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In-store segment to record highest CAGR in retail automation market, says report

By Retail4Growth Bureau | March 18, 2024

A report by Research and Markets says the global retail automation market is expected to grow at a CAGR of 9.9% from 2024 to 2029, and that the in-store segment will record highest CAGR in the Retail Automation Market during the forecast period 2024-2029. 

The global retail automation market is expected to be valued at USD 27.6 billion in 2024 and is projected to reach USD 44.3 billion by 2029; it is expected to grow at a CAGR of 9.9% from 2024 to 2029, says a research report by Research and Markets. 

Higher adoption of RFID technology in retail automation; minimized labor cost by embracing automation; rising demand for high-quality and fast service to consumers serve as a significant drivers for growth of the retail automation market.

According to the report, the growth of retail automation in Europe can be attributed to several factors. First, the increasing adoption of technology by retailers to streamline operations and improve the customer experience. Second, the growing demand for convenience and efficiency among consumers, driving the need for automated solutions such as self-checkout systems and contactless payment options.

The key players operating in the retail automation market are Honeywell International Inc. (US), NCR VOYIX Corporation. (US), Diebold Nixdorf, Incorporated. (US), Zebra Technologies Corp. (US) and Hangzhou Hikvision Digital Technology Co., Ltd. (China), among others, adds the report .

ESL by product type segment to account higher CAGR in retail automation market during the forecast period

ESLs help improve pricing accuracy, enabling retailers to reduce pricing errors and increase overall operational efficiency. This is particularly crucial in regions with strict consumer protection regulations. Secondly, ESLs enhance the in-store experience by providing real-time pricing information, enabling customers to make informed purchasing decisions.

In-store automation to account for higher CAGR in retail automation market during the forecast period

In-store automation in retail automation refers to the use of technologies such as electronic shelf labels, self-checkout kiosks, and inventory management systems to streamline operations, enhance customer experience, and improve efficiency within physical retail spaces. This trend is gaining traction as retailers seek to meet the evolving needs of consumers and address challenges such as labour shortages.

Insights

  • Rising demand for enhanced customer service to boost market growth
  • PoS systems segment to dominate Retail Automation Market in 2029
  • In-Store segment to record highest CAGR in Retail Automation Market during forecast period
  • Non-Retail Food Stores Segment to Exhibit Highest CAGR in Retail Automation Market During Forecast Period
  • Warehouse Segment and China Held Largest Shares of Retail Automation Market in Asia-Pacific in 2023
  • Retail Automation Market in Japan to Exhibit Highest CAGR During Forecast Period

Market Dynamics

Drivers

  • Increasing Adoption of Integrated Automated Technology by E-Commerce Warehouses
  • Growing Focus on Cost Optimization by Embracing Automation
  • Rising Demand for High-Quality and Fast Service to Consumers
  • Higher Adoption of RFID Technology in Retail Automation

Restraints

  • Need for Ongoing Maintenance to Ensure Smooth Operation of Automated Equipment
  • Mitigating Workforce Displacement and Meeting Regulatory Compliance

Opportunities

  • Surging Use of Retail Automation to Increase Transparency in Supply Chain
  • Growing Use of Automation Technologies to Provide Customers with Enhanced Retail Experience

Challenges

  • Growing Cybersecurity Threats with Adoption of Automation Technology
  • Integrating AI and ML into Existing Legacy Systems

Technology Analysis

Key Technologies

  • Computer Vision and AI for Automated Checkout
  • Complementary Technologies
  • Blockchain for Supply Chain Transparency
  • Augmented Reality (AR) for Virtual Try-Ons and Product Visualization

Adjacent Technologies

  • Internet of Things (IoT) for Smart Shelves
  • Mobile Apps and Self-Service Kiosks for Flexible Business Interactions
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