Retail Automation Market size is poised to rise from USD 26.92 billion to USD 88.64 billion, registering a CAGR of more than 9.6% throughout the forecast period, between 2025 and 2037. In the year 2025, the industry size of retail automation is evaluated at USD 28.99 billion.
The market growth is propelled by increased use of Artificial Intelligence (AI) in the retail industry, as AI allows businesses to be ""smarter"" in terms of staffing and implementation of decisions, which helps the organization to optimize the labor, replenish the costs, along with maximizing the sales as well. According to the World Economic Forum, AI services in the retail sector are expected to increase from 5 billion USD to about 31 billion USD by 2028.
Furthermore, the rising consumer demand, especially for automated solutions in retail settings is a significant growth driver of the retail automation market. According to a company survey, there is an 11% increase in customer visits to stores that have been integrated with automated technology. By 2025, such retailers plan to automate 70% of their daily routine store tasks while prioritizing tech investments which will enhance operational efficiency, while reducing costs, and helping in gaining higher profits.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
9.6% |
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Base Year Market Size (2024) |
USD 26.92 billion |
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Forecast Year Market Size (2037) |
USD 88.64 billion |
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Regional Scope |
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Type (Point of Sale (PoS), Electronic Shelf Labels (ESL))
The point of sale (PoS) segment in the retail automation market is estimated to gain a robust revenue share of 68% by 2037, led by significant improvement in the customer experience and convenience, using features such as barcode scanning, self-check-out, personalized recommendations, and automated order processing, which can also help to reduce customer wait times and improve the overall customer experience and satisfaction. Moreover, the average time to scan and locate a barcode is about 2 seconds, which is approximately 1800 per hour. Studies showed that after the usage of barcodes, there has been a about ten-fold increase in the productivity of barcode usage.
Component (Software, Hardware, Services)
The software segment in the retail automation market is set to garner a notable share in the coming years, as the modular and flexible software components can be easily repurposed and repurposed for different businesses and use cases, without the need for significant costs. This can reduce the investment and cost of implementing new solutions, and contribute to greater cost-effectiveness. Furthermore, these software components can be integrated with existing systems and solutions more easily and seamlessly, without the need for extensive changes or adjustments. This can make for a smoother implementation and enable a higher level of integration and synchronization
Implementation (Warehouses, On-Store Premises)
The warehouse segment in the retail automation market is poised to hold substantial share by 2037, as it can collect and organize large amounts of data, effectively tracking and monitoring the inventory which can provide a clearer and more efficient view of the inventory and its movement, and enable better analytics and decision-making. Moreover, automated warehouse management can be easily scaled and adapted according to the needs of the business, without the need for excessive investment or large-scale overhauls. This can enhance the agility and adaptability of the warehouse.
Our in-depth analysis of the global retail automation market includes the following segments:
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Type |
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Component |
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Implementation |
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End-user |
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North American Market Forecast
The retail automation market share in North America is estimated to cross 38% by the end of 2037, impelled by higher rate of automation technology which is being adopted by several businesses, increasing e-commerce sector, and growing labor expenses. Around 30% of the workers are expected to be exposed to advanced technologies used for several automation purposes, while the manufacturing workers are much more exposed than other workers. Furthermore, many manufacturers have also been relocated to this region because of the presence of a large customer base and to achieve high economies of scale. Local retailers in the region are also starting to offer several benefits to customers, such as loyalty programs, to encourage digital payments, which drives the demand for the retail automation market.
APAC Market Statistics
The Asia Pacific retail automation market is predicted to witness exponential CAGR during the forecast period, led by higher number of small-sized and medium-sized enterprises, as they are highly adopting the automation technology. Furthermore, mobile checkout devices in several developing countries have made it possible to sell goods anywhere including events, kiosks, pop-up stores, and various other public areas. The new automation technologies are going to have an impact on the retail industry in the region.
Author Credits: Abhishek Verma
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