The global internet of things in retail market size was estimated at USD 66.44 billion in 2024 and is projected to reach USD 488.53 billion by 2033, growing at a CAGR of 24.5% from 2025 to 2033. The primary factors propelling this rapid expansion include the widespread deployment of smart shelves and RFID technologies, the growing consumer demand for personalized shopping experiences, ongoing advancements in cloud computing and edge analytics, and the increasing adoption of omnichannel retail strategies that heavily depend on insights generated through IoT systems.

A major driver of this market growth is the rising need for real-time inventory management, personalized customer engagement, and data-driven decision-making throughout retail operations. Retailers are increasingly implementing smart shelves, RFID tags, and connected point-of-sale (POS) systems to optimize their workflows and cut operational expenses. The integration of artificial intelligence (AI) and machine learning (ML) technologies with IoT devices further enhances the ability to perform predictive analytics, monitor customer behavior, and execute targeted marketing campaigns. Additionally, cloud-enabled platforms and improved interoperability among connected devices bolster scalability and streamline deployment, which together contribute to the continuous expansion of the IoT in retail market.

The escalating demand for real-time inventory tracking, highly personalized customer interactions, and efficient supply chain management is playing a pivotal role in fueling the growth of the IoT in retail industry. Retailers, aiming to boost operational efficiency and maintain a competitive edge, are increasingly leveraging IoT technologies such as smart shelves, RFID tagging, and connected POS systems across both brick-and-mortar stores and online platforms. These technological solutions empower retailers to keep close tabs on stock availability, analyze consumer purchasing patterns, and refine merchandising strategies effectively. As a result, this digital transformation is broadening the retail technology ecosystem and driving ongoing innovation within the market.

Key Market Trends & Insights:

• In 2024, North America emerged as the leading region in the global Internet of Things (IoT) market for retail, capturing the largest revenue share of over 31%. Within this region, the United States stood out as the dominant contributor, leading the North American market and securing the highest revenue share for the IoT in retail sector during the same year.

• When analyzing the market by component, the hardware segment was the frontrunner, commanding the largest revenue share of over 47% in 2024. This highlights the critical role played by physical IoT devices, such as sensors, RFID tags, and smart shelves, in driving the adoption of IoT solutions within retail environments.

• In terms of deployment, the cloud segment took the lead with the largest revenue share, exceeding 50% in 2024. This reflects the growing preference for cloud-based platforms that offer scalable, flexible, and efficient management of IoT devices and data, enabling retailers to better analyze information and respond swiftly to changing market demands.

• By technology, near-field communication (NFC) was the dominant segment, holding a significant revenue share of over 32% in 2024. NFC technology’s ability to facilitate contactless communication and transactions has made it a key enabler of seamless shopping experiences and operational efficiencies in retail.

• Looking at applications, the operations management segment led the market, accounting for the largest revenue share of over 32% in 2024. This segment encompasses IoT-enabled solutions that help retailers streamline inventory management, optimize supply chains, and improve overall store operations, thereby enhancing productivity and reducing costs.

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Market Size & Forecast:

• 2024 Market Size: USD 66.44 billion

• 2033 Projected Market Size: USD 488.53 billion

• CAGR (2025-2033): 24.5%

• North America: Largest market in 2024

• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights:

Several key players are actively shaping the Internet of Things (IoT) in retail market, including major industry leaders like Cisco Systems Inc. and IBM Corporation, among others.

Cisco Systems Inc. is recognized globally as a leader in networking and IoT infrastructure, offering comprehensive retail IoT solutions that aim to enhance store operations, elevate customer experience, and strengthen security measures. Cisco’s Connected Retail solutions provide capabilities such as real-time analytics, intelligent surveillance systems, and seamless integration of edge devices across retail environments. By leveraging IoT sensors and sophisticated data analytics, Cisco’s platform supports personalized marketing initiatives, improves inventory management, and enables predictive maintenance for critical retail assets. With a well-established ecosystem and an end-to-end IoT architecture, Cisco continues to maintain its dominant position as a key enabler of digital transformation throughout the retail sector.

IBM Corporation also holds a significant position in the IoT in retail market, largely through its IBM Watson IoT platform combined with advanced artificial intelligence (AI)-driven analytics. IBM’s innovative solutions empower retailers to utilize real-time data for optimizing supply chains, monitoring in-store customer behavior, and implementing dynamic pricing strategies. The company’s cloud-based cognitive computing models deliver deeper insights into consumer patterns and operational efficiencies, helping retailers make informed decisions quickly. IBM’s longstanding expertise in enterprise-level solutions, coupled with its continuous innovation in AI and IoT technologies, reinforces its role as a leading player within the connected retail ecosystem.

RETAILNEXT, INC. specializes in in-store analytics and shopper behavior tracking, providing an IoT-powered platform that integrates data from various sources including video cameras, Wi-Fi networks, point-of-sale (POS) systems, and environmental sensors. This integrated data approach offers retailers real-time insights into customer journeys, foot traffic patterns, and conversion rates. Focused on enhancing the physical retail experience with data intelligence, RetailNext is rapidly gaining attention among retailers looking for agile and customer-focused solutions to improve store performance and engagement.

Key Players

• Cisco Systems Inc.

• IBM Corporation

• Intel Corporation

• SAP SE

• Google LLC

• Oracle Corporation

• PTC Inc.

• Zebra Technologies Corp.

• RETAILNEXT, INC.

• NXP Semiconductors.

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Conclusion:

The Internet of Things (IoT) in retail market is experiencing rapid growth driven by increasing adoption of smart technologies such as smart shelves and RFID, which enhance inventory management, customer experience, and operational efficiency. Integration of AI, machine learning, and cloud computing further boosts the market by enabling predictive analytics and personalized marketing. The expansion of omnichannel retail strategies and the demand for real-time data insights are also key factors propelling the industry forward. Overall, IoT is transforming retail by optimizing operations and enabling more personalized, data-driven customer engagement.