Retail IOT platform revenues to grow fivefold by 2023
Revenues generated by IoT retail platforms will exceed $4.3 billion by 2023, up from an estimated $890 million in 2018, according to Juniper Research.
This will be fuelled by challenging retail conditions, exacerbated by strong competition in the sector, the rise of e-commerce and spiralling rental costs. IoT platform implementation will allow retailers to unlock efficiencies, particularly in the supply chain, which will improve operational margins. Juniper anticipates that this will drive the total number of IoT platform connected assets to almost 25 billion units by 2023, up from just over five billion in 2018.
The rise of compelling ERP (Enterprise Resource Planning) systems, leveraging IoT sensors to enhance resource utilisation, will see annual retail spend on these solutions reach over $13 billion by 2023.
Juniper also carried out an assessment of the extent to which retailers have implemented the various technologies, based on factors such as technological clarity, cost barriers and existing deployments. It found that RFID will continue to have the biggest impact on the retail space.
This is due to the positive impact implementation can have, in not only logistical and warehousing operations, but also as part of ‘Just Walk Out’ shopping experiences (Amazon Go). Resource optimisation and heat sensor technologies were also found to be highly mature and disruptive.
