Delray Beach, FL, Oct. 23, 2024 (GLOBE NEWSWIRE) -- The global retail automation market size is expected to be valued at USD 27.6 billion in 2024 and is projected to reach USD 44.3 billion by 2029; it is expected to grow at a CAGR of 9.9% from 2024 to 2029.
The retail automation market is witnessing substantial growth, driven by the need for enhanced customer experience, increased efficiency, and operational cost reductions. This market includes a wide range of solutions, such as self-checkout systems, point of sale (POS) systems, automated kiosks, electronic shelf labels (ESLs), and AI-powered analytics tools. As digital transformation continues to reshape the retail landscape, automation technologies are playing a critical role in helping retailers meet evolving consumer expectations. This PR delves into the market size, share, and growth analysis of retail automation, highlighting key trends and opportunities.
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Key Growth Drivers
- Enhanced Customer Experience: Retail automation enables seamless shopping experiences by reducing checkout times, providing personalized recommendations, and ensuring accurate pricing. Self-checkout systems and digital kiosks have become particularly popular, offering customers the convenience they seek while shopping.
- Operational Efficiency: Automation solutions like inventory management software, robotic process automation (RPA), and AI-based demand forecasting tools help retailers streamline their operations. This leads to better stock management, reduced shrinkage, and minimized out-of-stock situations, ultimately boosting profitability.
- Reduced Labor Costs: As labor costs continue to rise, retailers are increasingly turning to automation to perform repetitive tasks, such as restocking, pricing updates, and checkout processes. This shift helps businesses reduce their reliance on manual labor while maintaining high service standards.
- Data-Driven Decision Making: Retailers are leveraging advanced analytics and AI-powered insights to understand customer preferences, optimize product placements, and develop targeted marketing campaigns. Automation tools collect and analyze vast amounts of data, enabling businesses to make informed decisions that drive growth and customer satisfaction.
- E-commerce Integration: The integration of automation technologies in e-commerce platforms has transformed how online orders are processed, packaged, and delivered. Automated warehousing, order fulfillment, and last-mile delivery solutions have become essential for retailers looking to compete in the fast-paced e-commerce environment.
Market Size and Share
The global retail automation market is experiencing robust growth, with a projected market value expected to reach 44.3 billion by 2029, at a compound annual growth rate (CAGR) of 9.9% from 2024 to 2029. This growth is being fueled by the rising demand for efficient retail processes, improved inventory management, and reduced labor costs.
Key Market Segments
The retail automation market can be segmented based on components, such as hardware, software, and services, and by end-use industries, including supermarkets, hypermarkets, convenience stores, and specialty stores.
Hypermarket Segment: By end user, hypermarkets are expected to have the biggest market share in 2024. Supermarkets, hypermarkets, and department shops often have a higher customer flow and purchase volume than any other form of retail store. The growth of retail automation in hypermarkets is driven by the need for operational efficiency and improved customer experience.
POS Systems: The growth of point-of-sale (POS) systems in retail automation is driven by their ability to enhance customer experience, streamline operations, and provide valuable data insights. With features like advanced inventory management and real-time data analytics, modern POS systems help retailers optimize stock levels, reduce costs, and improve customer service. Cloud-based solutions offer flexibility and scalability, allowing businesses of all sizes to benefit from these features.
Warehouse Type: Retail automation in warehouses is growing due to increasing demand for efficiency and accuracy in inventory management. Automation technologies such as robotic picking systems, automated conveyor belts, and inventory tracking software help optimize warehouse operations, reduce errors, and enhance productivity. Retailers are investing in automation to handle larger volumes of orders and meet customer expectations for fast and accurate deliveries.
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Challenges and Opportunities
The integration of automation fosters communication and collaboration across the supply chain. Automated communication tools and software platforms enable seamless information exchange between suppliers, manufacturers, distributors, and retailers. This enhanced connectivity facilitates quicker response times to changes in demand, supply chain disruptions, and market trends. As a result, retailers can make data-driven decisions, reduce lead times, and ensure a more agile and responsive supply chain.
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 industry, as businesses face the challenge of ensuring robust security measures while leveraging automation to streamline operations and enhance customer experiences.
Future of Retail Automation:
The future of retail automation is set to be shaped by rapid advancements in artificial intelligence (AI), machine learning, and Internet of Things (IoT) technologies. As consumer expectations continue to rise, retailers are leveraging automation to offer more personalized shopping experiences, streamline operations, and optimize supply chains. Automation solutions like autonomous delivery systems, AI-driven chatbots, cashier-less stores, and smart inventory management are expected to become more mainstream, allowing businesses to operate with greater efficiency and accuracy. Moreover, the integration of augmented reality (AR) and virtual reality (VR) into automated retail environments is poised to transform in-store and online shopping, providing immersive experiences. As automation becomes more affordable and accessible, small and medium-sized retailers will also adopt these technologies to remain competitive, making retail automation an essential driver of growth and innovation in the coming years.
Top Retail Automation Companies: Key players
- Global | Honeywell (US),
- NCR VOYIX Global – Digital Banking,
- POS Systems, Payment Solutions (US),
- Bank Innovation – Retail Technology | Diebold Nixdorf (US),
- Zebra Technologies | Visible. Connected. Optimized. | Zebra (US),
- Hikvision - Leading Video AIoT Solutions & Services Provider (China), and others.
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