Growth in Adoption of SaaS Solutions to Meet Changing Customer Preferences
The retail cloud market size is expected to grow from USD 47.0 billion in 2023 to USD 114.9 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 19.6% during the forecast period. The advent of IoT in retail and the adoption of new retail technologies to improve retail management offer opportunities for the growth of the retail cloud market. The concerns over data security in the cloud represent a significant challenge for the growth of the retail cloud market.
As per solutions, the reporting & analytics segment holds the highest CAGR during the forecast period.
Retail cloud solutions have revolutionized the retail industry in many ways, one of which is the ability to gain deeper insights into business operations through the use of reporting and analytics solutions. By leveraging the power of the cloud, retailers can collect and analyze vast amounts of data to gain valuable insights into customer behavior, sales trends, inventory management, and more. Retail cloud analytics solutions use a variety of data sources, such as point-of-sale systems, customer loyalty programs, and social media, to gather data on customer behavior and preferences. This data can then be analyzed to uncover patterns and trends and generate insights that can inform business decisions. One of the key benefits of using cloud-based reporting and analytics solutions is the ability to access real-time data from any location with an internet connection. This means that managers and other stakeholders can quickly and easily access data and insights, and make informed decisions based on the latest information.
As per services, the professional services segment holds the largest market share during the forecast period.
Retail cloud professional services can help businesses in various ways. For instance, businesses can leverage the expertise of cloud professionals to design and implement customized solutions that meet their unique needs. This can include solutions for supply chain management, inventory management, customer management, and more. Retail cloud professional services can also help businesses migrate their existing applications and data to the cloud. Cloud migration can be a complex process, and businesses often require the help of experts to ensure a smooth transition. Cloud professionals can help businesses assess their current infrastructure, determine which applications and data should be migrated to the cloud, and develop a migration plan that minimizes disruption to operations. Another important aspect of retail cloud professional services is ongoing support and maintenance. Businesses that rely on cloud-based solutions require ongoing support to ensure that their applications are running smoothly and that their data is secure. Retail cloud professionals can provide ongoing support and maintenance to ensure that businesses can focus on their core operations and leave the technical details to the experts.
As per organization size, the SMEs segment is projected to witness the highest CAGR during the forecast period.
Organizations with employee size under 1,000 are categorized under SMEs. These enterprises face a greater resource crunch than large enterprises and require better methods to solve the complexities for better cost optimization on their business processes. Cloud services have become a central part of the business processes in SMEs, due to the ease of use and the flexibility they offer, and their adoption is expected to grow in the coming years. The adoption of retail cloud solutions and services among small and medium-sized enterprises (SMEs) is gaining momentum as they look to streamline their operations and remain competitive in the rapidly evolving retail industry. Cloud computing offers SMEs access to the same technologies and capabilities as larger enterprises, without the need for substantial upfront investments in hardware, software, and IT infrastructure.
As per region, the Asia Pacific is projected to witness the highest CAGR during the forecast period.
Technological development in the Asia Pacific region is expected to drive the retail cloud market. Asia Pacific region is expected to witness investment in digital transformation initiatives in countries such as China, Japan, and India. According to a State of The Edge report, in 2020, Asia Pacific had the largest edge computing equipment footprint 1 of 187MW-the highest among regions. Further, many cloud service providers are working with retailers to streamline operations, improve customer engagement, and drive innovation. for instance, Alibaba Cloud is one of the largest cloud providers in the Asia Pacific and has been working with retailers in the region to provide cloud-based solutions for e-commerce, logistics, and supply chain management. This is likely to boost the adoption of retail cloud solutions in the region.
The breakup of the profiles of the primary participants is given below:
- By Company: Tier I: 20%, Tier II: 34%, and Tier III: 46%
- By Designation: C-Level Executives: 35%, Director Level: 25%, and Others: 40%
- By Region: Asia Pacific: 18%, Europe: 25%, North America: 42%, Rest of World: 15%
Note: Others include sales managers, marketing managers, and product managers
Note: The rest of the World includes the Middle East & Africa and Latin America
Note: Tier 1 companies have revenues of more than USD 100 million; tier 2 companies’ revenue ranges from USD 10 million to USD 100 million; and tier 3 companies’ revenue is less than 10 million
Source: Secondary Literature, Expert Interviews, and Analysis
Some of the major vendors offering retail cloud solutions and services across the globe include AWS (US), Microsoft (US), Google (US), Oracle (US), Salesforce (US), SAP (Germany), Accenture (Ireland), Alibaba Cloud (China), IBM (US), Cisco (US), VMware (US), Fujitsu (Japan), Blue Yonder (US), Cognizant (US), Workday (US), Infor (US), Rackspace (US), SPS Commerce (US), Atos (France), Epicor (US), Nutanix (US), Lightspeed Commerce (Canada), Tekion (US), and SymphonyAI Retail CPG.
Research coverage:
The market study covers the retail cloud market across segments. It aims at estimating the market size and the growth potential of this market across different segments, such as component, service model, deployment model, delivery, organization size, and region. It includes an in-depth competitive analysis of the key players in the market, along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Reasons to buy this report:
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall retail cloud market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
- Analysis of key drivers (need for enhancing the online shopping experience, growing adoption of SaaS solutions to meet the changing customer demands and preferences, accelerated adoption of multi-cloud architecture), restraints (integration of cloud-based systems with the legacy systems), opportunities (advent of IoT in retail to improve retail management, growing adoption of New Retail technologies to integrate online and offline shopping experiences), and challenges (difficulty in switching IT workloads to other cloud vendors, concerns over data security in the cloud) influencing the growth of the retail cloud market.
- Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the retail cloud market.
- Market Development: Comprehensive information about lucrative markets - the report analyses the retail cloud market across varied regions.
- Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the retail cloud market.
- Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players like AWS (US), Microsoft (US), Google (US), Oracle (US), Salesforce (US), SAP (Germany), Accenture (Ireland), Alibaba Cloud (China), IBM (US), Cisco (US), among others in the retail cloud market.
Table of Contents
Executive Summary
Companies Mentioned
- Accenture
- Alibaba Cloud
- Atos
- AWS
- Blue Yonder
- Brightpearl
- Cisco
- Clover Network
- Cognizant
- Epicor
- Fujitsu
- IBM
- Infor
- Iqmetrix
- Ivend Retail by Citixsys
- Kliger-Weiss Infosystems
- Lightspeed Commerce
- Microsoft
- Nutanix
- One Step Retail Solutions
- Openbravo
- Oracle
- Rackspace
- Rapidscale
- Retail Solutions
- Retailcloud
- Retailops
- Salesforce
- SAP
- Sps Commerce
- Symphonyai Retail Cpg
- Tekion
- Vmware
- Workday
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 266 |
| Published | May 2023 |
| Forecast Period | 2023 - 2028 |
| Estimated Market Value ( USD | $ 47 Billion |
| Forecasted Market Value ( USD | $ 114.9 Billion |
| Compound Annual Growth Rate | 19.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 35 |
