Retail in India will be spending nearly $81.23 billion on IT by 2020, said Infoholic Research, a market research firm.
A significant growth in in-store management and headquarters management, especially in organized retail sector, will be driving the IT spending by retail in India. FDI in retail will also be one of the main growth drivers for IT services.
Food & grocery retail and apparel sectors are the leading retail industry verticals at present. These verticals are expected to play emerging role in the next five years, said Infoholic Research.
In-store management market is expected to grow at a CAGR of 21.5 percent by 2020.
Food & grocery industry vertical is the largest vertical among the IT market potential for retail in India market with a market share of 60.1 percent, followed by the apparel segment with a share of 7.9 percent.
The metros retail IT market is predicted to reach at a CAGR of 17.0 percent during the period 2015-2020.
“Currently, the point of sale (POS) market is leading in the in-store management market, majorly driven by multi store retailers, but the market of point of sale (POS) is expected to be the fastest growing market by 2020 as most of the small and medium retailers are choosing point of sale (POS), as it helps in streaming retail operations,” said Pavan M, research analyst at Infoholic Research.
The retail technology providers are mainly focusing on organized retailers which are located in metro cities. Small and medium retail sectors, which are mainly located in tier I and tier II and below cities, are not much aware of the retail technologies and their advantages.