IoT or the Internet of Things is broad based term used to describe how connected devices work together to create a seamless experience. This is particularly exciting for the retail industry which has been grappling with how to unite real world stores with online ecommerce. IoT may just change everything.

The global internet of things (IoT) in retail market size is expected to reach USD 94.44 billion by 2025, according to a new report by Grand View Research, Inc., exhibiting a 21.5% CAGR during the forecast period. Increasing demand for improved flexibility, multiple distribution channels, better service, and enhanced experience are expected to provide impetus to industry growth over the forecast period. The growth can be also attributed to merging of digital and in-store operations in retail stores.

Ongoing evolutions in retail such as omnichannel shopping and rapid smartphone adoption rate are enabling retailers to create a brick-and-mortar shopping experience. Smart retailers are engaging with the right technology and making stores more interactive. Smartphones and tablets enabled with Bluetooth Low Energy (BLE) are used for product promotions, thereby encouraging social sharing.

Such evolutions have led to increased spending on connected technologies to monitor products, customer behavior, premises, and supply chain. Implementation and adoption of connected technologies solutions allow retailers to analyze and monitor existing processes to enhance them with incremental investments. However, with growing IoT permeation, retailers have not been able to exploit the capabilities of IoT.

Furthermore, the emergence of Machine Learning and Artificial Intelligence (AI) technologies are changing the retail scenario as they provide better insights to optimize retail execution efficiently. Retailers can accurately anticipate customer behavior, predict demand, and personalize customer experience. For instance, retailers are predicting demand to offer product endorsements based on data received from customers. Such transformation is expected to occur over the next few years by deploying machine learning in combination with IoT technologies.

Retailers are striving to gain a competitive edge through installation of smart shelves and RFID sensors, which aid in detection of low inventory and track products throughout the respective supply chain. IoT adoption also helps retailers in revolutionizing delivery operations and retail supply chain.