Retail Automation Market By Product Type (Point of Sale (POS) Terminals, Self-Checkout Kiosks, Vending Machines, Robots and Automated Machines, Electronic Shelf Labels (ESL)), By Application (Retail Stores, Supermarkets and Hypermarkets, E-Commerce, Restaurants), By End-User Industry (Food & Beverage, Apparel, Electronics, Consumer Goods), By Technology (Artificial Intelligence (AI), Machine Learning, Robotics, IoT (Internet of Things)), By Deployment (Cloud-Based, On-Premise); Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Retail Automation Market was valued at USD 25.2 billion in 2023 and will surpass USD 42.2 billion by 2030; growing at a CAGR of 7.7% during 2024 - 2030.

The retail automation market is rapidly evolving, driven by advancements in technology such as Artificial Intelligence (AI), robotics, and the Internet of Things (IoT). This shift towards automation allows retailers to streamline operations, reduce labor costs, and enhance customer experiences. Retail automation solutions include a variety of tools such as point of sale (POS) systems, self-checkout kiosks, vending machines, and AI-powered inventory management systems. As consumer expectations continue to rise, retailers are increasingly relying on automation to remain competitive in a market that demands speed, efficiency, and personalized service. The market is anticipated to grow significantly over the next few years as retail players adopt innovative technologies to optimize their operations.

Point of Sale (POS) Terminals Are Largest Owing to Demand for Efficient Transaction Processing

Within the Product Type segment, Point of Sale (POS) Terminals are the largest subsegment, owing to the growing need for efficient transaction processing in retail environments. POS terminals are fundamental for any retail operation, as they provide the necessary infrastructure to complete sales, manage inventory, and track customer data. These systems have evolved with integrated capabilities such as mobile payment processing, digital wallets, and cloud-based reporting, enabling retailers to improve customer experiences and operational efficiency. The increasing trend of cashless payments, along with the integration of AI and analytics, has further bolstered the demand for advanced POS terminals.

The growing preference for digital and contactless payment methods has led to the proliferation of POS terminals across various retail formats, including supermarkets, restaurants, and e-commerce platforms. Additionally, POS solutions are increasingly being paired with advanced software to offer personalized recommendations and promotional offers, enhancing customer engagement. As the retail industry continues to embrace digital transformation, POS terminals will remain a key driver of growth within the retail automation market.

E-Commerce Is Fastest Growing Application Segment Thanks to Online Shopping Surge

In the Application segment, E-Commerce is the fastest growing area, fueled by the significant rise in online shopping. With consumers increasingly turning to digital channels for shopping, e-commerce platforms have expanded rapidly, prompting retailers to implement automated solutions for order processing, inventory management, and customer service. Retail automation in e-commerce encompasses a range of tools such as automated warehouses, chatbots for customer support, and AI-driven recommendation engines to optimize the online shopping experience.

The COVID-19 pandemic accelerated the shift towards online shopping, leading to a surge in demand for automation technologies that can handle the growing volume of transactions and streamline logistics. As e-commerce companies scale operations globally, they are investing heavily in automation to ensure faster deliveries, reduced human error, and a seamless customer experience. The e-commerce sector’s expansion is expected to continue driving the growth of retail automation solutions for years to come.

Food & Beverage End-User Industry Is Largest, Driven by Demand for Efficiency

Among the End-User Industry segments, the Food & Beverage sector is the largest contributor to the retail automation market. This industry is heavily reliant on automation to manage a wide range of tasks, including point-of-sale transactions, inventory management, and customer ordering. Automation technologies such as self-checkout kiosks, vending machines, and AI-powered ordering systems are increasingly being adopted by quick-service restaurants (QSRs) and fast-food chains to enhance operational efficiency and reduce waiting times.

Additionally, the food and beverage industry has seen a rise in demand for automated solutions that support contactless payment, drive-thru services, and the optimization of supply chains. As consumer preferences continue to evolve towards convenience and speed, food and beverage retailers are leveraging automation technologies to stay competitive. This trend is further amplified by the increasing demand for healthier food options, which requires efficient tracking and management systems that automation can support.

Artificial Intelligence (AI) Is Fastest Growing Technology, Revolutionizing Retail Automation

The Technology segment sees Artificial Intelligence (AI) as the fastest growing driver of retail automation. AI enables retailers to enhance customer interactions, streamline supply chain management, and deliver personalized shopping experiences. AI technologies, such as machine learning algorithms and predictive analytics, are utilized to optimize product recommendations, improve inventory management, and personalize marketing campaigns.

AI-powered tools are also being integrated into self-checkout kiosks, robots, and digital signage to create a seamless and interactive shopping experience. The growing importance of data analytics to understand consumer behavior and preferences further accelerates AI adoption. As AI technology continues to advance, its applications within the retail automation space are expected to expand, driving innovation and growth across the sector.

Cloud-Based Deployment Is Largest Owing to Scalability and Flexibility

In the Deployment segment, Cloud-based solutions dominate due to their scalability, flexibility, and cost-effectiveness. Cloud-based retail automation systems enable retailers to access real-time data from multiple locations, streamline inventory management, and integrate seamlessly with other business systems such as CRM and ERP. These solutions also reduce the need for heavy infrastructure investments, offering a more affordable alternative for small to mid-sized retailers.

The ability to scale cloud-based systems as businesses grow is a significant advantage. Retailers can easily implement new features, update software, and access advanced analytics without the need for large upfront investments. Additionally, cloud deployment allows for the integration of AI, machine learning, and IoT technologies, further enhancing automation capabilities. As more retailers move towards digitalization, cloud-based solutions are becoming a critical component of their automation strategies.

North America Remains the Largest Region for Retail Automation

North America is the largest region for the retail automation market, owing to the rapid adoption of automation technologies across both large retail chains and small businesses. The U.S. and Canada are leaders in implementing advanced automation solutions such as AI-driven POS systems, self-checkout kiosks, and automated warehouses. The region also benefits from a high level of technological innovation, a strong e-commerce sector, and increasing consumer demand for convenient and efficient shopping experiences.

The region’s retail market is mature, and the demand for automation is being driven by the need to enhance customer service, improve inventory management, and reduce operational costs. Moreover, the strong presence of global technology providers, such as Amazon, Walmart, and other retail giants, further accelerates the adoption of automation in North America.

Leading Companies and Competitive Landscape

The retail automation market is highly competitive, with numerous companies offering innovative solutions to meet the growing demands of retailers. Leading players in the market include NCR Corporation, Toshiba Corporation, Honeywell International Inc., VeriFone Systems, and Zebra Technologies Corporation. These companies are continuously innovating and expanding their product portfolios to cater to the evolving needs of the retail industry.

Strategic partnerships, mergers, and acquisitions are common in this market, as companies seek to enhance their technological capabilities and expand their geographic reach. For example, NCR Corporation has expanded its portfolio with the acquisition of several AI-based solution providers, while Honeywell continues to innovate with new automated shelf-scanning robots. As competition intensifies, companies are focusing on offering integrated, scalable, and cost-effective automation solutions to stay ahead in the market.

The market is expected to continue its rapid growth, driven by increasing investments in automation technologies and the continued expansion of e-commerce and retail operations globally.

Recent Developments:

• NCR Corporation launched a new AI-driven self-checkout system that enhances customer experience and speeds up transactions in retail stores.
• Toshiba Corporation partnered with a major supermarket chain to implement its latest automated checkout and inventory tracking technology.
• VeriFone Systems, Inc. announced the acquisition of a leading payments automation firm to expand its POS and self-checkout capabilities for retail.
• Honeywell International Inc. introduced a new automated shelf-scanning robot to help retail businesses optimize inventory management and stock replenishment.
• Panasonic Corporation received regulatory approval to deploy its AI-powered retail robots for product recommendation and customer interaction in retail environments.

List of Leading Companies:

• Advantech Co., Ltd.
• Datalogic S.p.A
• Diebold Nixdorf
• Fujitsu Limited
• Honeywell International Inc.
• Intuiface
• NCR Corporation
• NEC Corporation
• Panasonic Corporation
• Siemens AG
• Square, Inc.
• Sumo Logic
• Toshiba Corporation
• VeriFone Systems, Inc.
• Zebra Technologies Corporation

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