Retail Robots Market: Growing Adoption of Automation in Retail Industry Drives Market Growth

Purvaja Jadhao

posted on 6 months ago — updated on 1 second ago

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The Retail Robots Market is estimated to be valued at US$ 7.1 Bn in 2020 and is expected to exhibit a CAGR of 30.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Retail Robots Market: Growing Adoption of Automation in Retail Industry Drives Market Growth

Market Overview:
The retail industry is witnessing a significant shift towards automation and robotics to enhance operational efficiency and streamline various processes. Retail robots play a crucial role in automating tasks such as inventory management, shelf stocking, price tagging, and customer service. These robots help in reducing labor costs, improving inventory accuracy, and enhancing customer experience. Retailers are increasingly adopting robots and automation technologies to cope with the growing competition and meet the rising consumer demands for faster and more efficient services. The retail robots market is expected to witness high growth due to the increasing focus on enhancing warehouse management, improving supply chain efficiency, and reducing operational costs.

Market Dynamics:
The retail robots market is driven by several factors including the need for labor cost reduction and increasing demand for efficient warehouse management. Robots can perform repetitive tasks with high accuracy and productivity, eliminating the need for human intervention and reducing labor costs for retailers. Moreover, these robots can operate 24/7, ensuring round-the-clock productivity and minimizing errors. Another driving factor is the rising demand for efficient warehouse management to meet the growing e-commerce sector's requirements. Retail robots can efficiently manage inventory, track products, and assist in order fulfillment, improving overall warehouse efficiency. With the increasing adoption of automation technologies in the retail sector, the market for retail robots is expected to witness substantial growth over the forecast period.

Segment Analysis:

The Retail Robots Market Demand can be segmented based on type, component, and application. In terms of type, autonomous mobile robots (AMRs) dominate the market segment. AMRs accounted for the largest market share in 2020 and are expected to continue dominating the market over the forecast period. This dominance can be attributed to their ability to perform various tasks autonomously, such as inventory management, shelf scanning, and item retrieval, thereby enhancing operational efficiency in retail stores.

PEST Analysis:

Political: The political environment plays a crucial role in shaping the retail robots market. Governments' regulations and policies regarding automation in retail stores can impact the adoption of retail robots. Supportive government initiatives to promote automation in labor-intensive industries can drive the growth of the retail robots market.

Economic: The economic factors influencing the retail robots market include the overall economic growth, disposable income of consumers, and cost savings associated with the deployment of retail robots. Retailers are increasingly adopting robots to streamline operations and reduce labor costs, thereby driving market growth.

Social: Changing consumer preferences and expectations, including the demand for a seamless shopping experience and personalized services, are driving the adoption of retail robots. Retailers are leveraging robots to improve customer engagement and offer personalized recommendations, enhancing the overall shopping experience.

Technological: Technological advancements in artificial intelligence, machine learning, and robotics have revolutionized the retail sector. Retail robots equipped with advanced technologies can perform complex tasks, such as stock management, data analytics, and customer assistance, thereby driving market growth.

Key Takeaways:
The global retail robots market is expected to witness high growth, exhibiting a CAGR of 30.1% during the forecast period. This growth can be attributed to the increasing adoption of retail robots by various industry verticals to enhance operational efficiency and improve customer experience.

Regionally, North America dominates the retail robots market due to the presence of major retail giants and early adoption of automation technologies. The region is witnessing significant growth in the e-commerce sector, fostering the demand for retail robots.

Key players operating in the retail robots market include Amazon Robotics, Bossa Nova, Simbe Robotics, ABB Robotics, Greyorange, Softbank Robotics, Honda Motor Co. Limited, among others. These players are focusing on product innovation, strategic partnerships, and mergers and acquisitions to gain a competitive edge in the market.