IoT in Retail Market Report 2026

The iot in retail market size has grown rapidly in recent years. It will grow from $46.41 billion in 2025 to $55.26 billion in 2026 at a compound annual growth rate (CAGR) of 19.1%. The growth in the historic period can be attributed to expansion of organized retail formats, adoption of rfid and sensor technologies, growth in real-time inventory tracking, rising focus on customer experience, increasing digital transformation initiatives.

The iot in retail market size is expected to see rapid growth in the next few years. It will grow to $107.58 billion in 2030 at a compound annual growth rate (CAGR) of 18.1%. The growth in the forecast period can be attributed to increasing investments in smart retail infrastructure, rising demand for ai-driven customer analytics, expansion of cloud-based retail platforms, growing focus on personalized shopping experiences, increasing integration of iot with supply chains. Major trends in the forecast period include increasing adoption of smart inventory management systems, rising deployment of in-store analytics platforms, growing use of connected pos and payment systems, expansion of customer behavior tracking technologies, enhanced focus on omnichannel retail operations.

The growing penetration of e-commerce is anticipated to boost the growth of the IoT in the retail market in the coming years. E-commerce, often referred to as electronic commerce or online commerce, involves the buying and selling of goods or services over the internet, along with the transfer of money and data to complete these transactions. In e-commerce, IoT plays a role in inventory management, utilizing radio frequency identification tags that provide essential information about product type, availability, and expiration dates without human intervention. IoT enables precise and detailed tracking of item movement during supply chain management, remote product assessments to predict maintenance needs and analyze performance, business personalization, and enhanced customer and sales management, all aimed at optimizing retail operations in e-commerce. For instance, in August 2024, the U.S. Census Bureau, a US-based government agency, reported that US retail e-commerce sales reached $291.6 billion in the second quarter of 2024, reflecting a 1.3% increase from Q1 and a 6.7% rise year-over-year. Total retail sales amounted to $1.82 trillion, up 0.5% from Q1 and 2.1% from Q2 2023. Hence, the increasing penetration of e-commerce is driving the growth of IoT in the retail market.

Companies operating in the IoT retail market are embracing strategic partnerships to develop IoT applications for in-store retail powered wirelessly. These partnerships involve leveraging each other's strengths and resources to achieve shared benefits and success. For instance, in January 2023, Energous Corporation, a US-based developer of wireless power transfer (WPT) technologies, teamed up with SATO Holdings Corporation, a Japan-based provider of auto-ID solutions. This collaboration aims to integrate Energous' 1W WattUp PowerBridge transmitters with IoT applications designed for advanced smart store capabilities. The partnership seeks to provide wireless power for Wiliot IoT Pixel sensor tags within a range of 5 to 10 meters, addressing asset and inventory management solutions in stores and warehouses developed by SATO. The IoT Pixels are compact Bluetooth Low Energy tags equipped with sensors for parameters such as humidity and temperature, which communicate data by receiving signals from an Energous transmitter. Acting as a bridge, the transmitter intelligently filters and relays data from the tags to the cloud. By implementing IoT Pixels on individual products and specific fixtures on shelves, retailers can monitor real-time product quantities and conditions, eliminating the need for manual inventory checks.

In May 2023, ServiceNow Inc., a US-based software company, acquired G2K Group GmbH for an undisclosed amount. This acquisition is aimed at integrating G2K's technology into ServiceNow's Now Platform, allowing businesses to effectively leverage both digital and in-store data through enterprise-grade workflows. G2K Group GmbH, based in Germany, specializes in smart IoT technology that enables retailers to connect real-time data across multiple storefronts and physical spaces.

Major companies operating in the iot in retail market are ARM Limited; Cisco Systems Inc.; Alphabet Inc.; IBM Corporation; Impinj Corporation; Intel Corporation; Microsoft Corporation; PTC Inc.; RetailNext Inc.; SAP SE; Softweb Solutions Inc.; Zebra Technologies Corporation; Huawei Technologies Company Limited; Amazon Web Services Inc.; Software AG; Bosch Software Innovations GmbH; NEC Corporation; Oracle Corporation; Vodafone Group Plc.; Allergen Technologies Private Limited; Sierra Wireless Inc.; Happiest Minds Technologies Limited; Losant IoT Inc.; NXP Semiconductors N.V.; Verizon Communications Inc.; Microchip Technology Incorporated; Bsquare Corporation; Fujitsu Limited; Hewlett Packard Enterprise Development LP.

North America was the largest region in the IoT in retail market in 2025. Asia-Pacific is expected to be the fastest-growing region in the IoT in retail market report during the forecast period. The regions covered in the iot in retail market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the iot in retail market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Tariffs are influencing the IoT in retail market by increasing costs of imported sensors, rfid tags, connectivity modules, and smart display hardware used across stores and warehouses. Retailers in North America and Europe are most affected due to reliance on imported IoT devices, while Asia-Pacific faces pricing pressure on hardware exports. These tariffs are raising deployment costs and slowing rollout of smart retail initiatives. However, they are also encouraging local hardware sourcing, regional system integration, and innovation in software-driven retail IoT solutions.

The iot in retail market research report is one of a series of new reports that provides iot in retail market statistics, including iot in retail industry global market size, regional shares, competitors with a iot in retail market share, detailed iot in retail market segments, market trends and opportunities, and any further data you may need to thrive in the iot in retail industry. This iot in retail market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The Internet of Things (IoT) is a network of physical objects equipped with integrated technologies that enable them to connect, sense, and interact with their internal or external environments. It comprises end-to-end services where companies engage external vendors to design, build, install, and operate IoT solutions, often including consulting advice for IoT planning. In the retail industry, IoT is utilized for store flow management, inventory management, and enhancing the customer experience through real-time customer data.

The main types of IoT applications in retail include Beacons, RFID tags, sensors, wearables, and others. Beacons are small, battery-powered wireless devices that transmit Bluetooth signals to nearby cellphones. These solutions and services leverage technologies such as Bluetooth low energy, near-field communication, ZigBee, among others. Deployment modes include on-premise and cloud, serving various applications such as supply chain operations management, customer management, sales, asset management, and more.

The IoT in retail market consists of revenues earned by entities by offering IoT-enabled services for retail such as security, and safety, and inventory management. The market value includes the value of related goods sold by the service provider or included within the service offering. The IoT in retail market also includes sales of electronic systems, devices, and software that are used in providing IoT services in retail. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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