The retail industry’s digital transformation continues to accelerate. Cellular IoT connections are expected to reach 217.7 million by 2028, growing at a compound annual growth rate (CAGR) of 10% from 147.9 million connections in 2023. This significant growth reflects the retail sector’s increasing reliance on connected devices and smart technologies to enhance operations and customer experience.
According to the latest Retail IoT Applications Analysis report, the retail industry represents a substantial market for cellular IoT connectivity, with a total addressable market exceeding 372 million devices, including POS terminals, ATMs, vending machines, parking meters, digital signs, and fare collection devices. The expansion drives the growing need for real-time data and operational efficiency across retail.
The report highlights robust growth in cellular POS terminals, with the installed base projected to grow at a 7.8% CAGR between 2023 and 2028, reaching 200.3 million units. The growth is primarily fueled by emerging markets, where cellular connectivity enables businesses to deploy payment solutions in areas with limited fixed-line infrastructure.
Digital signage represents another significant growth area. Global shipments of display screens are expected to increase from 21.2 million units in 2023 to 36.6 million by 2028, representing an 11.6% CAGR.
The vending machine sector shows some regional variations. North America leads with 2.3 million connected units and a 71.2% penetration rate, while Europe maintains 1.8 million units with a 42.5% penetration rate. The European market is expected to show more robust growth, with a projected CAGR of 10.9%, reaching 3.0 million connections by 2028, compared to North America’s more modest 4.4% CAGR.
Parking systems have emerged as early adopters of IoT technology, with 67% of the world’s 652,000 multi-space meters connected to cellular networks. While single-space meters currently show lower connectivity rates at 16%, the segment is experiencing rapid growth, particularly in North America, where mixed deployments are increasingly common. The report projects connected single-space meters to reach 32% penetration by 2028.
The public transport sector presents unique opportunities for IoT integration, with approximately 0.3 million fare collection devices currently incorporating cellular connectivity. The transition to account-based fare collection systems will increase demand for real-time communications. However, the ability to share communication lines among multiple devices may moderate growth.
The report suggests that while cellular IoT connections in retail will continue to grow, the technology’s adoption patterns will vary significantly across different applications. Infrastructure availability, cost, and specific operational requirements will influence deployment strategies.
The shift toward cashless payments, real-time inventory management, and enhanced customer experience continues to drive the adoption of IoT solutions in the retail sector.
As retailers embrace digital transformation, integrating IoT technology is becoming less of a luxury and more of a necessity for maintaining competitive advantage and operational efficiency. The trend is expected to continue shaping the retail landscape through to 2028 and beyond, with cellular IoT connections playing a crucial role in enabling evolution.
(Image Credit: Sateliot)
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