Global retail market to reach $46.78T by 2029 at 7.6% CAGR, driven by growth in auto, food, fuel, cosmetics, personal care, and miscellaneous retail sectors.

The global retail market reached approximately USD 23.00 Trillion in 2024 and is expected to grow at a CAGR of 5.80% during the forecast period of 2025-2034, to reach a value of USD 40.42 Trillion in 2034. The demand is being driven by factors like rising disposable incomes, rapid digital transformation, and investments in cutting-edge technologies.

Key Market Insights:

• The Asia Pacific retail market has demonstrated significant growth and is projected to grow at a 6.9% CAGR during the forecast period.
• By country, the United States commands 18.7% of the North America retail market share in 2024.
• Product-wise, the food, beverage, and grocery segment held the dominant share and is projected to exhibit a 6.6% CAGR over the forecast period.
• Based on end use, the online channel exhibits a CAGR of 10.9% during the forecast period.

Market Size & Forecast

• Current Market Size: USD 23.00 Trillion
• Projected Market Size: USD 40.42 Trillion
• CAGR from 2025 to 2034: 5.80%
• Dominant Market: Asia Pacific

In 2024, global retail e-commerce sales reached an estimated ************ U.S. dollars. Projections indicate a ** percent growth in this figure over the coming years, with expectations to come close to ************** dollars by 2028. World players Among the key players on the world stage, the American marketplace giant Amazon holds the title of the largest e-commerce player globally, with a gross merchandise value of nearly *********** U.S. dollars in 2024. Amazon was also the most valuable retail brand globally, followed by mostly American competitors such as Walmart and the Home Depot. Leading e-tailing regions E-commerce is a dormant channel globally, but nowhere has it been as successful as in Asia. In 2024, the e-commerce revenue in that continent alone was measured at nearly ************ U.S. dollars, outperforming the Americas and Europe. That year, the up-and-coming e-commerce markets also centered around Asia. The Philippines and India stood out as the swiftest-growing e-commerce markets based on online sales, anticipating a growth rate surpassing ** percent.

Global retail sales were projected to amount to around **** trillion U.S. dollars by 2026, up from approximately **** trillion U.S. dollars in 2021. The retail industry encompasses the journey of a good or service. This typically starts with the manufacturing of a product and ends with said product being purchased by a consumer from a retailer. Retail establishments come in many forms such as grocery stores, restaurants, and bookstores. American retailers worldwide As a result of globalization and various trade agreements between markets and countries, many retailers are capable of doing business on a global scale. Many of the world’s leading retailers are American companies. Walmart and Amazon are examples of such American retailers. The success of U.S. retailers can also be seen through their performance in online retail. Retail in the U.S. The domestic retail market in the United States is a lucrative market, in which many companies compete. Walmart, a retail chain offering low prices and a wide selection of products, is the leading retailer in the United States. Amazon, The Kroger Co., Costco, and Target are a selection of other leading U.S. retailers.

The Retail Industry Market is Segments by Product Type (Food, Beverage, and Grocery, Personal and Household Care, Apparel, Footwear and Accessories, and More), by Distribution Channel (Supermarkets/Hypermarkets, Convenience and Discount Stores, Specialty Stores, and More), and by Geography (North America, Europe, Asia-Pacific, and More). The Market Forecasts are Provided in Terms of Value (USD).

Retail Analytics Market was valued at USD 5.17 Billion in 2022 and is expected to grow at a CAGR of 17.3% during the forecast period.

Analysis from GMI Research finds that the Big Data Analytics in Retail Market earned revenues of USD 4.2 billion in 2022 and estimated to touch USD 18.2 billion in 2030 will grow at a CAGR of 20.1% from 2023-2030

As per Cognitive Market Research's latest published report, the Global Online Fashion Retail market size was $771.90 Billion in 2022 and it is forecasted to reach $2,755.17 Billion by 2030. Online Fashion Retail Industry's Compound Annual Growth Rate will be 17.37% from 2023 to 2030. Market Dynamics of the Online Fashion Retail Market:

Evolution in online shopping along with the emergence of technologies:

Technological advancement has become the center of life. Most devices such as smartwatches, and mobile phones with multiple accessibilities merge with digital networks. Technologies such as blockchain, and artificial intelligence have pushed online fashion businesses to be more user-friendly which can help customer to fulfill their needs. E-commerce retail platforms which are using several technologies would be able to surge their competitive advantage towards better customer experiences and customizing the products as per their requirements. Artificial Intelligence (AI) is becoming the most popular technology in the online fashion retail industry. AI has the ability to change vast and diverse data into valuable data which helps to exceed cost, speed, and time. Furthermore, Augmented Reality (AR) technology also plays a vital role which provides a real-time view and also magnified computer-generated information.

Restraining Factor:

Lack of close examination and frauds in online shopping:

Many customers want to feel and touch the product in order to identify product quality. Thus, most of the customers prefer to purchase from window shops to touch-feel-try the products which may lead to hinder the market growth to some extent. In addition, the products shown in the pictures are sometimes misleading. The size, colour, and appearance are not images with electronic images. In addition, many people prefer to visit physical stores for examining the product though it consumes time. Further, the online payment mode is not much safe while doing payment transactions. Therefore, retailers and e-marketers are paying attention to finding out a solution to this issue.

However, the emergence of new technologies, good discounts, availability of different brands, time-saving processes, a wide range of products, and safer payment transactions are expected to surge the market growth during the forecast period.

Current Trends on Online Fashion Retail:

Development of new applications in online fashion retail platforms:

Increasing penetration of smartphones and the emergence of new technologies followed by the development of different applications have gained traction in the online fashion retail market. Solutions like Mobile body scanning technology are having a lucrative impact on the online fashion retail market size and shape. In addition, a solution like Mobile Tailor which allows customers to take body measurements remotely and contactless by using just two photos of them enables businesses to expand their reach. Furthermore, YourFit solution also helps shoppers to find out matching online shoppers in order to overcome size issues. Thus, the development of new applications in the fashion world is projected to expand the market growth in the future.

Impact of the COVID-19 pandemic on the Online Fashion Retail Market:

The outbreak of Covid-19 has significant impact on the global fashion retail market. As governments of several nations announced lockdown and social distancing regulations, the market has faced several damages during the Covid-19 pandemic. However, there are some positive impacts such as the emergence of new technologies i.e. ewallet, 360-degree videos, three-dimensional product view, and trying on clothes with augmented reality has gained traction during a pandemic. The online fashion market has gained traction among young consumers during the outbreak of COVID-19. UK-based eCommerce company BooHoo has reported that during the lockdown their sales has increased by 45% in May 2020.

As the online fashion retail industry is growing, fashion businesses need to adapt to changing circumstances. Due to the high competition in the sector, online fashion businesses have to implement new intelligent solutions which are going to recommend the right product to the right customer in real time. Introduction of Online Fashion Retail:

In the past decade, increasing usage of the internet has given new momentum to the online fashion retail market. Rising demand for designer dress...

The global Omni-channel retail solutions market was valued at USD 5.93 billion in 2021 and is expected to grow at a CAGR of 13.8% during the forecast period.

The global Retail Digital Transformation market, valued at $243.57 million in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 17.32% from 2025 to 2033. This significant expansion is fueled by several key drivers. The increasing adoption of e-commerce and omnichannel strategies necessitates advanced digital solutions for retailers to enhance customer experience, streamline operations, and gain a competitive edge. Furthermore, the proliferation of mobile devices and the rising penetration of high-speed internet are creating a favorable environment for digital transformation initiatives. Data analytics, fueled by technologies like big data and AI, are empowering retailers to personalize customer interactions and optimize inventory management, contributing to market growth. The integration of technologies such as IoT, AR/VR, and cloud computing is further enhancing efficiency and creating innovative shopping experiences. While challenges like data security concerns and the need for substantial upfront investments can act as restraints, the overall market trajectory points towards sustained and significant expansion. Market segmentation reveals a diverse landscape. The mobile application segment is anticipated to dominate due to the ubiquity of smartphones and the convenience they offer. Within product segments, consumer electronics, media and entertainment, and apparel are likely to demonstrate strong growth due to higher online penetration and consumer preference for digital channels. Geographically, North America and Asia Pacific are expected to be major contributors, driven by strong technological adoption and a large consumer base. Companies like SAP, IBM, Alphabet, and Amazon are leading the charge, offering comprehensive solutions that cater to the evolving needs of retailers undergoing digital transformation. The continued development of innovative technologies and the growing demand for seamless and personalized shopping experiences will propel this market to significant heights in the coming years. Recent developments include: September 2022: Boots announced the introduction of a unique online store in 2023 as part of its digital transformation strategy. Boots's marketplace goods will be easily linked with the established product selection on boots.com, providing users access to hundreds of brands from known companies and new vendors., June 2022: HCL Technologies (HCL) introduced Industry NeXT, a transformative framework to assist clients in digitally reinventing their enterprises. HCL Technologies' Industry NeXT platform is built on the Industry 4.0 (I4.0) framework and helps organizations worldwide to plan, prepare, and effortlessly transition into a cooperative environment., April 2022: Primark launched its website, the next milestone in its digital strategy. The website marks a transition in the importance of digital inside the company, recognizing the vital function the internet can play in supporting in-store sales., March 2022: Informatica, the corporate cloud data administration pioneer, introduced the Intelligent Data Management Cloud (IDMC) for retail, which includes novel cloud-first, cloud-native features designed to assist the retail sector create innovations and commercial value by addressing particular obstacles such as data fragmentation, information complexity, including a lack of linked interactions in a multi-cloud, mixed environment., January 2022: Toshiba Global Commerce Systems unveiled a significant extension of its next-generation ELERATM integrated commerce platform to speed up retailer digital transition at the National Retail Federation Conference. The growth heralds a revolutionary generation of retail technology that is nimble, networked, and infinitely adjustable.. Key drivers for this market are: Increased Usage of Smart Devices, Growing Need for Advanced Mobile Logistics Management; Demand for Increase in the Yield and Efficiency. Potential restraints include: Increased Usage of Smart Devices, Growing Need for Advanced Mobile Logistics Management; Demand for Increase in the Yield and Efficiency. Notable trends are: Beauty and Personal Care to Hold Significant Share.

The connected retail market is experiencing significant growth, with a market size of $41.41 million in 2025 and a projected CAGR of 14.9% over the forecast period of 2025-2033. This growth is driven by the increasing adoption of connected technologies such as ZigBee, WiFi, NFC, and BLE (Bluetooth Low Energy) in retail environments. These technologies enable retailers to enhance customer engagement, improve supply chain efficiency, and optimize in-store operations. Key trends in the connected retail market include the growing use of mobile apps for customer engagement, the integration of artificial intelligence (AI) and machine learning (ML) for personalized recommendations and automated tasks, and the increasing popularity of omnichannel retailing. However, challenges such as data security concerns and the need for seamless integration across different technologies may hinder market growth. Despite these challenges, the connected retail market is expected to continue its upward trajectory, driven by the growing demand for personalized and seamless shopping experiences. Vendors operating in the market include NXP Semiconductors NV, Honeywell International Inc., Cisco Systems, Inc., GE Digital, and IBM. Connected Retail Market: A Comprehensive Analysis The global connected retail market is projected to reach $2,000 million by 2028, growing at a CAGR of 12.5% from 2023 to 2028. The market's growth is attributed to the increasing adoption of IoT devices and sensors, the rise of e-commerce, and the growing need for enhanced customer experiences. Recent developments include: In January 2024, SAP announced the launch of new AI-driven retail capabilities aimed at enhancing customer experience. These innovations integrate AI to provide personalized shopping experiences, improve inventory management, and optimize supply chain operations. The goal is to empower retailers to understand better and respond to customer preferences in real time, ultimately driving increased efficiency and customer satisfaction in the retail sector. , In October 2022, Facilio, a facility management software provider, announced a partnership with Tutenlabs to digitize and automate a significant number of large-format retail stores across North America. This collaboration intends to leverage Facilio's technology to enhance operational efficiency and sustainability in retail environments by integrating IoT and AI-driven solutions.The goal is to optimize building performance and maintenance processes, ultimately improving the overall customer experience within these retail spaces. , In October 2021, Zalando announced the launch of Connected Retail in Italy, a new service enabling retailers to extend their reach to millions of customers through the Zalando platform. This initiative aims to enhance customer choice by integrating local stores into Zalando's online shopping experience. Through Connected Retail, Italian retailers can showcase their inventory on Zalando's website, allowing customers to browse and purchase items directly from nearby stores. .

In 2020, global retail sales fell by 2.9 percent as a result of the COVID-19 pandemic, bouncing back in 2021 with a growth of 9.7 percent Global retail sales were projected to amount to around 27.3 trillion U.S. dollars by 2022, up from approximately 23.7 trillion U.S. dollars in 2020.

American retailers worldwide
As a result of globalization and various trade agreements between markets and countries, many retailers are capable of doing business on a global scale. Many of the world’s leading retailers are American companies. Walmart and Amazon are examples of such American retailers. The success of U.S. retailers can also be seen through their performance in online retail.

Retail in the U.S.
The domestic retail market in the United States is a lucrative market, in which many companies compete. Walmart, a retail chain offering low prices and a wide selection of products, is the leading retailer in the United States. Amazon, The Kroger Co., Costco, and Target are a selection of other leading U.S. retailers.

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Digital Retailing Market Size 2024-2028

The digital retailing market size is forecast to increase by USD 1879.8 billion, at a CAGR of 36.5% between 2023 and 2028.

The market is experiencing exponential growth, driven by the increasing preference for social media as a retail advertising channel. This trend is reshaping consumer behavior, as more individuals turn to digital platforms for e-shopping and brand engagement. Another key factor fueling market expansion is the shift from traditional to digital retailing, as businesses recognize the benefits of reaching customers through online channels. However, this dynamic market presents challenges for retailers. The requirement for a skilled workforce, capable of managing digital marketing campaigns and providing excellent customer service, poses a significant hurdle. Retailers must invest in training and recruitment to stay competitive and meet evolving consumer expectations.
In summary, the market is characterized by robust growth, driven by consumer preferences for social media and digital channels. However, the need for a skilled workforce presents a significant challenge that retailers must address to capitalize on market opportunities and navigate this competitive landscape.

What will be the Size of the Digital Retailing Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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The market continues to evolve, with dynamic market activities shaping the industry's landscape. Online marketplaces are no longer just platforms for buying and selling; they have become integral components of omnichannel strategies, offering seamless user experiences (UX) and conversational commerce through live chat support and AI-driven recommendation engines. Last-mile delivery and inventory management are being optimized through advanced data analytics and real-time tracking, ensuring efficient order fulfillment and timely delivery. Mobile shopping apps and user interfaces (UI) are prioritized, enabling a mobile-first approach and catering to the growing preference for on-the-go shopping. Content marketing, data privacy, and e-commerce security are crucial aspects, with businesses employing various promotional strategies to engage customers and build brand loyalty through loyalty programs, influencer marketing, and customer reviews.

International shipping and cross-border e-commerce are expanding, fueled by global logistics and supply chain management solutions. E-commerce platforms are integrating advanced technologies like big data, machine learning (ML), and cloud computing to improve demand planning, sales forecasting, and pricing strategies. Mobile payments, voice commerce, and virtual and augmented reality (VR) are transforming the shopping experience, offering new opportunities for businesses to engage customers. Fraud prevention, payment gateways, and subscription models are essential components, ensuring secure and convenient transactions. Omnichannel retailing, pricing strategies, and blockchain technology are shaping the future of digital retailing, offering endless possibilities for businesses to adapt and thrive in this ever-evolving market.

How is this Digital Retailing Industry segmented?

The digital retailing industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Search ads
  Display ads
  Social media
  E-mail marketing
  Others


Platform

  Mobile devices
  Desktops


End-User

  Retail
  E-Commerce
  Consumer Goods


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    Japan


  Rest of World (ROW)

By Type Insights

The search ads segment is estimated to witness significant growth during the forecast period.

The digital retail market is experiencing significant growth, with search ads emerging as a popular marketing segment. This form of marketing targets consumers based on their search queries and browsing history, resulting in higher conversion rates. The e-commerce sector's expansion, reaching beyond metropolitan areas to include tier-two and tier-three cities, is a primary driver for search ads. E-commerce's increasing penetration into various sectors, such as groceries and electronics, has made it an indispensable part of consumers' online shopping experiences. User interfaces, digital storefronts, and omnichannel strategies are essential components of digital retailing. Conversational commerce, augmented reality, and virtual reality are transforming the shopping experience, while e-commerce security, price optimization, and data privacy are critical concerns.

Cloud computing, big data, and machine l

Internet sales have played an increasingly significant role in retailing. In 2024, e-commerce accounted for over ** percent of retail sales worldwide. Forecasts indicate that by 2029, the online segment will make up close to over ** percent of total global retail sales. Retail e-commerce Online shopping has grown steadily in popularity in recent years. In 2024, global e-commerce sales amounted to over ************** U.S. dollars, a figure expected to exceed **** trillion U.S. dollars by 2028. Digital development in Latin America boomed during the COVID-19 pandemic, generating unprecedented e-commerce growth in various economies across the region. So much so that Brazil and Argentina appear to lead the world's fastest-growing online retail markets. This trend correlates strongly with the constantly improving online access, especially in "mobile-first" online communities, which have long struggled with traditioe-comernal fixed broadband connections due to financial or infrastructure constraints but enjoy the advantages of cheap mobile broadband connections. M-commerce on the rise The average order value of online shopping via smartphones and tablets still lags traditional e-commerce via desktop computers. However, e-retailers around the world have caught up in mobile e-commerce sales. Online shopping via smartphones is particularly prominent in Asia. By the end of 2021, Malaysia was the top digital market based on the percentage of the population that had purchased something by phone, with nearly ** percent having made a weekly mobile purchase. South Korea, Taiwan, and the Philippines completed the top of the ranking.

The rapid ascent of e-commerce and omnichannel strategies is reshaping consumer engagement and purchasing patterns, driving a wave of transformation across the retail trade sector. As of 2025, the sector is expected to log $7.4 trillion in revenue, although its growth is anticipated to decelerate slightly to 0.4% in the current year. Gen Z and millennials have championed the digital shopping revolution, pushing retailers to prioritize online sales and customer engagement platforms. However, brick-and-mortar stores retain a pivotal role in supporting ongoing customer engagement alongside the online momentum as retailers blend physical and digital experiences. As automation has augmented efficiency across operations, retailers have also strategically diversified product lines and incorporated sustainability into their brands to meet changing consumer expectations. Over the past five years, the retail sector has seen a compound annual growth rate of 2.2%, which underscores the impact of diversified strategies in maintaining momentum. The adoption of automation has produced mixed results. Self-checkout systems, for example, have reduced payroll expenses for businesses while streamlining the customer experience, though several studies have reported that some customer segments dislike self-checkout due to technological glitches and some retailers have struggled with implementation and reported a rise in theft. Major chains like Target have honed their product diversification strategies, transforming their stores into one-stop shops that blend essential goods with discretionary items and healthcare, driving up revenue in multiple categories. Sustainability is another theme of the current period, with the sector’s commitment marked by increased budgets for eco-friendly practices and a growing market for pre-owned goods. Despite high inflation during the period giving way to high interest rates that stayed stagnant for a year before beginning to fall again in September 2024, retailers managed to navigate the challenges of economic fluctuations and keep consumer interest high through diversification. A projected compound annual growth rate of 0.9% for the next five years would set revenue on a steady path toward an expected $7.7 trillion through the end of 2030. Artificial intelligence is set to further revolutionize retail operations, enhancing stock management, logistics and consumer personalization. Augmented and virtual reality technologies will prove integral to engaging the tech-savvy younger generations by offering novel ways to interact with products before purchase. However, global trade tensions and tariffs could challenge profitability as retailers manage higher import costs. Reverse logistics will thrive as consumers’ eco-consciousness continues to grow, turning returns into revenue opportunities and aligning with trends toward sustainable consumption. The sector’s profit is expected to remain steady over the next five years, bolstered by consumers’ willingness to trade up to items that mix luxury and affordability.

According to Cognitive Market Research, the global Retail Digital Transformation Market size will be USD 218560.9 million in 2025. It will expand at a compound annual growth rate (CAGR) of 18.20% from 2025 to 2033.

North America held the major market share for more than 37% of the global revenue with a market size of USD 80867.53 million in 2025 and will grow at a compound annual growth rate (CAGR) of 16.0% from 2025 to 2033.
Europe accounted for a market share of over 29% of the global revenue with a market size of USD 63382.66 million.
APAC held a market share of around 24% of the global revenue with a market size of USD 52454.62 million in 2025 and will grow at a compound annual growth rate (CAGR) of 20.2% from 2025 to 2033.
South America has a market share of more than 3.8% of the global revenue with a market size of USD 8305.31 million in 2025 and will grow at a compound annual growth rate (CAGR) of 17.2% from 2025 to 2033.
Middle East had a market share of around 4% of the global revenue and was estimated at a market size of USD 8742.44 million in 2025 and will grow at a compound annual growth rate (CAGR) of 17.5% from 2025 to 2033.
Africa had a market share of around 2.2% of the global revenue and was estimated at a market size of USD 4808.34 million in 2025 and will grow at a compound annual growth rate (CAGR) of 17.9% from 2025 to 2033.
Artificial Intelligence (AI) segment type is the fastest growing segment of the Retail Digital Transformation Market industry

Market Dynamics of Retail Digital Transformation Market

Key Drivers for Retail Digital Transformation Market

Increasing smartphone and internet penetration

The widespread use of smartphones and improved internet accessibility have significantly transformed the retail landscape. Consumers are now connected 24/7, enabling seamless browsing, product comparisons, and purchases across platforms. This shift has led to the rapid expansion of mobile commerce, encouraging retailers to invest in mobile-optimized websites and apps. With rural and semi-urban areas increasingly gaining access to affordable data, the digital customer base continues to grow. Retailers are leveraging this trend to enhance outreach, improve engagement, and tap into previously underserved markets with digital-first strategies. For Instance, September 2022: Boots announced the introduction of a unique online store in 2023 as part of its digital transformation strategy. Boots's marketplace goods will be easily linked with the established product selection on boots.com, providing users access to hundreds of brands from known companies and new vendors.

https://www.boots-uk.com/newsroom/news/boots-launches-brand-new-online-marketplace/”/

Rising demand for personalized shopping experiences

Modern consumers expect tailored interactions and product recommendations that align with their preferences and buying behavior. Retailers are leveraging advanced analytics, artificial intelligence, and customer data to deliver hyper-personalized experiences across digital channels. From curated product suggestions to targeted marketing campaigns, personalization has become a key driver of customer loyalty and conversion. Brands that successfully implement these strategies are seeing higher engagement rates and repeat purchases. The demand for relevance and customization is pushing the retail sector toward data-driven, consumer-centric innovation at every stage of the shopping journey.

Restraint Factor for the Retail Digital Transformation Market

High implementation and maintenance costs of digital solutions

Adopting digital transformation in retail often involves substantial upfront investment, including hardware, software, and system integration expenses. For small and mid-sized retailers, these costs can be a major barrier, especially when budgets are already stretched. Ongoing maintenance, updates, and technical support add to the financial burden, making it difficult to sustain long-term digital strategies. The need to hire or train skilled personnel to manage advanced systems also contributes to rising operational expenses. This cost factor can delay or limit adoption, particularly in markets where ROI is uncertain or margins are thin. Introduction of the Retail Digital Transformation Market

Retail digital transformation refers to the integration of advanced digital technologies into retail operations to enhance customer experie...

IoT in Retail Market by Component (Hardware, Services, Connectivity, and Platform), Application (Customer Experience Management, Operations Management, Asset Management) - Global Forecast to 2029

Global Grocery Retail Market reached USD 8,695 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 14,772 billion by 2031

Latin American (LATAM) retail market will grow from $263.4 billion in 2017 to nearly $297.9 billion by 2022 with a compound annual growth rate of 2.5% for the period of 2017-2022.

Smart Retail Market size was valued at USD 30.30 billion in 2022 and is poised to grow from USD 39.09 billion in 2023 to USD 299.74 billion by 2031, growing at a CAGR of 29% in the forecast period (2024-2031).