The global Retail Automation Market size was valued at USD 25.50 Billion in 2023 and is projected to expand at a compound annual growth rate (CAGR) of 10% during the forecast period, reaching a value of USD 48.17 Billion by 2030.
Retail Automation Market research report by Future Data Stats, offers a comprehensive view of the Market's historical data from 2019 to 2022, capturing trends, growth patterns, and key drivers. It establishes 2023 as the base year, analysing the Market landscape, consumer behaviour, competition, and regulations. Additionally, the report presents a well-researched forecast period from 2024 to 2032, leveraging data analysis techniques to project the Market's growth trajectory, emerging opportunities, and anticipated challenges.
MARKET OVERVIEW:
Retail automation refers to the use of technology to streamline and optimize various processes within the retail industry. It involves the implementation of software, hardware, and other technological solutions to improve efficiency, accuracy, and customer experience. Retail automation encompasses a wide range of functions, including inventory management, point-of-sale systems, customer relationship management, and supply chain management. By automating repetitive tasks and integrating different systems, retail automation helps businesses save time and money while enhancing productivity and competitiveness in the market.
One of the key benefits of retail automation is its ability to improve operational efficiency. By automating tasks such as inventory management, order processing, and customer service, retailers can reduce the time and resources required to complete these activities. This not only increases productivity but also allows employees to focus on more value-added tasks, such as providing personalized customer experiences. Additionally, retail automation helps businesses make data-driven decisions by providing real-time insights into sales, inventory levels, and customer preferences.
MARKET DYNAMICS:
The growing demand for improved efficiency and customer experience in the retail sector. As retailers face increasing pressure to streamline their operations and reduce costs, automation solutions offer a compelling solution. Additionally, the rise of e-commerce and omnichannel retailing has led to greater complexity in the supply chain, further driving the need for automation. Moreover, advancements in technologies such as artificial intelligence, machine learning, and Internet of Things (IoT) are creating new opportunities for retailers to automate various processes, from inventory management to personalized marketing.
The primary concerns is the high initial investment required for implementing automation solutions. Many retailers, especially small and medium-sized businesses, may find it difficult to justify the upfront costs associated with automation. Moreover, there are concerns about job displacement and the impact of automation on the retail workforce. Nevertheless, as the retail industry continues to evolve, there are significant opportunities for retailers to leverage automation to improve efficiency, reduce costs, and enhance the overall customer experience.
RETAIL AUTOMATION MARKET SEGMENTAL ANALYSIS
BY TYPE:
The adoption of automation solutions across various segments of the retail industry. One of the key types of retail automation is Point of Sale (POS) systems, which streamline the checkout process and enhance transaction accuracy. Barcode and RFID systems are also essential components of retail automation, enabling efficient inventory management and tracking throughout the supply chain. Electronic Shelf Labels (ESL) further contribute to automation by enabling dynamic pricing and real-time inventory updates, improving the overall shopping experience for customers.
Automated Guided Vehicles (AGVs) play a crucial role in automating warehouse operations, helping retailers optimize their logistics and distribution processes. Additionally, automated retail kiosks and self-checkout systems are becoming increasingly popular, allowing customers to browse and purchase products conveniently. Automated inventory management systems, powered by technologies such as RFID and IoT, enable retailers to track inventory levels accurately and automate the reordering process, reducing stockouts and overstock situations.
Moreover, emerging technologies like Robotic Process Automation (RPA) and Virtual Reality (VR) and Augmented Reality (AR) solutions are transforming various aspects of the retail industry. RPA streamlines back-office operations by automating repetitive tasks, such as data entry and invoice processing. On the other hand, VR and AR solutions are enhancing the customer shopping experience by providing virtual try-on options and interactive product demonstrations. As retailers continue to invest in these automation technologies, the retail landscape is evolving to become more efficient, customer-centric, and digitally integrated.
BY APPLICATION:
Supermarkets and hypermarkets are key adopters of retail automation, leveraging technologies such as point-of-sale (POS) systems, self-checkout systems, and automated inventory management to enhance operational efficiency and improve the shopping experience for customers. Similarly, convenience stores are increasingly deploying automation solutions to streamline checkout processes and manage inventory effectively, thereby reducing operational costs and improving profitability.
Department stores and specialty stores, including those specializing in apparel, electronics, and other categories, are also embracing retail automation to stay competitive in the market. Automation solutions such as electronic shelf labels (ESL), automated retail kiosks, and RFID systems help these retailers optimize inventory management, reduce out-of-stock situations, and offer personalized shopping experiences to customers. Additionally, e-commerce and online retailing are driving the adoption of automation technologies such as robotic process automation (RPA) and virtual reality (VR) solutions to enhance the online shopping experience and improve order fulfillment processes.
Furthermore, retail automation is gaining traction across other retail segments, including gas stations, pharmacies, shopping malls, and the hospitality and food service industry. Automation solutions tailored to these segments, such as automated fuel dispensing systems, pharmacy automation systems, and self-service kiosks, are helping retailers streamline operations, reduce wait times, and enhance customer satisfaction.
BY COMPONENT:
Hardware components such as sensors, cameras, displays, and other devices form the foundation of retail automation solutions. These hardware components are essential for various automation processes, including inventory management, point-of-sale systems, and customer service enhancements. Additionally, the development of advanced hardware technologies, such as RFID systems and automated retail kiosks, is driving the adoption of retail automation across different retail segments.
Software and platforms play a crucial role in retail automation by providing the necessary intelligence and connectivity to automate various processes. Retailers leverage software solutions for tasks such as inventory management, customer relationship management (CRM), and analytics. These software solutions enable retailers to gather and analyze data, optimize inventory levels, and personalize the shopping experience for customers. Moreover, with the integration of advanced technologies like artificial intelligence and machine learning, retail automation software is becoming more sophisticated, allowing retailers to make data-driven decisions and stay ahead in a competitive market.
Services form an integral part of the retail automation ecosystem, providing retailers with support throughout the implementation and maintenance process. Services such as installation, integration, training, and maintenance ensure that retail automation solutions operate smoothly and efficiently. Additionally, service providers offer consulting and customization services to tailor automation solutions to the specific needs of retailers.
BY END USER:
Large retailers, with their extensive operations and complex supply chains, are driving the adoption of retail automation solutions. These retailers leverage automation technologies across various functions, including inventory management, point-of-sale systems, and customer relationship management. By implementing automation solutions, large retailers can streamline their operations, reduce costs, and enhance the overall shopping experience for their customers.
However, small and medium-sized retailers are also increasingly embracing retail automation to stay competitive in the market. Despite having smaller operations compared to their larger counterparts, these retailers face similar challenges, such as inventory management, customer engagement, and operational efficiency. Automation solutions tailored to the needs and budgets of small and medium-sized retailers, such as self-checkout systems, automated inventory management, and customer loyalty programs, are becoming more accessible and affordable. By adopting automation solutions, small and medium-sized retailers can improve their operational efficiency, reduce manual errors, and focus more on delivering exceptional customer service.
BY FUNCTION:
Customer Relationship Management (CRM) is one of the key functions driving the adoption of retail automation. Automation solutions in CRM help retailers effectively manage customer interactions, personalize marketing efforts, and build long-term customer relationships. By leveraging CRM automation, retailers can better understand customer preferences, improve customer satisfaction, and drive repeat business.
Inventory management is another essential function in retail automation, enabling retailers to optimize inventory levels, reduce stockouts, and minimize carrying costs. Automation solutions for inventory management, including RFID systems, barcode scanners, and automated replenishment systems, help retailers accurately track inventory movement in real-time, streamline stock management processes, and ensure product availability. Moreover, automation in supply chain management further enhances operational efficiency by optimizing logistics, reducing lead times, and improving overall supply chain visibility.
REGIONAL ANALYSIS:
North America, being one of the early adopters of automation technologies, holds a significant share in the retail automation market. The region's robust economy, coupled with the presence of several key players in the retail and technology sectors, drives the adoption of automation solutions. Similarly, Europe is witnessing substantial growth in the retail automation market, driven by the increasing demand for efficient and cost-effective retail operations. The presence of advanced infrastructure and the implementation of favorable government regulations further contribute to the region's market growth.
Asia Pacific is emerging as a lucrative market for retail automation, propelled by rapid urbanization, the growing retail sector, and increasing disposable income levels. Countries such as China, Japan, and India are witnessing significant investments in retail automation solutions to enhance operational efficiency and improve the overall shopping experience.
KEY MARKET PLAYERS:
- Toshiba Global Commerce Solutions
- Honeywell International Inc.
- Zebra Technologies Corporation
- Fujitsu Limited
- NCR Corporation
- Diebold Nixdorf, Incorporated
- Kuka AG
- Pricer AB
- Posiflex Technology, Inc.
- E&K Automation GmbH
- First Data Corporation
- Kiosk & Display Co., Ltd.
- Probiz Technologies Prvt Ltd.
- GreyOrange
- Bastian Solutions, Inc.
- Amazon Robotics LLC
- Blue Yonder Group, Inc.
- Oracle Corporation
- IBM Corporation
- SAP SE
- Manhattan Associates, Inc.
- JDA Software Group, Inc.
- Cisco Systems, Inc.
- Microsoft Corporation
- Google LLC
Table of Contents
Introduction
Executive Summary
Methodology and Scope
Market Overview
Market Dynamics
5.1. Drivers
5.2. Restraints
5.3. Opportunities
Retail Automation Market, by Type
6.1. Point of Sale (POS) Systems
6.2. Barcode and RFID Systems
6.3. Electronic Shelf Labels (ESL)
6.4. Automated Guided Vehicles (AGVs)
6.5. Automated Retail Kiosks
6.6. Cash Handling Systems
6.7. Self-Checkout Systems
6.8. Automated Inventory Management Systems
6.9. Robotic Process Automation (RPA)
6.10. Virtual Reality (VR) and Augmented Reality (AR) Solutions
Retail Automation Market, by Application
7.1. Supermarkets and Hypermarkets
7.2. Convenience Stores
7.3. Department Stores
7.4. Specialty Stores
7.5. E-commerce and Online Retailing
7.6. Gas Stations and Convenience Stores
7.7. Pharmacies and Drugstores
7.8. Shopping Malls
7.9. Hospitality and Food Service
7.10. Others
Retail Automation Market, by Component
8.1. Hardware
8.2. Software and Platforms
8.3. Services
Retail Automation Market, by Region
9.1. North America
9.2. Europe
9.3. Asia Pacific
9.4. Latin America
9.5. Middle East and Africa
Retail Automation Market, by End User
10.1. Large Retailers
10.2. Small and Medium-sized Retailers
Retail Automation Market, by Function
11.1. Customer Relationship Management (CRM)
11.2. Inventory Management
11.3. Supply Chain Management
11.4. Pricing and Promotion Management
11.5. Data Analytics and Reporting
11.6. Order Management
11.7. Payment Processing
11.8. Security and Loss Prevention
Competitive Landscape
12.1. Market Share Analysis
12.2. Competitive Scenario
12.3. Key Players
Conclusion
Appendix
Retail Automation Market Segmentation
By Type:
- Point of Sale (POS) Systems
- Barcode and RFID Systems
- Electronic Shelf Labels (ESL)
- Automated Guided Vehicles (AGVs)
- Automated Retail Kiosks
- Cash Handling Systems
- Self-Checkout Systems
- Automated Inventory Management Systems
- Robotic Process Automation (RPA)
- Virtual Reality (VR) and Augmented Reality (AR) Solutions
By Application:
- Supermarkets and Hypermarkets
- Convenience Stores
- Department Stores
- Specialty Stores (Apparel, Electronics, etc.)
- E-commerce and Online Retailing
- Gas Stations and Convenience Stores
- Pharmacies and Drugstores
- Shopping Malls
- Hospitality and Food Service
- Others (Automotive Retail, Home Improvement Stores, etc.)
By Component:
- Hardware (Sensors, Cameras, Displays, etc.)
- Software and Platforms
- Services (Installation, Integration, Maintenance, etc.)
By End User:
- Large Retailers
- Small and Medium-sized Retailers
By Function:
- Customer Relationship Management (CRM)
- Inventory Management
- Supply Chain Management
- Pricing and Promotion Management
- Data Analytics and Reporting
- Order Management
- Payment Processing
- Security and Loss Prevention
By Geography:
- North America (USA, Canada, Mexico)
- Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
- Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)
- South America (Brazil, Argentina, Columbia, Rest of South America)
- Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)
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RESEARCH METHODOLOGY
With a collective industry experience of about 70 years of analysts and experts, Future Data Stats encompasses the most infallible research methodology for its market intelligence and industry analysis. Not only does the company dig deep into the innermost levels of the market, but also examines the minutest details for its market estimates and forecasts.
This approach helps build a greater market-specific view of size, shape, and industry trends within each industry segment. Various industry trends and real-time developments are factored into identifying key growth factors and the future course of the market. The research proceeds are the results of high-quality data, expert views & analysis, and valuable independent opinions. The research process is designed to deliver a balanced view of the global markets and allows stakeholders to make informed decisions, to attain their highest growth objectives.
Future Data Stats offers its clients exhaustive research and analysis, based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models distill the data & statistics and enhance the accuracy of our recommendations and advice.
With Future Data Stats calibrated research process and 360° data-evaluation methodology, the clients receive:
- Consistent, valuable, robust, and actionable data & analysis that can easily be referenced for strategic business planning
- Technologically sophisticated and reliable insights through a well-audited and veracious research methodology
- Sovereign research proceeds that present a tangible depiction of the marketplace
With this strong methodology, Future Data Stats ensures that its research and analysis is most reliable and guarantees sound business planning.
The research methodology of the global market involves extensive primary and secondary research. Primary research includes about 24 hours of interviews and discussions with a wide range of stakeholders that include upstream and downstream participants. Primary research typically is a bulk of our research efforts, coherently supported by extensive secondary research. Over 3000 product literature, industry releases, annual reports, and other such documents of key industry participants have been reviewed to obtain a better market understanding and gain enhanced competitive intelligence. In addition, authentic industry journals, trade associations’ releases, and government websites have also been reviewed to generate high-value industry insights.
Primary Research:
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Primary Research
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Desk Research
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Company Analysis
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• Identify key opinion leaders • Questionnaire design • In-depth Interviews • Coverage across the value chain
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• Company Website • Company Annual Reports • Paid Databases • Financial Reports
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• Market Participants • Key Strengths • Product Portfolio • Mapping as per Value Chain • Key focus segment
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Primary research efforts include reaching out to participants through emails, telephonic conversations, referrals, and professional corporate relations with various companies that make way for greater flexibility in reaching out to industry participants and commentators for interviews and discussions.
The aforementioned helps to:
- Validate and improve data quality and strengthen the research proceeds
- Develop a market understanding and expertise
- Supply authentic information about the market size, share, growth, and forecasts
The primary research interview and discussion panels comprise experienced industry personnel.
These participants include, but are not limited to:
- Chief executives and VPs of leading corporations specific to an industry
- Product and sales managers or country heads; channel partners & top-level distributors; banking, investments, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research:
A broad array of industry sources for the secondary research typically includes, but is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for a competitive scenario and shape of the industry
- Patent and regulatory databases to understand technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles, web-casts, and other related releases to evaluate the market
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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PRIMARY SOURCES |
DATA SOURCES |
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• Top executives of end-use industries • C-level executives of the leading Parenteral Nutrition companies • Sales manager and regional sales manager of the Parenteral Nutrition companies • Industry Consultants • Distributors/Suppliers
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• Annual Reports • Presentations • Company Websites • Press Releases • News Articles • Government Agencies’ Publications • Industry Publications • Paid Databases
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Analyst Tools and Models:
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BOTTOM-UP APPROACH |
TOP-DOWN APPROACH |
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· Arriving at · Arriving at · Market Share · Key Market Players |
· Key Market Players · Market Share · Arriving at · Arriving at |
Retail Automation Market Dynamic Factors
Drivers:
- Increasing demand for enhanced customer experience.
- Growing need for cost reduction and operational efficiency.
- Rising adoption of advanced technologies such as AI and IoT.
- Demand for seamless omnichannel retailing.
- Improving supply chain management through automation.
Restraints:
- Initial high investment costs.
- Concerns regarding data security and privacy.
- Resistance to change from traditional retail practices.
- Lack of skilled workforce to manage automated systems.
- Integration challenges with existing IT infrastructure.
Opportunities:
- Expansion of e-commerce and online retailing.
- Emergence of new retail formats like cashier-less stores.
- Rising demand for contactless payment systems.
- Increasing focus on inventory management and optimization.
- Adoption of robotics and AI for personalized customer experiences.
Challenges:
- Ensuring seamless integration across multiple retail channels.
- Addressing cybersecurity threats and data breaches.
- Overcoming regulatory and compliance issues.
- Managing customer concerns regarding job displacement.
- Adapting to rapidly evolving consumer preferences and behavior.
Frequently Asked Questions
