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A Detailed Analysis of the Market for On-Shelf Availability Solutions Based on the Increasing Adoption of Advanced Technologies to Optimize Inventory Management and Enhance Product Availability in Retail Environments
The global on-shelf availability solutions market is forecast to expand at a CAGR of 9.1% and thereby increase from a value of US$4.7 Bn, in 2023 to US$8.8 Bn by the end of 2030.
On-Shelf Availability Solutions Market Size (2023E)
Projected Market Value (2030F)
Global Market Growth Rate (CAGR 2023 to 2030)
Historical Market Growth Rate (CAGR 2018 to 2022)
A collection of technologies and approaches utilized by retailers to guarantee that products are consistently stocked and accessible to consumers on store shelves is referred to as on-shelf availability solutions. This involves the implementation of data analytics, real-time monitoring of inventory levels, and supply chain optimization to reduce occurrences of stockouts or surplus situations. Through the utilization of these solutions, retailers can augment customer satisfaction, mitigate revenue loss resulting from unmet demand, and optimize overall operational efficiency. In addition to RFID systems, shelf sensors, and advanced analytics software, the market for on-shelf availability solutions comprises a variety of instruments that, when combined, facilitate an optimized supply chain management procedure.
Numerous factors contribute to the substantial expansion of the worldwide market for on-shelf availability solutions. To begin with, the proliferation of cutting-edge technologies, such as artificial intelligence (AI) and Internet of Things (IoT) devices, enables retailers to deploy monitoring systems that are more sophisticated and accurate. These technologies facilitate the monitoring of inventory levels in real time, enabling organizations to promptly address changes in demand. Additionally, to satisfy consumer expectations and foster brand loyalty, retailers have begun to prioritize on-shelf availability in response to the growing demand for improved customer experiences.
In addition, market expansion is fuelled by the ongoing trend of digital transformation in the retail industry, as businesses seek innovative solutions to remain competitive in an ever-changing environment. In addition, the imperative for precise and expeditious data analytics to facilitate well-informed decisions regarding inventory management is a pivotal element driving the market for on-shelf availability solutions.
Ongoing Integration of State-of-the-Art Technologies
The exponential growth of the worldwide market for on-shelf availability solutions is being significantly influenced by the continuous incorporation of cutting-edge technologies, specifically artificial intelligence (AI) and the Internet of Things (IoT). The integration of these state-of-the-art technologies fundamentally transforms the conventional retail environment through the provision of unparalleled functionalities for instantaneous surveillance and judgments guided by data.
The rapid expansion of Internet of Things (IoT) devices in the retail sector is a critical element driving the market for on-shelf availability solutions. With the sensors and RFID technology integrated into these interconnected devices, retailers can establish an all-encompassing network that tracks product movements, monitors inventory levels, and evaluates shelf conditions in real time. The efficient and effective exchange of information among these devices promotes a flexible and timely supply chain, guaranteeing that any inconsistencies in the availability of products are promptly detected and resolved. As an illustration, RFID systems facilitate precise and automated product monitoring across the entire supply chain, commencing from the manufacturer and culminating at the shelves of the retailer. By reducing the likelihood of stockouts and increasing inventory visibility, retailers can optimize replenishment procedures and eliminate surplus stock.
Upfront Capital Constraints
Notwithstanding the notable expansion of the worldwide market for on-shelf availability solutions, a constraining factor that merits consideration is the considerable upfront capital outlay necessary for deployment. The implementation of sophisticated technologies, including RFID systems, Internet of Things (IoT) devices, and artificial intelligence, necessitates retailers to make a substantial initial financial investment. Particularly challenging to implementation are the resources that small and medium-sized enterprises (SMEs) in the retail industry may need to allocate to these sophisticated solutions, which could hinder their adoption.
The substantial financial investment required to implement on-shelf availability solutions includes hardware, software, training, and continuous maintenance costs. Significant capital expenditure is required for the acquisition and installation of RFID systems, the implementation of IoT infrastructure, and the development or integration of AI-driven analytics platforms.
An obstacle that confronts the worldwide market for on-shelf availability solutions is the intricacy associated with incorporating these sophisticated technologies into pre-existing retail infrastructures. Retailers frequently encounter obstacles such as legacy systems, heterogeneous technological environments, and differing degrees of digital advancement, which collectively complicate the integration of on-shelf availability solutions. A lack of compatibility within the current retail infrastructure may impede the seamless integration of technologies such as RFID systems, Internet of Things devices, and artificial intelligence. The inability of legacy systems to effectively communicate with modern, data-driven solutions may result in data silos and inefficiency.
Increasing Consumer Demand for Simplified and Personalized Shopping Experiences
One opportunistic factor that exhibits considerable potential for the worldwide market for on-shelf availability solutions is the growing expectation of consumers for streamlined and customized purchasing experiences. The expanding phenomenon described above presents retailers with a distinctive prospect to utilize cutting-edge technologies and data-driven insights to optimize in-stock availability and accommodate customer preferences.
Contemporary consumers have come to anticipate a seamless purchasing experience, wherein products are easily accessible at the time and location of their choosing. By leveraging on-shelf availability solutions, specifically those powered by Artificial Intelligence (AI), and Internet of Things (IoT) devices, retailers can fulfill these demands. The implementation of RFID systems and smart shelf sensors enables retailers to maintain up-to-date information regarding inventory levels, thereby reducing occurrences of stockouts and enhancing the overall customer purchasing experience.
Additionally, retailers can analyse consumer behaviour patterns with the assistance of AI-powered analytics, which enables the creation of personalized promotions, targeted marketing, and a more engaging purchasing environment. This practice not only fulfils the immediate demand for product accessibility but also facilitates the development of brand allegiance and enduring customer connections.
The market for on-shelf availability solutions worldwide is anticipated to experience significant expansion, propelled by a confluence of factors that collectively emphasize the growing importance of these solutions in the retail industry. The relentless integration of advanced technologies, shifting consumer expectations, and the necessity for retailers to optimize operations in a highly competitive environment are the primary factors driving the market's expansion. The interplay between manufacturers and consumers significantly influences the dynamics of the market. To satisfy the growing expectations of consumers for streamlined and customized purchasing experiences, manufacturers are obligated to implement on-shelf availability solutions. The utilization of technological advancements, including artificial intelligence, the Internet of Things (IoT), and RFID systems, enables manufacturers to optimize supply chains, reduce instances of stockouts, and improve overall product availability.
This phenomenon not only enhances the contentment of customers but also fosters a more robust connection between producers and consumers, given that the latter are granted more dependable access to their preferred goods. The on-shelf availability solutions market exhibits considerable potential due to continuous technological advancements and a fundamental transformation in the retail industry. The market is anticipated to experience a perpetual transformation in reaction to the escalating intricacies of supply chain management and the growing significance attributed to decision-making guided by data. AI will especially have a profound impact on the trajectory of the market in the coming years.
The implementation of sophisticated analytics and machine learning algorithms will empower manufacturers and retailers to not only enhance the precision of demand pattern predictions but also proactively mitigate potential supply chain disruptions, thereby guaranteeing a steady supply of products on store shelves. The future of the market is anticipated to be marked by ongoing transformation, as cutting-edge technologies reshape the retail environment and strengthen the bond between producers and consumers. Effective utilization of on-shelf availability solutions in various industries and global markets will require concerted collaboration and strategic investment.
IBM Corporation, SAP SE, Honeywell International Inc., Impinj Inc., and Retail Solutions are prominent participants in the market for on-shelf availability solutions. These leaders in the industry have consistently made investments in cutting-edge technologies, thereby offering all-encompassing solutions for on-shelf availability that accommodate the ever-changing demands of the retail sector. North America, with the US being a notable exception, exhibits a preponderance in the implementation of on-shelf availability solutions. The extensive implementation of technological advancements and the well-established retail environment both contribute to the pervasive adoption. Countries such as Germany, and the UK are notable implementers of these solutions in Europe, utilizing them to improve client experiences and inventory management.
Prominent industry participants are transforming the market for on-shelf availability solutions through the implementation of innovative technologies and the promotion of strategic alliances. As an illustration, IBM's solutions incorporate artificial intelligence and blockchain technology, thereby providing retailers with sophisticated analytics and transparent, secure supply chain management. The implementation of cloud-based solutions by SAP SE empowers retailers to make well-informed decisions through real-time data analytics. These industry leaders not only propel technological advancements but also exert considerable sway over industry norms, establishing criteria for effectiveness and dependability. Their ongoing dedication to research and development (R&D) and collaborations plays a crucial role in advancing the market, promoting extensive implementation, and guaranteeing that on-shelf availability solutions continue to be essential components of contemporary retail methodologies worldwide.
Which Component-wise Segment Leads the Way in Global Market?
The Software Segment Leads While the Service Category Accelerates
The software segment is expected to hold the largest market share and attain dominance in the market for on-shelf availability solutions. The growing need for advanced data analytics, continuous monitoring, and solutions powered by artificial intelligence substantially elevates the significance of software in facilitating inventory management optimization and guaranteeing the availability of products on store shelves for retailers. With the increasing emphasis on digital transformation by retailers, the software segment is positioned to undergo continuous expansion owing to its critical function in delivering practical insights and improving operational effectiveness.
At the same time, the service sector is anticipated to experience the most rapid expansion in the market for on-shelf availability solutions. With the escalating intricacy of integrating and sustaining these cutting-edge technologies, retailers are progressively placing greater reliance on service providers to offer their expertise in training, integration, and continuous support. The service sector, which includes consulting, implementation, and support services, is anticipated to grow at a rapid rate, as retailers seek all-encompassing solutions to the difficulties that come with deploying and managing technologies that ensure shelf availability.
Which is the Primary Segment Based on Technology?
The Historical Data Analysis Segment Leads as it Gains Demand for Consumer Behavior Prediction
The estimated market share leadership will likely be held by the historical data analysis segment within the on-shelf availability solutions market. By capitalizing on historical data to comprehend and forecast inventory patterns, consumer behaviour, and market trends, retailers can establish a solid foundation for improving on-shelf availability. There is a growing trend among retailers to depend on historical data analysis to optimize inventory levels, make well-informed decisions, and reduce supply chain disruptions.
Although historical data analysis currently holds a larger market share, the response time analysis segment is anticipated to experience the most rapid growth. With the increasing significance of real-time monitoring for shelf availability, retailers are prioritizing response mechanisms that are both prompt and accurate. Response time analysis, a critical process that enables prompt detection and resolution of inventory discrepancies, is of tremendous importance in mitigating the risks of stockouts and overstocks.
Which Type of Deployment is Preferred the Most?
SaaS Deployment Favored for its Cost Efficiency and Stability
The greatest market share is anticipated to be held by the Software as a Service (SaaS) segment within the market for on-shelf availability solutions. With its cost-effectiveness, scalability, and simplicity of implementation, the SaaS model is gaining popularity among retailers in search of solutions that are readily available off the rack. Because SaaS is adaptable to the ever-changing requirements of the retail sector, it has amassed a substantial market share.
Simultaneously, the on-premises sector is anticipated to experience the most rapid expansion. SaaS currently commands a substantial portion of the market; however, on-premises solutions are preferred by certain organizations, particularly those with strict security or compliance mandates. The need for enhanced control over data and systems propels the demand for on-premises deployments. With the advancement of technology addressing concerns regarding customization and integration, this segment is anticipated to expand at a rapid rate. It will serve the needs of organizations with distinct operational preferences and regulatory considerations.
Which of the End Users will Contribute the Maximum Revenue Share?
The Retailer Sector Surges Ahead in Adoption for Key Inventory Management Functions
The retailer sector is projected to hold the most significant market share in the market for on-shelf availability solutions. Retailers occupy a pivotal position in the implementation of on-shelf availability solutions, which serve to streamline operational processes, optimize inventory management, and augment consumer satisfaction. With the increasing need for real-time monitoring and data-driven decision-making, it is anticipated that retailers will make a substantial contribution to the overall market share.
Concurrently, the online retailer sector is positioned to experience the most rapid expansion. In response to the growing prevalence of e-commerce and the heightened dependence on digital platforms for consumer transactions, online merchants are acknowledging the critical significance of on-shelf availability solutions to fulfill customer demands. The rapid proliferation of these solutions by online retailers is anticipated to coincide with the ongoing global expansion of online retail. This surge will be propelled by the necessity to uphold a streamlined and effective supply chain within the digital retail environment.
North America Maintains a Dominant Position with a Highly Developed and Technologically Advanced Retail Industry
North America is positioned to hold the largest market share in the worldwide market for on-shelf availability solutions. Multiple factors contribute to this region's dominance. To begin with, the retail industry in North America is highly developed and technologically advanced, with numerous retailers actively adopting novel approaches to streamline their processes. With the presence of prominent entities in the technology and retail sectors, as well as a resilient infrastructure designed to facilitate digital transformation, North America is positioned favorably to embrace on-shelf availability solutions.
Additionally, the market in this region is propelled by the substantial level of awareness and willingness to invest in cutting-edge technologies. In addition, a significant emphasis is placed on consumer satisfaction and experience within the retail industry in North America. There is a growing awareness among retailers in this region regarding the critical importance of on-shelf availability solutions to satisfy customer demands and sustain a competitive advantage.
Opportunities Abound in South Asia and the Pacific, Digital Transformation Drives Growth
The region of South Asia, and the Pacific is anticipated to witness the most rapid expansion of the worldwide market for on-shelf availability solutions. There is a notable increase in digital transformation occurring in diverse sectors, including retail, within the region. The convergence of accelerated economic growth, expanding consumer markets, and rising e-commerce penetration creates a favorable environment for the implementation of on-shelf availability solutions.
The retail industry in South Asia, and the Pacific is currently experiencing a substantial transformation due to the widespread adoption of e-commerce and the digital transformation of conventional physical retail locations. To satisfy the changing expectations of technologically proficient customers, organizations must adopt on-shelf availability solutions to streamline inventory control and guarantee a positive customer journey.
The market leaders in on-shelf availability solutions utilize a comprehensive strategy to maintain and increase their market dominance. Primarily, these entities allocate substantial resources toward research and development (R&D) to maintain a leading position in technological advancements. This involves the development and enhancement of solutions that integrate the most recent progress in data analytics, artificial intelligence (AI), and RFID technology. Through the consistent provision of innovative and all-encompassing solutions, these entities solidify their position as frontrunners in delivering efficient on-shelf availability solutions.
Collaborations and strategic alliances are fundamental elements of their market dominance strategy. Prominent entities proactively pursue partnerships with retailers, technology providers, and other relevant stakeholders to augment the assimilation and implementation of their solutions. These collaborative alliances frequently yield customized resolutions that tackle distinct obstacles within a given industry and promote wider adoption of readily available technologies. For example, by engaging in partnerships with major retailers, dominant actors can acquire valuable insights into tangible retail challenges, thereby guaranteeing that their solutions are in line with the pragmatic requirements of the sector.
In addition, the offerings of dominant actors are designed with scalability and adaptability in mind. Acknowledging the heterogeneous requirements of retailers, they devise solutions that are compatible with pre-existing infrastructures, thereby guaranteeing a seamless transition for establishments of differing scales and intricacies. By their adaptability, they not only increase the number of potential customers but also bolster their standing as suppliers of flexible and user-centric on-shelf availability solutions.
Retail Velocity introduced an enhancement to their VELOCITY Pro platform in April 2022. In addition to enhanced dashboards, the VELOCITY Pro 10 features a redesigned user interface and control center. In addition, the new version supports the administration of item price histories and shelf item hierarchies.
Market Impact: The anticipated release of Retail Velocity's VELOCITY Pro platform, which has been upgraded, in April 2022, is anticipated to generate a substantial favorable influence on the worldwide market for on-shelf availability solutions. VELOCITY Pro 10, which features enhanced dashboards, a redesigned user interface, and expanded control center functionalities, effectively caters to the changing demands of retailers in the realm of sophisticated inventory management and optimization tools. The inclusion of functionality to manage item price histories and shelf item hierarchies expands the versatility of the platform, offering retailers all-encompassing solutions to enhance operational efficiency and optimize on-shelf availability. This, in turn, contributes to the overall progress of the market.
2023 to 2030
Historical Data Available for
2018 to 2022
US$ Million for Value
Key Regions Covered
Key Countries Covered
Key Market Segments Covered
Key Companies Profiled
Customization & Pricing
Available upon request
By End User:
The market is anticipated to grow at a CAGR of 9.1% during the projected period.
The on-shelf availability solutions market was valued at US$4.7 billion in 2023.
The US held the largest market share in 2023.
Some of the prominent players in the market are International Business Machines Corporation, Panasonic Corporation, Sap Se, Impinj, Inc., and Mindtree Ltd.
The online retailers segment is expected to grow at the fastest growth rate during the forecast period.