Retail Automation Market - By Implementation Type, By Product Outlook (Point-of-Sale, Automated Identification Systems, Electronic Shelf Label, Camera, Robots, AGVs, Automated Storage and Retrieval Systems, Conveyor & Sortation System), By Component, By End-user & Forecast 2024 – 2032

Retail Automation Market Size             

Retail Automation Market was valued at over USD 25 billion in 2023 and is estimated to register a CAGR of over 10% between 2024 and 2032. The industry is anticipated to increase because of automation intelligence technology advancements, which will make it possible to create more complex and effective systems.
 

Improving operational efficiency, inventory management, and tailored customer experiences are all made possible by enhanced automation intelligence, which enables real-time data analysis, predictive analytics, and machine learning capabilities. Retailers may promote market growth by utilizing these technologies to decrease costs, streamline processes, and maintain competitiveness in the increasingly digital and data-driven retail sector. For instance, in May 2023, ECS Industrial Computer Co., Ltd., (ECSIPC) launched an extensive range of new products for intelligent retail kiosks. This includes the LIVA Z5 Plus MiniPC series, such as B760H7-M8 and Q670HIS1 motherboards, designed for automation intelligence, information terminals, and lottery terminals.
 

As companies look to improve customer satisfaction and loyalty, the growing desire for seamless customer experiences is anticipated to fuel growth in the retail automation industry. Retailers may provide easy, efficient, and customized shopping experiences to their customers by utilizing automation technology like self-checkout systems, tailored suggestions, and seamless omnichannel integration. This helps them acquire and retain more customers.
 

The lack of customization choices limits the retail automation market's suitability for a wide range of firms, as each has unique needs and requirements. Off-the-shelf solutions may not be adequate for unique workflows, procedures, or business models, resulting in inefficiencies or missed chances for improvement. This constraint may impede adoption among firms seeking bespoke automation solutions that interface smoothly with existing systems.
 

Retail Automation Market Trends

Retailers are using machine learning and artificial intelligence (AI) to increase automation and provide individualized product recommendations based on customer behavior assessment. These technologies also increase the precision of demand forecasting, which aids in the optimization of inventory levels to effectively satisfy consumer expectations. This trend highlights the market's shift towards sophisticated automation solutions aimed at improving customer experiences, optimizing operations, and sustaining competitiveness in the retail sector.
 

Data analytics is being used by retailers to comprehend consumer trends, preferences, and behavior. They make well-informed decisions, customize campaigns, and adjust marketing strategy as a result. This pattern illustrates how data-driven automation solutions are increasingly being integrated into retail settings, streamlining processes and improving consumer experiences in a cutthroat marketplace.
 

Retail Automation Market Analysis

Based on component, the market is divided into hardware, software, and service. The hardware segment is expected to reach over USD 38.5 billion by 2032.
 

• Hardware such as sensors, scanners, RFID tags, and barcode readers are being added to retail infrastructures by retailers to enable contactless checkout, automated inventory tracking, and smart shelving systems. This investment lowers labor costs while increasing productivity, accuracy, and customer experience, which in turn drives up demand for hardware in the retail automation sector.
   
• Retailers make hardware investments to meet standards and improve security from fraud and theft. These precautions guarantee regulatory compliance and protect assets when paired with automated solutions. As a result, retailers are looking for reliable technologies to safeguard their companies and uphold customer trust, which is driving the demand for hardware in the retail automation space.
   

Based on the implementation type, the market is segmented into in-store and warehouse. The warehouse segment is expected to register a CAGR of over 11% during the forecast period.
 

• Automated warehouse systems maximize the utilization of available space, which is especially important in cities where warehouse space is expensive. Retailers may handle more inventory, satisfy expanding demand, and save operating expenses by optimizing storage efficiency and avoiding waste. This creates a demand for warehouse automation solutions in the retail sector.
   
• Scalability and adaptability are features of contemporary warehouse automation technologies that let merchants effectively adapt to shifting consumer demands as well as seasonal fluctuations in demand. Retailers seek efficient ways to support their growing business and streamline supply chain management procedures, which is driving the demand for warehouse automation.
   

North America dominated the global retail automation market in 2023, with over 45% of the revenue share. The market for retail automation is anticipated to expand in North America because of growing efficiency demands, a sizable consumer base, and technology improvements. To improve client experiences, increase operational efficiency, and maintain competitiveness, retailers in the area are progressively implementing automation technologies. Additionally, the region's advantageous economic climate and encouraging legislative framework foster the development of retail automation technology in a range of business verticals.
 

Retail Automation Market Share

Honeywell International Inc. and NCR Corporation held a significant share of over 15% in the retail automation industry in 2023. Honeywell International Inc. is a diversified technology and manufacturing company offering a wide range of products and services across various industries. In the market, Honeywell provides solutions such as barcode scanners, mobile computing devices, point-of-sale terminals, and inventory management systems. These technologies help retailers optimize operations, improve efficiency, and enhance the shopping experience for customers.
 

NCR Corporation is a global leader in omni-channel solutions, providing software, hardware, and services for industries including retail, hospitality, and financial services. In the retail automation industry, NCR offers self-service kiosks, POS systems, inventory management software, and advanced analytics solutions. These offerings streamline operations, improve customer experiences, and drive efficiency for retailers worldwide.
 

Retail Automation Market Companies

Major players operating in the industry are:

• Datalogic S.p.A
• Diebold Nixdorf, Incorporated
• Fujitsu Limited
• Honeywell International Inc.
• NCR Corporation
• Posiflex Technology Inc.
• Zebra Technologies Corporation
   

Retail Automation Industry News

• In October 2022, Bumpa, a Nigerian retail automation platform, raised USD 4 million with Base10 Partners as the lead investor. The company disclosed a USD 200,000 pre-seed investment in September 2021, to expand into new African markets, acquire people, and improve its systems and structures.
   
• In February 2022, RetailNext Inc., a prominent player in the field of smart store retail analytics aimed at improving the shopping experience, announced an expansion of its free traffic system upgrades. This move comes as more retailers grapple with the expensive task of upgrading their outdated hardware to keep up with the latest industry standards.
   

The retail automation market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Implementation Type

• In-Store
• Warehouse

Market, By Product Outlook

• Point-of-Sale (POS)
• Automated Identification Systems
• Electronic Shelf Label
• Camera
• Robots
• AGVs
• Automated Storage and Retrieval Systems
• Conveyor & Sortation System
• Others

Market, By Component

• Hardware
• Software
• Services

Market, By End-User

• Hypermarkets
• Supermarkets
• Non-food Retail Stores
• Specialty Stores
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA