Image Analytic Solutions Market for Retail Stores in Japan: Key Research Findings 2021

Image Analytic Solutions Market for Retail Stores Projected to Attain 8,910 Million Yen by FY2023

Yano Research Institute (the President, Takashi Mizukoshi) carried out a survey on the market of solutions using image analytic technologies for retail stores, and found out the business models, the challenge for the solutions to be widely accepted, and the 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

In FY2020, a state of emergency caused by the COVID-19 pandemic temporarily interrupted many installation projects that were under consideration at each user company. This led many of conventional cloud-based image analytic solution vendors for retail stores to withdraw or to scale down the business, causing the market to shrink. The image analytic solutions market for retail stores in FY2020 declined to 78.2 percent of the size of the previous fiscal year.

In FY2021, as newly-entered Edge-AI-based image analytic solutions for retail stores have started the full promotions, and as those installation projects having suspended have resumed and are increasing at user companies, the market is expected to revive, boosted by increasing demand at consumer-goods GMS enjoying strong sales from stay-home consumption and by the influence of full-fledged OMO (Online Merges with Offline) driven by ecommerce. The market size of image analytic solutions for retail stores in FY2021, based on the sales at businesses, is expected to resume the expanding tendency to achieve 1,570 million yen, 141.4 percent of the preceding fiscal year.

Noteworthy Topics

Trend of Entry by Vendors Providing Image Analytic Solutions for Retail Stores

As for the market players of image analytic solutions for retail stores, while some cloud-based vendors are reported to have already withdrawn from the market, it is confirmed that the vendors providing AI cameras have newly entered the market. In parallel with the replacement of vendors, image analytic solution services as a whole are shifting from cloud-based to edge-computing based.

In addition, each solution vendor has a different position in the market, with each having different approaches to the market, from providing AI algorithms, to manufacturing and selling cameras, to providing edge AI devices, to developing in-store analytic platforms that visualize analysis results.

Future Outlook

The market in FY2022 to FY2023 is expected to see full-scale implementation in projects that are currently under consideration in various areas, and the market is expected to grow tremendously due to the very small market size to date, with the average annual growth rate from FY2021 to FY2024 to reach 40.9%.

Especially the deployment is likely to increase gradually at GMS and mass merchandisers which were hardly the object for image analytic solution services. Also, user companies in the fashion or the luxury brand industry are expected to press ahead with data-based business, as they review the existing physical store policies and as retail stores are transforming to RaaS (Retail as a Service), D2C (Direct to Consumer), etc.

Research Outline

1.Research Period: July to September 2021
2.Research Object: Solution developing vendors providing image analytic solutions aiming at marketing
3.Research Methogology: Face-to-face and online interviews by the expert researchers, and literature research

About Image Analytic Solutions for Retail Stores

Image analytic solutions in this research refer to image analytic software and in-store analysis/analytic platform as well as consulting services provided by solution developing vendors that offer image analytic solutions for marketing, by which to analyze the images through cameras installed at retail stores and by using AI technologies, enabling 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, and visualize the analyzed results.

<Products and Services in the Market>

Image analytic solutions for retail stores

Published Report

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