Key Market Overview:
The Retail Automation Market was valued at USD 14,511.32 Million in 2022 registering a CAGR of 9.65% during the forecast period (2023-2030), and the market is projected to be worth USD 29,766.77 Million by 2030.
Retail automation includes a set of technologies that are employed in retail businesses in order to streamline standard operations. Common automation utilized in the retail sector includes point-of-sale (POS), ordering software, self-checkout system, inventory, and others which helps in automating sales and stock levels. Moreover, retail automation offers multiple benefits such as reduced costs, improved operational efficiency, reduced downtime, higher scalability, enhanced customer service, and others. The aforementioned benefits of retail automation are the major aspects increasing its adoption in the retail industry.
Factors such as the growing trend towards digitalization and the increasing adoption of retail automation solutions in retail stores including supermarkets/hypermarkets, specialty stores, and others are the major factors driving the growth of the market.
In November 2022, Dobot launched its new Nova series, which consist of collaborative robots that are specifically designed for retail customers to handle tasks including making coffee, ice cream, cocktail, noodles, and other related tasks. The Nova series also includes several safety features that are capable of intelligently sensing human movement and stopping operation upon collision detection. Thus, the increasing development of new retail automation solutions for its utilization in the retail sector will further drive the growth of the market in the upcoming years.
Retail Automation Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Million)||29,766.77 million|
|CAGR (2023-2030)||9.65 %|
|By Type||POS System, Self-Checkout System, RFID and Barcode Scanners, Electronic Shelf Label (ESL), Autonomous Guided Vehicle (AGV), and Others|
|By Implementation||In-Store and Warehouse|
|By End User||Hypermarkets/Supermarkets, Convenience Stores, Specialty Stores, Retail Pharmacies, and Others|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] |
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Datalogic S.p.A., Diebold Nixdorf Incorporated, Fiserv Inc., Fujitsu Limited, Honeywell International Inc., KUKA AG, NCR Corporation, Posiflex Technology Inc., Toshiba Global Commerce Solutions, Zebra Technologies Corporation, Olea Kiosks Inc., AGS Transact Technologies Ltd., and Fametech Inc.|
Business enterprises operating in the retail sector are adopting retail automation solutions in order to improve business processes and ensure efficiency in retail operations. Moreover, the deployment of retail automation solutions offers retailers with several benefits such as reduced costs, improved efficiency, smoother workflow, increased sales performance, and enhanced customer experience.
The rising trend towards digitalization, increasing development of new retail stores, and the rising demand for automated solutions in retail stores to improve operational efficiency are the prime factors driving the adoption of automation solutions in the retail sector. According to the Retailers Association of India, the retail sector in India attained 96% of pre-COVID-19 sales in September 2021, owing to rising demand from consumers across the country. Moreover, in March 2022, LuLu Group launched its new hypermarket in Dubai City Mall, as a part of the company\'s expansion strategy. Additionally, the LuLu Group further launched two new hypermarkets in Shamkha Mall in Abu Dhabi, and Dubai Investment Park. Hence, the growth of the retail sector is increasing the adoption of retail automation solutions, owing to its aforementioned benefits and usage, thereby, driving the growth of the market.
Retail automation solutions and products primarily rely on the availability of the internet and electricity for its functioning. Retail automation systems such as POS systems, self-checkout systems, vending machines, and others require an uninterrupted and constant supply of electricity to ensure the availability of several products to consumers. Moreover, the recent consumer shift towards online or card payments require high-speed internet connectivity to ensure quick and timely payments. However, several operational challenges including slow internet speed, lower bandwidth, or server traffic may result in the unavailability of electricity and internet connectivity, which limits the implementation of retail automation solutions. Additionally, the lack of internet and electricity facilities in rural areas further restricts the installation of automated retail solutions in rural areas. The aforementioned factors are further restraining the growth of the market.
The type segment is divided into POS system, self-checkout system, RFID and barcode scanners, electronic shelf label (ESL), autonomous guided vehicle (AGV), and others.
The POS system segment is anticipated to contribute the largest market share. A POS (point of sale) system refers to a device that is used for processing transactions by retail customers. POS systems have evolved from cash registers to modern hubs that are capable of managing sales, promotional offers, customer experience, and operational processes. Additionally, POS system offers various features that enables retailers to track pricing accuracy, monitor inventory and buying trends and collect marketing data.
The rising trend towards digitalization, technological innovation, and the growing demand for automated solutions in the retail sector are the prime factors driving the adoption of POS systems. In September 2022, Shopify, an e-commerce company launched its latest version of POS system. The new POS system enables retailers to create an omni-channel experience that is capable of integrating in-person and online sales. Therefore, the increasing development of POS systems for deployment in the retail sector is expected to fuel the growth of the segment over the forecast period.
Additionally, the RFID and barcode scanners segment is expected to grow steadily during forecast period. A RFID (radio frequency identification) scanner refers to a device that is used for gathering information from an RFID tag, which is further processed by software to generate real-time results for transactions, inventory levels, stock taking, or individual customer purchase order history in retail stores. Meanwhile, barcode scanners are deployed for reading, translating, and transmitting information contained in barcodes during the purchase of goods in retail stores. In January 2023, RAIN Alliance launched a new RFID scanner, R-5000, that is designed for utilization in the retail industry for accurate tracking and inventory management.
Further, the rising development of retail stores and the growing trend for adoption of RFID/barcode scanners in retail stores, particularly during the purchase and checkout application are the vital factors that will further drive the growth of the segment in the upcoming years.
By End User
The end user segment is divided into hypermarkets/supermarkets, convenience stores, specialty stores, retail pharmacies, and others.
The hypermarkets/supermarkets segment is expected to account for largest share in the retail automation market. Retail automation solutions are primarily deployed in hypermarkets/supermarkets for monitoring stock levels and automatic placement of orders when stock runs low. Moreover, the implementation of retail automation solutions in supermarket/hypermarket retailers with an opportunity to significantly improve the stores efficiency, thus, contributing to an increase in profitability.
Factors such as ease of purchase, higher display value, and the rising demand for automation solutions in hypermarkets/supermarkets are the key determinants driving the growth of the segment. In January 2021, More Retail, an Indian supermarket chain, revealed its expansion plan to open 300 supermarkets in several cities across India over the next three years. Hence, the expansion of supermarkets is fostering the demand for retail automation solutions, thereby driving the growth of the market.
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. North American region is considered to contribute the largest revenue share in the year 2022. The growth of the market in the region is attributed to the presence of various leading retail automation providers in North America such as Toshiba Global Commerce Solutions, Diebold Nixdorf Incorporated, Fiserv Inc., Olea Kiosks Inc., and others. Moreover, factors such as the prevalence of a large number of retail companies in North America with global distribution operations and warehousing, along with the rising growth in the e-commerce industry are further driving the market growth in the region.
The Asia-Pacific region is anticipated to witness substantial growth during the forecast period. Factors such as the rising development of retail stores including supermarkets/hypermarkets, convenience stores, and specialty stores among others are fostering the demand for retail automation solutions in the region. For instance, in October 2022, Vijetha Supermarkets launched its new retail store in Hyderabad, India. The company has built more than 70 stores across multiple cities in India and further aims to establish 100 stores including supermarkets and hypermarkets in the upcoming years. The aforementioned factors are positively influencing the demand for retail automation solutions in the region, thus, boosting the growth of the market in the Asia-Pacific region.
Retail Automation Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the Global Retail Automation Market. Key players in the market include-
• Datalogic S.p.A.
• Diebold Nixdorf Incorporated
• Fiserv Inc.
• Fujitsu Limited
• Honeywell International Inc.
• KUKA AG
• NCR Corporation
• Posiflex Technology Inc.
• Toshiba Global Commerce Solutions
• Zebra Technologies Corporation
• Olea Kiosks Inc.
• AGS Transact Technologies Ltd.
• Fametech Inc.
• In April 2021, Code Corporation launched its new barcode scanner for deployment in point-of-sale and ID scanning. The new CR5200 barcode scanner is designed for fast-paced environments including the hands-free retail point of sale and access control purposes.
• In October 2022, Socket Mobile launched its new range of barcode plus QR code scanners, DuraScan D820, SocketScan S820, and DuraSled DS820. The newly launched products are ideal for retail point of sale, inventory management, and other related applications.