The retail automation market size is projected to reach approximately USD 32.55 Billion By 2030, at a CAGR of 10.70% from 2022-2030.
Retail automation is the use of technology in the retail industry to run retail establishments automatically and facilitate the exchange of goods and services with customers. Food wholesalers, service providers, and internet retailers make up the majority of this industry. Vending machines, service kiosks, self-checkout, retail kiosks, and many more are just a few examples of retail automation that improve productivity and save labor costs. It provides a variety of advantages, including greater consumer satisfaction, improved operational effectiveness, and brand preservation, all of which have helped the retail automation market expand. Retail automation has transformed retail operations. Automation usage in retail businesses has increased as a result of technological improvements. The advantages of automated retail have raised awareness about the benefits of automated retail technology, such as inventory optimization, buy or sales services, and others, which are projected to fuel market growth.
COVID-19 Impact Analysis
The COVID-19 pandemic has compelled many companies in retail automation sector. COVID-19 had an influence on the retail automation business. The restricted investment expenditures and a lack of staff impeded market technology sales and manufacturing. However, the government and important market actors introduced new safety measures in order to enhance the practices. Technology developments increased the sales rate of hardware and software by targeting the correct audience. The increased number of businesses throughout the world is likely to boost market expansion in the post-pandemic situation.
The market is expected to rise significantly over the next few years, owing to the rising automation of entrances in workstations. The term "retail automation" refers to a particular technology that integrates software to operate as a fully automated retail store. Using a touchscreen interface, customers may browse the items and save time thanks to retail automation. With the help of retail automation, customers may choose the item they want and then use a debit or credit card to pay for it. Retail automation helps with handling triggering reactions, interacting with other digital systems, and handling data. Benefits of using this software include decreased operational risk, cheaper costs, higher efficiency, and better customer experience.
- Rising in business operations of the company
One of the key elements fueling the growth of the market is the increase in operational business changes brought on by the pandemic-induced work-from-home trend. Additionally, the industry is positively impacted by the integration of cognitive technology and changes to business processes across companies.
- Adoption of cutting-edge technology
The industry is being further influenced by the increase in machine learning capabilities being incorporated into retail automation. RPA uses artificial intelligence (AI) to provide better business insights and data integrity. Additionally, the retail automation industry benefits from rising urbanization, a shift in lifestyle, an increase in expenditures, and higher consumer spending.
- High dependency on the internet and electricity
The internet and power are absolutely necessary for retail automation systems. While it's possible that all of the retail market's competitors would like to use retail automation, the lack of high-speed internet and reliable electrical supply may hinder the market's growth. The less developed parts of the world can be slow to adopt the new retail automation technology. As a result, the retail automation industry may be growing in an uneven manner. Thus, the market can see the weaker growth tendencies.
- Growing contactless payment options wisely
The rapid use of contactless payment options is propelling the retail automation industry forward. Mobile payment gateways and various shops are implementing systems that support mobile payments, such as NFC POS machines. The widespread use of contactless EMV cards will also boost the use of NFC POS terminals. The growing need for speedier checkouts at retail outlets, widespread use of EMV cards, better information management among merchants, and a shift toward secure payments are some of the drivers that will drive the industry forward.
Based on type, the retail automation market segmentation has been divided into electronic shelf labels, point of sale, kiosks, automatic storage and retrieval, barcode & RFID, automated conveyor, and others. The point-of-sale segment will have significant share in the retail automation market growth in 2021. POS has several benefits over traditional cash registers. It can save, share, and track sales, payment, and customer information reducing time and enhancing efficiency and accuracy. Besides, barcode & RFID has the fastest market share growth from Covid-19. Contactless or One-click payments are set to be.
Based on the industrial vertical, the market is divided into hardware, software, and service. Standalone kiosks can be found in congested places such as airports, malls, resorts, and transit hubs. They speed up and improve the efficiency of transactions while also improving the consumer experience. It provides real-time data and analytics to employees. The software category controlled the majority of the market. The program's capacity to deliver extensive analytical data on important company performance indicators is projected to fuel market expansion in the software sector.
Based on the industrial vertical, the retail automation market segmentation is divided into hypermarkets, retail pharmacies, supermarkets, single item stores, fuel stations, and others. The end-user category is neutral depending on the requirement for various nations, with an overall increase in all sectors. Hypermarkets are the largest share growth market in 2021, and supermarkets will be the fastest share growth in the forecast period. It has a large retail outlet that sells a number and variety of goods under one roof at a discounted rate. Consumer electronics, clothes, gadgets, quick-service restaurants, and cars are the several types of single-item retailers.
Global Retail Automation Market Share, By Region, 2021 (%)
Retail Automation Market Overview by Region
By region, the retail automation industry has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America dominates the market with the largest revenue share in 2021. Asia-Pacific is to register a significant growth rate over the forecast period.
North America is a leader in the market, with the highest revenue share in 2021. The increased use of automation technology by key companies like Walmart and Amazon is anticipated to fuel the retail automation industry in the United States. Changes in consumer tastes also contributed to some of the adoptions. According to a report, 88% of American people choose quick checkout over lengthy lineups and delayed checkout times. Major stores in the area have responded to these issues and modified their checkout procedures to be speedy and secure.
The Asia Pacific market is expected to grow rapidly during the projected period due to high growth in infrastructural building projects in emerging countries such as China, India, and Japan. Furthermore, the high penetration rate of process management and automation solutions among enterprises within the region is expected to boost the market growth in Asia-Pacific. In the region, China led the market due to rapid economic growth along with the rise in infrastructural development across the country.
There are tier-1, tier-2, and local companies in the market. The tier-1 and tier-2 players have a wide range of products and a presence. Due to their distinctive products, financial stability, strategic advances, and varied geographical presence, companies like Fujitsu Limited, Honeywell International Inc., and Datalogic S.P.A. are market leaders in the worldwide retail automation space. The participants are focusing their efforts on promoting R&D. Additionally, they support strategic expansion activities, including product launches, joint ventures, and partnerships to expand their client base and boost their market position.
Prominent players in the retail automation market research include Datalogic S.P.A., Diebold Nixdorf, Incorporated, Fiserv Inc., Fujitsu Limited, Honeywell International Inc., KUKA AG, NCR Corporation, Posiflex Technology, Inc., Toshiba Commerce Solutions, and Zebra Technologies Corporation.
Scope of the Retail Automation Market Report
- Electronic Shelf Labels
- Point of Sale, Kiosk
- Automatic Storage and Retrieval, Barcode & RFID
- Automated Conveyor
- Retail Pharmacies
- Single Item Stores
- Fuel Stations
- North America
- Rest of Europe
- Australia and New Zealand
- Rest of Asia-Pacific
- Rest of the World
- South America
- Middle East
Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
Retail Automation Market Forecast & Size:
To identify and estimate the market size for the retail automation market report segmented by type, component, and end-user by value (in US dollars). Also, to understand the consumption/ demand created by consumers of retail automation market forecast between 2022 and 2030
Market Landscape and Trends:
To identify the retail automation market growth and infer the drivers, restraints, opportunities, and challenges.
Market Influencing Factors:
To find out the factors which are affecting the retail automation market size
Impact of COVID-19:
To identify and understand the various factors involved in the market affected by the pandemic
To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company in the past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
- Retail Automation Providers
- Raw Material Suppliers
- Retailers, Wholesalers, and Distributors
- Governments, Associations, and Industrial Bodies
- Investors and Trade Experts