The Internet of Things in Retail
The Internet of Things (IoT) improves retail operations and transforms the consumer shopping experience. Key points of this report include:
- IoT provides more engaging in-store experiences and more straightforward ways to shop and pay. Retail operations benefit from more efficient inventory and supply chain management, customized shopping capabilities, in-store layout optimization and increased automation.
- Retailers adopt IoT by developing the technology in-house or by collaborating with external partners and providers. Large companies tend to adopt a hybrid strategy focused on in-house R&D and acquisition of external technology providers. Many retailers may find collaboration with technology firms and startups advantageous.
- We expect IoT to play an increasingly important role in retail in the future as the technology improves and its applications in retail become more efficient. Data firms Statista and Grand View Research expect the US IoT in retail hardware market to grow at a 16% CAGR in the next six years to 2025.
- The application of emerging technologies in IoT architecture — including blockchain and 5G — should drastically improve the security, connectivity and scalability that currently limits IoT systems, significantly encouraging further adoption in retail.