The global Smart Shelves market size is projected to reach US$ 9737 million by 2028, from US$ 2370.2 million in 2021, at a CAGR of 22.0% during 2022-2028. Key drivers of the smart shelves market include the rising use of advanced technologies like RFID and IoT in retail.
The benefits of smart shelves technology in inventory management will lead to massive adoption thereby fueling the growth of the smart shelves market during the forecast period.
RFID tags, IoT
The era of digitization is pushing retail brands and brick-and-mortar stores to invest heavily in modern technologies to align themselves with consumers’ buying journeys. In order to boost user engagement and streamline the process of inventory management smart shelves are being integrated rapidly into retail stores. The level of competition has expanded with the entry of eCommerce brands. This will bolster the demand for the smart shelves market. Companies are making use of digital and physical shopping to improve the buying experience. The attached RFID tags are fitted with sensors. They continuously scan the product in the display and send out automated alerts to the staff through back-end systems regarding low inventory and item misplacement or theft. Moreover, it communicates pricing changes, promotions, and other information about the product on the shelf in real-time. The IoT-enabled system provides information about merchandise stock, quality, and personalized digital offers to connected shoppers’ apps. The remote monitoring capabilities quickly help in identifying problems beforehand and the hardware is processed to work non-stop. The hardware is compatible with any number of networks, devices, and communication protocols. Seamless information exchange between the store executive and customers leads to better sales and brand loyalty.
Advantages of smart shelves
The in-store shopping experience has changed dramatically. The sensors measure shelf temperature, product positioning, product performance, store performance, and other details. The technology uses digital signage, RFID systems, and other gadgets to provide a holistic shopping experience. For instance pricing strategies are optimized for attracting a large number of buyers. This will augment the growth of the smart shelves market in the upcoming years. Digital pricing labels have become popular as it shows the cost of all the products and available promotional offers above the list prices to attract customers. The software manages to monitor competitor prices, create specific strategies and change the pricing list seamlessly. Physical price tags or displays need to be printed and designed. The store executive has to go shelf by shelf to update the requisite information. This is an extremely time-consuming and arduous process. The resultant mismatch due to human errors can lead to confused omnichannel buyers. However smart shelves come in handy as they change the shelves digitally. It gives more flexibility in terms of time and speed. The smooth integration with online channels helps retailers to maintain a consistent brand image and give out price offers on several products and their variants.
Data privacy concerns
Smart shelves are revolutionizing the trends in the retail industry. However, there are concerns related to its excessive usage. Customer privacy is a critical issue. This will hamper the growth prospects of the smart shelves market. For instance, companies have faced problems related to technical glitches of connected apps. They show erroneous messages even when the inventory is full. There are chances of hacking and abuse of sensitive customer data. Moreover, with the increasing penetration of the internet, the popularity of online retailing is huge. The massive use of cell phones has shifted the focus of the majority of the population especially the youth towards the convenience of eCommerce stores. This is a major challenge after the effects of the covid pandemic.
Based on type, the software segment will grow the highest in the smart shelves market share as software-integrated tools are being used rapidly for product category analysis, inventory optimization, price, store monitoring, and intelligence. These tools provide robust connectivity between shelf components and cloud servers.
Based on application, the SMEs segment will witness considerable growth in the smart shelves market share due to the increasing need for deploying technological solutions for providing a positive customer experience, better product selection, and innovative pricing strategies.
Based on region, North America will dominate the smart shelves market share due to increasing implementation for enhanced inventory management, boosting real-time engagement, and use of automation for a positive customer shopping experience.
The report lists the major players in the regions and their respective market share on the basis of global revenue. It also explains their strategic moves in the past few years, investments in product innovation, and changes in leadership to stay ahead in the competition. This will give the reader an edge over others as a well-informed decision can be made looking at the holistic picture of the market.
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Report Metric |
Details |
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Report Name |
Smart Shelves Market |
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The market size in 2020 |
USD 3.2 Billion |
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The revenue forecast in 2027 |
USD 6.5 Billion |
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Growth Rate |
CAGR of 10.47% from 2021 to 2027 |
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Market size available for years |
2021-2027 |
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Forecast units |
Value (USD) |
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Segments covered |
Type, End-User, Offerings, and Region |
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Report coverage |
Revenue & volume forecast, company share, competitive landscape, growth factors, and trends |
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Geographic regions covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
Ans. The global Smart Shelves market size is projected to reach US$ 6.5 billion by 2027, from US$ 3.2 billion in 2020, at a CAGR of 10.47% during 2021-2027.
Ans. Europe will provide more business opportunities for Smart Shelves in future.
Ans. The adoption of enhanced inventory management to make smarter restocking decisions and real-time engagements are expected to drive the growth of the smart shelves market.
Ans. Some key players operating in the Smart Shelves are SES-imagotag, Pricer AB, Trax Technology Solutions, Avery Dennison Corporation, Samsung Electronics, E Ink Holdings, Huawei Technologies, Intel Corporation, Honeywell International, SOLUM Europe Gmbh, Happiest Minds, PCCW Solutions, NXP Semiconductor, DIEBOLD NIXDORF, Dreamztech Solutions, Sennco Solutions, MAGO, SES-IMAGOTAG, AWM Smart Shelf.
List of Tables & Figures
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