Retail Automation Market Research Report By Type (Electronic Shelf Labels (ESL), Point of Sale (PoS), Automatic Storage & Retrieval Systems (AS/RS), Barcode & RFID, Automated Conveyor, Warehouse Robotics, Others), by Component (Hardware, Software (Inventory Management Systems, Chatbots and Virtual Assistants, Workforce Management Software, Logistics & Supply Chain Management, AI-Based Demand Forecasting, Retail Apps & Online Store Applications, Analytics And Business Intelligence), Services), by Implementation (On-Store Premises and Warehouses), by End-User (Hypermarkets, Supermarkets, Single Item Stores, Fuel Stations, Retail Pharmacies and Others) and By Region (North America, Europe, Asia-Pacific, Middle East and Africa, South America) –Market Forecast Till 2032

Retail Automation Market Summary

As per Market Research Future Analysis, the Retail Automation Market is set to grow from USD 15,658.54 million in 2024 to USD 59,658.5 million by 2032, with a CAGR of 18.20% during the forecast period. The market was valued at USD 13,247.5 million in 2023. This growth is driven by significant investments from retail giants, the rise of e-commerce, increased consumer spending, and technological advancements. Key automation technologies include AI, robotics, and inventory management systems, which enhance operational efficiency and customer experience. The market is segmented by type, component, implementation, and end-user, with Point of Sale (PoS) systems and warehouse automation leading in revenue and share, respectively. North America dominated the market in 2022, accounting for approximately 46.2% of the total share, followed by Asia-Pacific as a rapidly growing region.

Key Market Trends & Highlights

The Retail Automation Market is witnessing transformative trends driven by technology and consumer behavior.

• Market growth from USD 15,658.54 million in 2024 to USD 59,658.5 million by 2032.
• Point of Sale (PoS) systems contributed around 25.6% to market revenue in 2022.
• North America held ~46.2% of the retail automation market share in 2022.
• Warehouse automation is crucial for optimizing logistics in the e-commerce landscape.

Market Size & Forecast

2024 Market Size: USD 15,658.54 million

2032 Market Size: USD 59,658.5 million

CAGR: 18.20%

2023 Market Size: USD 13,247.5 million

Major Players

Key players include NCR Corporation, Toshiba Global Commerce Solutions, Fujitsu, Diebold Nixdorf, and Datalogic S.P.A.

Retail automation is the use of new tools and technology to streamline processes and improve operational efficiency. These often include hardware and software/technology solutions to accurately and consistently perform time-consuming and repetitive tasks. The retail automation market is experiencing a significant boost due to substantial investments made by big retail giants along with the growth of e-commerce industry, increase in individual spending capacities, economic growth, technological advancements, and changing consumer preferences.

As per Analyst at MRFR, “The rapid pace of technological advancements coupled with shortage of skilled labors has led to the development of sophisticated automation systems for retail, such as inventory management, robotics, and artificial intelligence. As individual spending capacities rise, consumers are more likely to adopt new technologies, which in turn fuel the demand for retail automation.”

Figure 1: Retail Automation Market Size, 2023-2032 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Retail Automation Market Trends

Incraesing Use of AI in Retail Industry

The retail industry is constantly changing due to increasing customer demands and the rapid development of new technologies. AI in retail ensures better demand forecasting. AI business intelligence tools predict industry changes by extracting insights from market, consumer, and competitive data to make proactive changes to a company's marketing, merchandising, and business strategy. Predictive data can also personalize customer experiences by predicting current products and trends. Businesses can also create reports that provide deeper insight into how to improve customer loyalty and satisfaction. Data-driven insights enable personalized campaigns, such as messages tailored to emailed receipts.

AI companies can help in building an interactive chat program which is a great way to leverage AI technology while improving customer service and retail engagement. These bots use AI and machine learning to communicate with customers, answer common questions, and provide helpful answers and results. In return, these bots collect valuable customer data that can be used to make future business decisions. AI can also help in logistics management systems by adjusting retailers' inventory, staffing, distribution, and delivery schedules in real time, creating a highly efficient supply and fulfillment chains while providing high-quality, instant access and support.

Retail Automation Market Segment Insights

Retail Automation Type Insights

Based on type, the Retail Automation Market segmentation into Electronic Shelf Labels (ESL), Point of Sale (PoS), Automatic Storage & Retrieval Systems (AS/RS), barcode & RFID, automated conveyor, warehouse robotics, others. Point of Sale (PoS) would be the majority shareholder in 2022, contributing around 25.6% to the market revenue. POS systems automate many retail operations, leading to reduced labor costs and increased efficiency. POS systems reduce the risk of human error in sales transactions and inventory management.

This increased accuracy of data allows retailers to make informed decisions based on accurate sales and inventory data, resulting in more strategic business decisions and with helps in increasing sales.

Retail Automation Component Insights

Based on component, the Retail Automation Market is segmented into hardware, software and services. The software segment is further bifurcated into inventory management systems, chatbots and virtual assistants, workforce management software, logistics & supply chain management, AI-based demand forecasting, retail apps & online store applications, analytics and business intelligence. AI allows businesses to synchronize inventory across multiple warehouses, retail stores, and online marketplaces. By providing a central and accurate view of inventory across all locations, AI enables more efficient distribution and replenishment, better customer service, and significantly reduces the risk of overselling.

FIGURE 2: RETAIL AUTOMATION MARKET, BY TYPE, 2022 VS 2032 (USD MILLION)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Retail Automation Implementation Insights

Based on implementation, the Retail Automation Market is segmented into On-Store Premises and Warehouse. Warehouse held the majority share in 2022. Warehouse automation involves using technology to optimize the operations of distribution centers, fulfillment centers, and warehouses. This method helps retailers optimize their logistics and fulfillment processes. This is extremely important in e-commerce landscape. Retailers are using automation solutions such as automated conveyor systems, robotic order picking systems, and inventory management software to address the complexities of modern supply chain management.

Retail Automation End-User Insights

Based on end-user, the Retail Automation Market is segmented into hypermarkets, supermarkets, single item stores, fuel stations, retail pharmacies and others. The hypermarkets held the majority share in 2022. Hypermarket automation contributes to efficiency by streamlining checkout, managing large inventory volumes, and increasing customer loyalty with personalized promotions. The growth of the hypermarket sector is primarily due to the need to improve operational efficiency and provide a seamless shopping experience. Retailers in this sector are investing in automation technology to process high volume transactions and provide innovative services to their customers.

Additionally, market growth is driven by the increasing demand for contactless self-checkout solutions that meet consumers' evolving preferences in hypermarkets.

Retail Automation Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East and Africa and South America. North America accounted for ~ 46.2% retail automation market in 2022. North America is likely to be the largest contributor to the retail automation market. This includes the US, Canada, and Mexico. The growth of retail automation in North America is primarily driven by the increasing demand to improve customer experience and operational efficiency. Market growth in this region is also driven by the increasing adoption of advanced technologies such as artificial intelligence and machine learning in retail automation solutions.

Asia Pacific is one of the fastest growing markets for retail automation in the world. The region is experiencing high population growth and economic development, as well as increased domestic consumption, increasing the need for efficient retail operations, logistics and warehousing. The Asia Pacific region is expected to witness significant growth due to increasing adoption of automation technology and increasing demand for efficient material handling, as well as government policies to implement automation technology.

The growth of the retail automation market in Europe is primarily driven by the dire need for cost-effective solutions and the pursuit of improved customer experience. The region is rapidly increasing the adoption of technologies such as RFID, smart shelving, and automated inventory management systems to optimize supply chain processes and reduce operational costs. Additionally, European retail is focusing on sustainability and environmental responsibility, driving the adoption of automation technologies to minimize waste and energy consumption. This eco-friendly approach not only meets legal requirements, but also reflects the growing environmental awareness of consumers.

FIGURE 3: RETAIL AUTOMATION MARKET SIZE BY REGION 2022 VS 2032

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Mexico, Germany, UK, France, Italy, Spain, China, Japan, and India.

Retail Automation Key Market Players & Competitive Insights

The global market for retail automation has witnessed significant growth over the forecast period due to the growing e-commerce industry. There are several domestic, regional, and global players operating in the retail automation market who continuously strive to gain a significant share of the overall market.

During the study, MRFR has analyzed some of the major players in the Retail Automation market who have contributed to the market growth includes Fujitsu, Toshiba Global Commerce Solutions, Honeywell International Inc., Posiflex Technology Inc., First DataCorp, KUKA AG, Diebold Nixdorf, Incorporated, Zebra Technologies Corp., NCR Corporation, Kiosk & Display, Xerox Corporation, Probiz Technologies, UiPath, EK Robotics GmbH, and Datalogic SpA among others.

Among these, Datalogic SpA, Diebold Nixdorf, Fujitsu, NCR Corporation and Toshiba Global Commerce Solutions are among the top 5 players in the Retail Automation Market. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.

Key Companies in the Retail Automation market include

• NCR Corporation

• Toshiba Global Commerce Solutions

• Fujitsu

• Diebold Nixdorf, Incorporated

• Datalogic S.P.A.

• Honeywell International Inc

• Posiflex Technology, Inc

• First Datacorp

• Kuka AG

• Zebra Technologies Corp

• Kiosk & Display

• Xerox Corporation

• Probiz Technologies

• Uipath

• Ek Robotics Gmbh

Retail Automation Industry Developments

• Q2 2024: Walmart to open new automated distribution center in Indiana Walmart announced the opening of a new high-tech automated distribution center in Indiana, designed to streamline supply chain operations and improve delivery speed for its retail stores.
• Q2 2024: Diebold Nixdorf Launches New Self-Checkout Solution for Retailers Diebold Nixdorf unveiled its latest self-checkout system, Vynamic Smart Vision, aimed at enhancing automation and reducing friction in retail checkout experiences.
• Q2 2024: Avery Dennison Acquires RFID Business from Smartrac Avery Dennison completed the acquisition of Smartrac’s RFID inlay business, expanding its portfolio in retail automation and supply chain tracking technologies.
• Q3 2024: Standard AI raises $150M Series C to expand autonomous checkout technology Standard AI secured $150 million in Series C funding to accelerate the deployment of its AI-powered autonomous checkout solutions in retail stores.
• Q3 2024: Amazon expands Just Walk Out technology to new Whole Foods locations Amazon announced the rollout of its cashierless Just Walk Out technology to additional Whole Foods Market stores, further automating the in-store shopping experience.
• Q3 2024: Kroger and Ocado open new automated fulfillment center in Texas Kroger, in partnership with Ocado, opened a new automated customer fulfillment center in Texas, leveraging robotics and AI to optimize grocery order processing.
• Q4 2024: Toshiba Global Commerce Solutions and Microsoft Announce Strategic Partnership to Accelerate Retail Automation Toshiba Global Commerce Solutions and Microsoft entered a strategic partnership to co-develop cloud-based retail automation solutions, focusing on AI-driven checkout and inventory management.
• Q4 2024: Zebra Technologies Launches New SmartSight Robot for Retail Inventory Automation Zebra Technologies introduced the SmartSight 5000, a new robot designed to automate inventory tracking and shelf analytics in large retail environments.
• Q1 2025: JD.com opens fully automated retail store in Shanghai JD.com launched a new fully automated retail store in Shanghai, featuring AI-powered checkout, robotic shelf stocking, and real-time inventory management.
• Q1 2025: Shopify acquires retail automation startup Focal Systems Shopify acquired Focal Systems, a startup specializing in AI-powered shelf monitoring and automation, to enhance its retail technology offerings.
• Q2 2025: Instacart partners with Fabric to deploy micro-fulfillment automation Instacart announced a partnership with Fabric to implement automated micro-fulfillment centers, aiming to speed up grocery order processing and delivery.
• Q2 2025: Panasonic Connect Unveils New AI-Powered Checkout System for Supermarkets Panasonic Connect launched an AI-powered checkout system designed to automate item recognition and payment processing in supermarket environments.

Retail Automation Market Segmentation

Retail Automation Type Outlook

• Electronic Shelf Labels (ESL)
• Point of Sale (PoS)
• Automatic Storage & Retrieval Systems (AS/RS)
• Barcode & RFID
• Automated Conveyor
• Warehouse Robotics
• Others

Retail Automation Component Outlook

• Hardware
• Software
  • Inventory Management Systems
  • Chatbots and Virtual Assistants
  • Workforce Management Software
  • Logistics & Supply Chain Management
  • AI-Based Demand Forecasting
  • Retail Apps & Online Store Applications
  • Analytics and Business Intelligence
• Services

Retail Automation Implementation Outlook

• On-Store Premises
• Warehouse

Retail Automation End-User Outlook

• Hypermarkets
• Retail Pharmacies
• Supermarkets
• Single Item Stores
• Fuel Stations
• Others

Retail Automation Regional Outlook

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Rest of Asia-Pacific
• Middle East & Africa
  • South America

Attribute/Metric	Details
Market Size 2023	USD 13,247.5 million
Market Size 2024	USD 15658.54 million
Market Size 2032	USD 59,658.5 million
Compound Annual Growth Rate (CAGR)	18.20% (2024-2032)
Base Year	2023
Market Forecast Period	2024-2032
Historical Data	2019- 2022
Market Forecast Units	Value (USD Million)
Report Coverage	Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered	Type, Component, Implementation, End-User and Region
Geographies Covered	Europe, North America, Asia-Pacific, Middle East & Africa, and South America
Countries Covered	US, Canada, Mexico, Germany, U.K., Italy, France, Japan, China, India.
Key Companies Profiled	·       NCR Corporation·       Toshiba Global Commerce Solutions·       Fujitsu·       Diebold Nixdorf, Incorporated·       Datalogic S.P.A.·       Honeywell International Inc·       Posiflex Technology, Inc·       First Datacorp·       Kuka AG·       Zebra Technologies Corp·       Kiosk & Display·       Xerox Corporation·       Probiz Technologies·       Uipath·       Ek Robotics Gmbh
Key Market Opportunities	·       Digital transformation across retail enterprise
Key Market Dynamics	·       Investments by big retail giants in retail automation·       Increase in individual spending capacities