The global Retail Automation market is projected to reach USD 16000 Million by 2026, from USD 10190 Million in 2019, at a CAGR of 6.2% during 2021-2026, as per Valuates Reports.
Major factors driving the growth of the retail automation market are:
- In a hyper competitive market, Retail Automation offers a cost advantage by assisting the retailers in increasing their margins, improved service quality and increasing the speed of purchase than traditional approaches.
- Increased demand for unified controlling and monitoring platforms, and real time optimization of retail operations based on customer purchasing patterns is driving the market growth.
Trends Influencing the Growth of Retail Automation Market Size
Retail-margin pressure is mounting, driven by more intense competition, investment in e-commerce, and pressure to increase wages. Despite the fact that these cost increases are not recent, many retailers have already exhausted conventional cost-cutting options. In this hypercompetitive world, where retailers are unable to pass on costs to their customers, automation is being used to help and bolster margins.
The growing urban population is driving demand for retail automation technology, which provides better service quality and instant access to everything from carts to food. Innovations in retail technology erase long queues, make it easier to locate products, and in some cases, eliminates the traditional checkout process entirely.
Furthermore, increased internet connectivity and the growing adoption of the Internet of Things (IoT) have aided in the implementation of digital controls for improved Machine-to-Machine (M2M) communication. This, in turn, has paved the way for creating a seamless automation environment.
The increasing need to establish a cashless shopping experience is expected to drive the growth of the retail automation market size. E-wallets and mobile payments are becoming increasingly common, paving the way for a cashless shopping experience. Retailers can improve their customer service while maintaining their competitive positions by deploying a POS system with digital payment access.
The introduction of automation in retail has helped to exceed customer expectations, expanded sales opportunities, and enhanced operational performance. Furthermore, as a result of its ability to provide end-to-end visibility, streamline processes, remove redundancies, and other benefits, automation is increasingly adopted by various retailers. These advantages are expected to increase the growth of the retail automation market size.
Retail Automation Market Share Analysis
Point-of-Sale (POS) is projected as one of the most lucrative segments during the forecast period. Increased R&D has led to the development of advanced POS systems such as RFID transponders and advanced one-click & contactless payment options, which are expected to drive the POS segment’s growth in the global retail automation market over the forecast period.
Based on end-users, the supermarket segment is expected to be one of the most dominant segments in the retail automation market during the forecast period. There is a huge demand for technologically advanced and cost-effective solutions in supermarkets.
Due to well-established manufacturers and a strong customer base, the North American region is expected to remain the most dominant regional segment over the forecast period.