December 2023
Retail Automation Market (By Implementation: In-store, Warehouse; By Product: Point-of-Sale; RFID & Barcode, Camera, Electronic Shelf Label, Warehouse Robotics, Others; By End-use: Hypermarkets, Single Item Stores, Supermarkets, Fuel Stations, Retail Pharmacies, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2034
The global retail automation market size was USD 26.50 billion in 2023, accounted for USD 29.02 billion in 2024, and is expected to reach around USD 71.91 billion by 2034, expanding at a CAGR of 9.5% from 2024 to 2034.
The U.S. retail automation market size was estimated at USD 6.32 billion in 2023 and is predicted to be worth around USD 17.51 billion by 2034, at a CAGR of 9.7% from 2024 to 2034.
North America held the largest share of 34% in 2023. the retail automation market due to its advanced technological infrastructure, widespread adoption of innovative retail solutions, and a mature retail sector. The region's retail industry is quick to embrace automation technologies, including self-checkout systems, AI-driven analytics, and omnichannel integration. Additionally, the high consumer demand for convenience and efficiency in shopping experiences drives retailers in North America to invest significantly in automation solutions, contributing to the region's dominant position in the global retail automation market.
Asia-Pacific is poised for robust growth in the retail automation market due to factors such as rapid urbanization, increasing consumer demand for convenient shopping experiences, and the expansion of organized retail. With a rising middle class and a tech-savvy population, businesses in the region are embracing automation to improve operational efficiency and enhance customer satisfaction. The adoption of technologies like self-checkout systems, smart shelves, and AI-driven analytics is expected to drive substantial growth in the retail automation sector across Asia-Pacific.
Meanwhile, Europe is experiencing notable growth in the retail automation market due to a convergence of factors. Rising labor costs, a push for operational efficiency, and the demand for enhanced customer experiences are driving the adoption of automation solutions. Retailers in Europe are increasingly integrating technologies like self-checkouts, AI-driven analytics, and robotics to stay competitive and meet the evolving expectations of consumers. Additionally, the emphasis on sustainability and the need for contactless solutions have further fueled the growth of retail automation in the European market.
The retail automation market offers services associated with the integration of technology and systems to streamline and enhance various processes within the retail industry. It involves the deployment of tools such as self-checkouts, robotics, and artificial intelligence (AI) to automate tasks traditionally performed by human workers. The primary goal of retail automation is to improve operational efficiency, reduce costs, and enhance the overall customer experience. For example, self-checkout kiosks allow customers to scan and pay for their purchases independently, while robotics and AI are utilized in inventory management, order fulfillment, and even customer service. This transformation is driven by factors like rising labor costs, the need for faster and more accurate transactions, and the demand for a seamless and efficient shopping journey. Retailers adopting automation aim to stay competitive, optimize resource utilization, and adapt to the evolving expectations of modern consumers.
Retail Automation Market Data and Statistics
Report Coverage | Details |
Growth Rate from 2024 to 2034 | CAGR of 9.5% |
Global Market Size in 2023 | USD 26.50 Billion |
Global Market Size in 2024 | USD 29.02 Billion |
Global Market Size by 2034 | USD 71.91 Billion |
U.S. Market Size in 2023 | USD 6.32 Billion |
U.S. Market Size by 2034 | USD 17.51 Billion |
Base Year | 2023 |
Forecast Period | 2024 to 2034 |
Segments Covered | By Implementation, By Product, and By End-use |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Consumer demand for convenience
The retail automation market is experiencing a surge due to the increasing consumer demand for convenience in shopping experiences. As modern consumers seek quick and hassle-free transactions, retailers are turning to automation to meet these expectations. Self-checkout kiosks, contactless payment options, and automated inventory management systems are among the solutions implemented to enhance overall shopping convenience.
Studies reveal that 66% of global consumers prefer using self-checkout options, emphasizing the importance of automation in aligning with consumer preferences.
The convenience factor extends beyond the checkout process, influencing the adoption of technologies like smart shelves and personalized recommendations powered by artificial intelligence. Retailers recognize the pivotal role of automation in providing a seamless and efficient shopping journey, contributing to increased customer satisfaction and loyalty. The growing emphasis on consumer convenience is a driving factor behind the expanding market demand for retail automation solutions.
Maintenance costs
Maintenance costs pose a significant restraint on the market demand for retail automation. While automation systems offer operational efficiency and streamlined processes, the ongoing expenses associated with maintenance can be a deterrent for retailers. Regular upkeep, software updates, and addressing technical issues contribute to the overall cost of ownership, impacting the cost-effectiveness of adopting automation solutions. For businesses, the concern over maintenance costs becomes a crucial factor in the decision-making process, especially for smaller retailers with limited budgets. The fear of unexpected or recurring expenses can hinder the widespread adoption of retail automation, as businesses weigh the benefits of operational efficiency against the potential financial burden of maintaining and sustaining automated systems over time. Balancing the advantages of automation with the long-term cost implications becomes crucial for retailers navigating the landscape of technological adoption in the retail sector.
Omnichannel integration
Omnichannel integration is a pivotal driver of opportunities in the retail automation market. By seamlessly integrating automation across various channels, retailers can create a cohesive and synchronized shopping experience for consumers. Opportunities arise for retailers to connect online and offline operations, enabling customers to transition effortlessly between different touchpoints, such as in-store, online, and mobile platforms. This integration allows for unified inventory management, consistent product information, and synchronized promotions, fostering a more engaging and convenient shopping journey.
Furthermore, omnichannel integration opens opportunities for retailers to leverage automation in order fulfillment processes. Automated systems can optimize inventory levels, reduce fulfillment times, and enhance overall operational efficiency. As consumers increasingly expect a unified and convenient shopping experience, the implementation of omnichannel integration through automation positions retailers to meet these expectations, driving customer satisfaction and loyalty.
The in-store segment held the largest share of the market in 2023. The in-store segment in the retail automation market refers to the implementation of automated technologies within physical retail spaces. This includes the deployment of self-checkout kiosks, smart shelves, and AI-driven customer service solutions. The trend in this segment involves enhancing the in-store shopping experience through automation, offering technologies like contactless payments, personalized recommendations, and efficient inventory management. Retailers are increasingly adopting in-store automation to streamline operations, reduce wait times, and provide customers with a seamless and technologically advanced retail environment.
The warehouse segment is anticipated to witness rapid growth at a significant CAGR during the forecast period. In the retail automation market, the warehouse segment focuses on implementing automated solutions to streamline and optimize warehouse operations. This involves deploying technologies such as robotics, conveyor systems, and automated storage and retrieval systems (AS/RS) to enhance efficiency in tasks like inventory management, picking, packing, and shipping. The trend in the warehouse segment is the growing adoption of advanced robotic systems, leveraging artificial intelligence and machine learning for more intelligent and adaptive warehouse automation, improving overall supply chain performance.
According to the product, the point-of-sale (POS) segment held the largest share of the market. The Point-of-Sale (POS) segment in the retail automation market refers to the technology and systems used to complete customer transactions at the point of purchase. This includes hardware like cash registers, barcode scanners, and terminals, as well as software that facilitates payment processing and inventory management. A significant trend in the POS segment involves the adoption of cloud-based POS solutions, offering retailers flexibility, real-time data access, and enhanced security. Mobile POS systems and contactless payment options are also gaining popularity, providing a seamless and efficient checkout experience for both retailers and customers.
The camera segment is anticipated to witness rapid growth over the projected period. In the retail automation market, the camera segment involves the use of surveillance and imaging technology to enhance security, monitor customer behavior, and optimize operational processes. Cameras are deployed for tasks such as people counting, facial recognition, and inventory management, contributing to a more efficient and secure retail environment. A notable trend in the camera segment is the integration of artificial intelligence (AI) for advanced analytics. AI-powered cameras enable real-time insights into customer behavior, aiding retailers in making informed decisions to improve store layout, product placement, and overall customer experience.
According to the end-use, the supermarket segment held the dominating share of the retail automation market. In the market, the supermarket segment pertains to large-scale grocery stores that offer a wide range of products. A notable trend in this segment is the adoption of self-checkout kiosks, enabling customers to scan and pay for items independently. Supermarkets are also integrating inventory management systems and smart shelving to enhance operational efficiency. These trends aim to streamline the shopping process, reduce wait times, and improve overall customer satisfaction in the dynamic landscape of supermarket retailing.
The hypermarket segment is anticipated to witness rapid growth over the projected period. The hypermarket segment in the retail automation market refers to large-scale retail stores that offer a wide range of products, including groceries, household items, and electronics. Trends in this segment involve the adoption of automation solutions to streamline operations. Hypermarkets are increasingly implementing self-checkout kiosks, inventory management systems, and AI-driven analytics to enhance customer experiences, optimize inventory levels, and improve overall operational efficiency. This trend aligns with the industry's focus on providing a seamless and efficient shopping journey in large-scale retail environments.
Segments Covered in the Report
By Implementation
By Product
By End-use
By Geography
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client
December 2023
June 2024
November 2022
October 2023