PUBLISHER: IMARC | PRODUCT CODE: 1561534
PUBLISHER: IMARC | PRODUCT CODE: 1561534
The global retail automation market size reached US$ 18.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 37.9 Billion by 2032, exhibiting a growth rate (CAGR) of 8.3% during 2024-2032. The market is propelled by the significant technological advancements, increasing disposable income levels, rising number of retail chains, growing consumer demand for convenience and personalization, and cost reduction and operational efficiency offered by retail automation.
Significant Technological Developments
Technological advancements play a vital role in creating a positive retail automation market outlook. Rapidly developing technologies including artificial intelligence (AI), internet of things (IoT), and machine learning are driving the market growth as they transform the retail outlook by providing distinctive solutions to organize operations and improve efficiency. Other than this, numerous technological advancements lead to the introduction of a wide array of novel products which play a crucial role in easing the shopping experiences of individuals. For instance, in June 2023, Zebra Technologies announced the introduction of the TC22/TC27 mobile computer, which serves as a solution to organizations looking for improved productivity and manageability. The product is particularly appropriate for small and medium-sized businesses across numerous industries including retail and utilities.
Rising Consumer Demand for Convenience and Personalization
The increasing consumer demand for personalization, convenience, and smooth shopping experiences is propelling the market growth. In this rapidly urbanizing globe and extremely hectic lifestyles, individuals expect seamless shopping experiences in all retail channels, including offline and online. Other than this, personalization is an uncompromising factor for individuals while shopping. According to the FORBES MAGAZINE, 91% of individuals stated that there are high chances of them shopping with brands which provide offers and recommendations that are associated with them. In order to cater to these individuals, brands are offering customized product recommendations, consumer-specific promotions, and tailored services that are in alignment with their purchasing patterns.
Operational Efficiency and Cost Reduction of Retail Automation
Operational efficiency and cost reduction are other factors creating a favorable retail automation market overview, particularly in this increasingly competitive market where optimization of resources and maximizing profitability have become thumb rules. Retail automation allows retailers to organize their operational procedures, minimize manual labor prices, reduced errors, and enhanced productivity. For instance, the utilization of robotic process automation (RPA) can systematize repetitive back-end activities such as invoicing, data entry, and inventory tracking which further leads to saving a substantial amount of time and cost reduction. As per a report published by the IMARC GROUP, the global robotic process automation market has already reached US$ 4.0 Billion in 2023 and is projected to reach US$ 33.9 Billion by 2032. The report also states that the market is expanding at a growth of 25.9% during 2024-2032.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, implementation, and end user.
Point of sale accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the type. This includes point-of-sale, barcode and RFID, electronic shelf label, camera, autonomous guided vehicle, and others. According to the report, point of sale (POS) represented the largest segment.
Point of Sale (POS) hold the largest retail automation market share as it plays a vital role in retail activities. POS systems are used for processing transactions, allowing consumer interactions, and managing inventory. As the adoption of omnichannel retail strategies increases, the adoption of POS systems has developed in a way so as to provide integrated solutions which effortlessly connect online and offline sales channels. According to the IMARC GROUP, the global POS software marker has already reached US$ 11.8 Billion in 2023 which is further expected to grow at US$ 23.1 Billion by 2032, expanding at a CAGR of 7.6% during 2024-2032.
Warehouse holds the largest share in the industry
A detailed breakup and analysis of the market based on the implementation have also been provided in the report. This includes in-store and warehouse. According to the report, warehouse accounted for the largest market share.
The warehouse segment holds maximum number of shares on account of its vital role of automation in streamlining warehouse operations. Warehouses need effective of management of inventory, order fulfillment, and logistics in order to cater to the rising demand of e-commerce and omnichannel retail. Automation technologies including automated storage, robotic systems, and retrieval systems (AS/RS) improve the accuracy, productivity, and scalability in acitivties of warehouses. A report published by the IMARC GROUP, states that the global warehouse robotics market is projected to reach US$ 15.4 Billion by 2032 at a CAGR of 10.13% during 2024-2032.
Supermarkets and hypermarkets represent the leading market segment
The retail automation market research report has provided a detailed breakup and analysis of the market based on the end user. This includes supermarkets and hypermarkets, single item stores, fuel stations, and retail pharmacies. According to the report, supermarkets and hypermarkets represented the largest segment.
Supermarkets and hypermarkets add a substantial amount of retail automation market revenue on account of its large-scale presence which attend to a larger audience. For instance, according to the ECONOMIC TIMES, more retail is seeking spaces in numerous cities with the intent of opening up 300 supermarkets and hypermarkets over the span of next 3 years. These formats of retail stores adopt automation technologies as it allows them to streamline operations, improve consumer experiences and maximize inventory management, thus creating a positive retail automation market forecast.
North America leads the market, accounting for the largest retail automation market share
The retail automation market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.
North America dominates the market on account of a number of factors, such as high technology infrastructure, increasing disposable income levels, and an early technology adoption rate. Other than this, the preemptive approach toward innovation in confluence with the robust retail industry of the region is eventually leading to a high retail automation market value. According to the CENSUS BUREAU OF THE DEPARTMENT OF COMMERCE, the retail e-commerce sales of the United States for the fourth quarter of 2023, reached $285.2 Billion which is an increase of 0.8% as compared to the third quarter of 2023.
(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)