Retail Automation Market size is poised to reach USD 82 Billion by the end of 2036, growing at a CAGR of 12% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of retail automation was USD 21 Billion and the reason behind this growth is propelled by the increased use of Artificial Intelligence (AI) in the retail industry, as AI allows businesses to be “smarter” in terms of staffing and implementation of decisions, which helps the organization to optimize the labor, replenish the costs, along with maximizing the sales as well. According to the World Economic Forum, AI services in the retail sector are expected to increase from 5 billion USD to about 31 billion USD by 2028.
Furthermore, the rising consumer demand, especially for automated solutions in retail settings is a significant driver of the retail automation market growth. According to a company survey, there is an 11% increase in customer visits to stores that have been integrated with automated technology. By 2025, such retailers plan to automate 70% of their daily routine store tasks while prioritizing tech investments which will enhance operational efficiency, while reducing costs, and helping in gaining higher profits.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
~12% |
Base Year Market Size (2023) |
~ USD 21 Billion |
Forecast Year Market Size (2036) |
~ USD 82 Billion |
Regional Scope |
|
Type (Point of Sale (PoS), Electronic Shelf Labels (ESL))
The point of sale (PoS) segment in the retail automation market is estimated to gain a robust revenue share of 68% in the coming years owing to the significant improvement in the customer experience and convenience, using features such as barcode scanning, self-check-out, personalized recommendations, and automated order processing, which can also help to reduce customer wait times and improve the overall customer experience and satisfaction. Moreover, the average time to scan and locate a barcode is about 2 seconds, which is approximately 1800 per hour. Studies showed that after the usage of barcodes, there has been a about ten-fold increase in the productivity of barcode usage.
Component (Software, Hardware, Services)
The software segment in the retail automation market is set to garner a notable share shortly and is likely to remain the second largest segment in the application of the market as the modular and flexible software components can be easily repurposed and repurposed for different businesses and use cases, without the need for significant costs. This can reduce the investment and cost of implementing new solutions, and contribute to greater cost-effectiveness.
Furthermore, these software components can be integrated with existing systems and solutions more easily and seamlessly, without the need for extensive changes or adjustments. This can make for a smoother implementation and enable a higher level of integration and synchronization
Implementation (Warehouses, On-Store Premises)
The warehouse segment in the retail automation market is estimated to hold a noteworthy share as it can collect and organize large amounts of data, effectively tracking and monitoring the inventory which can provide a clearer and more efficient view of the inventory and its movement, and enable better analytics and decision-making. Moreover, automated warehouse management can be easily scaled and adapted according to the needs of the business, without the need for excessive investment or large-scale overhauls. This can enhance the agility and adaptability of the warehouse.
End-user (Hypermarkets, Supermarkets, Specialty stores)
The hypermarket segment in the retail automation market is estimated to hold a noteworthy share as it often features multiple departments, such as apparel, home, and grocery departments, which can work with different systems, processes, and procedures. Automation can enable better collaboration and synergy among the different departments, reducing inefficiencies and friction
Our in-depth analysis of the global retail automation market includes the following segments:
Type |
|
Component |
|
Implementation |
|
End-user |
|
North American Market Forecast
The retail automation market in North America is estimated to have the largest share of 38% in 2023, impelled by the higher rate of automation technology which is being adopted by several businesses, the increasing e-commerce market, and growing labor expenses, which are driving market growth in this region. Around 30% of the workers are expected to be exposed to advanced technologies used for several automation purposes, while the manufacturing workers are much more exposed than other workers. Furthermore, many manufacturers have also been relocated to this region because of the presence of a large customer base and to achieve high economies of scale. Local retailers in the region are also starting to offer several benefits to customers, such as loyalty programs, to encourage digital payments, which drives the demand for the retail automation market.
APAC Market Statistics
The Asia Pacific retail automation market is estimated to be the second largest, during the forecast period led by a higher number of small-sized and medium-sized enterprises, as they are highly adopting the automation technology. Furthermore, mobile checkout devices in several developing countries have made it possible to sell goods anywhere including events, kiosks, pop-up stores, and various other public areas. The new automation technologies are going to have an impact on the retail industry in this region.
Author Credits: Abhishek Verma
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?