The retail automation market is projected to grow from USD 11.3 billion in 2018 to USD 23.5 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 11.0% during the forecast period (2019–2025). Retail automation offer several advantages, such as; low cost, accuracy, speed and high-quality performance for customers in the retail sector, which, in turn, help in the growth of the market. The implementation of automated technologies in retail industry is one of the major factor driving the market. The objective of the report is to define, describe, and forecast the market size based on type, implementation, Vertical, and Region.
Retail Automation Market By type, camera segment to grow at the highest CAGR during the forecast period
The retail automation market for camera segment is expected to grow at the highest CAGR of 20.6% during the forecast period. The retail shops and malls are more prone to security risks, such as theft and inventory loss compared with other business properties. Investing in cameras as a retail solution offers several long-term advantages such as maximizing the store profits, decreasing the retail losses, reducing the thefts, and evaluating the employee tasks, as well as understanding the consumer buying behavior.
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Retail Automation Market By implementation, the in-store segment to record the highest CAGR during the forecast period
The number of physical stores is increasing gradually in developing regions. The developing regions are highly populated, where the majority of people prefer to buy daily items from stores due to easy accessibility. Thus, despite the evolution of e-commerce, there are visitors who still prefer going and buying products in-stores. The evolving technology in the retail industry would be influential in attracting more number of customers into physical stores. The benefits of automated technologies have led the retailers to implement them in the physical stores. Thus, all these factors contribute to the growth of retail automation market for in-stores in the coming years.
Retail Automation Market Dynamics
Driver: Increasing demand for retail automation products to drive the global retail automation market
Retail automation gives flexible and easy-to-use solutions for both retailers and customers with innovative technologies. The demand for automated products is accelerated by their benefits such as manageable business platforms, efficiency in product supplies, and faster sales processes. This helps increase the revenues of retailers through cost advantage and ensures a productive environment for the growth of the market globally.
RESTRAINTS: Dependency on the internet and electricity
Retail automation products and solutions rely completely on electricity and the Internet. Unattended terminals, such as kiosks and vending machines, require a constant and uninterrupted supply of electricity to ensure the availability of various products to customers at all times. Moreover, customers nowadays prefer making payments online or by card, for which high-speed internet connectivity is essential to ensure fast and timely payments. However, internet speed may be hampered by issues such as changes in climatic conditions, lower bandwidth, or server traffic. The unavailability or failure of electricity and internet connectivity can restrict the growth of the retail automation market.
The lack of such facilities in rural areas restricts the installation of automated kiosks or vending machines, which require both electricity and the Internet. This dependence creates major hurdles for the growth of the market.
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