Omni-channel Retail Solutions Market Size, Share, & Trends Analysis Report By Offering, By Solution, By Services, By Deployment, By Channel, By End-use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global omni-channel retail solutions market size was valued at USD 5.96 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.6% from 2022 to 2030. Omni-channel retail refers to the integration of physical and digital channels. Omni-channel retail streamlines the connection between online and in-store channels to offer customers a seamless shopping experience.

The rising demand for centralized data points, increasing demand for expanding traditional businesses into e-commerce, and benefits provided by omni-channel analytics are some factors contributing to the market's growth.

Omni-channel solutions provide a centralized data point where retailers can get a centralized view of their customers, finances, inventory, and other insights. With the rapid technological advancements, traditional retailers have shifted their offerings to multiple platforms and are no longer confined to just in-store offerings.

Omni-channel retail solutions can combine the data from all platforms under one roof, making it easier for retailers to keep track and offer their clients a sophisticated consumer experience. Moreover, it enables merchants to scale their businesses efficiently and effectively.

The ability of omni-channel retail solutions, to centralize all data points and information under one platform, is driving the growth of the omni-channel market. Moreover, it offers convenience to the customers to easily access products and services in the most suitable and possible way.

The ever-changing retail landscape with rising customer expectations is likely to drive the growth of the omni-channel retail solutions market during the forecast period. In addition, digitalization is also one of the reasons responsible for fueling the omni-channel retail solutions market growth.

Omni channel retail solutions offer several advantages, including increased effectiveness, decreased costs, a higher happiness index, customer satisfaction, and continuous profitable income growth. With the rise in the digital economy, digitization has revolutionized the retail landscape by fueling the growth of the e-commerce industry.

As a result, customer experience has gained a larger momentum where the mode of shopping and convenience has earned greater importance. With the rapidly evolving retail industry, price and product quality are not the only parameters consumers look at nowadays.

However, data privacy and security threat constrains the growth of the omni-channel retail solutions market. Omni-channel software collects essential data and customer information, which can act as valuable insights for retailers but may act as data privacy threats for the customers.

Data collected regarding purchase preferences, payment preferences, and overall customer behavior needs to be handled confidentially to protect it from data breaches. Companies are focusing on being more transparent about customers’ data usage to gain their confidence and make omni-channel retail an accessible and fearless shopping option.

COVID-19 Impact Analysis

The COVID-19 pandemic has pushed digitization even further. Consumers across the globe have been reliant on e-commerce purchases for everything, from daily essentials to travel tickets and more. According to the 2021 Shopping Index survey, global e-commerce witnessed a 58.0% year-on-year growth. To keep up with the changing shopping ways, retailers are now expanding their businesses to e-commerce and focusing on offering their products on multiple platforms.

With omni-channel retail solutions, retailers incorporate robust e-commerce platforms to boost their sales. Increasing demand for e-commerce solutions is fueling the adoption of retail omni-channel commerce platforms, thereby driving the omni-channel retail solutions market growth.

Offering Insights

The solution segment dominated the market in 2021 and accounted for a revenue share of more than 64.0%. The dominance is attributable to the growing popularity of online shopping platforms and significant investments made by businesses to improve customer relationship management. Therefore, in order to reach potential customers, businesses have begun utilizing e-commerce and a variety of other distribution channels. Furthermore, retailers are also combining their online platforms and channels of stores to encourage customers to access online shopping in order to increase their sales, thereby augmenting the growth of the retail omni-channel commerce platform market.

The services segment is anticipated to register the fastest growth during the forecast period. The growth is attributable to the service offerings such as omni-channel retail solutions that can easily incorporate with the current systems of end-users with the aid of professional services.

Moreover, today's customers expect seamless interactions, regardless of the channels or devices they use. Omni-channel services entail numerous interactions between a customer or prospective customer and a product or service provider across multiple touch points, which are expected to fuel the segment’s growth.

Solution Insights

The order management segment dominated the market in 2021 and accounted for a revenue share of more than 22.0%. The growth can be ascribed to the features that omni-channel retail solutions offer, such as management of client orders, online returns, and data & reporting across numerous sales channels, including physical locations, websites, social media, and online marketplaces.

Moreover, it combines the pertinent information required for e-commerce and point-of-sale systems to function efficiently. Furthermore, a customer service platform is also integrated into the order management system, which enables merchants to access a comprehensive view of the company and real-time insights in a unified spot.

The analytics segment is anticipated to register the fastest growth throughout the forecast period. Leading brands are demanding advanced analytics to track consumer behavior in order to provide them with better services. Omni-channel analytics gather all the data across multiple channels to give retailers a holistic view of their customer's behavior.

Using these omni-channel analytics, retailers can understand their customers better and plan their marketing strategies accordingly to increase their sales. Omni-channel analytics helps retailers to offer their customers an accessible shopping experience, which contributes to the growth of the market.

Services Insights

The professional services segment dominated the market in 2021 and accounted for a revenue share of above 56.0%. These services help the merchants to deploy and integrate the required solution to enable omni-channel services. With the ever-expanding e-commerce industry, the rising demand for omni-channel solutions leads to an increasing need for professional services such as platform installation and integration. Moreover, it is easier to understand the technicalities of omni-channel solutions with the help of such services.

The managed services segment is expected to expand at the fastest CAGR during the forecast period. It provides customized solutions that increase revenue and decrease costs without sacrificing service. Moreover, it includes a full range of services, from front-office customer service to back-office administration. The need for managed services is rising, due to disruptions in the retail sector and the adoption of omni-channel solutions.

Deployment Insights

The on-premise segment dominated the market in 2021 and accounted for a revenue share of more than 58.0%. On-premise systems offer the ability to integrate, dependability, and customizability. Furthermore, with the help of professional services, organizations can fully utilize the benefits of the customizability of on-premise systems. In an on-premise deployment model, all the hardware and software needed to operate and manage an omni-channel retail solution would be installed. As a result, merchants can have greater control over the data, which is expected to further drive the segment’s growth.

The cloud segment is anticipated to register the fastest growth during the forecast period. Businesses across the globe prefer cloud-based omni-channel retail solutions over on-premise solutions, owing to the ability of cloud-based solutions to scale services. Moreover, cloud-based solutions can offer in-depth information about the customers. For instance, in June 2020, Open bravo, a cloud-based omni-channel solution provider for agile and creative commerce, announced the launch of OMS, an omni-channel order management system. The solution provides retailers with a single, global view of all inventories, allowing them to select the best shipping locations to maximize their fulfillment process.

Channel Insights

The in-store shopping segment dominated the market in 2021 and accounted for a revenue share of more than 32.0%. There are many businesses that are integrating the omni-channel strategy and increasing their sales as a result. Customers can now use their smartphones to navigate a product using an in-store mapping feature.

At the same time, consumers can scan barcodes in-store to access online customer feedback and discounts and even order an out-of-stock product in their size. Such conveniences and seamless experiences are expected to further drive the in-store shopping segment’s growth.

The online home delivery segment is anticipated to register the fastest growth during the forecast period. The widespread transition to digital, the demand for contactless deliveries, changes in consumption habits, omni-channel engagement routes, and increased customer expectations for speed and convenience have all sped up the growth of the online home delivery segment. Due to the pandemic, widespread deliveries gained popularity. Individuals are now unwilling to give up the convenience, cost savings, and time savings provided by quick home deliveries.

End Use Insights

The apparel & footwear segment dominated the market in 2021 and accounted for a revenue share of more than 27.0%. The increasing demand from the younger population to purchase luxury clothing and footwear is one of the primary factors influencing the growth of the segment. Moreover, the younger generation is tech-savvy and appreciates the convenience of shopping for apparel & footwear through various channels, which is expected to further propel the segment's growth. Furthermore, the increasing adoption of omni-channel retail solutions by several luxury brands is anticipated to aid market growth.

The consumer electronics segment is anticipated to register the fastest growth throughout the forecast period. The growth can be ascribed to the rising usage of smartphones, and the rapid adoption of gadgets and other electronic equipment. Several prominent players are adopting various strategies, such as partnerships and acquisitions, to improve their product offerings.

For instance, in November 2020, Insta One Software Pvt Ltd. was purchased by an omni-channel electronics shopping platform, Gabbardeals. With the acquisition, India-based Gabbardeals was able to create a whole stack of point-of-sale systems that primarily target smartphone devices and consumer electronics deliveries. Therefore, the widespread use of omni-channel retail solutions boosts the segment’s overall growth.

Regional Insights

North America dominated the omni-channel retail solutions market in 2021 and accounted for a revenue share of more than 30.0%. Due to rapid globalization and commercialization, there has been a rise in the adoption of omni-channel trade solutions by retailers in the region. In order to power new consumer experiences, several industry players are enhancing their product offerings. For instance, in January 2019, Oracle Corporation launched its Oracle Retail Xstore Office Cloud Service. With Oracle Retail Xstore Office Cloud Service integrated, retailers may fully utilize cloud technologies on-premises, including crucial point-of-service operations.

The Asia Pacific is anticipated to register the fastest growth during the forecast period. The enlargement of the regional market can be attributed to the augmentation of internet penetration, coupled with the development of the online retail sector in several countries, such as China, India, and Japan, among many others.

Furthermore, the region's omni-channel retail trade platform industry is expanding due to the sizeable e-commerce sector and the growing utilization of click-and-collect systems. Moreover, the pandemic was one of the primary reasons that fueled the disruption in the retail landscape and resulted in the increased demand for omni-channel retail solutions in the region.

Key Companies & Market Share Insights

Several industry players are adopting various strategies. These strategies include joint ventures, mergers, acquisitions, and partnerships, to transform the retail sector. For instance, in January 2022, NCR Corporation and Google, Inc. collaborated to bring additional platform and cloud capabilities, along with artificial intelligence (AI) and machine learning (ML) solutions. Retailers worldwide are expected to get efficient tools and unrivaled flexibility to deliver exceptional omni-channel services.

Vendors are focused on developing their offerings and enhancing customer experience by collaborating. For instance, in December 2021, Infosys Equinox, a digital commerce platform driving omni-channel shopping experiences, partnered with Packable, an e-commerce company. The aim of the partnership is to expand Direct-to-Consumer (D2C) e-commerce offerings for brand partners.

The combination of Infosys Equinox and Packable IQ's intelligent pricing, customer transaction records, smart inventory management, and extensive fulfillment capabilities is expected to result in a highly competitive D2C platform for running and managing a brand's e-commerce website and operations. Some of the prominent players in the global omni-channel retail solutions market include:

• NCR Corporation

• Diebold Nixdorf AG

• Infosys Ltd.

• Toshiba Corporation

• Oracle Corporation

• SAP SE

• IBM Corporation

• Cognizant Technology Solutions Corp.

• Salesforce, Inc.

• Infor Global Solutions, Inc.

Omni-channel Retail Solutions Market Report Scope

Global Omni-channel Retail Solutions Market Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global omni-channel retail solutions market report based on offering, solution, services, deployment, channel, end-use, and region:

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

  • Solution

  • Services

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

  • Order Management

  • Point of Sale

  • CRM

  • Warehouse/Inventory Management

  • Promotion Planning

  • Analytics

  • Others

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

  • Managed Services

  • Professional Services

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

  • On-premise

  • Cloud

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

  • Online Home Delivery

  • In-store Pickup

  • In-store Shopping

  • Others

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

  • FMCG

  • Apparel & Footwear

  • Consumer Electronics

  • Hospitality

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa