Image Analytic Solutions Market for Retail Stores in Japan: Key Research Findings 2019

Yano Research Institute (the President, Takashi Mizukoshi) has surveyed the market of store solutions using image analytic technologies and has found out the business models, the challenge for the solutions to be widely accepted, and future outlook.

Transition and Forecast of Image Analytic Solutions Market Size for Retail Stores
Transition and Forecast of Image Analytic Solutions Market Size for Retail Stores

Market Overview

The number of vendors, primarily the start-up companies, developing and providing image analytic (image recognition) solutions aimed at marketing has increased since around 2016, but the business size is still far from large.

Now that traffic analytics of ecommerce websites has been a matter of course, some retailers have started considering the necessity of analyzing customer activities within brick-and-mortar stores which have larger market than ecommerce. Some retailers have already started introducing a solution using beacon or Wi-Fi to analyze customer behavior at the store, but not many retailers introduced image analytic solutions that use in-store cameras and devices to take pictures and images which are analyzed to find out the number of customer visits as well as the attribute and traffic line of each customer. 

On the other hand, the retailers dealing with the products with relatively high unit price such as those in the fashion retail industry, use of image analytic (image recognition) solutions has been in progress. The market size of image analytic solutions is projected to attain 1,620 million yen by FY2019.

Noteworthy Topics

Business Models

According to the business models at the vendors, image analytic solutions can be divided into the following four parts: 1) devices (cameras and other terminals to collect image data), 2) image analysis software (to convert the collected data to be analyzed), 3) in-store analytic platform (to analyze attribute, repeat rate, traffic line, etc. from the collected data), and 4) analytic consulting (to suggest measures to support decision making based on the analysis).

When surveyed the solutions by each vendor, the business models or the combination of solution parts that they provide are categorized into the following five types:

1.Device+ Image analysis software+ Instore analytic platform
2.Image analysis software+ Instore analytic platform
3.Image analysis software+ Instore analytic platform+ Analytic consulting
4.Instore analytic platform
5.Instore analytic platform+ Analytic consulting

Basically, the vendors of image analytic solutions for retail stores are supposed to provide one-stop solution covering from data collection (via devices such as cameras), visualization platform, and to analysis if they are asked to do so by the client. In fact, however, not all the vendors are able to provide the products, technologies or services that cover entire parts of image analytics.   

Future Outlook

The market is projected to expand, as the current progressive introduction of the solution in the fashion industry to extend to other industries.

At the current stage, the most significant challenge preventing the solutions from gaining ground is that few companies both in the users-side (the retailers) and vendor-side have visions on how to effectively make the collected data as well as analyzed output into the measures to meet customer needs. By only abundantly experiencing successful introduction of solutions by users as well as vendors can solve the challenge, leading, in time, to generalize utilization of data and further acceptance of the solutions.

Therefore, the solutions using image analytic technologies are projected to continue being more pervasive, which is expected to make the market of image analytic solutions for retail store (based on the sales at businesses) to expand to 8,910 million yen by FY2023, 5.5 times larger than in FY2019.

Research Outline

1.Research Period: July to September 2019
2.Research Object: Vendors developing and providing image analytic solutions for marketing
3.Research Methogology: Face-to-face interviews by the expert researchers

Image Analytic Solutions for Retail Stores

Image analytic solutions in this research refer to the solutions that analyze the images through cameras installed at retail stores and through AI technologies. The solutions are able to count the number of customers visiting the store, understand the attribute of customers such as ages and gender, find out the traffic lines of and actions taken by the customers at the store, visualize the analyzed results through in-store analysis/analytic platform and consulting services.  

<Products and Services in the Market>

Image analytic solutions

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