience across both physical and digital channels—known as omnichannel retail—is accelerating the need for interconnected IoT systems. Over three-quarters of leading retailers worldwide are currently pursuing strategies that require a seamless flow of data between their mobile applications, in-store beacons, and Point-of-Sale (POS) devices. This integration ensures that a customer receives the same pricing, promotions, and service whether they are browsing online or in a physical location. Furthermore, the necessity for efficient services like curbside pickup and contactless transactions, which rely on sensors and real-time location data, have further highlighted the role of IoT in creating a cohesive, responsive, and data-rich retail environment.

Key Trends in the Internet of Things (IoT) in Retail Market

• Integration of AI and Edge Computing

A prominent trend involves the fusion of Artificial Intelligence (AI) and edge computing capabilities directly within IoT retail devices. Instead of relying solely on the cloud for processing, sensors, smart cameras, and on-device processors are performing real-time data analysis locally—at the network "edge." This allows for immediate actions, such as detecting and alerting staff to shoplifting or instantly adjusting digital price tags based on local demand fluctuations. This shift is expected to propel the adoption of computer vision cameras, one of the key IoT technologies, which are advancing rapidly to complement technologies like RFID by reading visual cues and automating tasks that tags cannot address, enhancing overall store intelligence and security.

• Dynamic Pricing and Electronic Shelf Labels (ESLs)

The widespread adoption of Electronic Shelf Labels (ESLs) is a significant and visible emerging trend, especially within supermarkets and hypermarkets, which constitute a large portion of retail sales. ESLs are IoT devices that replace traditional paper price tags, allowing retailers to change pricing instantly and centrally. This enables dynamic pricing, where prices can be automatically adjusted multiple times a day based on factors like competitor pricing, current stock levels, or approaching expiration dates. This capability, demonstrated by major European grocery chains, not only streamlines operations by eliminating manual re-labeling but is also a critical tool for reducing food waste and maximizing profitability through demand-driven promotions.

• Decentralized Security and Data Privacy Solutions

As the volume of sensitive customer and operational data collected by in-store IoT networks swells, a key trend is the move toward decentralized security frameworks, including the exploration of blockchain technology. IoT devices generate massive amounts of information, raising consumer concerns about privacy and data security. To address this, retailers are looking to implement more robust security measures that distribute data processing and verification across the network. Government bodies in major economic regions are also introducing comprehensive acts focused on cyber resilience, encouraging retailers to build security into their IoT solutions from the design stage to protect critical operational technology and secure customer trust.

Leading Companies Operating in the Global Internet of Things (IoT) in Retail Industry:

• Arm Limited
• AT&T Business
• Intel Corporation
• Microsoft Corporation
• Qualcomm Technologies, Inc.
• Software AG
• Softweb Solutions Inc. (Avnet Inc.)
• Telit Cinterion
• Verizon

Internet of Things (IoT) in Retail Market Report Segmentation:

By Solution:

• Hardware
  • RFID tags
  • Beacons
  • Sensors
  • Wearables
• Software

By Service:

• Professional Services
• Managed Services

By Technology:

• Near Field Communication
• Bluetooth Low Energy
• ZigBee
• Others

By Platform:

• Device Management
• Application Management
• Connectivity Management

By Application:

• Operations Management
• Asset Management
• Customer Experience Management
• Advertising and Marketing

By Region:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

The non-ferrous metals market is divided by region into North America (U.S. and Canada), Europe (Germany, France, U.K., Italy, Spain, Russia, and others), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Latin America (Brazil, Mexico, and others), and the Middle East and Africa, with Asia Pacific being the largest regional market due to rapid industrialization and technological advancements.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us:

IMARC Group

134 N 4th St. Brooklyn, NY 11249, USA

Email: sales@imarcgroup.com

Tel No:(D) +91 120 433 0800

United States: +1-201971-6302