Retail Automation Market by Product Type (Interactive Kiosk, Self-checkout System, Barcode, RFID, ESL, Cameras, AMR, COBOTS, AGV, ASRS, Conveyor & Sortation Systems), Implementation Type (In-house, Warehouse), End-user & Region – Global Forecast to 2029
Updated on : September 19, 2024
Retail Automation Market Size & Share
[236 Pages Report] 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; it is expected to grow 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
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Retail Automation Market Trends & Dynamics
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 Segmentation
Retail Automation Market Segmentation
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
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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 :
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Report Metric |
Details |
| Estimated Market Size | USD 27.6 billion in 2024 |
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Projected Market Size |
USD 44.3 billion by 2029 |
| Retail Automation Market size available for years | 2020-2029 |
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Base year considered |
2023 |
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Forecast period |
2024-2029 |
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Forecast units |
Value (USD Million/Billion) |
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Segments Covered |
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Geographies covered |
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Companies covered |
The major market players 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. (A total of 25 players are profiled) |
Retail Automation Market Highlights
The study categorizes the Retail Automation market size based on the following segments:
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Segment |
Subsegment |
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Retail Automation Market Size , By Product Type |
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Retail Automation Market Size , By Implementation Type |
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By End User |
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By Region |
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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:
What are the retail automation market's major driving factors and opportunities?
The retail automation market is driven by the increasing adoption of integrated automated technology by e-commerce warehouses; minimized labor costs by embracing automation. Furthermore, the enhanced retail experience for customers by leveraging automation technologies presents additional opportunities for market expansion.
Which region is expected to hold the highest market share?
Asia Pacific commands a larger share of the retail automation market. The expanding retail sector and consumer demands are driving the adoption of retail automation solutions in the Asia Pacific market. Technological advancements, like AI and IoT, are facilitating the growth of retail automation solutions among Asia Pacific retailers.
Who are the leading players in the global retail automation market?
Companies such as Zebra Technologies Corp. (US), Honeywell International Inc. (US), NCR VOYIX Corporation. (US), Hangzhou Hikvision Digital Technology Co., Ltd. (China), and Diebold Nixdorf, Incorporated. (US), are the leading players in the market.
What are some of the technological advancements in the market?
Internet of Things (IoT) for smart shelves and augmented reality (AR) for virtual try-ons and product visualization are some of the technical advancements in the market.
What is the size of the global retail automation market?
The global retail automation market was valued at USD 27.6 billion in 2024 and is anticipated to reach USD 44.3 billion in 2029 at a CAGR of 9.9% during the forecast period.
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2020-2029 |
The study involved four major activities in estimating the current size of the retail automation market. Exhaustive secondary research was done to collect information on the market, peer, and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Various secondary sources have been referred to in the secondary research process for identifying and collecting information important for this study. The secondary sources include annual reports, press releases, and investor presentations of companies; white papers; journals and certified publications; and articles from recognized authors, websites, directories, and databases. Secondary research has been conducted to obtain key information about the industry’s supply chain, the market’s value chain, the total pool of key players, market segmentation according to the industry trends (to the bottom-most level), regional markets, and key developments from market- and technology-oriented perspectives. The secondary data has been collected and analyzed to determine the overall market size, further validated by primary research.
List of major secondary sources
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Sources |
Web Link |
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Kiosk Association |
https://kma.global/ |
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Kiosk Industry |
https://kioskindustry.org/kiosk-about/ |
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Kiosk Marketplace |
https://www.kioskmarketplace.com/ |
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IEEE |
https://www.ieee.org/ |
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RAIN RFID |
https://rainrfid.org/ |
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International RFID Business Association |
https://www.rfidba.org/ |
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Association of Healthcare Providers |
https://www.ahpi.in/ |
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RFID Journal |
https://www.rfidjournal.com/blog |
Primary Research
Extensive primary research was conducted after gaining knowledge about the current scenario of the retail automation market through secondary research. Several primary interviews were conducted with experts from both the demand and supply sides across four major regions—North America, Europe, Asia Pacific and RoW. This primary data was collected through questionnaires, emails, and telephonic interviews.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the complete market engineering process, both top-down and bottom-up approaches have been used, along with several data triangulation methods, to perform market estimation and forecasting for the overall market segments and subsegments listed in this report. Key players in the market have been identified through secondary research, and their market shares in the respective regions have been determined through primary and secondary research. This entire procedure includes the study of annual and financial reports of the top market players and extensive interviews for key insights (quantitative and qualitative) with industry experts (CEOs, VPs, directors, and marketing executives).
All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. All the parameters affecting the markets covered in this research study have been accounted for, viewed in detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. This data has been consolidated and supplemented with detailed inputs and analysis from MarketsandMarkets and presented in this report. The following figure represents this study’s overall market size estimation process.
Bottom-Up Approach
- Identifying entities by product type in the value chain influencing the entire retail automation industry
- Analyzing each entity along with related major companies by product type for implementation type
- Estimating the market for retail automation end users
- Tracking ongoing and upcoming implementation of retail automation market developments by various companies and forecasting the market based on developments and other critical parameters
- Arriving at the market size by analyzing retail automation companies based on countries and then combining it to get the market estimate by region
- Verifying estimates and crosschecking them through a discussion with key opinion leaders, including C-level Executives, directors, and operation managers
Top-Down Approach
- Focusing initially on topline investments by market players in the retail automation ecosystem
- Calculating the market size based on the revenue generated by market players through the sales of retail automation products
- Mapping the use of different product type in different end user and implementation types
- Building and developing the information related to the revenue generated by market players through key products
- Estimating the geographic split using secondary sources considering factors, such as the number of players in a specific country and region, the role of major players in the development of innovative products, and adoption and penetration rates in a particular country for various segments
Data Triangulation
After arriving at the overall market size from the market size estimation process explained in the previous section, the total market was split into several segments and subsegments. Data triangulation procedure was employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides, and the market size was validated using top-down and bottom-up approaches.
Market Definition
Retail automation refers to the use of automation technologies and processes across various facets of retail operations. The multiple benefits associated with retail automation include real-time information flow across the critical systems that perform traditional transaction functions at point-of-sale (PoS) terminals; improved customer service with interactive kiosks and self-checkout systems; and efficient store management with loss prevention and out-of-stock control, among others. Retail automation solutions are used by various end users, such as hypermarkets, supermarkets, non-food retail stores, and specialty stores.
Key Stakeholders
- Original equipment manufacturers (OEMs)
- Semiconductor component manufacturers and distributors
- Technology consultants and system integrators
- Equipment distributors and suppliers
- Related accessories suppliers for retail automation
- Standard device and technology suppliers to system integrators
- Research organizations and consulting companies
- Government bodies such as regulating authorities and policymakers
- Venture capitalists and private equity firms
- Associations, organizations, and alliances related to retail automation
Report Objectives
- To describe and forecast the retail automation market, by product type, implementation type, and end user, in terms of value
- To forecast the market size for various segments concerning four key regions, namely, North America, Europe, Asia Pacific, and Rest of the World (RoW), in terms of value
- To provide detailed information regarding the major factors influencing the market growth (drivers, restraints, opportunities, and challenges).
- To forecast the size of the robots deployed in the retail automation market, by type, in terms of volume
- To strategically analyze micromarkets1 for individual growth trends, prospects, and contributions to the total market
- To analyze market opportunities for stakeholders by identifying well-developed segments of the retail automation market
- To strategically analyze the ecosystem, regulatory landscape, patent landscape, Porter’s five forces, import and export scenarios, tariff analysis, and case studies pertaining to the market under study
- To strategically profile the key players and comprehensively analyze their market position as per ranking and core competencies2, along with detailing the competitive landscape for market leaders
- To analyze strategic developments, such as product launches, related developments, acquisitions, expansions, and agreements, in the market
Customization Options
With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Geographic Analysis
- Further breakdown of regions into respective countries
Growth opportunities and latent adjacency in Retail Automation Market
Can we purchase just the oil and gas (section 8,3) in the "Retail Automation Market by Product Type" report?
Does the Market sizing by geography of retail automation market include a breakdown by country? We are specifically interested in the market size for USA.
Can you provide a sample for Retail Automation Market by Product Type (Physical Electronic POS and Unattended Terminal), Industry Vertical (Food/Non-food, Oil & Gas, Transport & Logistics, Healthcare & Personal Care, and Hospitality), & Geography - Analysis & Forecast to 2014 - 2020
Does the Retail Automation report itself cost $4650 or is that a license to view all the reports? We'd likely only be interested in the singular report.
I am interested in purchasing Retail Automation report. In order to do so, I need a completed W-9 form. Please contact me via e-mail and we can discuss.
I am interested in the European and EMEA POS terminal market as well as the electronic cash registers.
What details could one expect to receive for section 7.2.2.1 – Kiosks/Vending Machines? How many pages worth of data are dedicated to this market?
We are interested in the size of the ESL market, specifically as it relates to the retail markets in Europe and the US. It appears this report classifies ESLs with Supply Chain products rather than POS. We want to confirm we would be able to quantify the market size for the digital price tag used on the shelves of grocery stores/ retail shops / pharmacies.
What are 'unattended terminals" in your report? Are these thin client "dumb" terminals? We are may be interested in buying Section 7 Retail Automation by Product Type. If we do, we want more historical data. Is there data for before 2013? How far back can you go?
We are looking to buy Retail Automation Market by Product Type (Physical Electronic POS and Unattended Terminal), Industry Vertical (Food/Non-food, Oil & Gas, Transport & Logistics, Healthcare & Personal Care, and Hospitality), & Geography - Analysis & Forecast to 2014 - 2020
We are looking for POS OEM(terminal and mPOS) market share by Revenue and unit shipments. Do you have it?