On Shelf Availability Solution Market - Forecast(2024 - 2030)
On Shelf Availability Solution Market Overview
The global On
Shelf Availability Solution market size is forecast to reach $4.7 billion by
2027, growing at a CAGR of 7.2% from 2022 to 2027. The
on-shelf availability solutions are deployed in various end user industry
verticals, such as Warehouses, E-Commerce Websites, Digital
transformation, Response Time Analysis, Internet of Things, Retailers and more
to enhance the overall inventory management of the organization. Therefore, on
shelf availability solutions eliminate the risk of out-of-stock situations by
monitoring and tracking each and every Stock Keeping Unit (SKU) in real-time
position. In addition, the solutions can also help identify if an item is
misplaced within a facility, thereby further improving the overall efficiency
of the end user’s operations. The rapid surge in the adoption of online
shopping after the COVID-19 pandemic is anticipated to play a major role in
driving the market as the sudden growth in demand faced by e commerce websites
is increasing the need for enhancing supply chain efficiency. Through the use
of on shelf availability supply chain management solutions
and radio frequency identification technology, key players in the e
commerce sector will be able to reduce the time and cost necessary for
monitoring inventories.
Report Coverage
The report: “On Shelf Availability
Solution Industry Outlook – Forecast (2022-2027)”, by IndustryARC
covers an in-depth analysis of the following segments of the On Shelf
Availability Solution Industry.
By Component: Hardware, Software, Services
By Technology: Fixed Cameras, Mobile Applications, Others
By Deployment: On-Premise, Cloud
By Application: Equipment Condition Monitoring, Store Performance Assessment,
Customer Pattern Analysis, Product Identification, Detection of Misplaced
Products, Planogram Compliance Verification, Inventory Management, Others
By End Users: Warehouses, Suppliers, Retailers, E-commerce Websites,
Consumer Packaged Goods (CPG) Manufacturers, Others
By Geography: North America (US, Canada, Mexico), Europe (Germany, U.K,
France, Spain, Italy, Others),
APAC (China, Japan, Malaysia, Thailand, South Korea, Philippines, Hong Kong,
Others), South America (Brazil, Argentina and others), RoW (Middle
East and Africa)
Key Takeaways
- The hardware segment in the on shelf availability solution market segmented by component accounted for the largest market share in terms of revenue with 46.03%, in 2021.
- North America accounted for the largest market share in on shelf availability solution market in terms of revenue with 37.5%, in 2021. Surge in the North American E- commerce sector after the COVID-19 pandemic and the presence of a highly developed retail and supply chain sector are some of the key factors contributing to the growth of the segment.
- Growing instances of supply chain disruptions is anticipated to be a key factor driving the market for on shelf availability solutions for inventory management applications as such solutions provide end users with automatic inventory monitoring using technologies such as sensors, cameras and Radio-frequency identification (RFID).
Global On Shelf Availability Solution Market Value Share, by Geography, 2021, (%)
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On Shelf Availability Solution Segment Analysis- By Component
The shelf availability solution market by
component has been segmented into hardware, software and services. The hardware
segment accounted for the largest On Shelf Availability Solution market
share in terms of revenue with 46.03%, in 2021. The rapid growth of the
segment can be attributed to the large volume of various hardware systems
necessary for the implementation of on shelf availability solutions in retrial
stores and warehouses. For instance, sensors are required to be placed at the
back of each individual shelf of retail outlets in order to accurately
determine shelf availability. Hardware can help with inventory management in
situations where ceiling and shelf-mounted cameras cannot. SmartSight machines,
for example, can automate the process of identifying misplaced items on shelves
and sales floor quantities, as well as alerting employees when certain items
are running low. Amazon goes a step further with its Amazon Go Grocery model stores,
which are powered by Just Walk Out. Deep learning, sensor fusion, and computer
vision are all used in this project. The store's extensive network of cameras
and IoT sensors can detect when a customer removes an item from the shelf and
places it in their shopping cart. When a customer leaves the store, their
credit card is charged for the items they purchased. Amazon.com alone has
increased its monthly traffic from 2 billion in 2019 to 2.3 billion in 2020 and
a record 2.8 billion in February 2021.
On Shelf Availability Solution Segment Analysis- By Application
The on shelf availability solution market by
application has been segmented into equipment condition monitoring, store
performance assessment, customer pattern analysis, product identification,
detection of misplaced products, planogram compliance verification, inventory
management and others. The product identification segment accounted for the
largest On Shelf Availability Solution market share in terms of
revenue with 25.9%, in 2021. The higher share of the segment is attributed to
the growth in the use of laser sensors, RFID tags and shelf monitoring cameras
in the retail sector. Such devices monitor and identify individual products
within the store shelves, thereby ensuring that out of stock situations does
not take place. The retail business will be greatly impacted by implementing
automatic product recognition in grocery stores using photos. Businesses are
increasingly focusing on how to employ artificial intelligence technology to
transform the retail industry's ecology and connect online and offline
experiences as retail evolves at a rapid rate. Merck KGaA, a German
pharmaceutical company, is pioneering the use of AI and predictive analytics
across its entire supply chain. They're also conducting research on Aera
Technology Inc. analytics software to "predict demand spikes, identify
bottlenecks, and alleviate supply shortages for 100 products." According
to Retail TrendsPlaybook2020, "the software collects supply chain data
from Merck KGaA's various planning systems and, after the data is uploaded to
Aera's cloud infrastructure, is analyzed by machine learning algorithms.“
On Shelf Availability Solution Segment Analysis- By Geography
By Geography, On Shelf Availability Solution Market has been segmented into North America, Europe, APAC, South America and Others. North America accounted for the largest market share in terms of revenue with 37.5%, in 2021. Surge in the North American E- commerce sector after the COVID-19 pandemic and the presence of a highly developed retail and supply chain sector are some of the key factors contributing to the growth of the segment. For instance, according to Forbes, the US E-commerce sales in 2021 increased by approximately 14.2% and represented around 13.2% of all retail sales in 2021. However, Asia pacific region is projected to be the fastest growing market over the forecast period 2022 to 2027, owing to the rapid rise in the implementation of new digital infrastructure such as 5G networks in emerging economies such as China and India. In addition, robust growth in development of AI Research and Development in China is another key factor contributing to the market growth.
On Shelf Availability Solution Market Drivers
The growing number of supply chain disruptions is expected to the drive the market growth for the on shelf availability solution market
Growing instances of supply chain disruption is anticipated to be
a key factor driving the market for on shelf availability solutions for
inventory management applications as such solutions provide end users with
automatic inventory monitoring using technologies such as sensors, cameras and
Radio-frequency identification (RFID). This enables organizations to accurately
account for existing inventory and forecast when reorders need to be placed to
eliminate out of stock situations. Besides, the accurate data provided by such
systems give end user industries more time to switch suppliers in case supply
chain disruptions take place, thereby reducing the risk of out-of-stock
situations. Some of the major causes of supply chain disruptions that took
place in 2021 include COVID-19 pandemic, the blockage of Suez Canal and extreme
weather events. For instance, numerous companies were left without inventories
owing to the shutting down of Vietnam’s major manufacturing hub due to rising
COVID-19 cases. Meanwhile, large scale lockdowns in China to combat COVID-19
and the Russia-Ukraine conflict were some of the major factors that disrupted
the global supply chain in 2022. Furthermore, on shelf availability solutions
enable suppliers and retailers to manage and account for safety stock more
efficiently. Safety stock management is a proactive approach to inventory
management that establishes a minimum volume of inventory to keep on hand. This
inventory acts as a buffer to compensate for demand surges or supply shortages.
The real time visibility provided by on shelf availability solutions also
significantly reduce the time taken for decision making processes.
The growing application of AI in a wide range of end use industries is driving the on shelf availability solution market
Rapid growth in the adoption of AI technologies among end user
industries such as retail stores and e commerce websites is anticipated to
boost the adoption of AI enabled on shelf availability equipment and software
during the forecast period. According to a recent study conducted by KPMG
international limited, around 90% of retail business leaders stated that their employees
are prepared and have the skills for AI adoption in 2021, up from only 47% in
2020. An estimated 53% of retail business leaders believed that the COVID-19
pandemic increased their company’s pace of adoption. Such growth in positive
outlook towards implantation of AI in the retail sector is acting as a major
boost for on shelf availability solutions. Furthermore, with advancements in AI
technology, numerous retail chains are implementing autonomous retail outlets
and checkout free stores. For instance, In January 2022, Aldi opened its first
checkout-free supermarket where people can shop without having to scan a
product.
On Shelf Availability Solution Market Challenges
The decline in global retail sales is a key challenge for the on shelf availability solution market players
Reduction in
customer footfall into retail stores and overall decline in sales through
retail outlets in several regions is projected to be a key factor challenging
growth opportunities during the forecast period. The decline in retail shopping
can be attributed to the high inflation levels in regions such as the US and
Europe. For instance, according to the US Bureau of Labor Statistics report,
the consumer price index (CPI) increased by 8.5% for the 12 months ending March
2022. The CPI was the largest 12-month increase since the period ending
December 1981. In addition, the two categories that had the largest impact on
the rising price index were food at 8.8% and energy at 6.9%. Such growth in the
prices of essential items meant that spending on other non-essential items were
greatly reduced, thereby directly impacting the retail sector. For instance,
according to Forbes, department stores sales in March declined from that of
February by approximately 0.3% in the US. Meanwhile, according to data from the
British Retail Consortium (BRC), retail footfall in the UK decreased by 15.4%
year-on-three-years (Yo3Y) in March 2022.
On Shelf Availability Solution Market Landscape
Product innovations, acquisitions,
Partnerships and R&D activities are key strategies adopted by
players in the On Shelf Availability Solution Market. On Shelf
Availability Solution top 10 companies include:
- ATLAS Technology Group
- SAP SE
- IBM Corporation
- Retail Solutions Inc.
- Mindtree Limited
- Retail Velocity
- BeMyEye Holdings Ltd
- Shelfie Pty Ltd
- Enterra Solutions LLC
Recent Developments
- In January 2019, Retail Solutions Inc. Entered into a partnership with CROSSMARK, a key sales and marketing services company, to develop a new On shelf Availability solution, called the OSA 360. The solution is an Industry first, and combines RSi's proven on-shelf alerting technology with CROSSMARK's unparalleled in-store services and execution support.
- In July 2021, BeMyEye Holdings announced the release of a new upgrade for their Compass App. The new upgrade comes in the form of a real-time image recognition tool, for store audits. The tool can scan shelves for products and provide related store insights for sales representatives, thereby cutting down audit times.
- In April 2022, Retail Velocity announced an Upgrade for their VELOCITY Pro platform. The VELOCITY Pro 10 comes with new improved dashboards as well as an improved user interface and control centre. The new version is also capable of Item price history management and management of item hierarchies in shelves.
- In April 2022, Retail Velocity announced the launch of its VELOCITY Essential platform, which is a toned-down version of the VELOCITY Pro platform. VELOCITY essential provides consumer goods manufacturers with an alternative to the more robust and expensive VELOCITY Pro. The new platform provides on shelf availability solutions to SMEs with less brands and geographical presence.
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LIST OF TABLES
1.Global On-Shelf Availability Solutions Market Analysis by Component Market 2023-2030 ($M)1.1 by Component, Market 2023-2030 ($M) - Global Industry Research
1.1.1 Software Market 2023-2030 ($M)
1.1.2 Service Market 2023-2030 ($M)
2.Global On-Shelf Availability Solutions Market Analysis by Deployment Type Market 2023-2030 ($M)
2.1 by Deployment Type, Market 2023-2030 ($M) - Global Industry Research
2.1.1 On-premise Market 2023-2030 ($M)
2.1.2 SaaS Market 2023-2030 ($M)
3.Global On-Shelf Availability Solutions Market Analysis by End User Market 2023-2030 ($M)
3.1 by End User, Market 2023-2030 ($M) - Global Industry Research
3.1.1 CPG manufacturer Market 2023-2030 ($M)
3.1.2 Retailer Market 2023-2030 ($M)
3.1.3 Online Retailer Market 2023-2030 ($M)
3.1.4 Suppliers Market 2023-2030 ($M)
3.1.5 Warehouse Market 2023-2030 ($M)
4.Global Competition Analysis Market 2023-2030 ($M)
5.Global On-Shelf Availability Solutions Market Analysis by Component Market 2023-2030 (Volume/Units)
5.1 by Component, Market 2023-2030 (Volume/Units) - Global Industry Research
5.1.1 Software Market 2023-2030 (Volume/Units)
5.1.2 Service Market 2023-2030 (Volume/Units)
6.Global On-Shelf Availability Solutions Market Analysis by Deployment Type Market 2023-2030 (Volume/Units)
6.1 by Deployment Type, Market 2023-2030 (Volume/Units) - Global Industry Research
6.1.1 On-premise Market 2023-2030 (Volume/Units)
6.1.2 SaaS Market 2023-2030 (Volume/Units)
7.Global On-Shelf Availability Solutions Market Analysis by End User Market 2023-2030 (Volume/Units)
7.1 by End User, Market 2023-2030 (Volume/Units) - Global Industry Research
7.1.1 CPG manufacturer Market 2023-2030 (Volume/Units)
7.1.2 Retailer Market 2023-2030 (Volume/Units)
7.1.3 Online Retailer Market 2023-2030 (Volume/Units)
7.1.4 Suppliers Market 2023-2030 (Volume/Units)
7.1.5 Warehouse Market 2023-2030 (Volume/Units)
8.Global Competition Analysis Market 2023-2030 (Volume/Units)
9.North America On-Shelf Availability Solutions Market Analysis by Component Market 2023-2030 ($M)
9.1 by Component, Market 2023-2030 ($M) - Regional Industry Research
9.1.1 Software Market 2023-2030 ($M)
9.1.2 Service Market 2023-2030 ($M)
10.North America On-Shelf Availability Solutions Market Analysis by Deployment Type Market 2023-2030 ($M)
10.1 by Deployment Type, Market 2023-2030 ($M) - Regional Industry Research
10.1.1 On-premise Market 2023-2030 ($M)
10.1.2 SaaS Market 2023-2030 ($M)
11.North America On-Shelf Availability Solutions Market Analysis by End User Market 2023-2030 ($M)
11.1 by End User, Market 2023-2030 ($M) - Regional Industry Research
11.1.1 CPG manufacturer Market 2023-2030 ($M)
11.1.2 Retailer Market 2023-2030 ($M)
11.1.3 Online Retailer Market 2023-2030 ($M)
11.1.4 Suppliers Market 2023-2030 ($M)
11.1.5 Warehouse Market 2023-2030 ($M)
12.North America Competition Analysis Market 2023-2030 ($M)
13.South America On-Shelf Availability Solutions Market Analysis by Component Market 2023-2030 ($M)
13.1 by Component, Market 2023-2030 ($M) - Regional Industry Research
13.1.1 Software Market 2023-2030 ($M)
13.1.2 Service Market 2023-2030 ($M)
14.South America On-Shelf Availability Solutions Market Analysis by Deployment Type Market 2023-2030 ($M)
14.1 by Deployment Type, Market 2023-2030 ($M) - Regional Industry Research
14.1.1 On-premise Market 2023-2030 ($M)
14.1.2 SaaS Market 2023-2030 ($M)
15.South America On-Shelf Availability Solutions Market Analysis by End User Market 2023-2030 ($M)
15.1 by End User, Market 2023-2030 ($M) - Regional Industry Research
15.1.1 CPG manufacturer Market 2023-2030 ($M)
15.1.2 Retailer Market 2023-2030 ($M)
15.1.3 Online Retailer Market 2023-2030 ($M)
15.1.4 Suppliers Market 2023-2030 ($M)
15.1.5 Warehouse Market 2023-2030 ($M)
16.South America Competition Analysis Market 2023-2030 ($M)
17.Europe On-Shelf Availability Solutions Market Analysis by Component Market 2023-2030 ($M)
17.1 by Component, Market 2023-2030 ($M) - Regional Industry Research
17.1.1 Software Market 2023-2030 ($M)
17.1.2 Service Market 2023-2030 ($M)
18.Europe On-Shelf Availability Solutions Market Analysis by Deployment Type Market 2023-2030 ($M)
18.1 by Deployment Type, Market 2023-2030 ($M) - Regional Industry Research
18.1.1 On-premise Market 2023-2030 ($M)
18.1.2 SaaS Market 2023-2030 ($M)
19.Europe On-Shelf Availability Solutions Market Analysis by End User Market 2023-2030 ($M)
19.1 by End User, Market 2023-2030 ($M) - Regional Industry Research
19.1.1 CPG manufacturer Market 2023-2030 ($M)
19.1.2 Retailer Market 2023-2030 ($M)
19.1.3 Online Retailer Market 2023-2030 ($M)
19.1.4 Suppliers Market 2023-2030 ($M)
19.1.5 Warehouse Market 2023-2030 ($M)
20.Europe Competition Analysis Market 2023-2030 ($M)
21.APAC On-Shelf Availability Solutions Market Analysis by Component Market 2023-2030 ($M)
21.1 by Component, Market 2023-2030 ($M) - Regional Industry Research
21.1.1 Software Market 2023-2030 ($M)
21.1.2 Service Market 2023-2030 ($M)
22.APAC On-Shelf Availability Solutions Market Analysis by Deployment Type Market 2023-2030 ($M)
22.1 by Deployment Type, Market 2023-2030 ($M) - Regional Industry Research
22.1.1 On-premise Market 2023-2030 ($M)
22.1.2 SaaS Market 2023-2030 ($M)
23.APAC On-Shelf Availability Solutions Market Analysis by End User Market 2023-2030 ($M)
23.1 by End User, Market 2023-2030 ($M) - Regional Industry Research
23.1.1 CPG manufacturer Market 2023-2030 ($M)
23.1.2 Retailer Market 2023-2030 ($M)
23.1.3 Online Retailer Market 2023-2030 ($M)
23.1.4 Suppliers Market 2023-2030 ($M)
23.1.5 Warehouse Market 2023-2030 ($M)
24.APAC Competition Analysis Market 2023-2030 ($M)
25.MENA On-Shelf Availability Solutions Market Analysis by Component Market 2023-2030 ($M)
25.1 by Component, Market 2023-2030 ($M) - Regional Industry Research
25.1.1 Software Market 2023-2030 ($M)
25.1.2 Service Market 2023-2030 ($M)
26.MENA On-Shelf Availability Solutions Market Analysis by Deployment Type Market 2023-2030 ($M)
26.1 by Deployment Type, Market 2023-2030 ($M) - Regional Industry Research
26.1.1 On-premise Market 2023-2030 ($M)
26.1.2 SaaS Market 2023-2030 ($M)
27.MENA On-Shelf Availability Solutions Market Analysis by End User Market 2023-2030 ($M)
27.1 by End User, Market 2023-2030 ($M) - Regional Industry Research
27.1.1 CPG manufacturer Market 2023-2030 ($M)
27.1.2 Retailer Market 2023-2030 ($M)
27.1.3 Online Retailer Market 2023-2030 ($M)
27.1.4 Suppliers Market 2023-2030 ($M)
27.1.5 Warehouse Market 2023-2030 ($M)
28.MENA Competition Analysis Market 2023-2030 ($M)
LIST OF FIGURES
1.US On Shelf Availability Solution Market Revenue, 2023-2030 ($M)2.Canada On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
3.Mexico On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
4.Brazil On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
5.Argentina On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
6.Peru On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
7.Colombia On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
8.Chile On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
9.Rest of South America On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
10.UK On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
11.Germany On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
12.France On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
13.Italy On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
14.Spain On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
15.Rest of Europe On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
16.China On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
17.India On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
18.Japan On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
19.South Korea On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
20.South Africa On Shelf Availability Solution Market Revenue, 2023-2030 ($M)
21.North America On Shelf Availability Solution By Application
22.South America On Shelf Availability Solution By Application
23.Europe On Shelf Availability Solution By Application
24.APAC On Shelf Availability Solution By Application
25.MENA On Shelf Availability Solution By Application