Ambient Commerce Market Size, Share & Trends Analysis Report By Component (Sensors, Cameras), By End-use (Department Stores, Supermarkets), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global ambient commerce market size was valued at USD 5.02 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 33.6% from 2022 to 2030. Ambient commerce combines Artificial Intelligence (AI), the Internet of Things (IoT), Augmented Reality (AR), sensors, actuators, and other advanced technologies to offer consumers an immersive and sensory shopping experience. The growth of the market can be attributed to various benefits offered by ambient commerce such as ease of shopping, restocking, and lower store operating costs. It also provides different e-commerce insights such as financial transactions and consumer preferences and behavioral patterns.

Ambient commerce allows customers to leave stores with the items they want without stopping for the checkout process, due to which ambient commerce is also known as checkout-free retail. A range of AI technologies and cameras track the customer’s movements and charge them for the shopped products directly from their accounts or digital wallets, eliminating the need to stand in long queues. Post-COVID-19 pandemic, consumers prefer contactless shopping. According to consumer survey results published by the Sekel Group, 87% of shoppers said that they would prefer to shop in stores with touchless or robust contactless checkout options. The growing demand for touchless and contactless checkout options bodes well for the growth of the market.

Since the COVID-19 outbreak, consumer preference has shifted to e-commerce from regular retail stores. Hence, businesses are focusing on implementing strategic initiatives to attract more customers to the traditional brick-and-mortar stores. Customers appreciate the efficiency offered by e-commerce methods, and therefore, companies are focusing on improving the customer experience to engage a more extensive customer base in their stores. In June 2022, Trigo Vision Ltd. announced its partnership with a supermarket chain REWE Group based in Germany. With this partnership, the companies have opened their hybrid autonomous grocery store in Berlin, Germany. Such initiatives are boosting the adoption of ambient commerce.

Retailers are increasingly adopting the Internet of Things (IoT) to gather critical consumer and product data, which is used to construct better market strategies and business plans. Retailers use IoT and AI technology to boost efficiency, improve sales, and elevate the customer experience. Due to all these advantages, IoT is shaping the future of retail. Ambient commerce can be considered an integration of IoT and AI, which is expected to change the course of retail stores. The changing market dynamics in retail are driving the adoption of ambient commerce.

Data security and privacy concerns increasingly threaten the ambient commerce market. According to a survey result published by Retail Insight Network, 35% of consumers do not prefer checkout-free grocery stores because of their data privacy concerns. However, ambient commerce companies are taking initiatives to reduce consumer data privacy concerns by increasing the transparency of how consumer data is collected and used.

COVID-19 Impact Analysis

The outbreak of the COVID-19 pandemic is expected to further drive the market for ambient commerce. The pandemic has pushed the adoption of online shopping and contactless shopping methods, which has caused many retailers to adopt advanced technologies such as ambient computing. Retailers are adopting long-term strategies, which can offer their customers the utmost safety and convenience by providing them sensory shopping experience. The rising awareness regarding ambient products post the pandemic is driving the market.

Component Insights

The sensors segment accounted for the largest revenue share of more than 35.0% in 2021. Ambient sensors detect various parameters such as light, temperature, proximity, pressure, and movement. With these parameters, ambient commerce creates an environment that can offer its customers sensory shopping experiences. Additionally, the rapid emergence of cheap, smart, and silicon-based semiconductors represents a key enabler for ambient commerce. Integrating these sensors with retail shopping can transmit necessary information to the cloud, facilitating rich data analysis. This data analysis can be used to improve the customer experience further.

The cameras segment is anticipated to register a significant growth rate over the forecast period. Cameras are used in ambient commerce to track consumers' movements and purchasing patterns. Based on the camera tracking, ambient commerce stores can directly register the products purchased by consumers and deduct the charges from their accounts. Ambient commerce stores are increasingly adopting cameras as a part of their ambient shopping infrastructure, which is expected to drive the segment.

End-use Insights

The department stores segment accounted for the largest revenue share of more than 30.0% in 2021. Department stores are increasingly adopting ambient commerce to offer customers an efficient checkout-free shopping experience. Department store retailers are adopting ambient commerce, combining various digital and transformative technologies such as facial recognition and location tracking. Using these sophisticated technologies, department stores can collect consumers' behavioral data, which can be used to improve their sales. The increasing adoption of ambient commerce methods is driving the segment.

The supermarkets segment is anticipated to register the fastest growth rate over the forecast period. Customers are continuously moving toward digital methods for their shopping needs. Moreover, the growing number of supermarkets is pushing retailers to adopt new technologies to gain an edge over their competitors in the market and offer them a unique shopping experience. Ambient commerce helps supermarkets to cut down on their checkout times, which improves their customer experience and sales. Using ambient commerce technology, supermarkets can gain shelf and storage data and other insights, streamlining the restocking process. The benefits provided by ambient shopping are fostering the growth of the segment.

Regional Insights

North America held the largest revenue share of more than 30.0% in 2021. North America has the presence of some prominent players in the market, such as Amazon.com, Inc., and Apple Inc. Moreover, organizations in North American countries are aggressively investing in emerging technologies, such as AI, IoT, and big data. Moreover, North American consumers have proved to be more receptive to new technology from the past, which is driving the adoption of ambient commerce in the region. The growing demand for advanced retail methods, coupled with the growing preference for contactless shopping methods, is driving the regional market.

Asia Pacific is expected to emerge as the fastest-growing market over the forecast period. The regional growth can be attributed to the presence of many Internet of Things (IoT) based services and IT companies in the region. Additionally, the increasing internet boom, backed by higher internet and smartphone penetration, is driving the adoption of advanced technologies such as ambient shopping. Furthermore, a large presence of retail chain stores in countries such as China is driving the demand for ambient shopping facilities, which bodes well for the market growth in the Asia Pacific region.

Key Companies & Market Share Insights

The market is moderately consolidated. Prominent players are pursuing various strategies, such as product innovations, research & development initiatives, strategic partnerships & joint ventures, expansion, and mergers & acquisitions to gain a competitive edge. Key players are focusing on integrating online and offline shopping experiences to offer their consumers the utmost comfort and ease of shopping.

Vendors are focusing on offering ambient commerce to enhance the customers' experience across the world. For instance, in June 2021, Amazon.com, Inc. announced the opening of Amazon Fresh grocery store in Bellevue, Washington, U.S. The newly launched Amazon Fresh Grocery store features 'Grab & Go' technology, letting shoppers place their things in cards and leave the store without stopping at the checkout. The store uses ambient commerce methods to facilitate this hassle-free shopping experience. Such initiatives and product launches by key players are driving the market. Some prominent players in the global ambient commerce market include:

• Apple Inc.

• Amazon.com, Inc.

• Alibaba Group Holding Limited

• Trigo Vision Ltd.

• Tescoplc.com

• AWM SMART SHELF

• Grabango Co.

• Zippin

• Standard AI

• Sensei 

Ambient Commerce Market Report Scope

Global Ambient Commerce Market Segmentation

The report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global ambient commerce market report based on component, end-use, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Sensors

  • Actuators

  • Cameras

  • Others

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Grocery Stores

  • Convenience Stores

  • Supermarkets

  • Department Stores

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • UAE

    • Saudi Arabia