IoT In Retail Market is growing at a fast pace because retailers have started adopting IoT-based technology in order to make improvements in their business operations and supply chain, as well as for offering better shopping experience to the customers. Internet of Things solutions are helping retailers to make connections between various types of technology like sensors, smart shelves, RFID technology, payment system, camera and other equipment in order to collect data.
The value of the IoT in the Retail Market stood at USD 61.54 billion in 2024 and is expected to touch USD 369.73 billion by 2032, exhibiting a CAGR of 25.22% during the 2025-2032 period. The growth in the market is fueled by increasing investments in connected retail solutions, smart checkouts, digital payments, supply chain transparency, customized marketing strategies and artificial intelligence. The rise in omnichannel and e-commerce retailing is also prompting companies to integrate their physical shops with digital platforms.
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Top IoT in Retail Companies
1. Cisco Systems, Inc.
Cisco Systems has been enhancing connected retail ecosystems using networking, IoT connectivity, security and analytics. Cisco offers solutions to retailers that enable them to create reliable connectivity among smart devices, stores, distribution chains, and corporate applications. These solutions also facilitate real-time visibility and creation of digitally connected store ecosystems.
Cisco also sees the value in immersive retail experiences by leveraging connectivity in conjunction with smart cameras, Wi-Fi technologies, and connected point-of-sale solutions. Cisco demonstrated the use of IoT-based retail use cases in its Manhattan “Collaboratory” in 2025, which include Wi-Fi 7, Meraki smart cameras, PoE-driven POS solutions, and AR displays.
2. Microsoft Corporation
Microsoft is helping in the implementation of retail IoT through cloud computing, artificial intelligence, analytics, and connectivity of devices. The Azure platform helps in connecting the data related to operations within the store, within the supply chain, and customers together, enabling decision-making for businesses.
AI in conjunction with IoT is now becoming more prevalent in the company’s retail technologies. The updates made in 2024 for the AI Store Assistant and Smart Store Analytics enhanced efficiency for employees, personalized experiences and retail intelligence, while the Copilot templates and retail data solutions enabled businesses to use AI.
3. Honeywell International Inc.
Honeywell provides connected technology solutions that are intended to enhance inventory management, logistics, retail stores, and supply chain visibility. Honeywell’s range of sensors, automation technology, mobile devices and analytics make it easier for retailers to track their operations within increasingly complicated operational landscapes.
AI and machine learning have also been integrated into Honeywell’s solutions for retail. Honeywell has enhanced its Guided Work Solutions with the integration of AI and machine learning technology in 2024. The collaboration between Honeywell and Qualcomm has enabled it to develop an intelligent agent that has the ability to engage using voice, images and barcodes.
4. Zebra Technologies Corporation
Zebra Technologies offers connected retail services using barcode scanning, RFID, mobile computing, tracking, sensing and data capture technologies. The services provided by Zebra Technologies give retail stores better visibility regarding their stock and merchandise management as well as increased efficiency.
Their technology is especially pertinent as the world moves towards smart stores and automated inventory management systems. Using their technology, Zebra helps retailers cut down on any mistakes in inventory management as well as increase efficiency in fulfilling orders and making omnichannel operations easier.
Key Factors Driving IoT in Retail Market Growth
The need for real-time inventory management is another important driving force. Retailers have an option to track their goods through RFID chips, smart shelves, and sensors, which would help them in knowing whether there is any shortfall in inventory or not. It would also help the businesses keep track of their inventories without needing any manual surveillance.
The other critical factor is the rising need for a unique customer experience that can be customized. The IoT devices have the ability to collect data about customer transactions, traffic movement in the stores, customer interaction with the products, and purchase behavior. When analyzed along with AI, this data provides insights for customization.
The emergence of contactless payments, intelligent checkouts, and automation processes has opened up new avenues as well. Checkouts using the internet of things will allow faster transactions and reduce queuing lines for customers, and the use of connected devices will help retailers to automate their daily operations.
The Road Ahead
Future prospects of IoT in Retail Market would depend on integration between connected devices, artificial intelligence, cloud platform, analytics, and retail automation technologies. The deployment via cloud was valued at around 42% of the total market in 2024, whereas the hardware component accounted for around 47% of the overall market. On the other hand, the platforms component is expected to show the highest growth rate among all the components.
Expansions at the regional level will also continue to hold significance with North America expected to capture around 34% of the market in 2024, whereas Asia Pacific is expected to exhibit the highest CAGR of 27.41% over 2022-2032. Nevertheless, cybersecurity, customer data protection, infrastructure costs, and regulatory requirements will continue to pose challenges. Retail companies that merge secure connectivity with intelligent automation and personalization of services will have an upper hand in capitalizing on the changes towards connected and smart retail.
