Retail robots are machines that utilize artificial intelligence and computer vision to perform simple repetitive tasks more efficiently as compared to human workers. They can identify products, track inventory levels, organize shelves and assist customers. Retail robots offer several advantages such as they operate continuously without breaks, reduce operational costs by replacing human labor for mundane tasks, improve productivity and ensure accuracy in operations. Their deployment helps retailers optimize warehouse operations and improve customer service by providing information through kiosks and virtual assistants.
The retail robots market is estimated to be valued at US$ 15.63 Bn in 2023 and is expected to exhibit a CAGR of 30% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the retail robots market is growing adoption in the e-commerce sector. E-commerce businesses require robust warehouse management systems to efficiently process high volumes of orders. Retail robots help automate sorting, packaging and delivery of products in warehouses. This allows e-commerce companies to scale up operations while maintaining efficiency. Rapid growth of online shopping driven by rising internet and smartphone penetration is fueling demand for warehouse automation solutions. Additionally, advancements in computer vision, machine learning and mobility are enabling retail robots to perform complex tasks like inventory management, price checks and product recommendations. Their deployment helps retailers gain real-time insights into operations and make data-driven decisions.
Threat of new entrants: Low barriers to entry exists for robotics technology adoption by retailers. However, presence of established players poses challenge for new entrants to gain customer loyalty and brand identity.
Bargaining power of buyers: Large retailers have high bargaining power due to their sizable procurement needs. They can negotiate on price and demand additional services. However, functionality and benefits offered by robots attract more buyers.
Bargaining power of suppliers: Major robotics companies have technological expertise, thereby maintaining edge over needs of retailers. However, increasing demand is driving more suppliers to enter retail robotics market.
Threat of new substitutes: Adoption of other automation technologies like computer vision, machine learning, artificial intelligence, etc. can replace routine jobs performed by retail robots. However,robotics offer advantages like mobility, dexterity and social skills.
Competitive rivalry: Intense competition exists among major players due to their global presence and wide product portfolio. Manufacturers distinguish based on product performance, capabilities andcompetitive pricing to cope with competition.
The Global Retail Robots Market Size is expected to witness high growth, exhibiting CAGR of 30%over the forecast period, due to increasing labor cost pressures and growing adoption of automation solutions across retailers.
Regional analysis: North America dominates retail robotics market currently due to high technology adoption. However, Asia Pacific is expected to grow at fastest pace owing to rapid industrialization and retail expansion in countries like China and India. Europe also presents lucrative opportunities for key players.
Key players operating in the Retail Robots Market are Amazon Robotics, Bossa Nova, Simbe Robotics, ABB Robotics, Greyorange, Softbank Robotics, Honda Motor Co. Limited., and others. Key players are focusing on product innovation, automation capabilities and foraying into new application areas to strengthen their market position.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it