US Retail Automation Market Size was valued at USD 7.1 Billion in 2022. The retail automation market industry is projected to grow from USD 7.81 Billion in 2023 to USD 16.878 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.10% during the forecast period (2023 - 2032). One of the main market driver propelling the retail automation market has been the growing customer desire for quick and high-quality service. The market has benefited from features that lower costs for retailers, speed up transactions, and increase transaction accuracy.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Businesses may employ automation to increase their stock, client base, and distribution channels since manual processes need more time and depend less on humans. Additionally, automation increases the company's functionality and agility, enabling it to respond to demands more accurately and successfully. As such, the integration of automation technologies and sophisticated analytics is anticipated to yield substantial potential for the retail industry over the forecast period. Retailers are predicted to get a competitive edge in the market with the aid of analytical automation's ability to render decisions based on data analysis. In the future years, the retail automation market is expected to be driven by research on customer purchasing patterns. The rise in analytics and data transformation activities in the retail sector, including recommendation systems, offers another opportunity for global market players to significantly increase their revenue. Moreover, it is anticipated that the retail automation market in the US would grow as a result of major corporations like Walmart and Amazon using automation technology more frequently. Adoption is also influenced by shifts in consumer preferences. The market is expected to see a significant upswing throughout the projected period as a result of all these advancements produced by the firms as well as the application of robots and artificial intelligence in the retail sector.
The use of analytics in automation solutions is helping retail automation acquire significant momentum and grow quickly. To improve the experience for both customers and employees, several established shops are also willing to make significant investments in automation and artificial intelligence (AI) technologies. These are the primary market opportunistic aspects that are anticipated to drive market expansion. Furthermore, real-time analytics to automate pricing and promotions are anticipated to be powered by the development of dynamic systems using web scraping and data mining. Thus, suppliers can assist create value for the company by increasing the amount of time they spend on strategic tasks by automating time-consuming operations. The potential of cutting-edge technologies like advanced robotics, machine learning, analytics, and artificial intelligence to automate labor-intensive tasks and give market participants a competitive edge is anticipated to propel the market's expansion. Thus, driving the retail automation market revenue.
The US Retail Automation market segmentation, based on product type includes Manned POS Terminal and Unattended Terminals. The manned POS terminal segment dominated the market mostly ascribed to the ongoing significance of individualized customer care, intricate transactions, and the necessity of human support in specific retail situations. For a smooth and customer-focused retail experience, human interaction at point-of-sale (POS) terminals is still vital, even in the face of more automated technology.
The US Retail Automation market segmentation, based on market, includes Organized Market and Unorganized Market. The organized market category generated the most income because of the growing need for efficiency, better customer experiences, and the widespread use of technologies by retailers worldwide, such as RFID, POS systems, and inventory management solutions. The reason for this rise is the emphasis on supply chain optimization and operational efficiency.
Figure 1: US Retail Automation Market, by Market, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The US Retail Automation market segmentation, based on industry, includes FMCG, Health and Personal Care, Apparel and Footwear, Hospitality, Consumer Electronics, Travel and Logistics, Oil & Gas, and Others. The hospitality category generated the most income propelled by the need for improved client experiences, effective supply chain management, and streamlined operations. Process optimization in this market has been greatly aided by the integration of automation technologies, such as automated inventory management, AI-driven analytics, and RFID monitoring.
The increased adoption of automation technology by key companies like Amazon and Walmart is expected to fuel the retail automation industry in the United States. The shifting inclinations of consumers have a major role in the adoption. 88% of American adults, according to a Digimarc study, prefer quicker checkout choices over lengthy wait times. Large regional businesses have paid attention to these grievances and have modified their checkout procedures to make them quick and simple. Moreover, retailers have reduced the time needed to complete transactions by implementing single or multiple payment options. Additionally, by providing sales representatives with mobile point of sale (mPOS) devices, many traditional POS terminals were no longer required, freeing up valuable real estate in terms of both the time it took to process payments and the location of the payment processing. For instance, Rebecca Minkoff's SoHo location uses mPOS devices as self-checkout stations so that patrons who want to handle every aspect of their shopping experience themselves can complete transactions without help from store employees.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the retail automation market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, retail automation industry must offer cost-effective items.
Major players in the retail automation market are attempting to increase market demand by investing in research and development operations includes Datalogic S.p.A, NCR Corporation, Honeywell International Inc., KUKA AG, Zebra Technologies Corporation, Fujitsu Limited, Samsung Electronics Co. Ltd., Posiflex Technology, Inc., Tecsys Inc., Optimove Inc., Capillary Technologies, Focus Softnet FZ LLC, Future Way Technical Services LLC, QR Retail Automation (Asia) Sdn Bhd, Microlistics, First Data Corporation, E&K Automation GmbH, Napse, and Vinculum Solutions Pvt. Ltd.
July 2023: Eclipse is leading a Series B equity financing round of USD 28 million for Simbe Robotics, Inc., a company that uses robotics and AI to improve the performance of retailers by providing real-time insights into inventory and operations. Eclipse, one of the top venture capital firms that specializes in the digital transformation of vital physical businesses that have an influence on everyday life, contributes tremendous knowledge and experience to help Simbe advance into its next stage of growth.
April 2023: To increase inventory accuracy and flow, cut expenses, and improve the overall shopping experience, Walmart Inc. intends to automate two-thirds of its stores by the end of 2026. This move is a component of the organization's plan to better satisfy consumer expectations by reengineering its supply chain and creating a more intelligent and integrated omnichannel network. This entails using data, automation, and intelligent software more extensively.
Manned POS Terminal
Unattended Terminals
Organized Market
Unorganized Market
FMCG
Health and Personal Care
Apparel and Footwear
Hospitality
Consumer Electronics
Travel and Logistics
Oil & Gas
Others
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 7.1 Billion |
| Market Size 2023 | USD 7.81 Billion |
| Market Size 2032 | USD 16.878 Billion |
| Compound Annual Growth Rate (CAGR) | 10.10% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Market, Industry, and Region |
| Countries Covered | US |
| Key Companies Profiled | Datalogic S.p.A, NCR Corporation, Honeywell International Inc., KUKA AG, Zebra Technologies Corporation, Fujitsu Limited, Samsung Electronics Co. Ltd., Posiflex Technology, Inc., Tecsys Inc., Optimove Inc., Capillary Technologies, Focus Softnet FZ LLC, Future Way Technical Services LLC, QR Retail Automation (Asia) Sdn Bhd, Microlistics, First Data Corporation, E&K Automation GmbH, Napse, and Vinculum Solutions Pvt. Ltd |
| Key Market Opportunities | Increasing adoption of the Internet of Things (IoT) and improved accessibility to the internet |
| Key Market Dynamics | Growth in e-commerce and the retail sector Growing use of contactless payment methods |
Frequently Asked Questions (FAQ) :
The US Retail Automation market size was valued at USD 7.1 Billion in 2022.
The market is projected to grow at a CAGR of 10.10% during the forecast period, 2023-2032.
The key players in the market are Datalogic S.p.A, NCR Corporation, Honeywell International Inc., KUKA AG, Zebra Technologies Corporation, Fujitsu Limited, Samsung Electronics Co. Ltd., Posiflex Technology, Inc., Tecsys Inc., Optimove Inc., Capillary Technologies, Focus Softnet FZ LLC, Future Way Technical Services LLC, QR Retail Automation (Asia) Sdn Bhd, Microlistics, First Data Corporation, E&K Automation GmbH, Napse, and Vinculum Solutions Pvt. Ltd.
The hospitality category dominated the market in 2022.
The manned POS terminal category had the largest share in the market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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