Retail Automation Market is growing at a CAGR of 11.4% during forecast period and projected to reach USD 28,954 Million by 2027. GMI Research witnesses technological advancements like the increased adoption of Artificial intelligence & machine learning in the retail industry and retail automation has revolutionized retail operations, which act as a propeller to balloon the retail automation market size.
Introduction of the Retail Automation Market
Retail automation is adopting high-tech technology, tools, and procedures in the retail sector for effective operation, resulting in intensified customer experience with minimal cost to the retailer. Therefore, retail automation has developed a modern sales channel for brands and retailers to reach their potential users non-traditional. It has an added advantage that helps the retailers efficiently reach their target market and promote a new product launch by minimizing the operational cost simultaneously. Hence, consumers prefer automated retailing as it gives instant data information, is easy to use, and provides a quick visual connection with the alluring items.
Key Players of the Market
Retail Automation Market Dynamics
The key factors which act as propellers for the growth of the global retail automation market during the forecast period are the increasing adoption of automated technologies such as AI and Machine learning in the retail sector and the exponential increase in the demand for retail automation products in the metropolitan cities. Therefore, with the help of advanced technologies, retail automation offers comfort and resilience for consumers’ solutions to the retailers. Moreover, the automation allows convenient management of business platforms, accelerates sales processes, and enhances efficiency in product supplies. All these factors minimize the overall operational cost of the retailers and thus motivate retailers to adopt retail automation to save their money and time. For example, for performing heavy-lifting tasks, automated guided vehicles are often used in warehouses and production plants as these systems can continuously work without breaks and perform monotonous tasks precisely and proficiently.
The increasing usage of autonomous guided vehicles (AGV) and autonomous mobile robotics (AMR) in the retail industry will encourage the acceptance of automation in the retail sector in the upcoming years.
Furthermore, in developing countries like India and China, the hectic lifestyle and rising economic growth encourage consumers to use conveniently processed food products. This paradigm shift in the consumer’s choice will steer the retailers to automate their selling process. Several multinational players are severely engaged in R&D activities to boost virtual marketing strategies. The emergence of real-time analytics in the automation process will develop new opportunities in the market, thereby burgeoning the retail automation market. In addition, the drastic increase in the number of malls, supermarkets & hypermarkets, airports, fuel station/petrol pumps, and retail pharmacies will positively impact the retail automation demand to boost revenue and improve the customer experience. On the other hand, the factor that restrains the market growth during the forecast period is the dependency of automated systems on the internet and electricity.
Retail Automation Market Segmentation
Type Segmentation Market Drivers
Based on the type, the camera segment is projected to surge at a higher CAGR during the forecast period in the retail automation market. The rising safety and security problems such as inventory damages and robbery in malls, retail shops, fuel stations, and supermarkets will encourage the usage of the camera as a retail solution to reduce retail losses, evaluate employee tasks, boost store profits, and lower the chances of thefts.
Implementation Segmentation Market Drivers
The in-store segment is expected to lead the market over the forecast period due to the drastic rise in physical stores, especially in developing countries. The growing population rate encourages the development of physical stores like retail shops and supermarkets to offer consumers a convenient grocery shopping option. Moreover, the developing technologies and the exclusive advantages offered by the automated techniques to the retailers will bolster the retail automation market share at the global level. The on-warehouse segment is estimated to rise at a faster CAGR during the forecast period. Warehouse automation enables the execution of automated conveyors, retrieval systems, and storage while decreasing the involvement of employees to achieve numerous operational tasks.
Vertical Segmentation Market Drivers
Based on the vertical, the supermarket segment is anticipated to grow at a faster CAGR during the forecast period due to the growing trend of leveraging automation across the retail sector to capture the rising demand of the consumers and simultaneously minimize the labor cost. The automated order selection systems are replacing/reducing “self-service” retailing as they enhance efficiency and offer faster service to the customers.
Based on the region, North America envisages leading the market during the forecast period owing to the increasing demand for innovative and economical retail services and high living standards across the North American region. Therefore, market players usually implement retail automation to provide easy and quick point-of-sale (PoS) services to potential customers. Moreover, multiple market giants like Wal-Mart and Kroger are primarily focusing on technological advancements, which will create new opportunities in the market, thus fueling the demand for retail automation in the region.
Retail Automation Market Segmentation
Segmentation By Type
Segmentation By Component
Segmentation By Implementation
Segmentation By Vertical
Segmentation by Region
Introduction of GMI Research
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