IoT spending by MEA retailers to increase by 19% annually

Rebecca Gibson
Rebecca Gibson
By Rebecca Gibson on 24 August 2015
IoT spending by MEA retailers to increase by 19% annually

Spending on internet of things (IoT) solutions among retailers in the Middle East and Africa (MEA) will reach nearly US$1.6 billion between 2014 and 2018, according to an IDC study.

The study covered four key MEA markets – Saudi Arabia, South Africa, Turkey and the United Arab Emirates (UAE) – and showed that retailers’ IoT spending will grow by an average of 19% annually for the foreseeable future. This is slightly lower than the MEA’s IoT spending in other industries, but in line with global retailers’ IoT spending, which is also rising by around 19% per year.

Although digital signage is becoming increasingly prevalent, the majority of retailers will leverage IoT solutions to streamline operations, reduce costs, make ad-hoc improvements to their supply chains, in-store inventory systems, and transportation or delivery systems. IoT solutions will also be used to enhance the customer experience and boost brand loyalty by offering in-store and personalised promotions, and to establish online and mobile sales channels to provide an omnichannel shopping experience.

Retailers in Saudi Arabia, Turkey and the UAE are harnessing IoT solutions to provide a high-end retail experience with the majority being installed in large, mid-range and upscale shopping areas, particularly in the Gulf Cooperation Council. Meanwhile, lower-end shops are deploying more technology, such as PCs or mobile phones.

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