The smart retail market is projected to reach $38.5bn by 2023, up from more than $13bn in 2018, reflecting a CAGR of 24.12% during the forecast period, according to a report by Research and Markets.
Of the growth, Research and Markets commented: "Growth in this market is mainly driven by factors such as increasing adoption of smartphones; the growing need for better customer service and shopping experience; the decreasing cost of electronic components; and emerging new technologies creating new revenues for retailers.
"The major restraint for the market is data security and privacy concern with advanced technologies," the company added.
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Research and Markets segmented the smart retail market into the applications of analytics, robotics, intelligent system, smart label, smart payment system and visual marketing.
The report found that the market for robotics would grow at a particularly significant rate, as the technology's application would help to facilitate a less demanding shopping experience for consumers by improving product location, as well as by supporting retailers in managing backend and shelf-keeping inventory.
UK-based consumer goods company Ocado has been one of the early adopters of robotics in retail when it introduced the technology to one of its core warehouses in late-2017.
Ocado chief technology officer Paul Clarke said, "We have thousands of robots flying around, and there's no way that human engineers could monitor those in real time, let alone make sense of all the data that's being streamed back by those robots." said
The report also found that the North American market is anticipated to grow at the highest CAGR during the forecast period due to the significant presence of major players in the smart retail ecosystem in the region.