The Retail Technology sector, which includes In-Store Personalization and Retail Media, is experiencing a compound annual growth rate (CAGR) of over 10%, driven by digital transformation and consumer demand for personalized experiences. Ninety-one percent of retail IT leaders are prioritizing AI as the top technology to implement by 2026. There are 8,793 companies in this sector with a total funding amount of $33.2 billion (Grand View Research) (in the last two years, there has been $2.8 billion in funding).

Retail Tech market trends in 2025 and beyond
The main trends in the logistics industry include:
- Artificial Intelligence: The global AI market in retail is projected to reach $55.5 billion by 2030, a significant increase from $5.5 billion in 2022. According to Fortune Business Insights, AI-powered chatbots designed to improve customer experiences are expected to play a key role in driving this growth.
- Cashierless and self-service systems: Currently, 51% of US consumers regularly use some form of contactless payment. In 2024, we will continue to see retailers adopt new, advanced, and more secure ways to accept payments. This could include mobile wallets, cryptocurrency or blockchain transactions, or biometric payments.
- Virtual Reality: As more retailers determine the best use cases for their customers and products, we are likely to see this technology take center stage very soon, especially since retailers who add 3D content such as AR or VR to their stores see a 94% increase in conversion.
- Internet of Things: Internet of Things technologies are revolutionizing in-store media by creating engaging and personalized shopping experiences. With advances in motion detection, sensor technology, and interactive features, these solutions enable brands to connect with shoppers on a personal level, capturing attention and motivating purchasing decisions.
- Electronic Shelf Labels: Another technology we anticipate seeing by 2024 is smart shelving, a market estimated at $5.64 billion in 2025 and expected to reach $15.40 billion by 2030, with a CAGR of 22. 26% during the forecast period (2025-2030).
- Omnichannel Strategies: More than half (54%) go to a store for the final purchase, while 40% use an online marketplace. Retailers who understand the nuances of customer behavior can provide the kind of omnichannel experience that keeps them coming back.
- Voice- and Sound-Activated In-Store Advertising: Food retailers are exploring innovative ways to engage shoppers by incorporating voice- and sound-activated technology into their in-store advertising strategies. These audio-centric solutions capture attention in a subtle and interactive way, creating a memorable shopping experience that resonates with modern consumers.
- Programmatic Advertising in In-Store Media: Programmatic advertising is reshaping in-store media by automating ad placement and optimizing campaigns in real time.
Investment activity in the Retail Tech industry
E-commerce has grown rapidly in recent years and is expected to show an annual growth rate (CAGR 2025-2029) of 8.02%, resulting in a projected market volume of US$5,887.00 billion by 2029 (Statista). However, in the US, physical stores account for nearly 80% of total retail sales, according to the US Census Bureau (LS Retail). This means that even with the rise of online shopping, the in-store experience remains a crucial part of the retail ecosystem. In fact, according to this Forbes report, retailers continue to invest in physical stores because of the many benefits they can provide.
Outlook and challenges for the sector in the future
The Retail Technology sector presents an extraordinarily favorable outlook driven by growing demand for personalized experiences and omnichannel strategies. Advances in AI, IoT, and data analytics have revolutionized customer interaction, payment systems, and inventory management, generating solid revenue growth for retailers committed to digital transformation.
Opportunities abound with technologies such as AI-based recommendation engines, cashierless payment systems, and RFID tracking gaining ground. Added to this are favorable regulatory changes and growing demand for sustainable solutions.
The relevance of physical stores remains undeniable, which from an M&A perspective opens up multiple opportunities. Multinational retailers are looking to acquire specialized companies to accelerate their digital transformation, while private equity and venture capital funds are identifying growth potential in this market. Innovative startups in AI, IoT, and real-time data analytics are particularly attractive to institutional investors.
With a total of 497 acquisitions, an average of six years from initial financing to acquisition, average financing of $22.2 million prior to acquisition, and an average acquisition price of $697 million, the sector is proving to be fertile ground for strategic investment at a time when the convergence of physical and digital retail is redefining the shopping experience.
At Baker Tilly, our specialized Tech M&A team identifies strategic opportunities that maximize value in every transaction in the technology sector. If you are considering acquiring a Retail Technology company or selling your company, we offer expert advice throughout the process, with in-depth industry knowledge that guarantees the success of the transaction. Contact us to develop a customized strategy that drives your business objectives in this promising market.
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Market Research del sector Retail Tech 2025
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