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Digital Transformation Market in the Retail Sector to Reach $137.05 Billion by 2025

Strategic Insights

— 1 min read

The digital transformation market in the retail sector is expected to experience significant growth over the next five years, with a compound annual growth rate (CAGR) of 16.97%. This growth can be attributed to the increasing need for operational efficiency and the rise in partnerships and investments by vendors. The market is expected to reach $137.05 billion by 2025, with a growth momentum that will accelerate over the forecast period.

The report from Technavio highlights the key factors driving the growth of the digital transformation market in the retail sector, including the need to enhance operational efficiency. However, the lack of skilled personnel might hamper the market growth. The holistic analysis of the drivers and challenges will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Takeaways:

  • The digital transformation market in the retail sector is expected to increase by $137.05 billion from 2020 to 2025, driven by the need for operational efficiency and partnerships and investments by vendors.
  • The market's growth momentum will accelerate at a CAGR of 16.97% over the next five years.
  • The market is fragmented, with top players adopting organic and inorganic growth strategies to compete in the market.
  • Key market participants include Alibaba Cloud, Alphabet Inc., Amazon Web Services Inc., Intel Corp., International Business Machines Corp., Microsoft Corp., Oracle Corp., Salesforce.com Inc., SAP SE, and Tata Consultancy Services Ltd.
  • The North American region is expected to contribute to 36% of the market's growth during the forecast period, led by the US.
  • The market is driven by the need to improve operational efficiency, while the lack of skilled personnel is expected to be a major challenge.

Statistics:

  • The digital transformation market in the retail sector is estimated to reach $137.05 billion by 2025.
  • The market's growth momentum is expected to accelerate at a CAGR of 16.97% over the next five years.
  • 36% of the market's growth is expected to come from North America during the forecast period.
  • The US is the key market for digital transformation in the retail sector in North America.
  • The market is expected to grow at a rate of 14.53% on a year-over-year (YoY) basis.

Sources:

  • Technavio - Digital Transformation Market in the Retail Sector Forecast Report
  • PRNewswire - Digital Transformation Market in the Retail Sector to Reach $137.05 Billion by 2025, According to Technavio
  • Digital Transformation Market in the Retail Sector Report, Technavio

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