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The Global Retail Automation Market size is forecast to increase by USD 11.96 billion, at a CAGR of 10.87% between 2023 and 2028. Market growth hinges on multiple factors, notably the widespread uptake of contactless payment solutions, surging demand for retail automation products within the e-commerce sector, and the growing acceptance of innovative solutions in retail automation. These dynamics underscore a shift towards seamless, efficient, and secure transactions, driving the evolution of payment technologies. The surge in contactless payments reflects changing consumer preferences and the need for convenient, hygienic payment methods. Concurrently, the e-commerce boom propels demand for automation tools, optimizing operations and enhancing customer experiences. Embracing innovation, especially in retail automation, is crucial for businesses to stay competitive, improve efficiency, and meet evolving consumer expectations in today's rapidly evolving market landscape.
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The Market is driven by a surge in E-commerce warehouses and the adoption of Automation technology such as the Internet of Things (IoT), Machine Learning (ML), and Artificial intelligence (AI). Retailers are integrating advanced POS systems like Markt POS and Cloud-based POS software for streamlined operations and Self-checkout systems for enhanced customer experiences. However, challenges like Cybersecurity threats and managing Supply chain management complexities persist. Trends show a shift towards Omnichannel retailing, increased use of Autonomous mobile robotics, and improving Organizational efficiency through Retail automation software and Robotics process automation. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The widespread embrace of contactless payment solutions is a key catalyst propelling the growth of the market. The introduction of mobile payment gateways has streamlined bill payments, eliminating the need for customers to carry physical credit or debit cards. Retailers are increasingly integrating NFC POS terminals, which not only facilitate mobile payments but also enhance the value and efficiency of their marketing endeavors.
Moreover, the rising adoption of contactless EMV cards is expected to further drive the deployment of NFC POS terminals. Additionally, the market's growth is fueled by factors such as the growing demand for quicker checkouts in retail stores, the widespread adoption of EMV cards, improved information management among retailers, and an increased emphasis on secure payment methods during the forecast period.
The rise of big data management is a crucial trend driving the growth of the market. The increasing adoption of cloud-based solutions facilitates the integration of more backend software in the cloud, ensuring smooth operations. This empowers merchants to access customer and product data across various platforms, bolstering customer relationship management (CRM). Dealing with substantial data volumes necessitates highly compatible retail automation solutions capable of capturing information such as demographics, payment preferences, and purchasing behavior.
Moreover, opportunities abound for businesses that incorporate point-of-sale (POS) systems in the sector, including engaging with customers throughout their visits and more. These opportunities are poised to fuel market growth during the forecast period.
Privacy and security concerns pose a significant obstacle to the growth of the market. Many customers are apprehensive about the use of their personal data, which is collected during payment transactions for marketing purposes. Mobile service providers gather this personal data to tailor advertising messages and target specific audiences. They employ cookie tracking to collect information, including customer behavior, profiling, and data mining. Both e-commerce and m-commerce involve real-time financial transactions conducted through payment gateways.
Therefore, the potential theft of financial data on these platforms can result in substantial losses for consumers. Security risks persist in transactions conducted through retail automation, with the prospect of unauthorized access to such data deterring users from utilizing retail automation for their transactions. Consequently, this is expected to hinder market growth in the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
The market share growth by the point-of-sale segment will be significant during the forecast period. POS automation systems resulted in a convenient and easy shopping experience and significantly increased customer expectations for a better quality of services. There has been a huge deployment of fixed POS terminals at big retail stores, which, in turn, drives the growth of the POS segment of the global market.
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The point-of-sale segment was the largest and was valued at USD 3.66 billion in 2018. POS is the point or location where a retail transaction is completed. POS is basically the combination of hardware and software that is used to manage the sales transaction of anything bought by the customer. There are various advantages of using POS automation systems compared to the traditional cash register. It can store, share, and keep track of sales, payment, and customer information. POS automation systems save a lot of time and increase efficiency and accuracy in inventory reporting and ordering. Moreover, the high return on investment and ease of use of POS enhance the demand for POS automation systems. Moreover, a wide range of applications of POS automation systems, such as inventory management, printing bills, and payments, are expected to drive the growth of the POS segment of the global market during the forecast period.
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APAC is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in APAC is expected to grow at a considerable rate owing to the increase in the adoption of retail automation solutions during the forecast period. Different sectors in India and China are using payment gateway solutions integrated with online platforms and hardware devices, such as smartphones and POS systems, to prevent fraudulence in transactions. Developing sectors, such as e-commerce and BFSI, will adopt retail automation solutions to increase the efficiency of payment processes and ensure customer satisfaction. Such factors will increase the market growth in this region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
FAMETECH INC - The company offers retail automation such as POS-1000, TP-1X15, and TP-7715. Also, the company provides AIDC (automatic identification and data collection) and POS (Point-of-Sale) solutions.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative market research report analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. In market research and growth, data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The Market is propelled by various key factors. E-commerce warehouses and distribution centers are embracing automation technology to streamline supply chain management and enhance organizational efficiency. Cybersecurity threats prompt increased investment in AI and ML-powered solutions like cloud-based POS software to mitigate risks. Companies like Markt POS, Brain Corporation, and Dane Technologies lead innovation in retail automation software and inventory-scanning systems. The market landscape depends on Delivery schedules, Automated conveyor, On-Store Premises, and Fulfillment centers. Autonomous systems, autonomous guided vehicles, and robotics process automation optimize warehouse and inventory operations. In-store segments integrate IoT and camera technology for personalized campaigns and demand forecasting. AI business intelligence tools and interactive chat programs drive data-driven insights and logistics management efficiency. Electronic Shelf Labels (ESL), Barcode & RFID, and automated conveyors bolster point of sale (PoS) and warehouse robotics for seamless supply and fulfillment chains across retail giants, catering to diverse individual spending capacities and fostering economic growth.
Market Scope |
|
Report Coverage |
Details |
Page number |
187 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.87% |
Market Growth 2024-2028 |
USD 11.96 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.53 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 32% |
Key countries |
China, US, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Datalogic SpA, Diebold Nixdorf Inc., ek robotics GmbH, FAMETECH INC., Fiserv Inc., Fujitsu Ltd., Grey Orange Pte. Ltd., Honeywell International Inc., iFuture Robotics, Infoplus Commerce, MIDEA Group Co. Ltd., Napse, NCR Voyix Corp., Posiflex Technology Inc., Pricer AB, Sea Point China Ltd., Simbe Robotics Inc., Toshiba Corp., Vinculum Solutions Pvt. Ltd., and Zebra Technologies Corp. |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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