Global Retail Automation Market to Grow at a CAGR of 9.8% by 2030.

Introduction

Retail automation is a collection of automated procedures incorporating software and hardware solutions to handle retail activities such as inventory management, product management, staff management, and store audit. Typically, retail automation entails self-service processes and freestanding kiosks that function as fully automated retail establishments via software integrations. The increase in global e-commerce activities has positively affected the retail automation market. The rise in margin pressure is causing retailers to opt for unique solutions that can help them stand out in the face of intense competition.

Market Dynamics

Rise in Need for Business Process Optimization in the Retail Industry Global Retail Automation Market

Retailers operating on a global scale are continually looking for solutions that will facilitate lucrative expansion. Before the advent of automation, merchants were under pressure to outmaneuver the competition, exceed customers' expectations, expand revenue opportunities, and enhance organizational efficiency. This has increased the adoption of automation in the retail business due to its capacity to overcome all of the obstacles retailers face. This is also attributable to the automation of numerous processes and workflows that simplify retail operations, including inventory and warehouse management, physical store effectiveness, omnichannel efficiency, and others.

Previously, retailers viewed digital transformation as a nebulous and ever-changing technology; however, automation's unique features alleviated these fears. Supply chain optimization, vendor onboarding, essential item and unit planning, promotional, seasonal, space and end-cap planning, and others are pushing the retail industry's use of automation. This is anticipated to be a significant driver driving the expansion of the worldwide retail automation market.

Omnichannel retailing operations rapidly generate new operational options that merchants are implementing to provide customers with a hassle-free and straightforward payment experience. Simultaneously, retailers opt for automation solutions to save money and time by automating operational enhancements such as service scheduling and delivery features, product information and attributes management, consistent process execution despite the high human turnover, and others. In turn, this is anticipated to boost the growth of the worldwide retail automation market throughout the forecast period.

Technological Advancements with Real-Time Data and Analytics to Provide Opportunities for the Global Retail Automation Market

By integrating analytics into automation systems, retail automation is gaining significant traction and increasing rapidly. In addition, some incumbent retailers are considering large-scale investments in automation and AI technology to improve the consumer and employee experience. These are the most crucial opportunistic market drivers anticipated to drive market expansion.

In addition, an increase in the development of dynamic systems incorporating web scraping and data mining is anticipated to enable real-time analytics to automate pricing and promotions. Consequently, automating time-intensive operations can allow suppliers to spend more time on strategic initiatives and assist them in delivering company value.

It is anticipated that the high potential of emerging technologies such as machine learning, analytics, artificial intelligence, and advanced robotics to automate tasks performed by workers and their ability to provide a competitive advantage to market participants will stimulate the global market's growth.

Regional Insights

Based on region, the global retail automation market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America was the highest revenue contributor and is estimated to grow at a CAGR of 8.7%. North American merchants are globalizing their R&D activities to remain competitive in a globalized economy. In addition, the rise of technologies in the retail industry is anticipated to increase in North America to facilitate worldwide trade. In addition, the rising demand for highly sophisticated retail services and the requirement to attain high levels of accuracy in retailing activities such as inventory management is anticipated to be the primary reasons driving the expansion of retail automation in the region. In accordance with the U.S. In July 2019, the U.S. registered roughly 73.8% of trade exports and 79.0% of trade imports with free-trade partners, according to the Department of Commerce. In addition, a boost in trade policies improves the worldwide flow of goods, which is projected to be a prominent driver driving market expansion throughout the projection period.

Europe is the second largest region. It is estimated to reach an expected value of USD 9,125 million by 2030, registering a CAGR of 9.2% during the forecast period. Stable economic growth in European nations is anticipated to generate profitable growth opportunities for the retail automation industry in this region. The industries are in the midst of a digital transformation, driven mainly by technical innovations such as additive retailing, artificial intelligence, big data, advanced analytics, the Industrial Internet of Things (IIoT), and robots. Europe is an underutilized digitization potential because enterprises need to offer various services to redefine government programs for retail automation. As the potential to boost cross-border digital flows is relevant to Europe, it is envisaged that the European market will offer substantial development opportunities. In addition, the increasing requirement for automated commerce and warehouses to meet rising end-user demand is a significant reason for European companies adopting new technologies. This has led to a substantial increase in digital transformation operations in this region. In addition, this region has a significant demand for quickly progressing analytics usage, particularly by operational retailing to use visualization platforms and machine learning models. This results from the potential of analytics to uncover new ways to optimize retail or supply chain processes, from the procurement of raw materials to the sale of finished goods, which is driving the increased adoption of automation among European retailers.

Asia-Pacific is the third largest region. Increases in connectivity and the Industrial Internet of Things across the globe create enormous possibilities for the retail industry's whole value chain to realize new productivity levels. In terms of advanced applications, the growth of intelligent warehouse development in China has been substantial. China is one of the top buyers of industrial robots, with demand continuing to rise. In addition, an increase in global grocery sales through e-commerce channels and the requirement to provide unique and appealing in-store experiences are anticipated to fuel expansion in the Asia-Pacific market. Rapid technological breakthroughs and ground-breaking innovations have altered retail business models in swift and comprehensive ways, which is expected to increase the adoption of automation in this market.

Key Highlights

• The global retail automation market was valued at USD 14,885 million in 2021 and is estimated to reach an expected value of USD 34530 million by 2030, registering a CAGR of 9.8% during the forecast period (2022 to 2030).
• Based on type, the global retail automation market is classified as Point-of-Sale (POS), barcode & RFID, electronic shelf label (ESL), camera, autonomous guided vehicle (AGV), and others. The point-of-sale (POS) segment was the highest contributor to the market and is estimated to grow at a CAGR of 8.9% during the forecast period. 
• Based on Implementation, the global retail automation market is bifurcated into in-store and warehouse. The warehouse segment was the highest contributor to the market and is estimated to grow at a CAGR of 9.2% during the forecast period. 
• Based on end-user, the global retail automation market is segmented into hypermarkets, supermarkets, single item stores, fuel stations, and retail pharmacies. The supermarket segment was the highest contributor to the market and is estimated to grow at a CAGR of 8.6% during the forecast period. 

Competitive Players

1. Datalogic S.p.A.
2. NCR Corporation
3. First Data Corporation
4. Toshiba Global Commerce Solutions
5. KUKA AG
6. Fujitsu Limited
7. Honeywell International Inc.
8. Zebra Technologies Corporation
9. Diebold Nixdorf
10. Incorporated
11. Posiflex Technology Inc.

Recent Developments

• August 2022 - NCR Corporation (NYSE: NCR), a leading enterprise technology provider, today announced the expansion of its long-standing partnership with Wendy's to provide data services via our NCR Commerce Platform. 
• July 2022 - NCR Corporation (NYSE: NCR), a leading enterprise technology provider, announced that Stater Bros. Markets is connected to the NCR Commerce Platform (NCP) to help reduce infrastructure complexity and improve consumer experiences across all sales channels. Stater Bros. is Southern California's largest privately owned supermarket chain, supported by 18,000 employees through its 171 stores. 

Segmentation

1. By Type
   1. Point-of-Sale (POS)
   2. Barcode & RFID
   3. Electronic Shelf Label (ESL)
   4. Cameras
   5. Autonomous Guided Vehicle (AGV)
   6. Automatic Storage and Retrieval System
   7. Automated Conveyor
   8. Warehouse Robotics
   9. Others
2. By Implementation
   1. In-store
   2. Warehouse
3. By End-user
   1. Hypermarkets
   2. Supermarkets
   3. Single Item Stores
   4. Fuel Stations
   5. Retail Pharmacies
   6. FMCG
   7. Health and Personal Care
   8. Apparel and footwear
   9. Hospitality
   10. Consumer Electronics
   11. Travel and Logistics
   12. Oil & Gas
   13. Others
4. By Product Type
   1. Manned POS Terminal
   2. Unattended Terminals
5. By Market
   1. Organized Market
   2. Unorganized Market
6. By Component
   1. Hardware
   2. Barcode Scanner
   3. Vending Machines
   4. E-Pos Systems
   5. Self-Scan Checkout Systems
   6. Software