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