RETAIL ROBOTS MARKET ANALYSIS

Retail Robots Market Size and Trends

Global retail robots market is estimated to be valued at US$ 16.67 Billion in 2025 and is expected to reach US$ 104.64 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 30.0% from 2025 to 2032.

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Global retail robots market is expected to witness significant growth during the forecast period due to  rising demand for automation and optimization of workflow in warehousing and inventory management. Retailers are focusing on implementing automated solutions to efficiently handle warehouse operations and streamline supply chain management. Furthermore, developments in AI, computer vision and IoT have enabled robots to perform complex tasks autonomously. There has been increase in  adoption of collaborative robots that can work safely alongside humans. Advancements in mobile robot technology coupled with declining costs can facilitate their greater deployment in the retail industry. However, concerns around job losses due to increased robotics implementation can hamper market growth.

Increasing Labor Costs and Labor Shortages

 Rising labor costs combined with labor shortages can boost adoption of retail robots by merchants and retailers across the globe. In many developed nations, there has been increase in costs associated with hiring and retaining human workers due to increasing minimum wages, healthcare benefits, and other employee-related expenses. With economies growing rapidly and unemployment rates declining sharply, it has become increasingly difficult for businesses to recruit and hire human labor at affordable rates. Furthermore, aspects like increasing employee attrition rates due to better career opportunities elsewhere have also disrupted business continuity for retailers.

To address these challenges, retailers are exploring ways to augment their workforce with robots and automated technologies that minimize dependency on human labor. While the initial investment required for deploying retail robots is high, merchants estimate that within 2-3 years the total cost of ownership for robots would be significantly lower as compared to employing humans. Robots do not require holidays, breaks or overtime pay like human workers and can work round the clock without breaks. Their cost remains fixed irrespective of dynamic market conditions unlike payroll costs which are directly linked to factors like wage inflation and minimum wage increases. Some retailers have reported labor cost savings as high as 30-40% after deploying robots for tasks like inventory monitoring, product replenishment and checkout. As robotics and automation further advances, the total cost of deployment is likely to reduce considerably, thus, strengthening the business case for workforce augmentation with robots.

In December 2022, Dobot introduced the Nova collaborative robots designed for retail automation. These new robots represent the first two Nova models, with payloads of 2 kg and 5 kg. These are specifically engineered for handling tasks in retail and physiotherapy, respectively.