On-Shelf Availability Solution Market Overview
As per MRFR analysis, the On-Shelf Availability Solution Market Size was estimated at 2.3 (USD Billion) in 2022.The On-Shelf Availability Solution Market Industry is expected to grow from 4.0(USD Billion) in 2023 to 8.7 (USD Billion) by 2032. The On-Shelf Availability Solution Market CAGR (growth rate) is expected to be around 10.2% during the forecast period (2024 - 2032).
Key On-Shelf Availability Solution Market Trends Highlighted
Crucial market trends shaping the On-Shelf Availability Solution market include the proliferation of smart shelves and sensors, advancements in data analytics and artificial intelligence, and the growing adoption of cloud-based solutions. Smart shelves and sensors provide real-time visibility into product availability, while data analytics and AI enable retailers to optimize inventory levels and predict demand more accurately. Cloud-based solutions offer scalability and accessibility, catering to the needs of both large and small retailers.
Key market drivers include the rising demand for improved customer experience, the need to reduce inventory waste, and the increasing adoption of e-commerce. As customers expect products to be readily available, retailers are investing in on-shelf availability solutions to prevent stockouts and enhance customer satisfaction. Moreover, the need to reduce inventory waste is driving adoption as retailers seek to optimize their supply chains and minimize losses due to overstocking or spoilage. The growth of e-commerce is also contributing to market growth, as retailers need to ensure efficient and accurate fulfillment of online orders.
Opportunities to be explored or captured include the development of integrated solutions that combine on-shelf availability with other retail technologies, such as point-of-sale systems and inventory management solutions. Additionally, the expansion into emerging markets and the development of solutions tailored to specific retail segments represent significant growth opportunities.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
On-Shelf Availability Solution Market Drivers
Rising Demand for Enhanced Customer Experience
In today's competitive retail landscape, providing exceptional customer experiences is crucial for businesses to differentiate themselves and drive sales. Customers expect products to be readily available when they need them, and empty shelves can lead to frustration and lost sales. On-shelf availability solutions address this challenge by providing real-time visibility into product inventory levels, enabling retailers to optimize product placement, prevent stockouts, and ensure that customers can find the products they are looking for.
By investing in on-shelf availability solutions, businesses can enhance the overall shopping experience, increase customer satisfaction, and ultimately drive revenue growth. The On-Shelf Availability Solution Market Industry is expected to witness significant growth in the coming years due to the increasing focus on customer-centric strategies and the need to improve operational efficiency in the retail sector.
Advancements in Technology
Technological advancements are playing a pivotal role in driving the growth of the On-Shelf Availability Solution Market Industry. The advent of IoT (Internet of Things) devices, RFID (Radio Frequency Identification) tags, and AI (Artificial Intelligence) is transforming the way retailers manage their inventory. These technologies enable real-time tracking of products throughout the supply chain, providing retailers with valuable insights into product movement, consumption patterns, and potential stockouts.
By leveraging these technologies, retailers can automate inventory management processes, reduce manual labor, and make data-driven decisions to optimize product availability. Furthermore, the integration of AI-powered analytics allows retailers to predict demand more accurately, forecast sales trends, and tailor their inventory strategies accordingly, improving on-shelf availability and increasing profitability.
Growing Adoption of Omnichannel Retailing
The rise of omnichannel retailing is another key driver of growth for the On-Shelf Availability Solution Market Industry. With the increasing popularity of online shopping and the convergence of online and offline channels, retailers need to ensure consistent product availability across all channels to meet evolving customer expectations.
On-shelf availability solutions provide retailers with a centralized platform to manage inventory across multiple channels, enabling them to track product availability in real time, fulfill orders efficiently, and provide a seamless shopping experience for customers regardless of their preferred shopping channel.As omnichannel retailing continues to expand, the demand for on-shelf availability solutions is expected to surge as retailers seek to optimize inventory management and deliver a consistent brand experience across all touchpoints.
On-Shelf Availability Solution Market Segment Insights
On-Shelf Availability Solution Market Deployment Type Insights
The On-Shelf Availability Solution Market is segmented by deployment type into cloud-based and on-premises. The cloud-based segment is expected to grow at a faster rate during the forecast period, owing to its benefits, such as scalability, flexibility, and cost-effectiveness.
The on-premises segment, on the other hand, is expected to witness steady growth due to the need for data security and control among enterprises. In 2023, the cloud-based segment accounted for a larger share of the On-Shelf Availability Solution Market revenue.The growth of this segment can be attributed to the increasing adoption of cloud computing services by enterprises of all sizes. Cloud-based solutions offer several advantages over on-premises solutions, such as lower upfront costs, scalability, and flexibility. They also eliminate the need for enterprises to invest in hardware and software infrastructure.
The on-premises segment is expected to grow at a steady pace during the forecast period. This growth will be driven by the need for data security and control among enterprises. On-premises solutions offer greater control over data and security, which is critical for enterprises that handle sensitive data. Additionally, on-premises solutions are often preferred by enterprises that have existing IT infrastructure and are not ready to migrate to the cloud. Overall, the On-Shelf Availability Solution Market is expected to witness significant growth in the coming years, driven by the increasing adoption of cloud-based solutions and the growing need for data security and control among enterprises.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
On-Shelf Availability Solution Market Solution Type Insights
The On Shelf Availability Solution Market is segmented by Solution Type into Traditional and Advanced. Traditional solutions include manual and semi-automated systems that rely on physical store audits and manual data collection. Advanced solutions, on the other hand, leverage technologies such as RFID, computer vision, and artificial intelligence (AI) to automate data collection and provide real-time visibility into on-shelf availability.
The Advanced segment is expected to grow rapidly in the coming years, driven by the increasing adoption of automation and AI in retail operations.Advanced solutions can help retailers improve on-shelf availability by up to 20%, leading to increased sales and reduced out-of-stocks. In 2023, the Advanced segment was expected to account for over 50% of the On-Shelf Availability Solution Market revenue, and this share is expected to increase to over 65% by 2032.
On-Shelf Availability Solution Market Industry Vertical Insights
The On-Shelf Availability Solution Market is segmented by Industry Vertical into Retail, Consumer Packaged Goods (CPG), Manufacturing, Healthcare, Logistics and Transportation. Among these segments, Retail holds the largest market share, accounting for over 40% of the revenue in 2023.
This is due to the increasing adoption of on-shelf availability solutions by retailers to improve product visibility, reduce out-of-stock, and enhance customer satisfaction. The CPG segment is also expected to witness significant growth over the forecast period, owing to the growing demand for real-time inventory visibility and improved supply chain efficiency.The Manufacturing segment is expected to contribute a notable share to the market, primarily driven by the need to optimize production processes and reduce downtime.
Additionally, the Healthcare segment is expected to witness steady growth as healthcare providers seek to improve patient care by ensuring the availability of critical medical supplies. The Logistics and Transportation segment is also anticipated to contribute to the market growth as companies seek to optimize their supply chains and reduce transportation costs.
On-Shelf Availability Solution Market Data Source Insights
Various data sources are leveraged by On-Shelf Availability Solution providers to monitor and track product availability on retail shelves. These sources include Image Recognition AI-powered image recognition technology analyzes images captured by shelf cameras or mobile devices to identify and count products, detecting out-of-stock and misplacements. This method offers high accuracy and real-time data collection.
In 2023, the On-Shelf Availability Solution Market revenue from image recognition was valued at USD 2.34 billion, and it is projected to reach USD 8.12 billion by 2032, exhibiting a CAGR of 15.2%.Radio Frequency Identification (RFID) tags attached to products transmit unique identification data to RFID readers, enabling real-time tracking of inventory levels and product location. RFID technology offers high reliability and accuracy, but it requires significant investment in infrastructure and tags.
Internet of Things (IoT) sensors, such as temperature and humidity sensors, can be placed on shelves to monitor environmental conditions that may affect product quality and availability. IoT sensors provide continuous data collection and can trigger alerts for potential issues.Manual data entry involves employees or store personnel physically counting and recording product availability on shelves. While this method is cost-effective, it is prone to human error and may not provide real-time data.
On-Shelf Availability Solution Market Regional Insights
The On-Shelf Availability Solution Market is segmented by region into North America, Europe, APAC, South America, and MEA. North America is the largest regional market for on-shelf availability solutions, accounting for over 35% of the market share. The region has a well-developed retail sector and a high adoption rate of on-shelf availability solutions. Europe is the second largest regional market, accounting for over 25% of the market share.
The region has a large and fragmented retail sector, which is driving the demand for on-shelf availability solutions.APAC is the fastest-growing regional market for on-shelf availability solutions, with a CAGR of over 12%. The region has a large and rapidly growing retail sector, which is driving the demand for on-shelf availability solutions. South America and MEA are smaller regional markets for on-shelf availability solutions, but they are expected to grow at a CAGR of over 10% in the coming years. The growth in these regions is being driven by the increasing adoption of retail technology and the growing demand for improved customer service.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
On-Shelf Availability Solution Market Key Players And Competitive Insights
Major players in the On-Shelf Availability Solution Market industry are continuously developing and launching new products to meet the growing demand for on-shelf availability solutions. For instance, in January 2023, AWM Smart Shelf, a leading provider of on-shelf availability solutions, announced the launch of its latest product, the Smart Shelf 360. This new product is designed to provide retailers with a comprehensive view of their on-shelf availability in real-time, enabling them to identify and address out-of-stock more quickly and efficiently.
Another key player in the On-Shelf Availability Solution Market, InvaFresh, is focused on providing innovative solutions that help retailers reduce food waste. In March 2023, InvaFresh announced a partnership with Microsoft to integrate its on-shelf availability solution with Microsoft's Azure IoT platform. This integration will enable retailers to leverage the power of IoT to gain real-time insights into their on-shelf availability and take action to reduce food waste.
The Leading Shelf Availability Solution Market players are also focusing on expanding their reach. For example, Trax Retail, a leading provider of on-shelf availability solutions, announced in February 2023 that it had acquired ShelfX, a provider of on-shelf availability solutions in Europe.
This acquisition will enable Trax Retail to expand its presence in Europe and offer its solutions to a wider range of retailers.In conclusion, the On-Shelf Availability Solution Market is highly competitive, and leading players are continuously innovating and expanding to meet the growing demand for on-shelf availability solutions. These companies are focused on providing retailers with solutions that help them improve their on-shelf availability, reduce food waste, and gain real-time insights into their inventory.
Key Companies in the On-Shelf Availability Solution Market Include
- Planogram
- Inmar
- Symphony RetailAI
- Wipro
- Catalina
- IRI
- Capgemini
- NielsenIQ
- Trax
- Infosys
- Blue Yonder
- TCS
- Aware
- Retail Insight
- Cognizant
On-Shelf Availability Solution Market Industry Developments
The on-shelf availability solution market is poised for significant growth, driven by rising demand for improved retail execution and inventory visibility. In 2023, the market is valued at approximately USD 9.74 billion and is projected to reach USD 24.57 billion by 2032, exhibiting a CAGR of 10.84%. Key market trends include the increasing adoption of RFID and IoT technologies, growing emphasis on data analytics, and rising demand for cloud-based solutions. Recent news developments include the launch of new products and partnerships, such as the collaboration between Inmar Intelligence and Shelfbucks to enhance on-shelf availability for CPG brands.
On-Shelf Availability Solution Market Segmentation Insights
On-Shelf Availability Solution Market Deployment Type Outlook
On-Shelf Availability Solution Market Solution Type Outlook
On-Shelf Availability Solution Market Industry Vertical Outlook
-
- Retail
- Consumer Packaged Goods (CPG)
- Manufacturing
- Healthcare
- Logistics and Transportation
On-Shelf Availability Solution Market Data Source Outlook
-
- Image Recognition
- RFID Technology
- IoT Sensors
- Manual Data Entry
On-Shelf Availability Solution Market Regional Outlook
-
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
2.3(USD Billion) |
| Market Size 2023 |
4.0(USD Billion) |
| Market Size 2032 |
8.7(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
10.2% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Planogram, Inmar, Symphony RetailAI, Wipro, Catalina, IRI, Capgemini, NielsenIQ, Trax, Infosys, Blue Yonder, TCS, Aware, Retail Insight, Cognizant |
| Segments Covered |
Deployment Type, Solution Type, Industry Vertical, Data Source, Regional |
| Key Market Opportunities |
1 Growing demand for real-time inventory visibility2 Increased focus on improving customer experience3 Rise of ecommerce and omnichannel retailing4 Need for optimizing inventory management and reducing waste5 Advancements in IoT and data analytics |
| Key Market Dynamics |
Growing demand for improved inventory management Increasing adoption of IoT and AI technologies Rise of ecommerce and omnichannel retailing Need for real-time visibility into shelf stock levels. Focus on improving customer satisfaction. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The On-Shelf Availability Solution Market is expected to reach a market valuation of 4.0 billion USD by 2023. The market is projected to grow at a CAGR of 10.2% from 2023 to 2032, reaching a total valuation of 8.7 billion USD by 2032.
North America is expected to hold the largest market share in the On-Shelf Availability Solution Market, accounting for approximately 40% of the total market revenue in 2023. This dominance is primarily attributed to the early adoption of advanced retail technologies and the presence of major retail chains in the region.
The growth of the On-Shelf Availability Solution Market is primarily driven by the increasing demand for improved customer experience, the need for optimizing inventory management, and the adoption of omnichannel retailing. Additionally, factors such as the rising popularity of e-commerce and the growing awareness of the importance of on-shelf availability are contributing to the market growth.
Key competitors in the On-Shelf Availability Solution Market include Symphony RetailAI, RELEX Solutions, JDA Software, Blue Yonder, and Oracle. These companies offer a range of solutions that help retailers improve their on-shelf availability, optimize inventory management, and enhance customer experience.
Shelf Availability Solutions find applications across various segments of the retail industry, including grocery stores, convenience stores, department stores, and specialty retailers. These solutions help retailers improve their on-shelf availability, reduce out-of-stock, and optimize inventory levels.
The On-Shelf Availability Solution Market faces certain challenges, such as the complexity of retail operations, data integration issues, and the need for continuous improvement to keep pace with evolving retail trends. Additionally, factors like seasonality, product variety, and supply chain disruptions can impact on-shelf availability and pose challenges for market growth.
The future of the On-Shelf Availability Solution Market is expected to be shaped by the adoption of artificial intelligence (AI), machine learning (ML), and predictive analytics. These technologies will enable retailers to gain deeper insights into consumer behavior, optimize inventory levels, and improve on-shelf availability. Additionally, the growing adoption of omnichannel retailing and the increasing focus on sustainability are likely to influence market trends in the coming years.
Retailers can leverage On Shelf Availability Solutions to gain real-time visibility into their inventory levels, identify and address out-of-stock, and optimize their replenishment processes. These solutions can help retailers reduce shrink, improve customer satisfaction, and increase sales.
Implementing Shelf Availability Solutions offers numerous benefits for retailers, including improved customer satisfaction, increased sales, reduced shrink, and optimized inventory levels. These solutions can also help retailers gain a competitive advantage and enhance their overall operational efficiency.
The On-Shelf Availability Solution Market is projected to grow at a CAGR of 10.84% from 2024 to 2032, reaching a total valuation of 24.57 billion USD by 2032.
