Retail robots, which are artificial intelligence (AI) equipped systems are able to collect exponentially accurate data regarding buyers’ habits and preferences. This information allows retailers to grow their sales by recommending similar or suitable items to the customers.
Retail robots is no longer a concept of the past, with the rise in the acceptance of automation in supermarkets, department stores, chain stores, and specialty stores. The retail sector is one of the principal industries that has benefited from AI and robotics implementation. Through the implementation of automation and intelligence i.e. retail robotics, retailers are able to revise their strategies and become more customer-centric. These robots are also able to handle responsibilities such as inventory monitoring and fulfilling needs of omnichannel orders. While concerns have arisen regarding automation leading to job losses, the increasing use of retail robotics, especially in high profile retailers are inevitable.
The global retail robots market is expected to witness significant growth during the forecast period (2021–2028) due to robotics allowing brick and mortar stores to become more customer-oriented. Retail robots prove to be beneficial for in-store services as well as they can provide retailers with information for on the shelf inventory, price tags changes as well as changing customer preferences. Retail robotics gives rise to the scope for personalizing the products that are in stock as well, enabling restocking decisions to be better informed. Customers are getting directly benefitted from machine learning systems by being able to use automated checkouts, helping buyers to avoid queues or getting quick support through digital kiosks.
Currently, major robot tests are underway in retail stores, they have been witnessed to have transformed the supply chain operations in several retail warehouses and distribution centers. In addition, innovations in computer vision, AI, deep learning, and robotic mechanics are facilitating robots to become increasingly adept at performing traditionally harder-to-automate tasks.
However, for retail businesses that are just starting to introduce technologies into their operations, the initial cost of retail robots can be high and therefore seem off-putting. The initial costs usually encompass customized software in order to eventually improve the business. Other costs that are associated to adopt robotics include hiring specialists for maintenance services. While initial rollouts of such developments come at a price, companies are looking at the long-term benefits and the overall effect on the business, aiding in overcoming this restraint.
|Base Year:||2020||Market Size in 2020:||US$ 7.1 Bn|
|Historical Data for:||2017 to 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||30.1%||2028 Value Projection:||US$ 55.8 Bn|
Amazon Robotics, Bossa Nova, Simbe Robotics, ABB Robotics, Greyorange, Softbank Robotics, Honda Motor Co. Limited., and others
|Restraints & Challenges:||
Global Retail Robots Market - Impact of Coronavirus (Covid-19) Pandemic
The global battle against COVID-19 has seen technology playing a crucial role in assisting humans in containing the spread of the virus and dealing with the existing cases. One of the critical technology that have made an enormous difference on the ground is robotics. Customers are now cautious visiting crowded places to do shopping and majority of people are preferring to shop online. This has created stress on the retail stores. In such situation retail robots played a very vital role. Retail stores deployed robots to help the customers in place of retail staff to reduce the person to person contact. Retail stores also deployed robots to do mask checking and also provide help in maintaining the social distance in the store.
For instance, Softbank Robotics in partnership with Entrance Robotics in Germany, recently deployed Pepper robots at EDEKA supermarkets in Lindlar. EDEKA, which counts on over 4,100 stores, is the first supermarket chain in Germany to use a humanoid robot as a COVID-19 precautionary measure. The Entrance Robotics team has proved with their solutions that digitalization is a need for the storefront. In keeping with health guidelines, Pepper does mask checking and also provides help in maintaining social distancing. Entrance Robotics developed solutions for the client which included ways to reduce stress and workload for staff and helping ease the majorly older demographic of Lindlar.
Asia Pacific held dominant position in the global retail robots market in 2020.
Asia Pacific held dominant position in the global retail robots market in 2020, accounting for 32% share in terms of value.
Figure 1: Retail Robots Market Share (%), By Region, 2020
North America is expected to grow at a significant CAGR during the forecast period. For instance, retailers such as Amazon and Walmart are using robots in their warehouses and retail stores for functions including inventory scanning, materials handling, and cleaning.
The inventory management segment is expected to hold the largest share in the global retail robots market during the forecasted period.
Figure 2: Global Retail Robots Market Value (US$ Bn) Analysis and Forecast, 2017 - 2028
The global retail robots market was valued at US$ 7.1 Bn in 2020 and is expected to reach US$ 55.8 Bn by 2028 at a CAGR of 30.1% between 2021 and 2028.
Major players operating in the global retail robots market include Amazon Robotics, Bossa Nova, Simbe Robotics, ABB Robotics, Greyorange, Softbank Robotics, Honda Motor Co. Limited., and others
Retail robotics is the intersection of technology, engineering, and science for producing robotic machines, which are used to replicate human actions. The key objective of the retail robotics technology is to enhance the performance of an organization and to produce better outcome. Retail robots offer wide range of applications such as inventory management, delivery management, in-store services, and others.
Rise in need for automation and safety in organizations and availability of affordable, energy-efficient robots drive the growth of the global retail robots market. In addition, increase in labor & energy costs and upsurge in usage of robotics technology in different industry verticals fuel the growth of the market. However, high initial cost of robots and lack of awareness among SMEs (Small and Medium Enterprises) is expected to hamper the growth of the market. On the contrary, surge in adoption of robotics technology in emerging economies and increase in use in diverse applications are the factors expected to provide lucrative opportunities for the growth of the market.
The retail robots market is expected to grow rapidly over the forecast period, driven by advantages such as cost reduction, improved efficiency, increased production, and improved health, and safety at work. The retail robots are used for a wide range of applications including back-office operations, store operations, merchandizing, sales and marketing, customer-facing experiences, etc. Robots provide higher quality products and services more effectively, with less wastage of resources and without causing physical harm to humans due to their autonomous nature. The growing use of retail robots in supermarkets and chain stores will augment the growth of the market in the future.
On the basis of application, the inventory management segment is expected to hold the largest market in the global retail robots market. Investing in warehouse robotics results in increased productivity and accuracy in inventory management. Human errors can be quite costly for businesses and can lead to lower customer satisfaction. The growth of inventory management automates the handling, picking, sorting, and replenishment of products with precision, thus guaranteeing high levels of accuracy in order fulfillment and warehousing operations.
Key features of the study:
“*” marked represents Key Pointers are applicable to other companies as well