On-Shelf Availability Solutions Market Size, Trends and Growth Analysis by 2027

In 2018, the global market for on-shelf availability solutions was valued at US$ 2447.6 million and is projected to experience a compound annual growth rate (CAGR) of 10.7% from 2019 to 2027, reaching an estimated US$ 6019.7 million by 2027.

As competition intensifies within the retail sector, maintaining optimal on-shelf availability has become crucial for retailers. The issue of out-of-stock items poses a significant challenge, leading to lost sales and diminished customer loyalty. Key factors contributing to out-of-stock situations include inaccuracies in inventory management, unexpected surges in demand, infrequent restocking, and poor shelf monitoring practices. Traditionally, the detection and assessment of out-of-stock conditions have relied on limited visual audits of shelves. However, the rise of advanced technologies has led to a significant increase in the adoption of automated on-shelf availability solutions within the retail landscape.

Retailers are increasingly investing in and prioritizing the implementation of advanced technologies to enhance inventory accuracy. For example, the use of RFID technology in retail environments allows store operators to track and manage products effectively through chips embedded in packaging or tags. RFID systems enable retailers to locate and monitor merchandise using handheld scanners, streamlining the process of tracking the precise location of each item. This strong emphasis on centralizing the integration of real-time data across the supply chain empowers retailers to improve profit margins by accurately tracking inventory movements.

In 2018, North America dominated the on-shelf availability solutions market, but it is anticipated that Europe will surpass it during the forecast period from 2019 to 2027. The North American market is driven by the extensive presence of retail establishments and significant advancements in the retail sector. This region hosts many of the largest retail chains globally. Both Mexico and Canada boast their own major retail companies, with operations extending worldwide. The retail sector contributes nearly two-thirds of the GDP in the United States. Notable retail giants in the U.S. include Walmart, CVS Health, Amazon, Walgreens Boots Alliance, Costco, The Kroger Co., Albertsons Companies, and Target, among others.

Moreover, Max Hypermarket India has formed a partnership with Auchan Group, a prominent French retail corporation, to launch franchise hypermarket stores across India. The two companies plan to open 12 to 15 new stores each year in various Indian states. Additionally, the e-commerce market in the Asia Pacific region is expanding due to a growing population and increasing internet penetration. According to projections from the World Bank, the Asia Pacific region is expected to account for one-third of the global e-commerce market. Consequently, the uptake of on-shelf availability solutions among e-commerce retailers is anticipated to rise.

The global market for on-shelf availability solutions is categorized based on components, deployment methods, and end-users. In terms of components, the market is divided into solutions and services. Regarding deployment, it is segmented into cloud-based and on-premise solutions. Furthermore, the end-user segment includes consumer packaged goods (CPG) manufacturers, retailers, suppliers, and other entities.

The global on-shelf availability solutions market has also been analyzed across five major regions: North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and South America (SAM). Key players in the global on-shelf availability solutions market include Atlas Technology Group, BeMyEye Holdings Ltd, IBM Corporation, Market6, Inc., Retail Solutions, Inc., Retail Velocity, SAP SE, Shelfie Pty Ltd, Tech Mahindra Limited, and Verix, Inc.

The overall size of the global on-shelf availability solutions market has been determined through a combination of primary and secondary research methods. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative insights related to the market. This approach also provides an overview and forecast of the on-shelf availability solutions market based on the various segments identified for the global region. Additionally, primary interviews with industry participants and experts are conducted to validate the data and analysis. Participants typically include industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the on-shelf availability solutions sector.