Internet of Things (IoT) Market in Retail Applications to grow by USD 44.80 bn

The Internet of Things (IoT) market in retail applications is expected to grow by USD 44.80 bn from 2021 to 2026, according to Technavio. However, the growth momentum of the market will decelerate at a CAGR of 16.48%.

One of the key drivers supporting the internet of things (IoT) market growth in retail applications is the burgeoning cloud-based RFID systems. The risks of losing data and data corruption are lowered by using cloud solutions. Several solution providers offer cloud-based solutions such as inventory management, asset management, supply chain management, and services such as data filtering, data processing, inventory services, and data storage. Furthermore, with cloud-based RFID, companies can use centrally managed solutions, cutting down the support and deployment costs.

This will drive the adoption of the IoT market in retail applications, especially among small manufacturers. Such factors will propel the market growth during the forecast period.

The Internet of Things (IoT) market growth in retail applications is hindered by data security concerns. With the use of RFID tags, sensors, and NFC, a high-frequency radio signal transmitted from these tags can be detected from a distance by other radio receivers. This creates chances of the data being accessed by other users. Keeping data secure is important for consumers, governments, and corporations. On the other hand, spoofing is another issue wherein the data collected from tags can be overwritten on other existing RFID tag data using some software. RFID readers or any other sensors cannot detect this overwritten content. These data security issues prove to be a major challenge for manufacturers as they hamper the demand for the IoT market in retail applications during the forecast period.