What Has Been the Growth of the Retail Automation Market So Far?
The retail automation market has seen considerable growth due to a variety of factors.
• Over the past few years, the retail automation market magnitude has accelerated significantly. The market, which stood at $20.07 billion in 2024, is projected to reach $22.59 billion in 2025, showcasing a compound annual growth rate (CAGR) of 12.5%.
Factors such as competitive tensions, complexities of the supply chain, the surge in e-commerce, escalating labor costs, and varying consumer habits contributed to the historical growth period.
How Will the Retail Automation Market?
The retail automation market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are set for the retail automation market size to experience accelerated growth in the coming years, reaching a value of $36.03 billion by 2029 with a compound annual growth rate (CAGR) of 12.4%.
This estimated growth during the forecasted period is attributed to the shift towards omnichannel retail, increased focus on customer experience, the requirement for contactless solutions, sustainability initiatives, stringent regulatory compliance, and advanced security methods. Notable trends for the same timeframe include the incorporation of blockchain technology for supply chain transparency, the evolution of autonomous retail solutions, augmented reality (AR) integrations in retail, an emphasis on sustainability, and expansion of voice-activated shopping.
Which Factors Are Boosting Growth In The Retail Automation Market?
The anticipated growth of the retail automation market is being propelled by increasing consumer expectations for a quicker, more streamlined shopping experience. This enhanced shopping experience embodies efficient transactions, smooth processes, and a lessened burden on customers, offering rapid checkouts, simple navigation, comprehensive product information, and convenient payment methods. The retail automation market benefits from swift and streamlined shopping experiences through improved customer satisfaction, efficient processes, and data-informed enhancements, encouraging further innovation and growth. Retail automation employs technological solutions to simplify and speed up the shopping process, increasing both efficiency and convenience for customers via faster transactions and smoother operations. For example, as reported by the US Department of Commerce’s Census Bureau in February 2024, e-commerce estimates for Q4 2023 saw a rise of 7.5% (±1.2%) from Q4 2022, while total retail sales experienced a 2.8% (±0.4%) increase during the same timeframe. Given these factors, the growing consumer demand for a quicker and more effortless shopping experience is fueling the expansion of the retail automation market.
What Key Areas Define The Segmentation Of The Global Retail Automation Market?
The retail automation market covered in this report is segmented –
1) By Product: Point-Of-Sale (POS), RFID And Barcode, Camera, Electronic Shelf Label, Warehouse Robotics, Other Products
2) By Implementation: In-Store, Warehouse
3) By End-Use: Hyper markets, Single Item Stores, Super markets, Fuel Stations, Retail Pharmacies, Other End-Uses
Subsegments:
1) By Point-Of-Sale (POS): Traditional POS Systems, Mobile POS Systems, Cloud-Based POS Systems
2) By RFID And Barcode: RFID Tags And Readers, Barcode Scanners, Inventory Management Systems
3) By Camera: Surveillance Cameras, Smart Cameras For Analytics, Customer Behavior Tracking Cameras
4) By Electronic Shelf Label: LCD Shelf Labels, E-Paper Shelf Labels, Wireless Communication Systems
5) By Warehouse Robotics: Automated Guided Vehicles (AGVs), Autonomous Mobile Robots (AMRs), Robotic Picking Systems
6) By Other Products: Self-Service Kiosks, Digital Signage, Payment Solutions
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What New Trends Are Influencing The Retail Automation Market?
Key players in the retail automation market are progressing towards the creation of innovative technologies like the fusion of robotics and automation to better serve customers through enhanced features. This fusion implies introducing robotic systems and automated techniques in various sectors of the industrial, manufacturing, or other industries. For example, Dobot, a robotic arms manufacturer based in Japan, unveiled its Nova collaborative robots for retail automation in August 2023. The initial two models of the Nova series can carry payloads of 2 kg and 5 kg, suitable for retail and physiotherapy duties, respectively. The Nova Series incorporates numerous safety measures which can accurately identify human movement and halt functioning within 0.01 seconds when a collision is detected. If there is a power outage, the Nova robot automatically halts in position to safeguard others.
Who Are the Key Players In The Retail Automation Market?
Major companies operating in the retail automation market are:
• Samsung Electronics Co. Ltd.
• Amazon Web Services Inc.
• Honeywell International Inc.
• Fujitsu Limited
• Posiflex Technology Inc.
• NCR Corporation
• Zebra Technologies Corporation
• KUKA AG
• Diebold Nixdorf Inc.
• Casio Computer Co. Ltd.
• Capillary Technologies
• PAX Technology Inc.
• Datalogic S.p.A
• Toshiba Global Commerce Solutions Inc.
• WiseTech Global group
• First Data Corporation
• Optimove Inc.
• Tecsys Inc.
• ECR Software Corporation
• SandenVendo
• E&K Automation GmbH
• 6 River Systems LLC
• Focus Softnet FZ LLC
• Vinculum Solutions Pvt. Ltd.
• Pricer AB
• Future Way Technical Services LLC
• QR Retail Automation (Asia) Sdn Bhd
• Napse
• Kiosk & Display LLC
• Wincor Nixdorf AG
What Is The Most Dominant Region In The Retail Automation Market?
North America was the largest region in the retail automation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the retail automation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
