A report based on a survey by Grand View forecasts Internet of things (IoT) for retail to get a boom in its sales when compared to other industries. The sales in this sector are projected to rise to $94 billion by 2025 from a paltry $16.36 billion in 2016 with North America expected to be the leading player in the regional market followed by France and the U.K.
With traditional retail going either completely or partially online, retail stores and outlets are being pushed to invest in digital technology. This results in a projected compound annual growth rate (CAGR) of 21.5 percent for the forecast period. Another driver is expected to be the adoption of Payment-as-a-Service (PaaS) solutions to provide terminal management services and gateway solutions.
Technologies that are capable of enhancing the in-store customer experience such as sensors that use machine-to-machine communication to send customers product information, coupons and discount codes are expected to be the biggest gainers with a CAGR in excess of 23 percent over the 2016 and 2025 timeframe. Sensors, radio-frequency identification (RFID) tags, beacons, and wearables are technologies that developers and retail owners would be focused in, while IBM, Impinj, Allerin, and RetailNext are expected to be the leading performers in the supply-led side of the retail technology industry.
However, the industry growth and product development are expected to be dampened by inconsistent IoT standards. Rising security and privacy concerns are also expected to inhibit the growth during the same forecast period.