Retail Automation Market Size, Share & Growth Report

Updated on : October 29, 2024

The retail automation market is witnessing significant growth driven by increasing demand for efficiency and enhanced customer experiences. Key trends shaping this landscape include the rise of artificial intelligence, robotics, and the Internet of Things (IoT), which are transforming traditional retail operations. As retailers strive to streamline processes and reduce operational costs, automation technologies are becoming essential. Looking to the future, the market is poised for continued expansion, with advancements in technology paving the way for innovative solutions that cater to evolving consumer preferences and behaviors. This growth presents exciting opportunities for businesses to improve productivity and foster a more engaging shopping experience.

Retail Automation Market Size

The global retail automation market size is expected to be valued at USD 27.6 billion in 2024 and is projected to reach USD 44.3 billion by 2029, growing at a CAGR of 9.9% from 2024 to 2029. The market is experiencing growth driven by the increasing adoption of integrated automated technology by e-commerce warehouses. However, challenges such as growing cybersecurity threats with the adoption of automation technology hinder market growth. Despite these hurdles, opportunities emerge from the enhanced retail experience for customers by leveraging automation technologies.

Retail Automation Markett Forecast to 2029

To know about the assumptions considered for the study, Request for Free Sample Report

Retail Automation Market Trends & Growth Analysis

Driver: Minimized labor costs by embracing automation

In the rapidly evolving landscape of the retail automation industry, the prospect of cost savings through minimizing labor costs stands out as a transformative opportunity for businesses seeking enhanced efficiency and competitiveness. The adoption of advanced technologies has paved the way for streamlined operations, offering retailers a strategic advantage in optimizing their workforce and reducing associated expenses.

Restraint: Regular maintenance and support of automated equipment

In retail automation, where technology is the driving force behind enhanced efficiency and customer experiences, the regular maintenance and support of systems is important. While these practices are essential for ensuring the operation of automated systems, they present a notable restraint for retailers navigating the intricacies of a rapidly evolving industry. The challenge lies in the potential for operational disruptions during maintenance activities. Retailers often face the dilemma of temporarily closing stores or sections for maintenance. This interruption in operations can lead to revenue loss and impact customer satisfaction, necessitating a delicate balance between the need for upkeep and the demand for continuous service.

Opportunity: Increased transparency in supply chain management by adopting retail automation

The integration of automation fosters communication and collaboration across the supply chain. Automated communication tools and software platforms enable seamless information exchange between suppliers, manufacturers, distributors, and retailers. This enhanced connectivity facilitates quicker response times to changes in demand, supply chain disruptions, and market trends. As a result, retailers can make data-driven decisions, reduce lead times, and ensure a more agile and responsive supply chain.

Challenge: Growing cybersecurity threats with the adoption of automation technology

The growing adoption of automation in the retail sector has brought about a surge in cybersecurity threats. With interconnected systems and digital platforms becoming integral to operations, malicious actors exploit vulnerabilities to steal sensitive data and disrupt processes. This heightened risk poses a significant restraint on the retail automation industry , as businesses face the challenge of ensuring robust security measures while leveraging automation to streamline operations and enhance customer experiences.

Retail Automation Market Ecosystem

Leading players in the market include Honeywell International Inc. (US) NCR VOYIX Corporation. (US), Diebold Nixdorf, Incorporated. (US), Zebra Technologies Corp. (US), Hangzhou Hikvision Digital Technology Co., Ltd.  (China), NXP Semiconductors. (Netherlands), Dahua Technology Co., Ltd (China), Daifuku Co., Ltd. (Japan), KION GROUP AG (Germany), AVERY DENNISON CORPORATION (US), and many more.

Retail Automation Market Ecosystem

Retail Automation Market Segmentation

Retail Automation Market Share

POS systems by product type to witness the highest CAGR during the forecast period.

The growth of point-of-sale (POS) systems in retail automation is driven by their ability to enhance customer experience, streamline operations, and provide valuable data insights. With features like advanced inventory management and real-time data analytics, modern POS systems help retailers optimize stock levels, reduce costs, and improve customer service. Cloud-based solutions offer flexibility and scalability, allowing businesses of all sizes to benefit from these features.

The hypermarkets segment is estimated to account for the largest market share during the forecast period.

By end user, hypermarkets are expected to have the biggest market share in 2024. Supermarkets, hypermarkets, and department shops often have a higher customer flow and purchase volume than any other form of retail store. The growth of retail automation in hypermarkets is driven by the need for operational efficiency and improved customer experience.

Warehouse retail automation exhibits the highest market share in retail automation market.

Retail automation in warehouses is growing due to increasing demand for efficiency and accuracy in inventory management. Automation technologies such as robotic picking systems, automated conveyor belts, and inventory tracking software help optimize warehouse operations, reduce errors, and enhance productivity. Retailers are investing in automation to handle larger volumes of orders and meet customer expectations for fast and accurate deliveries.

Retail Automation Market Regional Analysis

Retail Automation market in the Asia Pacific region to exhibit the highest CAGR during the forecast period.

Retail automation in warehouses is growing due to increasing demand for efficiency and accuracy in inventory management. Automation technologies such as robotic picking systems, automated conveyor belts, and inventory tracking software help optimize warehouse operations, reduce errors, and enhance productivity.  The region is also home to rapidly growing cities and urban areas with increasing disposable incomes. This has led to a significant increase in retail activity, creating a demand for automated solutions to manage large volumes of sales and inventory efficiently.

Retail Automation Market by Region

To know about the assumptions considered for the study, download the pdf brochure

Top Retail Automation Companies: Key players

 The retail automation companies is dominated by players such as

• Global | Honeywell (US),
• NCR VOYIX Global – Digital Banking,
• POS Systems, Payment Solutions (US),
• Bank Innovation – Retail Technology | Diebold Nixdorf  (US),
• Zebra Technologies | Visible. Connected. Optimized. | Zebra (US),  
• Hikvision - Leading Video AIoT Solutions & Services Provider  (China), and others.

Retail Automation Market Report Scope :

Retail Automation Market Highlights

The study categorizes the Retail Automation market size based on the following segments:

Recent Developments in Retail Automation Industry 

• In August 2023, NCR VOYIX Corporation (US) partnered with Autobooks Inc.,(US)   a cloud-based accounting software provider. The partnership integrated Autobooks’ accounting software with NCR VOYIX’s payment processing platform, NCR VOYIX Payments. This integration enables small businesses to accept payments, manage their finances, and track their sales in one place..
• In June 2023, Zebra Technologies introduced the TC22/TC27 mobile computer, catering to enterprises seeking enhanced manageability and productivity. The TC22/TC27 mobile computer is particularly well-suited for small and medium-sized businesses (SMBs) across industries such as retail, sports and entertainment, transport and logistics, utilities, and field services. This device comes equipped with a comprehensive suite of Zebra Mobility DNA tools for device management and security, with the option to upgrade to Mobility DNA Enterprise and support for upgrades up to Android 16. Zebra's value-added features, such as Tap to Pay, Device Tracker for preventing and recovering lost devices, Workstation Connect, and RFID capability through the RFD40 UHF RFID Sled, unlock additional functionalities to adapt to evolving business demands.
• In May 2023, Honeywell launched Honeywell Forge for Buildings, a comprehensive approach to building systems operations and management that can be used at a single site or with a portfolio. Honeywell Forge for Buildings features software, hardware, and services that help building owners and operators achieve sustainability, operational efficiency, occupant experience, compliance, safety and security, and resilience goals.

Frequently Asked Questions:

To speak to our analyst for a discussion on the above findings, click Speak to Analyst