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.
“The research found that IoT platform implementation will allow retailers to unlock efficiencies, particularly in the supply chain, which will improve operational margins,” Juniper said.
The research firm anticipates that this push for efficiency will drive the total number of IoT platform-connected assets to almost 25 billion units by 2023, up from just over 5 billion in 2018.
Among the drivers of this trend is the rise of compelling Enterprise Resource Planning (ERP) systems leveraging IoT sensors to enhance resource utilization, which in turn is expected to drive overall IoT retail software spend.
Juniper estimates that annual retail spend on these ERP solutions will reach over $13 billion by 2023.
“Retailers are facing a perfect storm of pressures and challenges, which IoT implementation can help them navigate successfully. ERP and retail platform providers are a compelling proposition in enabling successful IoT transformation,” Research author Nick Maynard explained in a news release.
The research conducted by Juniper also assessed the extent to which retailers have implemented various technologies and found that RFID will continue to have the most significant impact on the retail space.
RFID implementation is still beneficial not only in logistics and warehousing operations but in resource optimization and heat sensor technologies, which were found to be highly mature and disruptive.
In separate research, Juniper noted that "Just walkout" shopping and other smart checkout technology (such as that in use by Amazon Go) is expected to reach over $45 billion transactions by 2023).
Transaction volume is also expected to grow at over 150 percent per annum over the next five years, although the forecast is that it will remain niche, representing under 1 percent of all retail transactions.
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