The retail cloud market is expected to grow from $47 billion this year to just under $115 billion by 2028, according to a new report by MarketsandMarkets. That translates into a compound annual growth rate (CAGR) of 19.6 percent during the forecast period.
Among the factors propelling that growth: An increasing need for enhancing the online shopping experience; increasing adoption of SaaS (Software as a Service) solutions; and a surge in remote work.
Cloud technology – the delivery of computing services over the internet – is especially useful to larger retailers, the report notes.
“The adoption of retail cloud solutions allows large enterprises to streamline their operations, reduce costs and enhance the customer experience,” it says. “Large enterprises have the resources and infrastructure to implement and manage retail cloud solutions, making it easier for them to leverage the benefits of the technology. They have a large customer base and a vast amount of data that needs to be managed efficiently, which can be achieved through retail cloud solutions.”
Cloud services also allow retailers of all sizes to quickly scale their operations up or down in response to demand. In addition, cloud-based analytics tools can provide merchants with insightful data on consumer behavior and preferences, which can help them improve their marketing and sales plans.
“Whether customers are making purchases online, in-store, or on mobile devices, companies can offer a smooth, omnichannel shopping experience thanks to cloud technology,” the report states.
Click here for more from the MarketsandMarkets study.