Global Retail Automation Market

Retail Automation Market Size, Share, Growth Analysis, By End-User(Hypermarkets, Supermarkets, Non-food Retail Stores, Specialty Stores), By Product Type(POS (Interactive Kiosks, Self-checkout Systems), Cameras, Electronic Shelf Labels (LCDS), By Implementation(In-store and Warehouse.), By Region - Industry Forecast 2025-2032


Report ID: SQMIG45E2178 | Region: Global | Published Date: August, 2024
Pages: 197 | Tables: 65 | Figures: 75

Retail Automation Market Dynamics

Global Retail Automation Market Drivers

Increasing Adoption of Self-Checkout Systems

  • Retailers are increasingly deploying self-checkout systems to enhance the customer experience and improve operational efficiency. The major retailers worldwide, such as Walmart, Target, and Tesco, have expanded their self-checkout offerings to reduce checkout time, provide contactless transactions, and cater to the growing demand for convenience.

Growing Emphasis on Contactless Technologies

  • Retail automation solutions like touchless payment systems, mobile apps for shopping, and automated kiosks have gained prominence in 2022 as retailers prioritize customer safety and hygiene. Contactless technologies have become a driving force behind the growth of the retail automation market.

Minimized labor costs by embracing automation 

  • In the rapidly evolving landscape of the retail automation industry, the prospect of cost savings through minimizing labor costs stands out as a transformative opportunity for businesses seeking enhanced efficiency and competitiveness. The adoption of advanced technologies has paved the way for streamlined operations, offering retailers a strategic advantage in optimizing their workforce and reducing associated expenses. 

Global Retail Automation Market Restraints

High Implementation Costs

  • The initial investment and ongoing maintenance costs associated with retail automation solutions can be a significant restraint for some retailers, particularly smaller businesses. The expenses related to hardware, software, integration, and employee training can pose financial challenges, limiting the widespread adoption of automation technologies.

Concerns Regarding Job Displacement

  • The automation of retail processes raises concerns about job displacement and the impact on the workforce. While automation can streamline operations and improve efficiency, it may also lead to reduced employment opportunities for certain roles, such as cashiers. Balancing automation with workforce management and retraining programs becomes essential to address this concern. 

Regular maintenance and support of automated equipment 

  • In retail automation, where technology is the driving force behind enhanced efficiency and customer experiences, the regular maintenance and support of systems is important. While these practices are essential for ensuring the operation of automated systems, they present a notable restraint for retailers navigating the intricacies of a rapidly evolving industry. The challenge lies in the potential for operational disruptions during maintenance activities. Retailers often face the dilemma of temporarily closing stores or sections for maintenance. This interruption in operations can lead to revenue loss and impact customer satisfaction, necessitating a delicate balance between the need for upkeep and the demand for continuous service. 

 Cybersecurity threats  

  • The growing adoption of automation in the retail sector has brought about a surge in cybersecurity threats. With interconnected systems and digital platforms becoming integral to operations, malicious actors exploit vulnerabilities to steal sensitive data and disrupt processes. This heightened risk poses a significant restraint on the retail automation market, as businesses face the challenge of ensuring robust security measures while leveraging automation to streamline operations and enhance customer experiences 

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FAQs

Retail Automation Market size was valued at USD 24.62 Billion in 2023 and is poised to grow from USD 27.13 Billion in 2024 to USD 59 Billion by 2032, growing at a CAGR of 10.20% during the forecast period (2025-2032).

The global retail automation market is a highly competitive landscape with the presence of several key players striving to gain a competitive edge. These companies focus on innovation, partnerships, mergers and acquisitions, and geographic expansion to solidify their market position. The competitive landscape is dynamic, with companies striving to differentiate themselves through product innovation, customer-centric solutions, and strategic partnerships. 'NCR Corporation (US) ', 'Toshiba Corporation (Japan) ', 'Diebold Nixdorf, Incorporated (US) ', 'Fujitsu Limited (Japan) ', 'Honeywell International Inc. (US) ', 'Zebra Technologies Corporation (US) ', 'IBM Corporation (US) ', 'Panasonic Corporation (Japan) ', 'ECR Software Corporation (US) ', 'Posiflex Technology, Inc. (Taiwan) ', 'NEC Corporation (Japan) ', 'Pricer AB (Sweden) ', 'Zucchetti Group (Italy) ', 'Seiko Epson Corporation (Japan) ', 'Datalogic S.p.A. (Italy) ', 'SAP SE (Germany) ', 'Casio Computer Co., Ltd. (Japan) ', 'Bluebird Inc. (South Korea) ', 'SATO Holdings Corporation (Japan) ', 'Cognex Corporation (United States) ', 'Avery Dennison Corporation (United States)'

Retailers are increasingly deploying self-checkout systems to enhance the customer experience and improve operational efficiency. The major retailers worldwide, such as Walmart, Target, and Tesco, have expanded their self-checkout offerings to reduce checkout time, provide contactless transactions, and cater to the growing demand for convenience.

North America is projected to maintain its position as the leading segment in the market during the forecast period. This is primarily due to the presence of well-established manufacturers and a large consumer base in the region. North America accounted for the largest share of revenue in the market, and it is expected to exhibit a robust compound annual growth rate (CAGR) of over 7% from 2023 to 2030. Besides North America, the European and Asia Pacific regions are also expected to be significant contributors to the global market's revenue.

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Global Retail Automation Market

Report ID: SQMIG45E2178

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