Smart Shelves Market Analysis

Retail store owners use smart shelf technology to keep track of their inventory. Radio-Frequency Identification (RFID) technology is used in these smart shelves. These include RFID tags, RFID readers, and RFID antennas. The sensors installed either within the shelf itself or underneath it are weight sensors that track and provide the actual inventory status.   

Global Smart Shelves market was valued at around USD 3,187.55 million in 2020 and it is expected to grow at a CAGR of over 11.57% during the forecast period to reach USD 7,684.45 million in 2027. Despite of its moderate growth rate, the global Smart Shelves market is likely to offer huge growth potential and total revenue generation opportunity will be USD 40.51 billion between 2021 and 2027.

Interesting Facts about Smart Shelves Industry

• It facilitates real-time stock information and inventory management
• It offers low stock alerts and thus lost of sales opportunities
• Effective & efficient inventory management
• Realtime price management
• Optimize overall performance and improved consumer services

Increasing Adoption of Advanced Technology in Retail Sector

The smart shelves market is expected to expand quickly because of the ongoing advancement in technology being applied in the global retail sector. The smart shelves market keeps evolving. An increased number of industries are using this technology to lower costs, increase efficiency, and collect data. Smart shelf technology will develop and advance more and will overcome the challenges retailers face with price management, distribution and competition among them. Hardware, Software and Services are major components of smart shelves industry. Hardware segment held over 40% share in 2020.

Consistent Monitoring and Surveillance

Physical retail stores have a continual need for good monitoring and surveillance of their goods. Retail stores must have the most accurate information related to their stock and inventory. The smart shelf market will grow in the next few years as it will help provide retailers with stock information and will be a better way to manage their inventory. Retailers can minimize their losses as digital smart shelf technology informs them of items that may be running low or out of stock, enabling the retailer to stock up before time. Smart shelf technology also helps in preventing thefts.  

Supply Chain Optimization

Another factor that will boost the smart shelves industry over the forecasted time period is the rising demand in optimizing supply chains in the retail business. Smart shelves help retailers make beneficial decisions on when to restock and engage in buying.  Smart shelves also enable customers to have better shopping experiences when retailers use smart shelves' automatic and intelligent features. Retailers are also taking a more customer-centric approach. This, in turn, has led to the increased access of customer data, and the sensor technologies in this industry are being used to understand customer behaviour. Supermarkets/Hypermarkets, Departmental Stores, Small Retailers, Brand Stores and Others are leading end-users of smart shelves. One more reason which goes in favour of the growth of this industry is the decline in the cost of sensors used in these systems. Sensors are now cheaper and more widely available across the globe, especially in developing countries. RFID Tags and Readers, ESL, IoT Sensors, Cameras, and Software and Solutions are key components used in smart shelves.   

Data Security and Inadequate Infrastructure for Smart Shelves

The biggest restraining factor in the smart shelves market is the growing concern for the privacy of data from small and medium-sized retailers, which is hampering the adoption of this technology greatly. During the forecast period, the lack of skilled workers and problems with the infrastructure needed to run these smart shelf technologies will also slow down the growth of this market.  

Huawei Technologies, Intel Corporation, Honeywell International, SOLUM Europe Gmbh, PCCW Solutions, NXP Semiconductor, MAGO, SES-IMAGOTAG, AWM Smart Shelf, Focal System, DIEBOLD NIXDORF, Dreamztech Solutions, Sennco Solutions, Happiest Minds, SES-imagotag, Pricer AB, Trax Technology Solutions, Avery Dennison Corporation, Samsung Electronics and E Ink Holdings are some of the leading players in global smart shelves industry.   

Frequently asked questions about global Smart Shelves industry