Retail Automation Market Trends
Growth Drivers
- Growing investment in robotics and AI: Robotics along with Artificial Intelligence are expected to gain more importance in retail automation in the forecasted years, due to the growing investment in these technologies. Both robotics and Artificial Intelligence can provide many comprehensive and effective solutions, which are driving the growth of the retail automation market. The robotics investments crossed about 419 million USD in November 2023.
- Growing adoption of advanced technologies & data: Automation and retail industries are integrating and exploring the usage of advanced technologies such as IoT, machine learning, Artificial Intelligence, computer vision, blockchain, and analytics. The availability of such large data sets and their usage can significantly increase the efficiency and effectiveness of retail.
- Greater focus on sustainability: Environmental concerns have increased the focus on the energy consumption of various other retail automation systems. Automation solutions are highly focused on improving the efficiency and contributing to environmental sustainability
- Growing penetration of e-commerce and m-commerce: The growth in the usage of online shopping and mobile shopping is expected to increase the development of retail automation in the upcoming years.
Challenges
- Concerns over data privacy and security: Retail automation systems can require access to sensitive and personal data, raising concerns about data protection and security among customers, businesses, and regulators.
- Limited visibility: Retail automation solutions can provide limited insights and analytics, which can limit their usefulness and impact on decision-making as well.
- Limited functionality and flexibility, which can affect their adoption and impact their ROI
- High installation and maintenance cost
Retail Automation Market: Key Insights
Global retail automation market is anticipated to flourish at a CAGR of 12.3% during the forecast period i.e. 2017-2024. Further, the market of retail automation was valued at USD 8.96 Billion in 2016 and is projected to garner USD 23.1 Billion by the end of 2024. Factors such as, increasing business optimization are making headway for the growth of the global retail automation market. Moreover, high demand for retail automation over the traded locations is anticipated to positively impact the growth of the global retail automation market.
Regionally, North America is expected to dominate the overall market of retail automation over the forecast period. Factors such as, increasing demand for highly sophisticated retail service are anticipated to fuel the growth of the North America retail automation market over the forecast period. Further, factor such as economic progress and rising purchasing power of consumers are envisioned to increase the growth of global retail automation market in North America over the forecast period.
Europe retail automation market is poised to record the fastest growth over the forecast period. Factor such as, several retail chains and multiple product lines are anticipated to drive the growth of the global retail automation market over the forecast period in Europe. Asia Pacific retail automation market is expected to witness sustainable growth over the forecast period. Increase in development of supermarkets and hypermarkets across the countries like China, Japan and India are anticipated to drive the growth of the global retail automation market over the forecast period.
Based on end user, retail automation market is segmented into hypermarkets, supermarkets, convenience stores, fuel stations and retail pharmacies, out of which, hypermarkets and supermarkets segments are expected to dominate the overall market of retail automation over the forecast period.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
9.6% |
|
Base Year Market Size (2024) |
USD 26.92 billion |
|
Forecast Year Market Size (2037) |
USD 88.64 billion |
|
Regional Scope |
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