Retail Automation Market Outlook:
Retail Automation Market size was over USD 26.82 billion in 2024 and is anticipated to cross USD 66.47 billion by 2034, growing at more than 9.5% CAGR during the forecast period i.e., between 2025-2034. In the year 2025, the industry size of retail automation is estimated at USD 28.99 billion.
Key Retail Automation Market Insights Summary:
North America's share in the retail automation market is forecasted to surpass 38% by the end of 2034.
Asia Pacific retail automation market is likely to register a rapid CAGR throughout the forecast period.
The point of sale (PoS) segment in the retail automation market is projected to capture a strong revenue share of 68% by 2034.
The software segment in the retail automation market is expected to secure a significant portion of the market.
The warehouse segment in the retail automation market is anticipated to attain a considerable share by 2034.
Key Growth Trends:
- Growing investment in robotics and AI
- Growing adoption of advanced technologies & data
Key Players:
- 6 River Systems LLC, Amazon Web Services, Inc., Casio Computer Co. Ltd., Datalogic S.p.A., Diebold Nixdorf, Incorporated., E&K Automation GmbH, ECR Software Corporation, Kiosk & Display LLC, Kuka AG, NCR Corporation.
Market Size and Growth Projections:
- 2024 Market Size: USD 26.82 billion
- 2025 Market Size: USD 28.99 billion
- Projected Market Size: USD 66.47 billion by 2034
- Growth Forecasts: 9.5% CAGR (2025-2034)
- Largest Region: North America (38% Share by 2034)
- Fastest Growing Region: North America
The market growth is propelled by 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 growth driver of the retail automation market. 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.
Retail Automation Market Growth Drivers and Challenges:
Growth Drivers
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Growing investment in robotics and AI: Robotics along with Artificial Intelligence are expected to gain more importance in retail automation in the forecasted years, due to the growing investment in these technologies. Both robotics and Artificial Intelligence can provide many comprehensive and effective solutions, which are driving the growth of the retail automation market. The robotics investments crossed about 419 million USD in November 2023.
- Growing adoption of advanced technologies & data: Automation and retail industries are integrating and exploring the usage of advanced technologies such as IoT, machine learning, Artificial Intelligence, computer vision, blockchain, and analytics. The availability of such large data sets and their usage can significantly increase the efficiency and effectiveness of retail.
- Greater focus on sustainability: Environmental concerns have increased the focus on the energy consumption of various other retail automation systems. Automation solutions are highly focused on improving the efficiency and contributing to environmental sustainability
- Growing penetration of e-commerce and m-commerce: The growth in the usage of online shopping and mobile shopping is expected to increase the development of retail automation in the upcoming years.
Challenges
- Concerns over data privacy and security: Retail automation systems can require access to sensitive and personal data, raising concerns about data protection and security among customers, businesses, and regulators.
- Limited visibility: Retail automation solutions can provide limited insights and analytics, which can limit their usefulness and impact on decision-making as well.
- Limited functionality and flexibility, which can affect their adoption and impact their ROI
- High installation and maintenance cost
Retail Automation Market Size and Forecast:
| Report Attribute | Details |
|---|---|
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Base Year |
2024 |
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Forecast Year |
2025-2034 |
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CAGR |
9.5% |
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Base Year Market Size (2024) |
USD 26.82 billion |
|
Forecast Year Market Size (2034) |
USD 66.47 billion |
|
Regional Scope |
|
Retail Automation Market Segmentation:
Type Segment Analysis
The point of sale (PoS) segment in the retail automation market is estimated to gain a robust revenue share of 68% by 2034, led by 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 in the coming years, 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 Segment Analysis
The warehouse segment in the retail automation market is poised to hold substantial share by 2034, 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.
Our in-depth analysis of the global retail automation market includes the following segments:
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Type |
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Component |
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Implementation |
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End-user |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Retail Automation Market Regional Analysis:
North American Market Insights
The retail automation market share in North America is estimated to cross 38% by the end of 2034, impelled by higher rate of automation technology which is being adopted by several businesses, increasing e-commerce sector, and growing labor expenses. 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 Insights
The Asia Pacific retail automation market is predicted to witness exponential CAGR during the forecast period, led by 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 the region.
Key Retail Automation Market Players:
- Honeywell International Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- 6 River Systems LLC
- Amazon Web Services, Inc.
- Casio Computer Co. Ltd.
- Datalogic S.p.A.
- Diebold Nixdorf, Incorporated.
- E&K Automation GmbH
- ECR Software Corporation
- Kiosk & Display LLC
- Kuka AG
- NCR Corporation
Recent Developments
- RAINUS Co., Ltd. in February 2023, collaborated with Toshiba Global Commerce Solutions to bring electronic shelf labels into managing retailers. In this partnership, Toshiba Global Commerce Solutions would install, sell, and maintain these electronic shelf-label (ESL) solutions for retail customers.
- Datalogic SPA, In May 2022, launched their Powerscan 9600 series of handheld scanners, this new product is designed specifically for warehousing, manufacturing, and retail applications. This new design has a rugged design along with wireless charging.
- Toshiba Global Commerce Solutions, In April 2023, announced their Global Services Command Center, a "mission control" site that offers retailers enhanced intelligence along with proactive availability of several services for the retail store systems. This center enables remote diagnostics, monitoring, and issue resolution, which allows retailers to maintain system health while minimizing downtime without requiring direct involvement.
Author Credits:
- Report ID: 614
- Published Date: Jun 13, 2025
- Report Format: PDF, PPT
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