DIGITAL & TRENDS

Retail technology worldwide

 Table of Contents

01 Overview Tech priorities of retailers in the U.S. 2023 21

Technology areas planned or innovated by UK retailers 2022 22
Retail automation: global forecast market size 2030 03
Self-checkout systems market size worldwide 2021 04
04 U.S. consumer spotlight: retail tech engagement
Warehouse robotics market size worldwide 2022-2030 05
Global AI in retail market size 2020-2028 06 Awareness of retail technologies in the U.S. 2022 24

Global virtual fitting room market size 2021-2028 07 Retail technology impact on shopping experience in the U.S. 2022 25

Business benefits of AI to retail worldwide 2023 08 Impact of retail technologies on consumer visits to physical store in the U.S. 2022 26

Leading retail companies that applied for IoT related patents in 2022 09 Virtual fitting room usage interest among consumers in the U.S. 2022 27
VR and AR shopping tools: consumer concerns in the U.S. 2022 28

02 Retail technology funding Gen X consumers' expectations for AR apps when shopping U.S. 2022 29
Metaverse: Importance of various factors for shoppers in the U.S. 2022 30
Financing of retail technology deals worldwide 2018-2022 11
Value of in-store retail technology deals financing worldwide Q1 2018-Q4 2022 12
Share of global retail technology deals made in Q3 2022, by region 13
Online e-commerce retail technology deal financing worldwide Q1 2018-Q3 2022 14
Supply chain and logistics retail technology deal financing worldwide Q1 2018-2022 15

03 Tech capabilities and strategies of retailers

Immersive technology use among consumer and retail companies 2022 17
Importance of AI in retail store operation optimization worldwide 2022 18
Brick and mortar retail technology investments increase plans for 2023 19
Main reasons for using smart devices in retail stores EMEA 2022 20

1
CHAPTER 01

Overview
 Global retail automation market size in 2021, with a forecast from 2022 to 2030 (in
billion U.S. dollars)
Retail automation: global forecast market size 2030

35
33

30 29.3

26
Market size in billion U.S. dollars

25 23.2
20.7
20 18.5
16.6
14.9
15 13.5
12.2

10

0
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

3 Description: Automation is one of the cornerstones of retail technologies that aim to streamline processes in retail stores, warehouses, or distribution centers. In 2021, the global retail automation market was estimated to be worth 12.2 billion U.S. dollars.
According to estimates provided by Next Move Strategy Consulting, the market is forecast to grow to 33 billion U.S. dollars by 2030. Read more
Note(s): Worldwide; 2021
Source(s): Next Move Strategy Consulting
 Estimated value of the global self-checkout systems market size in 2021, with a
forecast from 2022 to 2030 (in billion U.S. dollars)
Self-checkout systems market size worldwide 2021

16

14 13.54

11.83
12
Market size in billion U.S. dollars

10.33
10
9.03
7.88
8
6.89
6.02
6 5.26
4.59
4.01
4

0
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

4 Description: In 2021, the estimated value of the market for the self-checkout systems was just over four billion U.S. dollars globally. Over the period between 2021 and 2030, the value of the market size was forecast to grow to 13.54 billion U.S. dollars. Read more
Note(s): Worldwide; 2021*; * 2021 estimation was taken as base year by the source. For the Statista estimate an exponential development of the values between 2021 and 2030 was assumed to estimate the annual values. The values for 2021 and [...] Read more
Source(s): Statista; The Brainy Insights
 Size of the warehouse robotics market worldwide from 2022 to 2030 (in million U.S.
dollars)
Warehouse robotics market size worldwide 2022-2030

18,000

16,000 15,670
14,481.6
14,000 13,264.1
Market size in million U.S. dollars

12,028.6
12,000
10,788.6

10,000 9,558.7
8,355.2
8,000 7,194.7
6,093.8
6,000

4,000

2,000

0
2022 2023* 2024* 2025* 2026* 2027* 2028* 2029* 2030*

5 Description: In 2022, the warehouse robotics market was worth some 6.1 billion U.S. dollars worldwide. Warehouses have boosted their automation efforts in order to tackle the labor shortage during the coronavirus pandemic. According to the consulting group
Next Move Strategy Consulting, by 2030, this market is expected to reach just under 16 billion U.S. dollars. Read more
Note(s): Worldwide; 2022; *Forecast. Read more
Source(s): Next Move Strategy Consulting
 Size of the global Artificial Intelligence (AI) market in the retail industry in 2020, with
a forecast from 2021 to 2028 (in billion U.S. dollars)
Global AI in retail market size 2020-2028

35
31.18
30
Market size in billion U.S. dollars

25 23.91

20 18.32

15 14.04

10.76
10 8.24
6.32
4.84
5 3.75

0
2020 2021 2022 2023 2024 2025 2026 2027 2028

6 Description: The global market for the use of Artificial Intelligence (AI) in retail was valued about at 4.84 billion U.S. dollars in 2021. Over the next eight-year period, the market for AI in retail is estimated grow continually, reaching 31.18 billion U.S. dollars by 2028.
Read more
Note(s): 2019 to 2020
Source(s): Fortune Business Insights; Statista
 Global virtual fitting room market size in 2021, with a forecast from 2022 to 2028
(in billion U.S. dollars)
Global virtual fitting room market size 2021-2028

16
14.87

14
12.34
12
Market size in billion U.S. dollars

10.24
10
8.5
8
7.05
5.85
6
4.86
4.03
4 3.42

0
2021 2022 2023 2024 2025 2026 2027 2028 2029

7 Description: Global virtual fitting room market size was estimated to be worth approximately 3.42 billion U.S. dollars, forecast to increase to 4.86 billion U.S. dollars in 2023. According to estimates, the global market is further forecast to grow to almost 15 billion
U.S. dollars by 2029. Read more
Note(s): Worldwide; 2021
Source(s): Fortune Business Insights; Statista
 Business benefits of AI according to retail executives worldwide in 2023
Business benefits of AI to retail worldwide 2023

80% 73% 72% 69% 66% 65% 64%

60%
Share of respondents

40%

20%

0%

8 Description: The most important area where IT executives working in retail companies saw the biggest benefit of Artificial Intelligence (AI) was productivity, operational cost reductions, and faster time to profitability. According to the results of a survey conducted
in February 2023, other areas such as customer satisfaction, risk management, and personalization were seen as key areas where businesses could benefit from AI. Read more
Note(s): Worldwide; February 2023; 1,420 respondents; IT decision-makers across retail industries; * total number of respondents across across manufacturing/logistics, retail, hospitality/travel, energy, healthcare/pharma/biomedical, government, [...] Read more
Source(s): Chain Store Age ; Rackspace
 Leading retail companies that applied for Internet of Things (IoT) related patents in
the three months up to May 2022
Leading retail companies that applied for IoT related patents in 2022

Number of patent applications

0 2 4 6 8 10 12 14

NIKE Inc 12

Alibaba Group Holding Ltd 9

Amazon.com Inc 8

Walmart Inc 6

Target Corp 3

JD.com Inc 2

China Tobacco International HK

1
Co Ltd

Ocado Group Plc 1

9 Description: In the three months ending in May 2022, Nike Inc. applied for 12 patents that are related to Internet of Things (IoT). Chinese e-commerce heavyweight Alibaba Group ranked second in the list with nine patent applications during this period. Read more
Note(s): Worldwide; three months ending in May, 2022
Source(s): GlobalData; Retail Insight Network
CHAPTER 02

Retail technology funding

 Retail technology financing deals worldwide from 2018 to 2022 (in billion U.S.
dollars)
Financing of retail technology deals worldwide 2018-2022

120
108.4

100
Financing in billion U.S. dollars

80

60
51.8
47.9 46.7 44.8
40

20

0
2018 2019 2020 2021 2022*

11 Description: As of the third quarter of 2022, the financing of retail technology deals came to 44.8 billion U.S. dollars. This was a significant decrease on the previous year, when the value of funding of retail tech deals passed the 100 billion US. dollars threshold.
Read more
Note(s): Worldwide; 2018 to 2022; * Up until Q3 2022. Read more
Source(s): CB Insights
 Quarterly in-store retail technology deal financing worldwide from Q1 2018 to Q3
2022 (in billion U.S. dollars)
Value of in-store retail technology deals financing worldwide Q1 2018-Q4 2022

4.0
3.7

3.5
Value of deals in billion U.S. dollars

3.0

2.5
2.5 2.4
2.3
2.2
2.1
2.0 1.9 1.9

1.5
1.2
1.1 1.1
1
1.0 0.9
0.8
0.7
0.6 0.6
0.5 0.5
0.5

0.0
Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3
'22*

12 Description: In the second quarter of 2022, in-store retail technology companies received funding of up to 2.3 billion U.S. dollars. The financing of technology deals in all retail areas had amounted to 109 billion U.S. dollars globally in 2021. Read more
Note(s): Worldwide; Q1 2018 to Q4 2022; * As of October 2022. Read more
Source(s): CB Insights
 Share of retail technology financing deals undertaken worldwide in 3rd quarter
2022, by region
Share of global retail technology deals made in Q3 2022, by region

40%
36%
35% 34%

30%

25%
Share of deals

20%
20%

15%

10%

5% 3% 3% 3% 3%

0%
Asia North America Europe LatAm & Caribbean Canada Africa Australia

13 Description: In the third quarter of 2022, over two-thirds of all retail technology funding deals took place in Asia and North America. The financing of retail technology deals amounted to 44.8 billion U.S. dollars as of October of that year. Read more
Note(s): Q3 2022
Source(s): CB Insights
 Quarterly e-commerce retail technology deal financing worldwide from Q1 2018 to
Q3 2022 (in billion U.S. dollars)
Online e-commerce retail technology deal financing worldwide Q1 2018-Q3 2022

16
14.5 14.5
14
12.8 12.8

12
11
Financing in billion U.S. dollars

10

8
6.5 6.3
5.8 6 6 6.1
6 5.1 5.3 5.3
4.6
4 4.2
4 3.6
2.8

0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022

14 Description: In the third quarter of 2022, e-commerce retail companies received funding of up to 4.6 billion U.S. dollars. The financing of technology deals in all retail areas amounted to 108.4 billion U.S. dollars in 2021. Read more
Note(s): Worldwide; Q1 2018 to Q3 2022
Source(s): CB Insights
 Supply chain and logistics retail technology deal financing worldwide from Q1 2018
to Q3 2022 (in billion U.S. dollars)
Supply chain and logistics retail technology deal financing worldwide Q1 2018-2022

12

10.5
10.2
9.9
10 9.5
8.9
8.5
8.2
Financing in billion U.S. dollars

6.3
6 5.6 5.4
4.8 4.7
4.3 4.4
4 3.6 3.4

2.2 2.3
2
2

0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022

15 Description: In the third quarter of 2022, supply chain and logistics technology companies received funding of up two billion U.S. dollars. This was the lowest value registered since the first quarter of 2018, when the financing amounted to 6.3 billion U.S. dollars.
Read more
Note(s): Worldwide; Q1 2018 to Q3 2022
Source(s): CB Insights
CHAPTER 03

Tech capabilities and strategies

of retailers
 Immersive technology use among consumer goods and retail companies
worldwide in 2022, by use case and stage
Immersive technology use among consumer and retail companies 2022

Pilot Scale
30%
25% 25% 24%
25%
20%
Share of respondents

15%
9% 8%
10% 6%
5%
0%

17 Description: According to the findings of a worldwide study conducted in 2022, less than 10 percent of companies in the consumer goods and retail industries were found to scale immersive technologies in their organizations. About a quarter of these companies
were piloting such initatives, such as using augmented reality to allow consumers to virtually look up products such as furniture and home décor. Read more
Note(s): Worldwide; July to August 2022; 1,000*; * Consumer goods and retail companies constituted 25 percent of the sample. Organizations surveyed in the study generated more than one billion U.S. dollars in annual revenue; and 80 percent of [...] Read more
Source(s): Capgemini
 Importance of AI use in optimizing store operations according to retailers
worldwide as of November 2022
Importance of AI in retail store operation optimization worldwide 2022

45%
42%

40%

35%

30%
Share of respondents

25%
22%
20%
20%
16%
15%

10%

5%

0%
Not at all important Somewhat important Important Critically important

18 Description: Over 60 percent of retail professionals worldwide said the use of AI in physical retail store operations, such as stock allocation or demand forecasting, was very important in meeting customer service expectations. According to the results of the 2022
survey, only 16 percent of those polled said this technology was not important for their organization. Read more
Note(s): Worldwide; September 20, 2022 to November 30, 2022; 132 respondents; client-side retail respondents
Source(s): Adobe; Econsultancy
 Main product verticals worldwide retailers planning to increase brick and mortar
technology investment for 2023
Brick and mortar retail technology investments increase plans for 2023

80%
71%
69%
70%

60%
52% 52%
50%
Share of respondents

50%

40%

30%

20%

10%

0%
Footwear Electronics Sportswear Department store Fashion & apparel

19 Description: In a survey conducted with retail executives across the United States, the United Kingdom, Italy, Spain, France, Benelux, and the Nordics, retailers operating in the footwear and electronics verticals planned to increase their physical store technology
investment in 2023. Read more
Note(s): Worldwide; Approx. 500; Senior retail executives
Source(s): Censuswide; Mercaux; Retail TouchPoints
 Leading reasons for using smart devices for retail operations according to
executives in the EMEA region in 2022
Main reasons for using smart devices in retail stores EMEA 2022

63%
60% 55.8% 52.2%

40% 32.4%

20%
Share of respondents

0%

20 Description: When retail executives in the EMEA region (Europe, the Middle East, and Africa) were asked about the main reasons for using smart devices in stores, over half of them cited affordability of such devices, and scalability as some of main benefits. The
fact that smart devices can be used for a variety of tasks were also deemed a key reason by 63 percent of retailers who took part in the survey. Read more
Note(s): Europe, MENA; December 2021 to February 2022; 111 respondents; C-level executives and directors in IT, operations, sales, and innovation.
Source(s): Scandit
 Leading technologies prioritized by retailers in the United States in 2023
Tech priorities of retailers in the U.S. 2023

60% 54% 52%

50% 47%
43% 42%
Share of retailers prioritizing this technology

40% 34%
29% 29% 29% 29%
30%

20%

10%

0%
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nc li te al W pp iF
ir e bi ia y rS O
M A en /W em
is
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Lo o er ym st
pe V so / AN Sy
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W um Pa W e
or e CR ns ss e at
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21 Description: Personalized customer experience was the leading area where U.S. retailers were planning to prioritize in 2023. Just above half of respondents to a study chose this retail technology as an area they could upgrade. Among other technologies retailers
had plans to improve were their inventory visibility and POS infrastructure. Read more
Note(s): United States; 2022
Source(s): IHL Group; RIS News
 Technology areas planned or being innovated by UK retailers over the next three
years as of 2022
Technology areas planned or innovated by UK retailers 2022

Currently innovating in this area Plan to innovate in this area within the next 12 months
80% 70.5%

60% 48.3% 53.7% 51% 52.3% 51%

39.6%
38.9% 39.6% 38.9%
40% 34.2% 31.5% 32.9%
28.9%27.5%
24.2%21.5% 22.1%
18.1% 17.4%
20% 12.1% 11.4%
Share of retailers

0%

22 Description: Payment methods, fraud detection, and data analytics were the leading areas retailers in the United Kingdom were already innovating as of 2022. According to the findings of a survey, about half of UK retailers were planning to innovate in the area of
secure payments over the next three years. Read more
Note(s): United Kingdom; June 1-21, 2022; 149 respondents
Source(s): ACI Worldwide; PYMNTS
CHAPTER 04

U.S. consumer spotlight: retail

tech engagement
 Retail technology awareness among consumers in the United States in 2022, by
technology
Awareness of retail technologies in the U.S. 2022

80%
71%
70% 66%
59%
60%
50% 43% 42% 41%
40% 36%
30% 25%
Share of respondents

20%
10%
0%
es ts ps ot
s ps s ts el
od en ap b ap i ne en la
b
c t h f
R ym i le ha n ac em el
Q pa ob c tio m tis sh
ile m in
e i ca g
ve
r
ic
b d nl un din d n
o an O m n a tro
m
B r m ve i a
ec
pa
y
Co ar
t ed / el
- m gs
-to Sm i al ta
p c e
Ta so ic
bl
e
l pr
p a ita
o p ig
D
Sh

24 Description: According to the results of a survey conducted with U.S. consumers in May 2022, among the technologies used in the retail industry, QR codes were by far the leading retail tech component that the consumers were aware of. Following this, more than
half of those surveyed said they knew about tap-to-pay mobile payments and brands' own mobile apps. Only a quarter of U.S. consumers said digital price tags were known to them. Read more
Note(s): United States; March 1-10, 2022; 1,500 respondents; 21 to 65 years
Source(s): Provoke Insights
 Impact of retail technologies on shopping experience of consumers in the United
States in 2022, by technology
Retail technology impact on shopping experience in the U.S. 2022

Share of respondents

Somewhat/much worse Somewhat/much better

-40% -20% 0% 20% 40% 60% 80%

Tap-to-pay mobile payments -3% 66%

Brand mobile apps -6% 61%

Smart vending machines -7% 60%

Digital price tags/electronic shelf label -8% 56%

QR codes -9% 53%

Communication apps -11% 51%

Shoppable social media advertisements -16% 48%

Online chat bots -18% 48%

25 Description: According to the results of a survey conducted with U.S. consumers in May 2022, among the technologies used in the retail industry, consumers found tap-to-pay mobile apps to be the leading retail technology that had the highest impact on shopping
experience, with 66 percent of rating this technology positively. Online chatbots, on the other hand, was not received well by as many by consumers. Read more
Note(s): United States; March 1-10, 2022; 1,500*; 21 to 65 years; Aware of the technology*
Source(s): Provoke Insights
 Share of fashion consumers who say the following retail technologies would
increase the likelihood of visiting a physical store in the United States in 2022
Impact of retail technologies on consumer visits to physical store in the U.S. 2022

Share of respondents
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Receiving a personalized offer on your phone that you can use in-store 47%

Mobile check-out 35%

Digital experiences in-store (e.g. scanning QR codes to get more detail on a product) 28%

Staff-assisted mobile checkout to avoid queuing 22%

Connected/smart fitting rooms 18%

In-app chat service (being able to communicate directly with in-store assistants) 15%

None of the above 23%

26 Description: About half of U.S.-based fashion consumers said receiving personalized offers on their personal phones would increase the likelihood of visiting a physical retail store. According to the findings of the 2022 survey, other retail technologies such as
mobile check-outs or digital experiences (e.g., scanning QR codes on products) would have some impact on them visiting brick-and-mortar stores when buying clothes or footwear. Read more
Note(s): Worldwide, United States; October 2022; 1,000 respondents; 14-64 years; Internet users
Source(s): Avery Dennison; GWI
 Consumer likelihood to try on fashion items virtually with an AR app in the United
States in 2022
Virtual fitting room usage interest among consumers in the U.S. 2022

35%

30%
30%

26%
25%
25%
Share of respondents

20%

16%
15%

10%

5%
3%

0%
Very likely Somewhat likely Not very likely Not at all likely I have already done this

27 Description: Around four in 10 consumers were likely to try fashion items such as clothes or shoes with an AR app in the United States, according to the findings of a survey conducted in 2022. Only a small share of consumers, three percent, said they have already
tried this. Read more
Note(s): United States; August 23-24, 2022; 1,116*; * Total sample for the survey. The question was phrased as follows: "How likely, if at all, are you to use an augmented reality app, meaning an app that layers a digital image or information, over [...] Read more
Source(s): Ipsos
 Consumer concerns about using VR or AR tools while viewing and buying goods in
the United States in 2022
VR and AR shopping tools: consumer concerns in the U.S. 2022

90%
81% 80%
80% 78%
76%
74%

70%

60%
Share of respondents

50%

40%

30%

20%

10%

0%
The level of accuracy of the Privacy Quality Not getting the right thing Technical glitches
item

28 Description: According to the results of a 2022 survey conducted in the United States, the main concerns consumers had about using virtual reality or augmented reality tools when selecting and buying goods were accuracy of the item shown as well as the user's
privacy. Over 80 percent of those surveyed selected these two responses as their top concerns. Read more
Note(s): United States; August 23-24, 2022; 1,116*; * Total sample for the survey. The question was phrased as follows: "How concerned, if at all, are you about each of the following in using virtual reality or augmented reality tools to select and buy [...] Read more
Source(s): Ipsos
 Expectations of Gen X consumers for AR apps when shopping in the United States
in 2022
Gen X consumers' expectations for AR apps when shopping U.S. 2022

39%
40%
29%
30%
22%
19%
20%
13% 12%
10% 6%
Share of respondents

0%

29 Description: According to a survey conducted in the United States in August 2022, functionalities such as price comparison across different retailers, or the ability to work with any mobile device, store or retailer were the leading expectations Gen X consumers had
about AR apps when shopping. Around one-third of the survey respondents stated that they would personally expect these from AR apps. That said, around one quarter of those surveyed had no interest in functionalities that could potentially [...] Read more
Note(s): United States; August 23-24, 2022; 1,116*; * Total sample for the survey. The source did not provide an exact number of base for Gen X respondents. However, the source noted that the sample "reflects fixed sample targets on [...] Read more
Source(s): Ipsos
 When it comes to shopping in the metaverse, how important are the following?
Metaverse: Importance of various factors for shoppers in the U.S. 2022

Share of respondents

Very important Somewhat important Not very important Not at all important

0% 20% 40% 60% 80% 100% 120%

I can understand/interpret the language being used to describe products 52% 39% 8%1%

I am offered the same or better benefits, perks or rewards as everyone else 50% 41% 7%2%

There are options that are personalized for me 46% 42% 10%2%

I feel like I belong / am welcome in the virtual store 45% 41% 10% 4%

The ability to shop anonymously 45% 41% 11% 3%

I`m able to speak to a customer support agent or brand representative similar to me 40% 44% 12% 4%

I can interact and engage with other people who like the same things I do 39% 42% 14% 6%

I can shop for/live a different lifestyle in the metaverse 38% 42% 14% 6%

The shopping experience feels "local" and what I`m used to at home 36% 45% 16% 3%

I can interact and engage with other "shoppers" who look like me 35% 37% 20% 9%

30 Description: When asked to evaluate the importance of various factors related to shopping in the metaverse, 52 percent of metaverse shoppers in the United States said that being able to understand or interpret the language being used to describe products in
the metaverse is very important to them. Furthermore, half of the surveyed respondents stated that being offered the same or better benefits, perks or rewards as everyone else was also very important. Read more
Note(s): United States; August 15 - 19, 2022; 1,000 respondents; 18 years and older; People who are currently engaging in the Metaverse, or want to engage with the Metaverse in the near future
Source(s): Sitecore
 Sources

ACI Worldwide Sitecore

Adobe Statista
Avery Dennison The Brainy Insights
Capgemini
CB Insights
Censuswide
Chain Store Age
Econsultancy
Fortune Business Insights
GlobalData
GWI
IHL Group
Ipsos
Mercaux
Next Move Strategy Consulting
Provoke Insights
PYMNTS
Rackspace
Retail Insight Network
Retail TouchPoints
RIS News
Scandit

31