Retail Automation Market Report

The retail sector has experienced a number of developments in recent years, including pandemic restrictions, online expansion, and the emergence of omnichannel marketing, as well as the challenges of employee retention. Despite the difficulties, the industry is growing steadily. The introduction of Industry 4.0 provides lucrative business opportunities for retailers in order to gain a competitive edge in the market. Additionally, the retail automation sector is gaining acceptance and increasing at a rapid pace owing to the incorporation of analytics in automation solutions.

Major manufacturers are leaning towards large-scale investments in automation and Al technology to improve both the consumer and employee experience. The high potential of emerging technologies such as machine learning, analytics, artificial intelligence, and advanced robotics to automate operations and provide a competitive advantage among global market players is expected to drive global market growth. Furthermore, the global rise of e-commerce has boosted competition among businesses in this sector. Thus, the increased adoption of e-commerce automation that automatically categorizes customers for marketing, standardizes visual merchandising, streamlines tracking & reporting, manages high-risk orders, and other such features are anticipated to drive the global market growth for retail automation.

Retailers deal with a wide variety of business operations. Departmental integration is a critical element that cannot be overlooked in order to properly manage them and align them with business goals. Additionally, retailers also face a number of key challenges, such as inadequate in-store product mix, inefficient warehouse space utilization, frequent pricing variations, rapid adjustments in customer requirements, and a lack of control over channel partners. As a result, retailers around the world are modifying workflows in order to optimize their business processes to achieve transparency and insight in the supply chain. Additional strategies, such as digitalization, are being adopted to fuel the growth of the global retail automation market throughout the forecast period. The adoption of automation has decreased the pressure to stay ahead of the competition, exceeded consumer expectations, boosted revenue potential, and enhanced organizational efficiency. As a result of its capacity to provide end-to-end insight, simplify processes, and reduce redundancies, among other benefits, automation has become increasingly prevalent in the retail business.

• Self-checkout systems streamline transactions, reducing queues and enhancing efficiency.
• Automated customer service solutions provide 24/7 support through chatbots and virtual agents.
• AI-powered inventory management optimizes stock levels and reduces wastage.
• Predictive analytics optimize pricing strategies and promotional campaigns for retailers.

Major market participants are focusing their efforts on research and development in order to create exclusive products that achieve customer satisfaction. In order to enhance their position in the retail automation sector, they are also implementing different market strategies such as product launches, mergers, partnerships, and acquisitions. For instance, Datalogic, a global leader in the automatic data capture and process automation sectors, disclosed that it made an investment in AWM Smart Shelf, an artificial intelligence and computer vision start-up located in California in May 2020. AWM provides a comprehensive solution to the retail world, including autonomous / cashier-less checkout (AWM FrictionlessTM), Automated Inventory Intelligence (Aii®), consumer demographics and behavior tracking, and a full software suite, Retail Analytics Engine (RAE), for in-store analytics and reporting.

Again, in December 2020, Posiflex Technology, Inc., a global pioneer in POS, self-service kiosks, and embedded computer technologies, unveiled an innovative new range of kiosks. The HS-3314A series is a 14" Android 9.0 PCAP touch POS system with an integrated printer that is powered by the high-performance Rockchip RK3399 platform and other peripherals. The HS-3314A is equipped with a high-speed, detachable thermal receipt printer and is built with inventive creativity and a compact form. Its revolutionary screwless and modular design not only simplifies installation and maintenance but also enables a wide range of peripherals such as a secondary monitor. Earlier, Fiserv and First Data Corporation announced in January 2019 that their boards of directors unanimously concurred with a formal merger agreement under which Fiserv will acquire First Data in an all-stock transaction. The merger brings together two great organizations to form one of the world's leading providers of payments and financial technologies, as well as a greater value offer for its clients.

Retail automation products and solutions are entirely dependent on energy and the Internet. Unattended terminals, such as kiosks and vending machines, require a constant and uninterrupted source of electricity to ensure that a range of commodities is always available to clients. Furthermore, clients generally prefer to pay online or by card, which necessitates high-speed internet access to ensure quick and timely payments. However, concerns such as changes in climatic conditions, decreased bandwidth, or server traffic can all slow down internet speed. The unavailability of electricity and internet access is anticipated to limit the expansion of the retail automation business. The lack of such infrastructure in remote regions makes it difficult to install automated kiosks or vending machines, which require both energy and Internet access. This reliance causes significant barriers to commercial expansion.

Samsung Electronics Co. Ltd.,  Datalogic S.p.A, NCR Corporation, Honeywell International Inc., First Data Corporation, KUKA AG, Zebra Technologies Corporation, Fujitsu Limited, Posiflex Technology, Inc., Tecsys Inc., Focus Softnet FZ LLC, Future Way Technical Services LLC, QR Retail Automation (Asia) Sdn Bhd,  Optimove Inc., Microlistics, E&K Automation GmbH, Napse, Vinculum Solutions Pvt. Ltd., Capillary Technologies, are some of the prominent market players operating in the global retail automation market.

North America is anticipated to hold a significant share of the retail automation sector over the forecast period. The growing adoption of automation technologies by big corporations like Walmart and Amazon is expected to propel the retail automation sector in the region. In addition to this, the United States is seen as a profitable market for retail automation systems, encouraging a lot of manufacturers to relocate there in order to acquire a large client base and achieve economies of scale. Furthermore, Asia Pacific is also anticipated to experience significant growth in the retail automation market owing to the growing connectivity and rising adoption of digitalization in the region. Countries like China, India, and Japan are considered profitable markets for the retail automation sector.

Additionally, an increase in global grocery sales through e-commerce platforms, as well as the requirement to develop distinctive and appealing in-store experiences, are anticipated to fuel market expansion in the Asia-Pacific region.  Besides this, the European region is anticipated to witness substantial growth in the market during the forecast period owing to the increased requirement for automated retailing and warehousing to meet expanding end-user demand. This is anticipated to be a crucial driver in encouraging European companies to adopt innovative technologies. This has resulted in a significant increase in digital transformation operations in this region hence increasing the adoption of automation among European retailers.

The report provides a detailed overview of the retail automation market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the retail automation market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the retail automation market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which is anticipated to have a substantial impact on the growth of the retail automation market. Some key countries and regions included in the retail automation market report are as follows:

• Retail automation market detailed segments and segment-wise market breakdown
• Retail automation market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in retail automation industry)
• Current, historical, and forthcoming 10 years market valuation in terms of retail automation market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
• Retail automation market demand analysis
• Retail automation market regional insights with the region-wise market breakdown
• Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
• Latest developments and innovations in the retail automation market
• Regulatory landscape by key regions and key countries
• Retail automation market sales and distribution strategies
• A comprehensive overview of the parent market
• A detailed viewpoint on retail automation market forecast by countries
• Mergers and acquisitions in the retail automation market
• Essential information to enhance market position
• Robust research methodology