Retail Camera On Shelf Availability Market

The global Retail Camera On Shelf Availability Solution Market is estimated to surpass $3.7 billion mark by 2027, growing at an estimated CAGR of more than 5.8% during the forecast period 2022 - 2027. Cameras on Shelf availability aids retailers in detecting and displaying the quantity of stock on shelves, such as in supermarkets. It is then simple to replenish the shelves before the goods are fully sold out and the sales areas are unused. As a result, revenue losses due to missing goods are prevented, and customers are always presented with fully stocked shelves. In retail stores and marketplaces, AI-driven shelf cameras are becoming popular for inventory management, demand planning, supply chain management and out-of-stock restocking, resulting in increased in-store sales, increased staff productivity, and efficient customer response. Traditional retail audits, which rely on the physical inspection of shelves, are time-consuming and ineffective. Many merchants prefer to install shelf cameras across their stores to detect out-of-stocks, low supply, and planogram compliance automatically, resulting in market growth. Increased technical advancements in the retail sector such as adoption of internet of things, growing partnerships between retailers and suppliers, and increasing focus on business asset management and automation further fuel the Retail Camera On Shelf Availability Market.

Key Takeaways

• Comprehensive on-shelf availability solutions are enabling retailers to optimize OSA across their entire business, significantly increasing sales, profits, and ROI. Retailers are overcoming the challenges of serious and persistent on-shelf availability (OSA) leakage and the associated significant revenue loss by using on-shelf availability solutions, such as camera and mobile applications.
• Moreover, the market's growth is being fueled by increased technical advancements in the retail sector, growing partnerships between retailers and suppliers, and an increasing focus on business asset management and automation.
• Supermarkets and convenience stores are actively using these solutions to increase earnings and eliminate wasted sales opportunities. One of the variables for determining the loss of sales possibilities is shelf availability. When a wanted product is marked as out of stock, customers frequently purchase the same item from a competitor retailer, resulting in a profit loss. This is prevalent in busy retail businesses and neighborhood hypermarkets. Sales of on-shelf availability solutions are increasing as the focus on asset management is rapidly growing, fuelling the market's growth.

Retail Camera On Shelf Availability Solution Market Segment Analysis - By Technology

By Technology, Fixed Cameras dominated the Retail Camera On Shelf Availability Market with a revenue of $89.9m in 2022 and is projected to reach $141.7m by 2027, growing at a fastest CAGR of 8.0% during the forecast period 2022-2027 owing to the growing adoption of fixed cameras in Supermarkets shelfs to track the availability of products in store. Companies are encouraging retailers to integrate the technology into their physical stores as a way to compete more effectively with online competitors like Amazon. Many companies are expanding their partnerships and putting shelf cameras in more locations as technology advances which is boosting the market growth. Trax, a star up focused on computer vision firm, promises to alleviate some of that anguish for business owners. It's working on cameras and artificial intelligence to keep an eye on store shelves and track when product inventory is running low. If the system identifies a shortage, it notifies management and personnel at the store. It can also convey sales data to a store's suppliers in real time, letting them know which products have made it to the shelf and which have been sold at specific locations which is driving the market growth.

Retail Camera On Shelf Availability Solution Market Segment Analysis - By Store Area

By Store Area (Space/Size), Hypermarkets dominated the Retail Camera On Shelf Availability Market with a revenue of $44.7m in 2022 and are projected to reach $64.6m by 2027 growing at the fastest CAGR of 8.4% during the forecast period 2022-2027 as Hypermarkets, for example, are increasingly using these technologies to increase earnings and eliminate lost sales opportunities. On-shelf availability cameras with synthetic computer vision are extensively being adopted in hypermarkets as it uses mobile applications with a digital recreation of every single stock keeping unit on a hypermarket store’s shelves. In high-traffic retail establishments and community-based hypermarkets, this is typical. As the focus on asset management grows, so will sales of off-the-shelf availability solutions, fueling the market’s expansion. Over the projected period, sales in the Retail Camera On Shelf Availability market are expected to be fueled by the increasing penetration of global supermarket chains and other hypermarkets.

Retail Camera On Shelf Availability Solution Market Segment Analysis - By Geography

By Geography, North America dominated the Retail Camera On Shelf Availability Market with a revenue of $59.2m in 2022 and is projected to reach $83.4m by 2027 growing at a CAGR of 7.4% during the forecast period 2022-2027. The enormous presence of retail establishments and strong development in the retail sector boost the market for on-shelf availability solutions in North America. Most of the world's top retailers have their headquarters in this region. In the future years, the market for on-shelf availability solutions is predicted to grow due to the rising need for supply chain management and solutions to reduce overstocking. However, APAC is set to be the fastest-growing segment with a CAGR of 8.1% during the forecast period 2022-2027 and is projected to generate a revenue of $57.5m by 2027. The region’s growing adoption of online retail channels and high e-commerce penetration is projected to make it a desirable market for on-shelf availability solutions. After the initial stages of the COVID-19 epidemic, demand in Asia-Pacific grew as buyers became more interested in making purchases through online channels. As a result, a growing number of small-scale manufacturers are turning to online retail platforms to boost their sales. Furthermore, the emergence of foreign retail brands in India is likely to benefit the market's growth during the forecast period.

Retail Camera On Shelf Availability Solution Market Drivers

The rise in the on-shelf availability issues in the retail sector is driving the retail camera on-shelf availability industry

Across the U.S. grocery industry, a perse range of products recorded missed sales opportunities in 2022 owing to the on-shelf availability (OSA) issues. For instance, Salty Snacks and Pet Food has incurred a loss of $444m and $764m respectively. Retailers and manufacturers have long known that when it comes to being able to find items on the shelf is traditionally the most challenging time of the year across the entire store. U.S. food retail industry loses an estimated $15-20 billion in sales every year owing to the lack of availability of items on stock or otherwise unsaleable, which is around two to three percent of its total sales. The main operational challenge for the consumer sector is to achieve high levels of on-shelf availability while keeping supply chain costs down and inventories under control. Supply-chain complexity is rising as customers are demanding a wider selection of products, a broader choice of channels, and more promotional offers, which in turn has increased the need for manufacturers, carriers, and retailers across the globe to work together for creating efficient, reliable, and responsive supply chains. Retailers and brands are focusing on enormous incentives to gain more control over OSA and develop more effective reactions to supply and demand shifts. Companies are taking numerous actions and capabilities to conquer this area of performance with the help of an OSA solution, which is one of the major factors driving the growth of the Retail Camera On Shelf Availability.

Increase in the number of retailers and CPG manufacturers is enhancing the camera on-shelf availability usage

According to a new analysis from the Consumer Brands Association in 2020, sales of consumer packaged products from toilet paper to canned soup have increased 9.4% to $1.53 trillion in 2020. Consumer packaged goods (CPG) is one of the fastest-growing businesses using online marketing and advanced technologies. Many small and mid-sized CPG manufacturers and retailers’ business operations are dependent on initial sales and the foundation of their entire business growth and global distribution aspirations. The demand for on-shelf availability solutions for gathering insights from product innovation research, category research, and market simulation is being driven by CPG producers. IoT technologies are being used by CPG firms to streamline the manufacturing process as well as give better customer experiences through goods or collaborations with other brands that offer IoT products. The CPG producers are seeking the "Perfect Shelf," which gives the exact product a consumer wants in the appropriate shop, in the right quantities, at the right time, and at the right price, in partnership with their trade partners. Moreover, the market's growth in the CPG and Retail industry is aided by the continued expansion of the e-commerce industry, as well as the increasing implementation of retail automation software in warehouses and other storage facilities.

Retail Camera On Shelf Availability Solution Market Challenges

Rising data security issues in retail cameras and mobile applications are hampering the market growth

The rising security issues in the cameras and mobile companies for on-shelf availability are creating concern among the retailers. Integration, compatibility, and functionality security or privacy issues might be regarded as key problems hindering the growth of the retail camera on-shelf availability market. With the migration to cloud applications within businesses, the adoption of cloud-based technologies might possibly lead to a variety of security breaches or threats, jeopardizing organizational security. Furthermore, the quick growth of such solutions, as well as their integration and capacity support inside employees' personal devices, such as smartphones and tablets, makes them very vulnerable to data exploitation, data hacking, and associated cybercrimes, limiting their adoption. According to various researchers, the retail sector suffers an average of 4,000 data security threats every year. Also, 16% of all companies surveyed faced losses of over $1 million owing to data security-related incidents. Cameras and mobile applications are adopted to provide automated, real-time insight into on-shelf product availability and also produce more accurate data than moving solutions. They are commonly placed in warehouses and retail stores and however, and such cameras inevitably record each and every product available in the stores. So, owing to the growing data security issue of these technologies, it is creating more concern for the safety of information and in turn hampering the market growth.

Retail Camera On Shelf Availability Solution Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the BLE Market. The top 10 Retail Camera On Shelf Availability Solution companies include:

• Panasonic
• Hik Vision
• Omron Automation
• Dahua Technology Co., Ltd
• Sick AG
• Flir systems
• Basler AG
• Cognex corporation
• Axis Communications
• Adlink Technology Inc.

Acquisitions/Technology Launches/Partnerships

• In March 2022, Roamler, a European technology company specialising in crowd-supported solutions for field marketing, and Trax, a leading global provider of computer vision solutions and analytics for retail, have announced a new partnership to provide consumer packaged goods (CPG) companies in Europe with a store auditing service that combines the power of computer vision and the gig economy.
• In October 2020, Retail Solutions, Inc. (RSi), the premier provider of supply chain solutions for CPG manufacturers and retailers, has been bought by IRI, a global leader in innovative solutions and services for consumer, CPG, retail, and media organisations. The addition of RSi's solutions to the industry-leading IRI Liquid Data® technology platform will provide clients with the industry's most comprehensive supply chain solution as well as the industry's largest repository of de-identified and anonymous consumer data assets, resulting in long-term increased value and impact.
• In October 2020, Retail Watch has been launched in the Americas by Trax, an IBM partner and a major global provider of computer vision solutions and analytics for retail. Retail Watch, a shop monitoring and intelligence tool powered by computer vision, assists grocery businesses in automating in-store data collection and optimising operations. This solution improves on-shelf availability and employee productivity, resulting in incremental revenue increases, as well as providing timely, accurate data for improved supply chain replenishment, forecasting, and picking for online orders.

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