The global retail automation market is set to grow from $14.5 billion in 2024 to approximately $36 billion by 2034, according to a new report by Exactitude Consultancy. This growth represents a compound annual growth rate (CAGR) of 9.5%. Key factors behind this surge include rapid technological advancements, increased focus on operational efficiency, and rising consumer expectations for faster and more convenient shopping experiences.
Retailers are adopting automation tools such as self-service kiosks, point-of-sale (POS) systems, AI-based analytics, and robotics to remain competitive in a changing retail environment.
Key Growth Drivers
Several trends are pushing retailers to automate their operations:
- Faster service expectations: Shoppers want quicker and more convenient experiences. This is driving the use of self-checkout systems, mobile payments, and automated inventory tools.
- Artificial Intelligence (AI) and Machine Learning (ML): These technologies help businesses personalize service, improve supply chains, and streamline operations.
- Cost reduction: Retailers are turning to automation to lower labor costs and improve efficiency.
- Data security and regulations: Automated systems offer better ways to handle and protect customer data, helping businesses meet regulatory standards.
Market Breakdown by Segment
The retail automation market is divided by product type, application, end-user, deployment method, and region.
- Point-of-Sale (POS) systems lead the market with about 30% share. Modern POS systems offer mobile access, cloud storage, and data analysis features.
- Self-checkout systems hold 15% of the market, helping stores cut down on queues and reduce staff needs.
- Mobile payment solutions make up 20%, driven by the global move to cashless payments and widespread smartphone use.
- Inventory and supply chain management (SCM) systems account for 18%. These tools give retailers better visibility and help track products in real time.
- Workforce management tools have a 10% share, helping with staff scheduling and operations.
- Customer relationship management (CRM) software makes up 5%, helping stores connect with and retain customers.
- E-commerce platforms now represent 25% of the market, fueled by the shift to online shopping during the COVID-19 pandemic.
Applications and End Users
Retail automation is being used in many store types, including supermarkets, department stores, specialty shops, convenience stores, and online platforms.
The grocery sector is currently the largest user, due to its need to process large volumes of transactions quickly. Other key sectors like fashion, electronics, health and beauty, and home improvement are also adopting automation to improve service and manage stock.
Deployment and Technology Trends
Retail automation solutions come in two main formats: on-premises and cloud-based.
- On-premises systems offer higher security and customization, making them popular among larger retailers.
- Cloud-based platforms are growing fast, thanks to their scalability, lower upfront costs, and real-time access to data.
Advanced technologies are also playing a big role:
- Artificial Intelligence (AI) and Internet of Things (IoT) are making systems smarter and more responsive.
- Cloud computing allows retailers to manage operations across multiple locations efficiently.
Regional Insights
- North America leads the market, contributing around 48% of global revenue. The region benefits from strong digital infrastructure and investments from major players like Amazon Robotics and Zebra Technologies.
- Europe holds the second-largest share at 30%. Countries such as Germany, the UK, and France are adopting digital retail tools to meet growing consumer expectations.
- Asia-Pacific is the fastest-growing region, with a projected CAGR of 15%. China and India are driving this growth due to rising internet use, urbanization, and a growing middle class. However, infrastructure and regulatory issues may slow progress.
- Latin America, the Middle East, and Africa are also seeing rising adoption. Mobile commerce and urban growth are helping drive demand, though limited technology infrastructure and economic differences present challenges.
As retailers continue to modernize and meet new consumer demands, the retail automation market is expected to grow steadily over the next decade. Investments in smart, connected technologies will be key to shaping the future of global retail.
