Skip to main content

How Smart Retail Technology Fuels In-Store Innovation

Savvy CIOs and CTOs in the the retail sector have embraced new technologies that enable them to evolve their business models -- both in-store and online. In particular, automation applications that improve productivity are likely to receive significant IT investment.

Artificial Intelligence (AI), computer vision and robotics will ultimately enable retailers across the globe to provide improved customer experiences, streamline legacy business processes, and increase diminishing profit margins.

Smart Retail Tech Market Development

Brick and mortar retailers can, therefore, improve their chances of remaining competitive if they employ these technologies correctly, prioritizing long-term investment over short-sighted strategies, according to the latest worldwide market study by ABI Research.

"The high-cost barrier associated with AI, computer vision and robotics will ultimately be overcome by the potential for these technologies to offset the inherent disadvantages facing physical stores today," said Nick Finill, senior analyst at ABI Research.

In 2025, traditional brick and mortar retailers will spend $34 billion on AI technologies -- that's up from just $4 billion in 2018. According to the ABI assessment, computer vision will account for 29 percent of this IT spending.

This is due to the technology’s ability to facilitate real-time inventory status reports, advanced customer analytics, and checkout-free retail models -- all of which rely on AI-enabled cameras.

As a result, ABI Research now forecasts that over 44,000 checkout-free stores will have been deployed by 2023, with the Asia-Pacific market being home to the clear majority of these retail outlets.

Moreover, robots will also be increasingly deployed by forward-thinking retailers that want to improve their customer support and manage inventory more efficiently and precisely. By 2025, it's estimated that 167,000 robots will be in operation in physical retail stores globally, most of which will be used to monitor the contents of store shelves.

These retail-oriented robots, offered by companies such as Simbe Robotics and Bossanova, will see widespread deployment in large format stores in regions with high labor costs and strong robotics initiatives -- such as North America, Europe, and East Asia.

"In the store of the future, robots and computer vision cameras will essentially act as data-generating eyes, feeding an AI brain which can proactively respond to stimuli and predict trends at the micro and macro level," Finill added.

Outlook for AI, Computer Vision and Robotics

Smart technologies -- including AI, computer vision and robotics -- when integrated with a store’s wider network of information systems, represent enormous potential to retailers desperate for actionable insights, operational excellence, and satisfied customers within their physical stores.

The most progressive retailers, which can most effectively combine these advanced capabilities to improve their competitive position, will likely see the greatest long-term return-on-investment (ROI).

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

AI Software Market will Reach $251 Billion

The growth in Artificial Intelligence (AI) software could lead to many benefits. As more organizations adopt AI, they may become more efficient, productive, and able to offer improved products and services. The global job market could also expand, with demand growing for roles like AI engineers and technicians. Plus, AI apps could enable breakthroughs in fields like healthcare, transportation, and energy. The worldwide AI software market will grow from $64 billion in 2022 to nearly $251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4 percent, according to the latest market study by International Data Corporation (IDC). AI Software Market Development The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software (excluding AI platforms). However, it does not include Generative AI (GenAI) platforms and applications, which IDC recent