Information Technology (IT) Spending in Retail Industry Market Size, Share and Trends 2026 to 2035

According to MarketnReports, the global Information Technology (IT) Spending in Retail Industry Market size was estimated at USD 209.3 billion in 2025 and is expected to reach USD 510 billion by 2035, growing at a CAGR of 9.3% from 2026 to 2035. Information Technology (IT) Spending in Retail Industry Market is driven by accelerating digital transformation and e-commerce growth.

What are the key insights?

  • The global information technology (IT) spending in retail industry market size was valued at USD 209.3 billion in 2025 and is projected to reach USD 510 billion by 2035.
  • The market is anticipated to grow at a CAGR of 9.3% during the forecast period from 2026 to 2035.
  • The market is driven by rising e-commerce penetration, adoption of AI and data analytics for personalization, and the need for omnichannel integration to enhance customer engagement.
  • IT services dominate the type segment with a 44% share due to the demand for consulting, system integration, and managed services that help retailers implement complex digital transformations efficiently.
  • E-commerce platforms dominate the application segment with a 60% share because of the surge in online shopping, requiring robust digital infrastructure to support seamless transactions and user experiences.
  • Supermarkets/hypermarkets dominate the end-user segment with a 35% share owing to their large-scale operations needing advanced inventory and supply chain technologies to manage high-volume goods.
  • North America dominates the regional segment with a 35% share primarily due to advanced technological adoption, presence of major retailers like Walmart and Amazon, and high investments in AI and cloud solutions.

What is the industry overview without numbers?

The information technology (IT) spending in retail industry market refers to the investments made by retailers in hardware, software, services, and other IT solutions to enhance operational efficiency, customer experience, and competitive advantage. Market definition includes expenditures on technologies such as point-of-sale systems, inventory management software, data analytics tools, cloud infrastructure, cybersecurity, and AI-driven applications that support omnichannel retailing, supply chain optimization, and personalized marketing, enabling retailers to adapt to evolving consumer behaviors and digital disruptions.

What are the market dynamics?

Growth Drivers

Growth drivers in the information technology (IT) spending in retail industry market are fueled by the rapid expansion of e-commerce and omnichannel strategies, compelling retailers to invest in integrated platforms that provide seamless shopping experiences across online and physical stores. The adoption of AI and machine learning for predictive analytics enables personalized recommendations and demand forecasting, reducing inventory costs and boosting sales. Increasing consumer expectations for secure and convenient payment options drive investments in cybersecurity and digital wallets, while cloud computing offers scalable solutions for data management amid growing big data volumes. Furthermore, regulatory pressures for data privacy and sustainability encourage retailers to upgrade IT infrastructure, supporting long-term efficiency and compliance in a competitive landscape.

Restraints

Restraints include high initial implementation costs for advanced IT solutions like AI and IoT, which can burden small and medium-sized retailers with limited budgets, slowing adoption rates. Integration challenges with legacy systems create technical hurdles, leading to prolonged deployment times and potential disruptions in operations. Cybersecurity threats and data breaches deter investments, as retailers grapple with protecting sensitive customer information amid rising incidents. Additionally, a shortage of skilled IT professionals in retail-specific technologies hampers effective utilization, while economic uncertainties and fluctuating consumer spending can lead to deferred IT projects in cost-sensitive environments.

Opportunities

Opportunities arise from the integration of emerging technologies such as augmented reality (AR) and virtual reality (VR) for immersive shopping experiences, allowing retailers to differentiate through innovative customer engagement tools. The growth of edge computing enables real-time data processing in stores, optimizing inventory and personalization without latency issues. Expansion in emerging markets with increasing internet penetration offers avenues for affordable cloud-based solutions tailored to local needs. Moreover, partnerships between retailers and tech firms can accelerate the development of customized AI applications, while the focus on sustainable practices creates demand for green IT solutions that track carbon footprints and supply chain ethics.

Challenges

Challenges encompass navigating the complex regulatory landscape for data protection, such as GDPR and CCPA, which requires continuous updates to IT systems and increases compliance costs. Rapid technological advancements outpace retailer adaptation, leading to obsolescence risks for recent investments in hardware and software. Managing vast amounts of customer data ethically while leveraging it for insights poses privacy concerns and potential backlash. Additionally, supply chain disruptions for IT components, exacerbated by global events, delay implementations, and the need for seamless integration across diverse vendor ecosystems complicates scalability in multinational operations.

Information Technology (IT) Spending in Retail Industry Market: Report Scope

Report Attributes Report Details
Report Name Information Technology (IT) Spending in Retail Industry Market
Market Size 2025 USD 209.3 Billion
Market Forecast 2035 USD 510 Billion
Growth Rate CAGR of 9.3%
Report Pages 220
Key Companies Covered

Microsoft Corporation, Oracle Corporation, SAP SE, IBM Corporation, Cisco Systems, Inc., Salesforce, Inc., and Others.
Segments Covered By Type, By Application, By End-User, and By Region.
Regions Covered North America, Europe, Asia Pacific (APAC), Latin America, and The Middle East and Africa (MEA)
Base Year 2025
Historical Year 2020 - 2024
Forecast Year 2026 - 2035
Customization Scope Avail customized purchase options to meet your exact research needs.

What is the market segmentation?

The Information Technology (IT) Spending in Retail Industry Market is segmented by type, application, end-user, and region.

By type segment, IT services emerge as the most dominant, holding approximately 44% market share, driven by the need for expert consulting and managed services to navigate digital transformations, which helps drive the market by enabling retailers to optimize operations and reduce downtime through outsourced expertise. Software ranks as the second most dominant, with around 28% share, owing to demand for applications like CRM and analytics that enhance decision-making, contributing to market growth by facilitating data-driven strategies and personalized customer interactions.

By application segment, e-commerce platforms stand out as the most dominant, capturing about 60% market share, due to the boom in online retail requiring robust digital infrastructures, driving the market by supporting seamless transactions and expanding global reach for retailers. Data analytics is the second most dominant, with roughly 15% share, as it provides insights into consumer behavior and trends, propelling market expansion by enabling predictive forecasting and targeted marketing to boost sales efficiency.

By end-user segment, supermarkets/hypermarkets are the most dominant, accounting for nearly 35% market share, attributed to their high-volume operations needing advanced supply chain and POS technologies, driving the market through efficient inventory management and quick checkout processes that handle large customer flows. Online retailers follow as the second most dominant, with about 25% share, because of their reliance on cloud and AI for virtual experiences, contributing to growth by facilitating scalable platforms that adapt to surging digital demand.

What are the recent developments?

  • In January 2026, Walmart expanded its partnership with Microsoft to integrate Azure AI for enhanced supply chain optimization, aiming to reduce stockouts by 20% through predictive analytics in over 4,000 stores.
  • In November 2025, Amazon Web Services launched a new retail-specific cloud platform incorporating generative AI for personalized shopping recommendations, adopted by major chains like Target to improve customer engagement metrics.
  • In August 2025, Oracle acquired a boutique AI startup specializing in retail analytics, bolstering its ERP offerings with real-time inventory insights, which has been implemented by retailers like Best Buy to streamline operations.

What is the regional analysis?

North America to dominate the global market.

North America commands the information technology (IT) spending in retail industry market, bolstered by cutting-edge infrastructure and a tech-savvy consumer base, with the United States as the dominating country due to its concentration of retail giants like Walmart and Amazon, driving investments in AI, cloud, and cybersecurity to pioneer omnichannel innovations and maintain global leadership.

Asia Pacific exhibits explosive growth, propelled by rapid urbanization and e-commerce surge, where China dominates through platforms like Alibaba and JD.com, leveraging massive mobile penetration and government digital initiatives to accelerate IT adoption in supply chain and personalization.

Europe maintains steady advancement, influenced by strict data regulations and sustainability focus, with Germany as the dominating country via efficient retailers like Aldi and Lidl, emphasizing IoT and analytics for optimized operations within the EU's unified market.

Latin America shows emerging potential, supported by increasing digital access and middle-class expansion, led by Brazil with MercadoLibre's dominance in e-commerce, investing in payment tech and logistics IT to overcome infrastructural challenges.

The Middle East and Africa region is progressing, driven by oil wealth and youth demographics, with the UAE as the dominating country through Dubai's retail hubs adopting AR and cloud solutions to attract international shoppers and build smart retail ecosystems.

What are the key market players and strategies?

Microsoft Corporation. Microsoft Corporation focuses on cloud-based solutions through Azure, partnering with retailers for AI-driven analytics and personalization, aiming to enhance operational efficiency and customer insights across global chains.

Oracle Corporation. Oracle Corporation emphasizes integrated ERP and CRM systems, leveraging acquisitions to advance AI capabilities in inventory and supply chain management, targeting large enterprises for scalable digital transformations.

SAP SE. SAP SE pursues industry-specific software innovations like S/4HANA for retail, investing in IoT integration to optimize real-time data processing and support omnichannel strategies.

IBM Corporation. IBM Corporation adopts hybrid cloud and AI strategies via Watson, collaborating on cybersecurity and blockchain for secure transactions and supply chain transparency in retail.

Cisco Systems, Inc. Cisco Systems, Inc. leverages networking and security solutions, focusing on edge computing to enable IoT deployments in stores for enhanced connectivity and data protection.

Salesforce, Inc. Salesforce, Inc. emphasizes customer experience platforms with Einstein AI, forming alliances for personalized marketing and commerce clouds to drive engagement and loyalty.

What are the market trends?

  • Surge in AI and machine learning adoption for predictive analytics and personalized customer experiences.
  • Growing investments in cloud infrastructure to support scalable e-commerce and omnichannel operations.
  • Increased focus on cybersecurity solutions amid rising data breaches and regulatory compliance needs.
  • Expansion of IoT devices for real-time inventory tracking and smart store management.
  • Shift toward edge computing to enable faster data processing in physical retail environments.
  • Rise in generative AI tools for dynamic pricing and virtual shopping assistants.
  • Emphasis on sustainable IT practices, including green data centers and energy-efficient hardware.

What are the market segments and their subsegment covered in the report?

By Type

  • Hardware
  • Software
  • IT Services
  • Communications
  • Cloud Infrastructure
  • Cybersecurity Solutions
  • IoT Devices
  • Networking Equipment
  • Data Center Equipment
  • End-User Computing
  • Others

By Application

  • Point-of-Sale (POS) Systems
  • Inventory Management
  • E-commerce Platforms
  • Customer Relationship Management (CRM)
  • Supply Chain Management
  • Data Analytics
  • Omnichannel Integration
  • Payment Systems
  • Fraud Detection
  • Marketing Automation
  • Others

By End-User

  • Supermarkets/Hypermarkets
  • Specialty Stores
  • Department Stores
  • Apparel Stores
  • Electronics Stores
  • Home Furnishings Stores
  • Online Retailers
  • Convenience Stores
  • Drug Stores
  • Automotive Retailers
  • Others
By Region
  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • UAE
    • South Africa
    • Rest of Middle East & Africa

Frequently Asked Questions

The information technology (IT) spending in retail industry market encompasses investments by retailers in hardware, software, services, and technologies to improve efficiency, customer engagement, and digital capabilities.

Key factors include e-commerce expansion, AI adoption for personalization, omnichannel integration, cybersecurity needs, and regulatory compliance for data privacy.

The market is projected to grow from approximately USD 209.3 billion in 2026 to USD 510 billion by 2035.

The CAGR is expected to be 9.3% over the forecast period.

North America will contribute notably, driven by technological advancements and major retailers' investments.

Major players include Microsoft Corporation, Oracle Corporation, SAP SE, IBM Corporation, Cisco Systems, Inc., and Salesforce, Inc.

The report provides detailed analysis of market size, trends, segments, regional insights, key players, and forecasts from 2026 to 2035.

Stages include raw material procurement (steel and components), manufacturing and assembly, quality testing and certification, distribution and logistics, end-use application in gas transportation, and maintenance services.

Trends are shifting toward AI-driven personalization and cloud solutions, while consumers prefer seamless omnichannel experiences and secure digital interactions.

Regulatory factors like data privacy laws (GDPR, CCPA) and environmental concerns over energy-efficient IT infrastructure are driving compliant and sustainable investments.