A new study from Juniper Research has found that revenues generated by IoT [Internet of Things] retail platforms will exceed $4.3 billion by 2023, up from an estimated $890 million in 2018.

The research group says challenging retail conditions, exacerbated by strong competition in the retail sector, the rise of e-commerce (the “Amazon effect”) and spiraling rental costs are acting as a “push factor” for retailers to adopt IoT platforms. Juniper found that IoT platform implementation will allow retailers to unlock efficiencies, particularly in the supply chain, which will improve operational margins. Juniper anticipates that this push for efficiency will drive the total number of IoT platform connected assets to almost 25 billion units by 2023, up from just over five billion in 2018.

The research group says the rise of compelling ERP (enterprise resource planning) systems, leveraging IoT sensors to enhance resource utilization, will drive overall IoT retail software spend rapidly, with annual retail spend on these ERP solutions reaching over $13 billion by 2023. 

“Retailers are facing a perfect storm of pressures and challenges, which IoT implementation can help them navigate successfully,” says research author Rick Maynard. “ERP and retail platform providers are a compelling proposition in enabling successful IoT transformation.”

The accompanying graphic is courtesy of GeoMarketing