The global Retail Digital Transformation Market is estimated to be valued at US$ 7,230.57 Mn or Bn in 2023 and is expected to exhibit a CAGR of 13.0 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The retail digital transformation market involves integrating digital technologies into retail operations, marketing, supply chain and customer experience. This includes adoption of technologies like AI, IoT, cloud, analytics and mobility solutions. Digital transformation helps retailers gain insights from customer data, enhance operations, engage customers through personalized experiences and build omni-channel presence. It allows flexible shopping, payment options and delivers seamless shopping experience across online and physical stores. Adopting digital solutions helps retailers boost sales, drive efficiencies and gain competitive advantage.
Market key trends:
One of the key trends in the retail digital transformation market is growing adoption of artificial intelligence. AI is helping retailers analyze customer data, predict buying patterns, offer personalized recommendations and optimize inventory. AI powered chatbots and voice assistants are enhancing shopping assistance. Major retailers are investing in AI to automate operations, drive sales through personalized engagement and improve supply chain management. Furthermore, growth in omni-channel retailing is another major trend. Consumers are shopping across online and offline channels and expect consistent experience. Digital transformation provides retailers with tools to build an integrated omni-channel experience and remains competitive in evolving retail landscape.
Porter’s Analysis
Threat of new entrants: The retail digital transformation market has moderate threat from new entrants due to high capital investments required for advanced technologies.
Bargaining power of buyers: Buyers have moderate bargaining power due to large number of existing players providing digital solutions.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitute solutions.
Threat of new substitutes: Threat from substitutes is moderate as there are limited close substitutes to digital solutions.
Competitive rivalry: The market players compete on the basis of value-added services and advanced solutions.
Key Takeaways
The Global Retail Digital Transformation Market Share is expected to witness high growth, exhibiting CAGR of 13.0 % over the forecast period, due to increasing adoption of omnichannel retailing strategy by retailers.
Regional analysis
The Asia Pacific region is expected to witness fastest growth in the retail digital transformation market during the forecast period. This is attributed to growing e-commerce sector and increasing internet penetration in emerging countries such as China and India. North America dominated the global market in 2023 due to presence of major retail companies adopting digital technologies.
Key players analysis
Key players operating in the retail digital transformation market are Amazon.com, Inc., MercadoLibre, Inc., eBay, Inc., Otto Group, Wal-Mart Stores, Inc., Snapdeal.com, Alibaba Group Holding Limited, Tesco PLC, Rakuten, Inc., and Flipkart Internet Private Limited. These players compete on the basis of value-added services and advanced solutions.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
